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, provided that they do not give rise to any apparent or actual material conflict of interest. These 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, t