FINRA Securities Industry Essentials Exam (SIE) SIE Question # 42 Topic 5 Discussion
SIE Exam Topic 5 Question 42 Discussion:
Question #: 42
Topic #: 5
According to FINRA rules, under which of the following circumstances, if any, is a member firm permitted to send gifts to a registered representative of another member firm?
A.
Under no circumstances
B.
When the value of all gifts during a period of one year does not exceed $100
C.
When no single gift exceeds $100 and there is no limit on the number of gifts
D.
When no single gift exceeds $100 in value and the maximum value of all gifts per year equals $250
FINRA Rule 3220: This rule limits gifts to $100 per person annually to prevent conflicts of interest.
Aggregate Limit: There is no provision for exceeding the $100 annual limit, regardless of the number of gifts.
Purpose: The rule ensures that gifts do not influence decisions or create unethical relationships.
FINRA Rule 3220 (Influencing or Rewarding Employees of Others): FINRA Rule 3220.
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