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

Under FINRA rules regarding gifts and gratuities, a registered representative who hosts a client at a sporting event by purchasing a $150 ticket and attending the event alongside the client has provided business entertainment rather than a gift subject to the$ 100 annual limit.

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True

Under FINRA rules, an event attended by both the registered representative and the client is categorized as business entertainment. Because it is hosted entertainment rather than a standalone gift, it is not subject to FINRA Rule 3220's $100 annual limitation.

Adım Adım Çözüm

1

Identify whether the registered representative attends the event with the client.

The representative accompanies the client to the sporting event.

The presence of the registered representative distinguishes hosted business entertainment from an unattended gift.

2

Apply FINRA Rule 3220 and SRO business entertainment guidelines.

Because the representative acts as host at the event, the $150 ticket cost is treated as business entertainment rather than a gift.

Business entertainment is governed by firm oversight and standards of reasonableness, rather than FINRA Rule 3220's strict $100 annual cap.

Anahtar Kavram

Distinction between Gifts and Business Entertainment under FINRA Rule 3220

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Konular

Gifts, Gratuities, Political Contributions, and Outside Business Activities