SIE practice questioneasyGift Limits
Under FINRA rules, what is the maximum value of a gift that a registered representative may give to a person associated with another member firm per year?
- A$100✓ Correct answer
- B$50
- C$250
- DNo gifts are permitted
Explanation
Why A — $100
FINRA Rule 3220 limits business-related gifts to $100 per person per year. This applies to gifts given to persons where a business relationship exists in connection with the securities business. The rule is designed to prevent gifts from improperly influencing business decisions. Personal gifts for life events (such as weddings or births) may be treated differently under firm policies, but the general FINRA limit is $100 per person per year. Promotional items of nominal value and business entertainment where the giver is present are generally excluded.
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