🎁FINRA Proposes Amendments to Gift Rules for Financial Firms
Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing of a Proposed Rule Change To Amend FINRA Rule 3220 (Influencing or Rewarding Employees of Others)
Summary
The FINRA proposes to amend Rule 3220 regarding gifts, increasing the limit from $100 to $250 per person annually. This rule aims to reduce regulatory burden and improve compliance clarity while maintaining protections against conflicts of interest. The changes seek to enhance transparency and facilitate better business relationships across the financial industry.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The proposed amendment to FINRA Rule 3220 directly impacts compliance requirements for businesses in the financial sector by increasing the gift limit from $100 to $250, which facilitates business relationship-building practices. This change mandates updates to compliance programs and record-keeping for businesses involved with gifts and incentivizes clear interpretations of existing guidance, thus promoting regulatory alignment and efficiency.