Proposed Amendments to FINRA Gifts, Gratuities and Non-Cash Compensation Rules

September 08, 2016

In Regulatory Notice 16-29 (Regulatory Notice), the Financial Industry Regulatory Authority (FINRA) requested comments on proposed amendments to Rule 3220 – its “Gift Rule” – as well as new proposed FINRA Rule 3221 (Restrictions on Non-Cash Compensation) and new proposed FINRA Rule 3222 (Business Entertainment) – that would consolidate a patchwork of rules and guidance on non-cash compensation related to the sale of securities and on business entertainment. The proposed amendments and new rules (collectively, Proposal) are intended to protect U.S. investors while reducing member compliance costs.

Read "Proposed Amendments to FINRA Gifts, Gratuities and Non-Cash Compensation Rules."