IEX amends gift-limit rule to match FINRA, effective immediately
Investors Exchange members, including those also in FINRA, must follow the new $300 gift cap from the filing date
On October 29, 2026, Investors Exchange LLC (IEX) filed a proposed rule change with the Securities and Exchange Commission (Release No. 34-106827; File No. SR-IEX-2026-43) to amend IEX Rule 3.291, which governs influencing or rewarding employees of others. The amendment, designated non-controversial, became effective upon filing and raises the permissible gift limit from $100 to $300 per individual per year, while adding a new exemption provision.
The change is intended to bring IEX Rule 3.291 into substantive alignment with FINRA Rule 3220, which was recently amended by the Commission (Securities Exchange Act Release No. 104830, February 12, 2026). Under the 17d-2 Agreement between IEX and FINRA, rules that are identical or substantially similar to FINRA rules are subject to FINRA's examination, investigation, and enforcement responsibilities for common members of both organizations. Because the prior version of Rule 3.291 differed from the updated FINRA rule, it fell outside the agreement's scope.
The proposed amendment accomplishes three specific updates. First, it increases the annual gift threshold to $300, mirroring FINRA's inflation-adjusted limit. Second, it inserts paragraph (d), authorizing FINRA staff, acting on behalf of IEX, to grant conditional or unconditional exemptions from any provision of Rule 3.291 when good cause is shown and the exemption aligns with investor protection and the public interest. Third, it incorporates references to FINRA's published guidance on gifts, business entertainment, and non-cash compensation, ensuring consistent interpretation.
By harmonizing its rule with FINRA's, IEX expects to eliminate duplicate regulatory oversight for members that belong to both entities, thereby simplifying compliance obligations. The Commission's notice, published in the Federal Register on November 5, 2026 (Vol. 91, No. 216, pp. 72597-72600), invites comments from interested parties, although the rule change is already in force.
Further reading