Gift and Gift Log Guidance
All associated persons (non-registered and registered persons) must submit and log gifts given or received from clients, prospective clients, or sponsors on the Pinpoint Gift Log. Please see the following FAQs and Common NIGOs regarding gifts and completing the gift log in Pinpoint.
FAQs
- What is the gift limit?
- $100 per client per year. Please note this is per client. If more than one associated person wants to give the same client a gift, the total value of all the gifts given to the client (regardless of the sender) is limited to $100 /year.
- When receiving a gift from a client or from a sponsor, the limit is also $100/year
- Do I have to log all gifts?
- What if someone gives me homemade brownies, do I need to log it as a gift? Yes, all gifts received from or given to clients must be entered on the Pinpoint Gift Log. Gifts received from sponsors also must be logged.
- Promotional items that contain a sponsor or DBA logo: Promotional items with a logo on nominal items (valued at less than $50 in most cases), such as t-shirts, golf balls, hats, mugs and pens may be given to clients and are not subject to the $100 annual gift limit. These promotional and logo’d gifts do NOT need to be listed on the Pinpoint gift log.
- What does Personal Nature mean?
- Personal Nature applies when both of the following scenarios apply:
1. You had a personal relationship with the client that preceded the business relationship
2. AND the occasion is “monumental," such as birth of a child, wedding, retirement.
- Personal Nature applies when both of the following scenarios apply:
- NOTE: BOTH scenarios must apply. Even if you had a personal relationship with the client that preceded the business relationship, and the occasion for the gift is not “monumental," then it is not considered Personal Nature.
- Example: You give a client a birthday gift. Even if you had a personal relationship with the client that preceded the business relationship, it CANNOT be considered Personal Nature, as “birthday” is an annual event that everyone experiences. It is not “monumental.”
- NOTE: Even if a gift is truly Personal Nature, the gift should not be extravagant.
- What about funeral flowers for a deceased client?
- Cetera Supervision has provided guidance that funeral flowers for a deceased client CAN be marked as Personal Nature.
- What is considered entertainment, and do I have to log it in Pinpoint?
- Entertainment is an event in which the provider of the entertainment is present with the recipient. Example:A registered representative pays for Chiefs' football game tickets and attends the game with the client.
- If the provider of the entertainment is not present, then it is considered a gift and must be logged in Pinpoint. Example:A mutual fund wholesaler sends an associated person a ticket to a Broadway play. The wholesaler is unable to attend, so the ticket must be logged in the Pinpoint Gift Log. The value of the ticket cannot exceed $100.
- You are not required to log entertainment, but you must adhere to the occasional entertainment policy and annual limitations. The expenses must be limited to $1,000 per year.
- Entertainment received from a sponsor may not be conditioned on the achievement of a sales target or part of any other incentive program.
- Are there any gifts that I am not permitted to give/receive?
- You are not permitted to give or receive cash or cash equivalents. A cash equivalent would be a Visa gift card or an American Express gift card.
- What do I do if I receive cash as a gift? What do I do if I receive a gift that exceeds the $100 annual limit?
- You should not accept the gift.
- Contact your designated supervisor if you receive cash or a gift valued over $100, (either alone or when aggregated with other gifts from the same client or sponsor will exceed the $100 maximum.)
- If you receive the gift, you must return it to the sender. Kindly let them know that due to regulations you cannot accept it.
- Example:A client mails you a check for $50 as a birthday gift. You must return the check to the client.
- Example:A wholesaler sends you an iPhone to thank you for your business. The value of the iPhone is $700. You must return the iPhone to the wholesaler.
- Can I give or receive gift cards?
- Gift cards that are considered “cash equivalents” are not permitted. Examples of a “cash equivalent” include Visa gift cards or American Express gift cards.
- You may give or receive other kinds of gift cards such as Amazon, Starbucks, etc.
- When entering a gift card on the Pinpoint Gift Log, please be sure to specify what type of gift card was given/received. If the gift description simply says, “gift card," you will be contacted and asked to specify exactly what type of gift card was given/received.
