02.19.26

SEC approves FINRA Proposal To Raise Gift Limit to $300

by: Sam Bojarski

The U.S. Securities and Exchange Commission (SEC) approved a Financial Industry Regulatory Authority (FINRA) proposal raising the annual gift limit for broker-dealer employees to institutional customers and vendors from $100 to $300, reflecting inflation since 1992 and anticipated future increases. The rule applies only to business-related gifts, excluding retail clients, personal gifts for life events or bereavement, promotional items of minimal value and disaster donations. Firms must value gifts at cost (excluding tax and delivery) and are responsible for reporting and compliance, ensuring employees don’t misclassify gifts. FINRA will issue a regulatory notice specifying the compliance date. The update is part of ongoing modernization of industry rules.

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