Under FINRA Rule 3280, a registered representative wants to participate in a private securities transaction for compensation. After providing written notice to the firm, what must happen?

Why A — The firm must approve or disapprove in writing, and if approved, must supervise the transaction as if done through the firm

FINRA Rule 3280 distinguishes between compensated and non-compensated private securities transactions. For compensated transactions, the representative must provide detailed written notice to the firm, and the firm must either approve or disapprove. If approved, the firm must record the transaction on its books and records and supervise it as if it were executed through the firm. This ensures investor protection even for transactions occurring outside normal channels. Silence by the firm does not constitute approval.