- What should I put in the gift description box?
- There is room to provide a detailed description; you must clearly and sufficiently describe the gift.
- What if the gift is to a potential client? Do I still log it?
- Yes, it must be logged. There is a question in the gift log that asks, “Is this for a client, non-client, or sponsor?” A potential client or a prospect is considered a “non-client."
- What if the gift is to two or more clients? Do I log the gift twice?
- Do NOT log the gift twice. Enter the gift on the log and select one of the clients. In the comments section state that the gift was shared by more than one client (include their names).
- Am I required to add an attachment when completing the gift log in Pinpoint?
- No, that is optional.
- Does the value of the gift recorded on the Pinpoint Gift Log need to include shipping costs, if applicable?
- No, only the value of the gift must recorded. You do not need to include the cost of shipping the gift.
- Do I need to wait until the end of the quarter to enter the gifts into the Pinpoint Gift Log?
- No, best practice is to log gifts as given/received. There is no need to wait until the end of the quarter.
Common NIGOs regarding the Pinpoint Gift Log:
- The number one NIGO is incorrectly selecting the Personal Nature box. 9 times out of 10, the gift does not meet the Personal Nature definition. Any time we see the Personal Nature box checked, we will reach out to you to see if the situation meets the 2-pronged definition.
- Example NIGO: The Personal Nature box was checked, however the reason for the gift is “birthday." Birthday gifts are never Personal Nature (as it is not a monumental event), so the gift log entry is NIGO.
- Example NIGO: The Personal Nature box was checked, however the reason for the gift is “birthday." Birthday gifts are never Personal Nature (as it is not a monumental event), so the gift log entry is NIGO.
- Example NIGO: The Personal Nature box was checked on a gift log entry. The OSJ follows up with the rep and finds out there was not a pre-existing personal relationship. The gift log entry is NIGO.
- Example NIGO: The Personal Nature box was checked on a gift log entry. The OSJ follows up with the rep and finds out there was not a pre-existing personal relationship. The gift log entry is NIGO.
- The gift log entry does not provide an adequate description of the gift. The description must provide sufficient detail to give a clear understanding of the gift.
- Example NIGO:The gift description says “Christmas." This does not provide enough information about the gift, as it does not specify the item that was gifted, only the occasion for the gift. This requires the OSJ to follow up and ask for more information about the gift.
- Example NIGO:The gift description says “Christmas." This does not provide enough information about the gift, as it does not specify the item that was gifted, only the occasion for the gift. This requires the OSJ to follow up and ask for more information about the gift.
- Example: The gift description says, “gift card.” This does not provide enough information to determine if it was an acceptable gift card (not a cash equivalent). This requires the OSJ to follow up and ask for the specific type of gift card.
- Example: The gift description says, “gift card.” This does not provide enough information to determine if it was an acceptable gift card (not a cash equivalent). This requires the OSJ to follow up and ask for the specific type of gift card.
- The gift log entry does not provide an adequate description of the reason for the gift. The reason description must make it clear why the gift was given. It is permitted to simply state “Christmas” or “birthday," as applicable, as the reason for the gift.
- Example NIGO:The reason for the gift says, “sorry." This requires the OSJ to follow up and find out what happened and if it is complaint related. Instead, provide the reason for the gift, such as, “Our office was out of the client’s favorite coffee when they visited, so we sent them a basket of the coffee.”
- Example NIGO:The reason for the gift says, “sorry." This requires the OSJ to follow up and find out what happened and if it is complaint related. Instead, provide the reason for the gift, such as, “Our office was out of the client’s favorite coffee when they visited, so we sent them a basket of the coffee.”
- Example NIGO:The reason for the gift says, “response A." This requires the OSJ to follow up as we don’t know what that means.
Please contact the Prosperity Network Compliance Team with any questions: compliance@prosperityadvisors.com or 913-529-5500 Option 2.
Internal Use Only