FINRA Proposes Increase to Broker Gift Limit for First Time in 30 Years 

The Financial Industry Regulatory Authority (FINRA) has filed a proposal with the U.S. Securities and Exchange Commission (SEC) to increase the annual gift limit for brokerage firms and their employees from $100 to $250 per recipient. The $100 cap, unchanged since 1992, would equate to $223 today when adjusted for inflation. The adjustment aims to simplify compliance while preventing conflicts of interest, according to FINRA’s filing. 

FINRA stated, “The proposed $250 gift limit would continue to permit the exchange of business courtesies while helping to guard against excessiveness.” The change is expected to enhance transparency and understanding of the rule, which seeks to prevent improprieties, such as firms giving gifts to influence business relationships with institutional customers, vendors, or counterparties. Raising the cap “would promote efficiency without reducing protection for investors and the public interest,” FINRA noted. 

The proposal also incorporates existing FINRA guidance, addressing incidental gifts, personal gifts, promotional items, disaster relief donations, and supervision and recordkeeping requirements. It clarifies that the rule does not apply to gifts from dealers to their own representatives or to retail clients. If approved by the SEC, FINRA plans to periodically review the gift limit to assess the need for further adjustments.