On February 12, 2026, the U.S. Securities and Exchange Commission approved amendments to Financial Industry Regulatory Authority Rule 3220, commonly known as the “Gifts Rule.” The revisions represent the first substantive update to the rule since 1992 and are effective immediately.
While the headline change is the increase in the annual gift limit from $100 to $300, the amendments also codify several longstanding FINRA guidance areas and introduce updated expectations for supervisory oversight and recordkeeping.
Below are several practical steps broker-dealers should consider taking now to ensure they align with the revised rule.
1.) Update Gift Policies and Written Supervisory Procedures
The most visible change to Rule 3220 is the increase in the annual per-person gift limit from $100 to $300. FINRA has also implemented conforming updates to its non-cash compensation rules, including Rules 2310, 2320, 2341 and 5110.
Broker-dealers should review their gift policies and Written Supervisory Procedures (WSPs) to ensure the new threshold is properly reflected. Firms may also need to update compliance manuals, employee handbooks and training materials that reference the previous limit.
Although the change increases flexibility for certain business interactions, the rule’s core purpose remains unchanged: preventing improper influence over employees of other firms.
2.) Review Supervisory Workflows
The amendments also clarify expectations around supervisory review. Firms must ensure that the individual giving the gift is not responsible for determining whether the gift relates to the business of the recipient’s employer.
Broker-dealers should review their approval workflows to confirm that gift reviews are conducted by a supervisor or compliance professional independent of the associated person making the gift. Firms may need to adjust approval processes or escalation procedures to maintain appropriate separation of responsibilities.
3.) Strengthen Gift Tracking and Recordkeeping
The amendments formally incorporate guidance on how firms should track and document gifts for compliance purposes. Firms may aggregate gifts on a calendar-year, fiscal-year or rolling basis, but the chosen methodology must be clearly documented in the firm’s WSPs.
Broker-dealers should confirm that their gift logs and tracking systems capture sufficient information to demonstrate compliance with the rule. The amendments also codify guidance on gift valuation: most gifts should be valued based on cost, while event tickets must be recorded at the higher of cost or face value.
Maintaining clear documentation and consistent tracking practices will help firms demonstrate compliance during regulatory examinations.
Operational Readiness with ACI
Although the amendments to Rule 3220 are relatively targeted, they require broker-dealers to ensure their policies, supervisory workflows and recordkeeping practices reflect the updated rule.
At ACI, we have over 40 years of experience working with broker-dealers on the financial operations aspects of regulatory compliance. This includes supporting firms with FinOp services and regulatory bookkeeping, regulatory financial reporting and audit and exam readiness.
Our team works closely with broker-dealers and regulatory exam staff across FINRA and other Designated Examining Authorities (DEAs), helping firms translate rule changes into practical supervisory procedures. We serve as an extension of your broker-dealer business, so you can focus on growth.
If your firm has questions about the updated Gifts Rule or other regulatory developments affecting broker-dealers, the ACI team is available to help. Reach out to start a conversation today.