The long-standing FINRA Rule 3220 (Gifts Rule) has officially been updated, marking one of the most significant regulatory changes for broker-dealers in over three decades. Approved by the SEC on February 12, 2026, and effective March 30, 2026, these amendments introduce a new $300 gift limit, expanded supervisory requirements, and a modernized compliance framework.
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If your firm hasn’t updated its gift policies, compliance procedures, and tracking systems, now is the time.
Key Changes to FINRA Rule 3220 (2026)
1. Increased Gift Limit: $100 → $300
- Old limit: $100 per person per year (unchanged since 1992)
- New limit: $300 per person per year
- Designed to reflect inflation and future cost adjustments
This change aligns with other FINRA rules, including Rules 2310, 2320, 2341, and 5110, ensuring consistency across non-cash compensation regulations.
2. Expanded Supplementary Rules (9 New Provisions)
The updated rule introduces nine supplementary provisions that redefine how firms handle:
- Business entertainment gifts (still subject to limits)
- Gift valuation standards (cost vs. face value)
- Firm-wide aggregation requirements
- Exemptions for personal, bereavement, and promotional gifts
- Supervisory controls and documentation
These updates significantly increase expectations around FINRA compliance, audit trails, and internal controls.
Critical Compliance Requirements for Broker-Dealers
Firm-Wide Gift Aggregation (Rule 3220.03)
All gifts must now be:
- Aggregated across all associated persons
- Tracked per recipient
- Measured using a defined period (calendar, fiscal, or rolling)
This eliminates siloed tracking and requires centralized compliance systems.
Independent Review Requirement (Rule 3220.08)
Firms must implement segregation of duties:
- Gift-givers can no longer determine if a gift is business-related
- A compliance officer or supervisor must approve
- Firms must maintain a documented, auditable approval process
This represents a major shift toward enhanced regulatory oversight and accountability.
What’s Exempt from the $300 Gift Limit?
Certain gifts are excluded from FINRA gift limits, including:
- Personal life event gifts (weddings, births)
- Bereavement gifts (fully exempt)
- Promotional items (e.g., branded merchandise)
- De minimis gifts (low-value items such as pens or notepads)
- Disaster relief donations
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These exemptions must still meet reasonableness and non-business intent criteria.
Why This FINRA Rule Change Matters
This update is more than an inflation adjustment, it is a compliance transformation:
- Strengthens supervisory controls
- Reduces risk of improper influence and regulatory violations
- Enhances recordkeeping and audit readiness
- Requires modernization of compliance technology systems
What Your Firm Should Do Next
To stay compliant with FINRA Rule 3220:
- Audit current gift policies and procedures
- Upgrade gift tracking and reporting systems
- Implement firm-wide aggregation tools
- Establish independent approval workflows
- Train staff on updated FINRA compliance requirements
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Learn More: Full FINRA Rule 3220 Breakdown
For a deeper analysis, FAQs, and practical compliance strategies, visit us online at mcgcomply.com
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