An Outside business activity (OBA) is any employment or compensation from any other person or entity as a result of a business activity, other than a passive investment, outside the scope of work with Core Planning, LLC.

As long as there are no material conflicts of interest and we properly disclose our outside work, we’re free to explore our unique gifts.

Examples of Material Conflicts of Interest

Directly Competing Financial Services

• Running a Separate RIA or Investment Firm: If an IAR operates another RIA, broker-dealer, or financial advisory firm, it creates a direct misalignment with both firms best interests.
• Insurance Sales with Overlapping Products: Selling insurance products outside of the RIA that compete with firm-recommended solutions, particularly if there are commissions involved.
• Dual Registration with a Broker-Dealer: Being a registered representative of a BD while working as an IAR can create conflicts related to fiduciary duty vs. commission-based incentives.
• Contracting with another Fee-Only RIA: This OBA IS allowed as dual registration under certain conditions. Both CCOs of each firm must document approval of the arrangement. The outside contract should not be structured in a way that creates direct competition for client relationships or investment management services. Instead, the role should be primarily supportive—such as providing financial planning, para-planning, research, or operational assistance—without soliciting or managing clients in a manner that conflicts with the advisor’s primary affiliation with Core Planning.

Compensation-Driven Conflicts

• Receiving Referral Fees from Third Parties: If an IAR receives undisclosed referral payments from fund managers, CPAs, estate attorneys, or insurance companies, this could lead to biased recommendations.
• Outside Compensation from Investment-Related Services: Earning compensation from investment-related activities, such as serving as a paid board member for a private fund or investment firm.
• Undisclosed Revenue Sharing: Receiving kickbacks from financial products, investment platforms, or custodians that influence client recommendations.

Ownership or Management Interests

• Holding an Ownership Stake in a Client’s Business: If an IAR invests in or manages a business owned by a client, there may be undue influence over investment advice.
• Board Membership for a Public Company: Serving as a director or executive for a publicly traded company could lead to conflicts regarding insider information or investment recommendations.
• Personal Real Estate Transactions with Clients: If an IAR buys, sells, or leases real estate to/from a client, there may be conflicts regarding fair valuation.

Undue Influence Over Clients