FINRA has filed SR-FINRA-2025-003 with the SEC, proposing the first increase to the Rule 3220 gift limit in over three decades. The current $100 cap has been in place since 1992. FINRA is proposing to raise it to $250 per person per year — and that's not the only change worth your attention.
What Rule 3220 Currently Says
Rule 3220 prohibits member firms and associated persons from giving anything of value in excess of $100 per year to any person where the payment is in relation to the business of the recipient's employer. The rule exists to prevent conflicts of interest — gifts that might influence how someone at another firm handles your business.
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The $100 limit hasn't moved since the rule was adopted. Adjusted for inflation, that original $100 would be worth roughly $225 today. FINRA's proposed $250 limit acknowledges that reality while maintaining the rule's core purpose.
What the Proposal Changes
Three substantive changes are on the table:
- Gift limit increase: The per-person annual cap moves from $100 to $250.
- Exemptive relief provision: FINRA would gain explicit authority to grant exemptions from the gift limit in appropriate circumstances. This formalizes what has been handled through interpretive letters and ad hoc guidance.
- Codification of existing guidance: The proposal incorporates longstanding interpretive positions directly into the rule text, reducing ambiguity about what counts toward the limit and what doesn't.
What This Means Operationally
If you're a CCO or compliance manager, here's what you need to be thinking about:
Gift Policy Updates
Your written supervisory procedures almost certainly reference the $100 limit. Once this rule is approved and effective, that language needs to change. Don't wait until the last minute — draft the updated language now so you're ready to implement when the SEC approves the filing.
Gift Log Thresholds
Many firms set internal reporting thresholds at or below the regulatory limit. If your firm requires pre-approval for gifts over $50 or $75, consider whether those thresholds still make sense under a $250 limit. You may be creating unnecessary friction without corresponding compliance benefit.
Training Materials
Your annual compliance training probably covers the gift rule. Update your materials before the next training cycle. Registered reps who've had "$100" drilled into them for years need to know the new number — and more importantly, that the core prohibition hasn't changed.
Vendor and Third-Party Relationships
The rule applies to gifts given to employees of other firms in relation to their employer's business. If you have placement agent relationships, capital introduction arrangements, or other third-party intermediaries, make sure your teams understand where the gift rule applies and where it doesn't.
Timeline and Next Steps
The proposal is now with the SEC for review. FINRA rule filings typically take 60-90 days for SEC action, though complex or contested filings can take longer. This one is straightforward — a limit increase that tracks inflation and codifies existing guidance — so I'd expect a relatively smooth approval process.
Watch for the Federal Register notice and the effective date. Build your policy updates now so you're not scrambling later.
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Key Takeaways
When does the new $250 gift limit take effect?
The rule change is pending SEC approval. Once approved, FINRA will announce the effective date. Expect 60-90 days for SEC review, then an implementation period. Monitor FINRA's rule filings page for updates.
Does the $250 limit apply per gift or per year?
Per year, per recipient. Rule 3220 caps the total value of gifts given to any single person at $250 annually. Multiple small gifts to the same person count toward that annual limit.
Are promotional items like branded merchandise included in the limit?
Generally yes, if they have meaningful value. De minimis items like pens or notepads typically don't count, but higher-value promotional items do. The proposal codifies existing guidance on this point — review the filing for specifics on what's included.
The content in this blog is for informational purposes only and does not constitute legal advice, regulatory guidance, or an offer to sell or solicit securities. GiGCXOs is not a law firm. Compliance program requirements vary based on business model, customer base, and regulatory classification.