Limitations on Gifts, Gratuities, and Non-cash Compensation
MSRB Rule G-20 places limits on gifts, gratuities, and non-cash compensation received in connection with the sale and distribution of municipal securities. Dealers may not offer their clients gifts in excess of $100 per year, except for occasional gifts of meals or tickets to theatrical, sporting, or other entertainments. Non-cash compensation in excess of this amount is, likewise, not allowed.
Occasional gifts of meals or tickets to theatrical or sporting events are allowable if they are hosted by the dealer. Dealers may sponsor legitimate business functions recognized by the IRS as deductible business expenses. Also allowable are gifts of reminder advertising (pens or calendars that display the firm’s logo), as long as they are not too extensive or given too frequently.
Dealers may compensate someone for services done, as long as the services and compensation are clearly described in a written contract, and the agreement has the written consent of the person’s employer