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.
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
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
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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