FINRA's New $300 Gift Limit: What Financial Firms Can Send Clients
By Victoria Simmons
The FINRA gift limit tripled from $100 to $300 per person per year on March 30, 2026. For broker-dealers, wealth firms and financial advisors, that is a major change to how client gifts are planned.
The new number gives firms more room to send meaningful client gifts. It also raises new questions about what counts, what doesn't and which other rules still apply. This guide walks through the update in plain English and shares client gift ideas that work under the new rules.
Here is the quick version. FINRA Rule 3220 now lets member firms give up to $300 per person per year in gifts connected to the recipient's business, up from $100, effective March 30, 2026. Nominal promotional items that show the firm's logo don't count toward the limit, and neither do customary bereavement gifts or decorative items that commemorate a deal.
This article is general information, not legal or compliance advice. Always confirm gift decisions with your firm's compliance team.
Key Takeaways
The FINRA Rule 3220 gift limit rose from $100 to $300 per recipient per year on March 30, 2026.
All gifts from the firm and its associated persons to one recipient add up toward the annual limit.
Gifts are valued at cost, not counting tax and delivery. Event tickets use the higher of cost or face value.
Nominal promotional items with the firm's logo may fall under an exclusion, along with a few other categories.
Lower limits still apply under other rules, including ERISA and some state and local rules.
What Changed in FINRA Rule 3220?
FINRA raised the Rule 3220 gift limit from $100 to $300 per person per year, effective March 30, 2026. The change was announced in FINRA Regulatory Notice 26-05.
The old $100 limit had been in place for many years, and inflation had steadily shrunk what it could buy. A $100 gift today does not go nearly as far as it once did. The update brings the limit closer to what a thoughtful business gift actually costs.
For firms, the practical effect is more flexibility. A top client can now receive a more substantial gift during the year, as long as it is tracked and stays within the rules.
What Counts Toward the $300 Limit?
The $300 limit applies per recipient, per year, and every gift from your firm and its associated persons to that recipient is added together. It is not $300 per advisor or $300 per gift.
That means if two advisors at the same firm each send the same client a $150 gift, the client has reached the $300 limit for the year. Coordination across your team matters.
Valuation also follows specific rules. Gifts are valued at cost, not counting tax and delivery charges. Event tickets are valued at the higher of their cost or face value. So a ticket with a $200 face value counts as $200, even if your firm paid less for it.
What Doesn't Count Toward the Limit?
Several categories are excluded from the $300 limit, including nominal promotional items with the firm's logo. Here is each exclusion in plain English, with an example.
De minimis or nominal promotional items with the firm's logo. Low-value branded items, like a pair of logo socks or a branded pen, may fall under this exclusion. The item must display the firm's logo, and it must truly be nominal. Its value must be substantially below the $300 limit.
Customary decorative items that commemorate a business transaction. Think of a reasonable keepsake marking a closed deal, like a small desk display celebrating a completed offering.
Gifts for infrequent life events not related to the business. A wedding gift or a gift for the birth of a child may fall here, as long as it is not tied to business and the firm doesn't pay for it, directly or by reimbursement.
Customary bereavement gifts. Flowers or a sympathy gift sent when a client loses a loved one are excluded.
Donations for presidentially declared disasters. Contributions made in connection with these disasters are also outside the limit.
Business entertainment is separate. It is outside the Gifts Rule, as long as it is not so frequent or extensive that it raises questions of propriety. A dinner where the advisor attends with the client is generally treated differently from a gift. Your compliance team decides how any specific item is classified.
Other Gift Limits Financial Firms Still Have to Watch
FINRA's $300 limit is not the only rule that matters. Other rules set lower limits for certain recipients, according to Morgan Lewis.
