Gifts, Gratuities, and Non-Cash Compensation
Chapters in this video
- 0:00 FINRA's $300 aggregate gift limit and the legacy $100 trap
- 1:07 Sam's challenge: the $350 concert ticket scenario
- 2:09 Gifts vs. business entertainment: the present-absent divide
- 3:44 Promotional items and personal life-event exceptions
- 4:14 The non-cash compensation prohibition and product sponsor traps
- 5:56 In-house incentives: total production only
- 6:20 Rapid-fire exam recap
What this video covers
- Why the modern gift limit is $300 per person per year in aggregate, and why legacy exam questions may still reference the old $100 rule
- What qualifies as business entertainment with no dollar cap, and why the giver's physical presence is the make-or-break condition
- Why handing off a ticket and going home converts entertainment into a gift subject to the $300 cap
- Which items escape the limit entirely: promotional items of nominal value and pre-existing personal relationship life-event gifts
- Why non-cash compensation from product sponsors is generally prohibited, and the three narrow exceptions that survive
- Why all-expense-paid trips tied to specific product sales quotas are banned even when dressed up as education or training
- How in-house sales incentives become permissible only when based on total production across all products, not specific product targets
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete SIE course in the app is free too, including adaptive practice questions and spaced-repetition flashcards.