ASA Releases Comments on FINRA's Gift Rule

ASA Newsroom
Jul 8
2 min read

WASHINGTON – The American Securities Association (ASA) today released comments submitted to the Securities and Exchange Commission (SEC) supporting key elements of the Financial Industry Regulatory Authority (FINRA's) gifts rule.

"To promote regulatory consistency and reduce unnecessary complexity for firms registered as both broker-dealers and investment advisers, we appreciate FINRA filing a proposal with the SEC to increase its annual limit on gifts and gratuities from the longstanding $100 cap to $250 per person, per year and codify guidance related to the rule which allows for uniformity across the industry," said ASA Chief Legal Officer Jessica Giroux.

ASA supports the following aspects of the proposed amendments:

Gift Limit Increase: Raising the annual gift limit from $100 to $250 per person per year is a long-overdue update that reflects inflation and current business realities, while maintaining appropriate safeguards to prevent conflicts of interest and excessive inducements.
Exemptive Relief: The introduction of a process for exemptive relief provides needed flexibility and recognizes the diversity of firm sizes, business models, and circumstances in the industry.
Conforming Amendments: Updating related rules (2310, 2320, 2341, and 5110) to reflect the new $250 threshold will further promote consistency and reduce confusion for firms subject to multiple regulatory frameworks.
Codification of Guidance: Incorporating existing interpretive guidance and letters into the rule text and supplementary material will improve transparency, facilitate compliance, and reduce ambiguity.
Clarification of Scope and Exclusions: The proposal’s explicit exclusions for gifts to a member’s own associated persons and to individual retail customers, as well as codification of the treatment of personal, de minimis, and disaster-related gifts, are welcome clarifications that will help firms implement more effective compliance programs.
Recordkeeping and Supervision: The continued emphasis on robust recordkeeping and supervision—while excluding certain categories of gifts from these requirements—appropriately balances regulatory objectives with practical compliance burdens.

Read ASA's full submission here.

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The American Securities Association (ASA) represents the retail and institutional capital markets interests of regional financial services firms who provide Main Street businesses with access to capital and advise hardworking Americans how to create and preserve wealth. ASA’s mission is to promote trust and confidence among investors, facilitate capital formation, and support efficient and competitively balanced capital markets. This mission advances financial independence, stimulates job creation, and increases prosperity. The ASA has a geographically diverse membership of almost one hundred members that spans the Heartland, Southwest, Southeast, Atlantic, and Pacific Northwest regions of the United States.