FINRA outside business activity rules for registered bankers who earn referral rewards

The short answer: notify your firm first, and let it decide

If you are a registered representative at a broker-dealer, a SourceX partner reward is compensation from outside your firm. FINRA's outside business activity rule requires prior written notice to your member firm before you accept such compensation, and even before you take on an activity for which you reasonably expect to be paid. The firm then decides whether to allow it, impose conditions or prohibit it. File that notice, and get whatever sign-off your firm's procedures require, before you register as a partner, not after your first introduction.

The rule itself is changing. On September 15, 2026 the SEC approved new FINRA Rule 3290 (Outside Activities), which replaces Rule 3270 (Outside Business Activities) and Rule 3280 (Private Securities Transactions). FINRA said it will announce the effective date in a Regulatory Notice, and until then Rules 3270 and 3280 continue to apply (FINRA update, September 16, 2026).

What the rules say

Rule 3270, in force until Rule 3290 takes effect. In summary, the rule bars a registered person from being compensated, or having a reasonable expectation of compensation, from any business activity outside the scope of their relationship with their member firm unless they have given the firm prior written notice in the form the firm specifies. The firm must then consider whether the activity could interfere with the person's responsibilities to the firm or its customers, or be seen by customers as part of the firm's business, and whether it should be treated as a private securities transaction. It can impose conditions or limits, or prohibit the activity. Read the current rule text in FINRA's rulebook before you file; this summary is not a substitute.

Rule 3290, approved and awaiting an effective date. FINRA describes it as a streamlined outside activities rule that replaces Rules 3270 and 3280 and eliminates reporting of non-investment-related activities. Do not assume a data-licensing referral drops out of reporting under the new rule. It involves introducing companies, sometimes the firm's own clients, in return for pay linked to a transaction, and your firm decides how to classify it.

Rule 2040, payments to unregistered persons. FINRA members and their associated persons may not pay compensation to an unregistered person if receiving it would require that person to register as a broker-dealer (FINRA Rule 2040). It does not govern SourceX's payments to you, but it matters if you plan to pass part of a reward to an unregistered colleague or outside finder.

No finder safe harbor. In 2020 the SEC proposed a limited, conditional exemption from broker registration for finders who help companies raise capital from accredited investors, but it did not finalize it (SEC advisory committee notice, July 2025). That proposal concerned capital raising, not data licensing, and no exemption or safe harbor covers SourceX referral partners.

How the notice rule applies to common banker situations

What to put in your notice to compliance

• The program: the SourceX Partner Portal at refer.sourcex.si, with a copy of the program terms
• What you will do: introduce US companies and share basic fit information only, through the referral form or a referral link
• What you will not do: handle, export or describe confidential records, negotiate price or terms, or touch any funds
• How you are paid: 25% of the eligible platform fees SourceX actually collects from the referred company's licensing deals, capped at $100,000 per referred company, payable only after the buyer pays and SourceX receives its fee
• Whether you expect to introduce firm clients, and how you will disclose the reward to them
• Expected time commitment, and confirmation that you will not use firm letterhead or systems unless approved
• A commitment to update the notice if anything changes, including when Rule 3290 takes effect

Disclosure to the company you introduce

Put it in writing to the company: SourceX may pay you a reward, and that reward comes out of SourceX's own fee, not out of the company's proceeds. If your firm attaches conditions, such as a signed client acknowledgment, follow them exactly. The guide to discussing referral rewards transparently with a business contact has wording that works, and how to talk to business owners about AI covers the conversation that comes before it. Bankers comparing the reward with their own fee arrangements can read M&A advisor fees in the lower middle market.

Questions to ask your compliance team

1. Does the firm treat a paid referral partnership as an outside business activity, and in what form do you want the notice?
2. Do you require approval, not just notice, before I register with the program?
3. May I introduce firm clients, and if so, what disclosure or consent do you require?
4. Should any compensation be paid to the firm rather than to me?
5. How will this activity be classified once Rule 3290 takes effect, and will I need to file again?
6. Are there limits on sharing any reward with colleagues or outside finders?

This is general information, not legal, tax or financial advice. Confirm with your firm's compliance department and your own counsel before acting.

How the program works once you are cleared

1. Register as a partner and receive your referral link.
2. Introduce a US company that meets the baseline, either by sending the owner your link or by submitting the referral form.
3. SourceX qualifies the company on size, history, data breadth and rights with an authorized sponsor such as the owner, CEO or CFO.
4. The company completes a data inventory and agrees price and terms; nothing is binding until it signs.
5. AI labs and data buyers evaluate the opportunity; if the company signs, it delivers under the agreed redaction terms and receives its payment.
6. Your reward is paid after SourceX receives its fee, subject to any conditions your firm has set.

Company eligibility, including 50+ full-time employees at peak (contractors excluded), is set out on the who qualifies page. Rewards are not guaranteed, and the signed agreement and program terms govern the details.

Next step

Send your compliance team the notice checklist above. Once you have their answer in writing, register as a partner, screen your first company with the company fit checker, and browse referral opportunities for M&A advisors.