Series 26: Non-Cash Compensation

Non-Cash Compensation

No member firm or associated person is permitted to accept or make payments of any non-cash compensation except under these circumstances:

• • Gifts do not exceed an amount per person per year fixed by FINRA (currently $100).
• • Gratuities such as meals or theater tickets are not so frequent or expensive as to raise issues of impropriety.
• • Payments or reimbursements by offerors for attending their training or educational events have the prior approval of the member firm, the location is appropriate to the event, and payments are not applied to the associated person’s guests.
• • Compensation by an issuer or sponsor is not preconditioned on the achievement of a sales target.

Non-cash compensation is also permitted when the arrangement is not sponsored by an offeror but extended by a FINRA member firm to its associated persons, assuming these conditions also apply:

• • Non-cash incentives, if they include investment company or v