Series 24: 2.3.1. Restrictions On Gifts And Gratuities

2.3.1.  Restrictions on Gifts and Gratuities

No member firm or associated person may give or receive any business-related gift or gratuity having a value in excess of $100 per person per year. This restriction may be waived for gifts or gratuities from a member firm to a person employed by the member firm. For this exemption to apply, there must be a prior written agreement between the employed person and the employing member firm. This written agreement must identify the nature of the proposed arrangement and the value of the proposed compensation, and it must include the written consent of the other party’s employer or principal. This restriction does not extend to personal gifts (such as wedding presents) or to promotional items of minimal value (such as pens or calendars displaying the firm’s logo). Christmas gifts and gifts paid for by the firm are not considered personal gifts.

Gifts must be valued at the higher of cost or market value, exclusive of tax and delivery charges. When valuing&nbs