Examkin

Question

Difficulty: EasyGifts, Gratuities, Political Contributions, and Outside Business Activities

Under FINRA Rule 3220 (Influencing or Rewarding Employees of Others), corporate promotional items of nominal value that feature the member firm's logo are exempt from the $100 annual gift limit per recipient.

Answer: Answer

Answer

The statement is True.
Under FINRA Rule 3220, member firms and associated persons are limited to giving gifts valued at no more than 100perindividualperyear.However,nominalpromotionalitemsbearingthebroker−dealer′slogo—suchaspens,stickynotes,keychains,orcalendars—areexcludedfromthis100 per individual per year. However, nominal promotional items bearing the broker-dealer's logo—such as pens, sticky notes, keychains, or calendars—are excluded from this 100 limitation.

Step-by-Step Solution

1
Identify the relevant SRO regulation governing gifts and gratuities.
FINRA Rule 3220 sets a basic annual limitation of $100 per recipient for gifts given in relation to the business of the employer of the recipient.
To prevent improper influence or conflicts of interest between registered persons and employees of other firms or institutions.
2
Determine if logo-bearing corporate promotional items of nominal value fall under standard exclusions.
Promotional items carrying the firm logo with nominal value are excluded from the annual aggregate $100 calculation.
FINRA explicitly exempts promotional items of nominal value, custom deal mementos, and business entertainment where the representative accompanies the recipient.

Key Concept

FINRA Rule 3220 Promotional Item Exemption
Rate this question

Topics

Gifts, Gratuities, Political Contributions, and Outside Business Activities