FINRA Securities Industry Essentials Exam (SIE) SIE Question # 40 Topic 5 Discussion
SIE Exam Topic 5 Question 40 Discussion:
Question #: 40
Topic #: 5
Under which of the following circumstances, if any, is a member firm permitted to send gifts to registered representatives (RRs) of another member firm?
A.
No single gift exceeds $100; no limit on the number of gifts
B.
No single gift exceeds $100; maximum value of all gifts per RR per year is $200
C.
Value of all gifts to an RR during a period of one year does not exceed $100
FINRA Rule 3220 prohibits member firms from giving gifts exceeding $100 per individual per year to ensure that gifts do not influence business conduct. The rule applies to gifts given in connection with the firm’s business.
C is correct because it adheres to FINRA’s $100 annual limit.
A is incorrect because the total value of gifts must also not exceed $100 annually.
B is incorrect as there is no $200 limit.
D is incorrect as gifts are allowed within the $100 limit.
[Reference: FINRA Rule 3220 (Influencing or Rewarding Employees of Others), , , ]
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