The Financial Industry Regulatory Authority is seeking comments on its plan to amend its gifts, gratuities and noncash compensation rules.
The proposed new rules, issued in Regulatory Notice 16-29, would raise the gift limit from $100 to $175, mostly to account for inflation, notes Cipperman Compliance Services. The new rules would also impose the noncash compensation restrictions on all securities transactions rather than just mutual funds, variable annuities, direct participation programs (DPPs) and public offerings.
FINRA’s proposal would also replace previous guidance on business entertainment — allowing “ordinary and usual business entertainment” — with a requirement to implement policies and procedures ensuring no quid pro quos, defining permissible business entertainment, training and recordkeeping.
FINRA is also proposing to incorporate into the amended rules a principles-based standard for business entertainment that would require firms to adopt written policies and supervisory procedures for business entertainment.
Comments on the proposal are due by Sept. 23.
Cipperman believes the proposed changes “make sense.” Jon Henschen of BD recruiting firm Henschen & Associates agrees that FINRA’s plan includes “common sense” changes.