New $300 FINRA gift limit and clarifications to Rule 3220

FINRA’s amendments to Rule 3220 (Influencing or Rewarding Employees of Others) mark one of the most significant updates to the gifts and gratuities framework in decades. While the headline change—the increase in the annual gift limit from $100 to $300—has drawn attention, the more meaningful impact lies in FINRA’s clarification of expectations around valuation, aggregation, supervision, and recordkeeping.

With an effective date of March 30, 2026, firms should take this opportunity to assess whether their existing policies and procedures still reflect current practices and meet regulatory expectations.

A higher threshold, not a lighter touch

FINRA increased the gift limit to account for inflation and modern business realities, but the underlying purpose of the rule remains unchanged: to prevent conflicts of interest and improper influence when gifts are provided in connection with the recipient’s employer’s business.

Importantly, the $300 limit is a regulatory maximum, not a recommendation. Firms remain free to adopt more restrictive internal limits, and many may choose to do so based on risk profile, business model, or prior examination experience.

Clarifying longstanding expectations

A key feature of the amendments is the adoption of new supplementary material that codifies existing guidance and interpretations. These provisions address areas that have historically raised examination questions, including:

• Gift valuation: requires that gifts (other than tickets to sporting or other events) be valued at cost, exclusive of tax and delivery charges. When valuing tickets to sporting or other events, the member must use the higher cost, or face value. If gifts are given to multiple recipients, members should record the names of each recipient and calculate and record the gift value on a pro-rata and per recipient basis.
• Aggregation methodologies: firms must aggregate all gifts given by the firm and each associated person to a recipient over the course of the year (“year” must be defined e.g., rolling, calendar, or fiscal) for purposes of ensuring compliance with the $300 gift limit. The aggregation requirement does not apply to de minimis, promotional, commemorative or personal gifts, as these gifts are not subject to the gift limit.
• Supervisory independence: members are required to have in place systems and procedures that are reasonably designed to ensure gifts given are: (i) reported to the member; (ii) reviewed for compliance with the Gifts Rule; and (iii) maintained in the member’s records. The procedures should be adequately designed to ensure that gifts are aggregated across the firm, and the giver is not responsible for determining whether the gift is business-related, regardless of the giver's intent.

For many firms, these changes formalize practices already in place. For others, they may reveal gaps between written procedures and operational reality.

Exceptions, with clearer guardrails

The amendments also clarify and codify several longstanding exclusions. Personal gifts tied to infrequent life events—such as weddings, the birth of a child, or bereavement—remain outside the gift limit, provided they are customary, reasonable, and not business-related. Firms should ensure that their records appropriately reflect these circumstances.

FINRA also reaffirmed exclusions for de minimis and promotional items, decorative commemorative items, and donations related to federally declared major disasters. While recordkeeping is not required for these items, firms may still elect to track them as part of a broader supervisory framework.

As a reminder, de minimis is not an explicit dollar amount but is generally considered a value substantially below the $300 limit. This is ultimately a principal-based cap, the principle being that the gift(s) are not large enough to influence the recipient's business judgment.

A timely moment to revisit WSPs

The amended rule places renewed emphasis on supervision and governance. Examiners are likely to focus less on dollar amounts and more on process: how gifts are reported, reviewed, and monitored across the firm.

For some firms, updating Written Supervisory Procedures may be as simple as changing the dollar limit. For others, it may involve clarifying aggregation methods, documenting approval workflows, or formalizing exceptions and escalation processes.

While the exclusions could reduce unnecessary recordkeeping, FINRA has made it clear that firms may still choose to track such items as part of a broader supervisory framework. Through our role as key compliance partner to a wide range of broker-dealers subject to the rule, as well as registered investment advisors and alternative funds providers that have adopted similar policies to avoid conflict, Confluence^® has found that firms predominantly require all gifts, regardless of size, to be reported. Reporting all gifts helps ensure proper aggregation and prevents exceeding maximum limits. Additionally, this approach allows firms to approve and document cases in which a gift qualifies under one of the exclusion criteria defined in the supplementary material. We believe this practice will become the norm.

Bottom line: Many firms and employees will be pleased to offer more economically suitable gifts, and compliance officers will appreciate the formalization of the guidance previously provided by FINRA. While we anticipate that most firms will make minimal changes to their Written Supervisory Procedures (WSP), which often state that all gifts must be reported and approved in advance, this change clarifies several key points including valuation, aggregation, gifts that can be excluded, and the definition of "per year."

How Confluence Can Help

As firms prepare for the March 30, 2026 effective date, our Compliance Services team is ready to assist. Whether you need a targeted gap analysis, updates to your WSPs, enhancements to your supervisory controls, or training tailored to front office and compliance teams, our experts bring practical, examination-tested insight to help you implement changes efficiently and defensibly. Learn more here.

About Confluence^® Technologies

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