FINRA Raises Gift Limit to $300 Under Rule 3220

FINRA has announced a significant update to one of its long-standing compliance rules  affecting broker-dealers and financial professionals. Beginning March 30, 2026, the annual  gift limit under FINRA Rule 3220 will increase from $100 to $300 per person per year. This marks the first adjustment to the gift limit since it was established in 1992.

The change was announced in FINRA Regulatory Notice 26-05 and reflects FINRA’s broader effort to modernize its regulatory framework. According to FINRA, the increase is intended to account for inflation and evolving business practices while maintaining the rule’s core purpose – preventing gifts from being used to improperly influence business decisions within the financial services industry.

Background on FINRA Rule 3220

FINRA Rule 3220, commonly referred to as the Gifts Rule, governs gifts and gratuities exchanged between financial professionals and employees of other firms. The rule was originally designed to limit the value of gifts given in connection with the business of the recipient’s employer in order to prevent undue influence over business relationships, referrals, or decision-making.

For more than three decades, the rule limited gifts to $100 per person per year. The updated rule raises that threshold to $300 annually, providing firms and financial professionals with greater flexibility while still maintaining regulatory safeguards.

Additional Clarifications in the Rule Update

While the most visible change is the increase in the gift limit, the amendments also provide additional clarity around several important compliance expectations. FINRA used this update as an opportunity to clarify guidance that firms should consider when developing and maintaining their compliance policies.

The rule amendments address expectations related to:

• Gift valuation
• Aggregation of gifts across recipients
• Supervisory oversight
• Recordkeeping requirements

These clarifications reinforce FINRA’s expectations that broker-dealers maintain appropriate supervisory procedures and documentation when monitoring gifts and gratuities within their organizations.

Codified Exceptions to the Gifts Rule

The amendments also formally codify several longstanding interpretations and exceptions that have historically been addressed through regulatory guidance. These exceptions recognize situations where gifts may be appropriate and not intended to influence business relationships.

Examples of these exceptions include:

• Personal gifts
• Bereavement gifts
• Items of de minimis value
• Promotional or commemorative items
• Donations related to federally declared disasters

By incorporating these interpretations directly into the rule text, FINRA aims to provide greater clarity and consistency for firms applying the rule in practice.

What This Means for Broker-Dealers and Compliance Teams

Although the increased limit provides additional flexibility in business relationships, firms remain responsible for ensuring that gifts do not create conflicts of interest or improper incentives. The core intent of the rule—to prevent undue influence in business relationships—remains unchanged.

Broker-dealers should review their internal compliance policies, supervisory procedures, and gift tracking systems ahead of the rule’s implementation date. Firms may also wish to evaluate their documentation and recordkeeping processes to ensure they align with FINRA’s expectations under the updated rule.

Compliance departments should take this opportunity to confirm that existing policies properly address gift reporting, monitoring, and supervisory review processes.

With the new limit taking effect on March 30, 2026, firms should begin preparing now to ensure their compliance frameworks are updated and ready for implementation.

Source

Financial Industry Regulatory Authority (FINRA)
Regulatory Notice 26-05 – Amendments to FINRA Rule 3220 (Influencing or Rewarding Employees of Others)
Read the full notice here:
https://www.finra.org/rules-guidance/notices/26-05