Your WSPs Are Outdated. Here’s How to Fix Them Fast
The updated FINRA Rule 3220 went into effect March 30, 2026 and if your Written Supervisory Procedures (WSPs) still reflect the old $100 gift limit, your firm is already exposed.
This is not a minor revision.
This is a full-scale compliance shift that introduces new supervisory obligations, valuation rules, and documentation requirements. Broker-dealers that fail to act immediately risk examination findings, enforcement exposure, and reputational damage.
In this guide, we break down exactly what needs to change and how to implement it quickly and correctly.
Why FINRA Rule 3220 Changes Are a Bigger Deal Than You Think
Many firms assume updating the gift limit from $100 to $300 is a simple fix. It’s not.
The amended rule introduces:
- Firm-wide aggregation requirements
- New exempt gift categories
- Revised valuation methodologies
- Mandatory independent review processes
- Expanded supervisory obligations
Treating this as a cosmetic update instead of a structural compliance overhaul is one of the fastest ways to trigger a deficiency during a FINRA exam.
Top 4 Compliance Risks Broker-Dealers Face Right Now
1. FINRA Examination Findings
Outdated WSPs are easy wins for examiners. If your policies still reference $100, or omit new supplementary provisions, you will be flagged.
2. Enforcement Exposure
Operating under outdated procedures may violate supervisory rules under FINRA Rule 3110, even if no improper gift occurred.
3. Recordkeeping Failures
Failure to properly track, aggregate, and value gifts can trigger violations under Rule 3220(c) and U.S. Securities and Exchange Commission Rule 17a-4.
4. Reputational Risk
Compliance failures can surface publicly (e.g., BrokerCheck), signaling weak supervision to clients and partners.
FINRA Rule 3220 WSP Revision Checklist (2026)
Use this step-by-step checklist to bring your compliance program up to date:
1. Update the Gift Limit Across All Documents
Replace every instance of $100 → $300 in:
- WSPs
- Gift policies
- Training materials
- Approval forms
- Gift logs
Also align Non-Cash Compensation Rules (2310, 2320, 2341, 5110).
2. Redesign Your Gift Approval Workflow
Under Rule 3220.08:
- The giver cannot determine if a gift is business-related
- You must implement independent review
Solutions include:
- Compliance officer approval
- Supervisor review layers
- Automated approval systems
3. Define Your Aggregation Period
You must clearly state whether your firm uses:
- Calendar year
- Fiscal year
- Rolling period
Then align your systems and documentation accordingly.
4. Update Gift Valuation Rules
New valuation standards include:
- General gifts → Cost only
- Event tickets → Higher of cost or face value
- Group gifts → Pro-rata per recipient
5. Add the 9 Supplementary Gift Categories
Your WSPs must now include:
- Personal gifts (3220.04)
- Bereavement gifts (3220.05)
- De minimis/promotional items (3220.06)
- Disaster relief donations (3220.07)
- Internal and retail exclusions (3220.09)
Each category must be clearly defined and documented.
6. Review “Member Bears the Cost” Rules
If your firm reimburses gifts:
- They are presumed business-related
- This applies regardless of accounting classification
Update both policy language and reimbursement practices.
7. Upgrade Gift Tracking Systems
Your system must now:
- Aggregate gifts firm-wide per recipient
- Capture valuation methodology
- Track exempt categories
- Support approval workflows
8. Deliver Targeted Compliance Training
You must train:
Registered Representatives:
- New gift limits
- Exempt categories
Supervisors:
- Independent review requirements
Training must be documented. Examiners will ask for proof.
9. Evaluate Exemptive Relief Options
Under Rule 3220(d), firms may apply for exemptions through the Rule 9600 Series.
This is especially relevant for firms with:
- Unique business models
- Complex compensation structures
- Specialized operational frameworks
How MCG Comply Helps Broker-Dealers Stay Exam-Ready
MCG Comply specializes in helping broker-dealers implement fully compliant, operational WSP frameworks.
WSP Gap Analysis & Revision
Identify deficiencies and implement precise, rule-aligned updates.
Gift Policy Redesign
Build a modern policy that incorporates:
- New categories
- Valuation rules
- Aggregation logic
- Approval workflows
Supervisory System Review
Evaluate your current processes and redesign them for compliance and scalability.
Training & Implementation
Deliver role-specific training and ensure procedures are embedded firm-wide.
Final Takeaway: Fix the Gap Before FINRA Finds It
The updated FINRA Rule 3220 is already in effect.
If your WSPs are not aligned, your firm is operating with a known compliance gap—and examiners will find it.
Get Started Today
Don’t let a preventable issue become an examination finding.
MCG Comply can help your firm move from exposure to confidence—quickly, efficiently, and completely.
Contact: info@mcgcomply.com
