Important Announcement
We are pleased to share that as of August 1, 2025, Braeden Anderson, the founder of Anderson P.C., has joined Gesmer Updegrove LLP as a Partner. Work currently performed by Anderson P.C. will be transitioning to Gesmer. This website will remain active as a curated archive for legal insights.
Gesmer Updegrove LLP, founded in 1986, is a nationally recognized law firm with a premier reputation for representing high-growth companies, innovative technology pioneers, and venture-backed startups. Together, we are enhancing our ability to provide comprehensive, end-to-end legal support to entrepreneurs, founders, investors, and scaling businesses across every stage of the corporate lifecycle. From formation, fundraising, and IP strategy to tax planning, M&A, securities compliance, enforcement defense, and strategic exits, our combined strengths now span the full spectrum of business law.
Thank you for following and supporting us on this journey. To learn more or to connect with Braeden or a member of the Gesmer team, please visit: www.gesmer.com or e-mail him at braeden.anderson@gesmer.com
FINRA’s December Meeting: Outside Activities Reform and Emerging Legal Challenges
The December 2024 FINRA Board of Governors meeting comes at a critical juncture, as the organization seeks to modernize its regulatory frameworks while grappling with heightened scrutiny of its authority and practices. Key among the discussions was FINRA’s proposal to consolidate its Outside Business Activities (OBA) and Private Securities Transactions (PST) rules into a unified Outside Activities Requirements Rule. However, this initiative takes place against the backdrop of two significant legal challenges: the Alpine Securities Corp. v. FINRA ruling, which questioned FINRA’s expedited expulsion procedures, and the federal lawsuit Preston v. SEC, which challenges the validity of FINRA Rule 3270 governing outside activities.
JPMorgan Employee Challenges SEC Regulation of Outside Activities
On December 3, 2024, a federal lawsuit filed in the U.S. District Court for the District of Arizona challenges the authority of the Securities and Exchange Commission (SEC) to regulate outside business activities of employees through its oversight of Financial Industry Regulatory Authority (FINRA) rules. The case, Preston v. SEC, No. 2:24-cv-03396, raises significant constitutional and administrative law questions.