Rule | Limit | Who it applies to |
|---|---|---|
FINRA Rule 3220 | $300 per person per year | Recipients connected to member firm business |
ERISA plan fiduciaries | $250 | Gifts to fiduciaries of ERISA plans |
ERISA plan service providers | $100 | Service providers subject to Form 5500 reporting |
Labor union officials | $250 | Gifts to union officials |
State and local rules | Varies | Public officials and others covered by local law |
MSRB Rule G-20 | Moving to $300 | Municipal securities dealers and advisors |
The MSRB is following FINRA's lead. It filed on May 1, 2026 to raise the Rule G-20 limit to $300. According to Skadden, the change was scheduled to become operative June 1, 2026 for FINRA-member dealers, while municipal advisors and bank dealers become subject to the amended rule on December 1, 2026. Confirm the current status with your compliance team before relying on it.
How Should Firms Track Client Gifts?
Firms should track client gifts with a system for reporting, independent review and recordkeeping. FINRA requires that covered gifts are reported, reviewed by someone other than the person who gave them, and recorded.
A simple gift log for each client makes this easier. Record the date, item, cost, who sent it and whether it falls under an exclusion. Review the running total before any new gift goes out.
Coordinate across your team. Since all gifts to one recipient add up, a shared log helps prevent two advisors from unknowingly pushing a client over the limit.
Client Gift Ideas Under the New Rules
The new limit opens up more options for client gifts, from broad branded items to higher-value personal gifts. Here are four approaches, each tracked the right way.
Nominal logo items for broad distribution. Branded items like custom socks, sent to a large client list, may fall under the promotional item exclusion. They keep your firm top of mind without eating into each client's annual limit. Your compliance team makes the final call. See how other custom socks for professional services firms are designed.
Higher-value personal gifts for top clients. The $300 limit leaves room for a more generous gift for key relationships. Track these against each client's annual total. Our guide to personalized corporate gifts for clients has ideas that feel personal.
Deal-closing commemoratives. A customary decorative item marking a completed transaction may fall under its own exclusion. Keep it reasonable and focused on the deal.
Holiday gifts and gift sets. Plan holiday gifts per client across the full year, so a December gift does not push someone over the limit. A curated gift set can make a strong impression. For premium options, browse luxury corporate gifts.
Planning a Year of Client Gifts
The easiest way to stay within the FINRA gift rule is to plan client gifts as a calendar for the whole year. A plan prevents surprises and keeps your gifting consistent.
Map out key moments for each client: onboarding, account anniversaries, the holidays and deal closings. Assign a rough budget to each moment, and keep a running total per client so you always know where they stand.
Nominal logo items, like socks with your firm's logo, can fill gaps throughout the year without using up the limit, subject to compliance review. Save larger personal gifts for the moments that matter most. Learn more about the role of corporate gifts for clients in long-term relationships.
Conclusion
FINRA's new $300 gift limit gives financial firms more room to thank clients in meaningful ways. Remember that the limit applies per recipient per year, gifts are valued at cost without tax and delivery, and several categories, including nominal logo items, may be excluded. Lower limits still apply under ERISA, union and state rules.
Track every gift, coordinate across your team and plan a full year of client gifting. This is general information, not legal or compliance advice, so confirm decisions with your compliance team.
When you are ready to create branded client gifts, Sock Fancy offers free design help, no setup fees, PMS color matching and individual shipping to each client. Get Free Mockups today.
Frequently Asked Questions
What is the FINRA gift limit in 2026?
The FINRA gift limit is $300 per person per year, effective March 30, 2026. It rose from the previous $100 limit under FINRA Rule 3220.
Do promotional items with a firm logo count toward the FINRA gift limit?
De minimis or nominal promotional items that display the firm's logo are excluded from the limit. The item's value must be substantially below the $300 limit. Your compliance team decides how a specific item is treated.
Does the FINRA gift limit include tax and shipping?
No. Gifts are valued at cost, not counting tax and delivery. Event tickets are the exception and are valued at the higher of cost or face value.
Is business entertainment a gift under FINRA rules?
Business entertainment is outside the Gifts Rule, as long as it is not so frequent or extensive that it raises questions of propriety.
Do ERISA or state rules have lower gift limits?
Yes. ERISA sets $250 for plan fiduciaries and $100 for plan service providers subject to Form 5500 reporting, union officials have a $250 limit, and state and local rules vary.
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