FINRA Rule 3220 Gifts and Gratuities Annual $100 Limit
Under FINRA Rule 3220, what is the maximum annual value of gifts a registered representative may give to an employee of another financial firm or client representative?
FINRA Rule 3220 strictly limits business gifts and gratuities to $100 PER INDIVIDUAL PER YEAR. The rule prevents conflicts of interest and commercial bribery.
Complete Analysis & Legal Rationale
The $100 limit excludes occasional normal business entertainment (dinners, sporting events, theater) where the registered representative accompanies the guest. $250 is the MSRB Rule G-37 political contribution cap.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
$100 per recipient per calendar year is the strict FINRA ceiling.
$250 is the MSRB Rule G-37 political contribution de minimis limit.
Threshold is per person, not per firm.
Principals cannot override the $100 statutory gift ceiling.