SEC Approves FINRA Rule 3220 Change, Raising Annual Gift Limit to $300
Updated
Updated · InvestmentNews · Jun 16
SEC Approves FINRA Rule 3220 Change, Raising Annual Gift Limit to $300
1 articles · Updated · InvestmentNews · Jun 16
Summary
$300 is the new annual gift cap per recipient under FINRA Rule 3220 after SEC approval in February, tripling the prior $100 limit that had stood since 1992.
The change lands as wealth managers face rising client requests for hard-to-get tickets and other premium access, pushing firms to test how far relationship-building can go under compliance rules.
FINRA still treats attended outings differently from outright gifts: if an advisor joins a client at a game or dinner, the event generally falls under business entertainment rather than the gift cap.
That distinction matters more as ticket prices climb and the 2018 Tax Cuts and Jobs Act largely eliminated deductions for entertainment expenses, adding tax and perception risks for firms.
Advisors remain split on the practice, with some using events to deepen ties while others argue client loyalty should rest on planning and service rather than access.