Patrina’s gift & entertainment module streamlines compliance

FINRA wants you to monitor, track, and report any exchange of cash, non-cash gifts, and gratuities. The Authority is paying special attention to conflicts of interest and closely monitoring how much firms may be “paying to secure new business.” So if you are struggling to navigate the complexities of FINRA compliance when it comes to gifts and entertainment. Patrina can help. Patrina’s Gift & Entertainment Module is here to simplify the process for you.

Understanding FINRA’s Focus

FINRA demands vigilant monitoring, tracking, and reporting of cash, non-cash gifts, and gratuities. It’s crucial to address conflicts of interest and keep a close eye on how much firms may be spending to secure new business. This is where FINRA Rule 3220 comes into play. Designed to eliminate the potential for undue influence, FINRA Rule 3220 limits how much member firms and associates may give or permit to be given to any person, principal, proprietor, employee, agent, or another’s representative. Gifts, cash, or gratuities cannot exceed $100 dollars per person per year when the exercise is related to the recipient’s employer or business.

Patrina tames unwieldy FINRA Rule 3220 compliance

One of 8 powerful modules built on the industry’s easiest-to-use interface, Patrina’s Gifts & Entertainment Module streamlines gift request submissions, data collection, documentation, management, oversight, and reporting from a single Patrina dashboard — whether you are a one-branch shop or a multinational.

Be transparent and 17a-4 compliant

Patrina takes the complexity out of FINRA Rule 3220 compliance. Our Gift & Entertainment Module, part of our Compliance Suite, streamlines various aspects of compliance, all within an easy-to-use interface. Patrina’s Gifts & Entertainment Module’s built-in workflows permit you to easily and accurately:

  • Disclose gifts and entertainment expenses;
  • Disseminate Gift & Entertainment requests to appropriate parties for review and approval;
  • Generate custom reports tracking recipients, totals, date ranges, types of gifts/expenses; and
  • Comply fully with 17a-4 requirements.

Patrina’s that simple

So, when the regulators call, will you be ready?

Click here to schedule your Patrina demo or call + today and we’ll help you do more, spend less, and reduce risk!

FINRA considers a "gift" to be any gratuity, favor, discount, entertainment, hospitality, loan, or other item or service that has more than a nominal value. The value and intent behind such offerings are assessed by FINRA to determine whether they might influence or reward employees of other firms in a manner that could create conflicts of interest or compromise the integrity of the securities industry.

FINRA Rule 3220 matters because it helps maintain the integrity and fairness of the securities industry. By prohibiting improper influence or rewarding of employees of other firms, it prevents conflicts of interest and unethical practices that could harm investors or undermine market trust. Compliance with this rule ensures that business relationships are based on merit and fair dealings rather than undue influence or incentives, contributing to a transparent and ethical financial marketplace.

To comply with FINRA's gifting rules, financial professionals should:

1. Familiarize themselves with FINRA Rule 3220.
2. Establish firm-specific policies and procedures for gifts and entertainment.
3. Implement internal controls for monitoring and documenting gifts.
4. Train employees on compliance with gifting rules.
5. Maintain detailed records of all gifts and entertainment activities.
6. Regularly review and update compliance processes to align with regulatory changes.
7. Seek legal counsel or compliance experts for guidance when needed.

Adherence to these steps helps ensure compliance with FINRA's rules on gifts and entertainment, promoting ethical practices within the industry.


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