SIE: 10.2.4.1. Non-Cash Compensation

10.2.4.1.  Non-Cash Compensation

FINRA and the MSRB do not permit firms or their associated persons to accept or make payments of any non-cash compensation except under these circumstances:

• • Gifts do not exceed an amount per person per year (currently $100)
• • Gratuities such as meals or theater tickets are not so frequent or expensive as to raise issues of impropriety
• • Promotional gifts of nominal value (must be well below the $100 limit) that bear the firm’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
• • 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 member firm to its associated persons, assuming these conditions also apply: