No associated person of a member shall accept any compensation from anyone other than the member with which the person is associated. This requirement will not prohibit arrangements where a non-member company pays compensation directly to associated persons of the member, as long as:

  • The arrangement is agreed to by the member;

  • The member relies on an appropriate rule, regulation, interpretive release, interpretive letter, or "no-action" letter issued by the Commission that applies to the specific fact situation of the arrangement;

  • The receipt by associated persons of such compensation is treated as compensation received by the member for purposes of the Rules of the Association; and

  • All record keeping requirements are satisfied. Members are required to maintain records of all compensation received by the member or its associated persons from offerors. The records shall include the names of the offerors, the names of the associated persons, the amount of cash, the nature and, if known, the value of non-cash compensation received.

No member or person associated with a member shall accept any compensation from an offeror that is in the form of securities of any kind. Also, they may not directly or indirectly accept any compensation or offer any compensation other than as described in the prospectus, except under the following conditions:

  • An occasional meal, event ticket or other entertainment that is not preconditioned on achievement of a sales goal, and not excessive or frequent enough to appear improper

  • Payment or reimbursement of expenses to attend training or educational meetings offered by a member or offeror

  • Gifts that do not exceed an annual amount fixed periodically by the FINRA and that are not preconditioned on achievement of a sales goal. The current annual amount fixed by the FINRA is $100.


Introduction

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