Limitations on Gift Giving

MSRB Rule G-20 prohibits broker-dealers from giving gifts worth more than $100 if the gift is given in relation to municipal securities activities. In 2016 this rule was amended to include municipal advisors and their associated persons.

There are a few exceptions to the rule, which include:

• • Occasional gifts of meals or tickets to the theatre or sporting events if the municipal advisor accompanies the client
• • Legitimate business functions recognized by the IRS as deductible business expenses
• • Promotional gifts of nominal value (must be well below the $100 limit) that bear the municipal advisor’s logo
• • Gifts that commemorate a transaction, for example, a customary plaque or Lucite tombstone given upon closing
• • Gifts of negligible value, like pens and notepads
• • Personal gifts given on special, infrequent occasions, like weddings, the birth of a child, or funerals (rep must have a per