Gifts & Gratuities
FINRA caps gifts from a member or rep to employees of other firms at $300 per person per year (raised from $100 effective March 30, 2026) where the gift relates to the recipient's employer's business; business entertainment the giver attends is separate and must be reasonable, not conditioned on business.
Exam items almost always hand you a dollar figure and ask whether it’s allowed: the tell is whether the recipient works at another firm and whether the gift touches that firm’s business. The answer hinges on the aggregate annual ceiling per recipient — a $200 gift plus a $150 gift to the same person breaks the cap, even though each alone is under it. The limit is cumulative per person, per year, not per gift, and the giving member must record it. Personal gifts and de minimis promotional items sit outside it; cash is effectively never allowed.
Don’t confuse this with the related conduct rules: gifts test value to outsiders, while Outside Business Activities (Rule 3270) need prior written notice, and Private Securities Transactions (Rule 3280, “selling away”) need notice plus written approval and supervision when the rep is compensated. Continuing Education is unrelated. Classic miss: calling event tickets the rep attends a “gift” under the cap — that’s business entertainment, judged by reasonableness, not the dollar limit. Hook: gifts go to them, entertainment you share.
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