FINRA Rule 3220 (Influencing or Rewarding Employees of Others) explicitly prohibits member firms or their associated persons from giving anything of value in excess of $100 per individual per year to an employee of another member firm. This rule, often called the "gift rule," is designed to prevent conflicts of interest and ensure that business is conducted on the basis of merit, not improper inducements. The $100 limit is an aggregate value of all gifts given to a single recipient within a calendar year.

A. Gifts are permitted, but they are strictly regulated by the $100 annual aggregate limit to prevent impropriety.

C. The rule is based on the total value of all gifts per year, not a per-gift limit, preventing firms from giving numerous small gifts.

D. The annual aggregate limit is explicitly set at $100, not $250, and there is no per-gift limit mentioned in the rule.

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1. FINRA Rule 3220. Influencing or Rewarding Employees of Others. Financial Industry Regulatory Authority. "No member or person associated with a member shall, directly or indirectly, give or permit to be given anything of value, including gratuities, in excess of one hundred dollars per individual per year to any person... where such payment or gratuity is in relation to the business of the employer of the recipient..." Retrieved from https://www.finra.org/rules-guidance/rulebooks/finra-rules/3220.

2. FINRA Securities Industry Essentials (SIE) Examination Content Outline. Financial Industry Regulatory Authority. Section 4.1.2, "Rules and regulations for associated persons," covers knowledge of rules regarding gifts and gratuities. The content outline mandates understanding of these specific limitations. Retrieved from https://www.finra.org/registration-exams-ce/qualification-exams/securities-industry-essentials-exam.

3. Cornell Law School, Legal Information Institute (LII). FINRA Rule 3220. The LII, a non-profit group at Cornell Law School, provides open access to law and serves as a reputable academic resource hosting the full text of the rule. Retrieved from https://www.law.cornell.edu/finra/rule/3220.