Examkin

Soru

Zorluk: KolayGifts, Gratuities, Political Contributions, and Outside Business Activities

An associated person of a member firm is invited to a charitable dinner by an institutional client. The client purchases a ticket for the associated person valued at $200 and attends the event alongside the associated person. Under FINRA Rule 3220, how is this event classified?

  1. It is permitted as normal business entertainment because the host accompanies the associated person to the event.Cevap
  2. B
    It is a prohibited gift because any ticket exceeding $100 in value violates FINRA rules regardless of attendance.
  3. C
    It requires prior written approval and clearance from the Securities and Exchange Commission (SEC).
  4. D
    It is classified as an outside business activity (OBA) requiring pre-approval from state banking regulators.

Cevap

The event is permitted as normal business entertainment because the host accompanies the associated person.
Under FINRA Rule 3220, gifts to employees of other firms are restricted to 100perrecipientperyear.However,whenthehostpurchasestheticketandaccompaniestheguesttotheevent,theactivityistreatedaslegitimatebusinessentertainmentratherthanagift,meaningthe100 per recipient per year. However, when the host purchases the ticket and accompanies the guest to the event, the activity is treated as legitimate business entertainment rather than a gift, meaning the 100 cap does not apply.

Adım Adım Çözüm

1
Determine whether the transaction constitutes an unconditional gift or hosted business entertainment.
Because the host purchases the ticket and personally accompanies the guest, it is classified as business entertainment.
FINRA Rule 3220 limits gifts to $100 per recipient per year, but hosted business entertainment where the host attends is exempt from this dollar cap provided it is not lavish or excessive.

Anahtar Kavram

FINRA Rule 3220 Gift Exceptions and Hosted Business Entertainment
Tahmini Süre:45s
Bu soruyu puanla

Konular

Gifts, Gratuities, Political Contributions, and Outside Business Activities