FINRA announced on February 27, 2026, amendments to FINRA Rule 3220 increasing the annual gift limit from $100 to $300 per recipient, with the changes set to take effect March 30, 2026.
The update modernizes the long-standing Gifts Rule to reflect the evolving cost of business interactions while maintaining the oversight, documentation, and controls designed to prevent improper influence.
Key Clarifications in the Updated Rule
Along with raising the annual limit, FINRA’s amendment clarifies several aspects of how the Gifts Rule should be applied.
Aggregation of Gifts
All gifts provided by a member firm and its associated persons to a specific recipient must be aggregated toward the $300 annual limit, reinforcing the need for centralized tracking across teams and individuals.
Valuation Requirements
Gifts must generally be valued based on their cost, excluding taxes and delivery charges. For event tickets, firms must use the higher of the cost or face value when calculating the value of the gift.
Excluded Gifts
Certain items are excluded from the gift limit, including:
- Gifts for infrequent personal life events such as the birth of a child, when unrelated to business and not funded by the firm
- Customary bereavement gifts
- Nominal promotional items displaying the firm’s logo that are substantially below the $300 threshold
- Decorative items commemorating business transactions
- Donations tied to federally declared disaster relief efforts
These exclusions largely align with existing guidance but are now clarified within the rule update.
Oversight and Recordkeeping Expectations Remain
Despite the higher limit, the core supervisory expectations under Rule 3220 remain unchanged. Member firms must maintain systems and procedures reasonably designed to ensure that gifts are:
- Reported internally to the firm
- Reviewed for compliance by someone other than the individual giving the gift
- Properly recorded in the firm’s books and records
FINRA also reiterated that business entertainment remains outside the scope of the rule, though prior guidance still applies. Entertainment must remain reasonable and not so frequent or extensive that it raises questions about propriety.
What Compliance Teams Should Do Next
With the revised limit now in place, compliance teams may want to evaluate whether internal policies and supervisory controls remain aligned with the new rule.
Key steps to consider include:
- Reviewing written supervisory procedures (WSPs) to reflect the updated $300 threshold
- Evaluating tracking systems to ensure gift aggregation is captured across employees and business units
- Updating training materials so associated persons understand the revised limits and exclusions
- Assessing cross-regulatory obligations that may impose lower gift limits or additional disclosure requirements
While the updated rule provides additional flexibility, firms should continue to ensure that their gift policies support transparency, supervision, and appropriate business conduct.
Read FINRA’s full Regulatory Notice for additional details.
