The Financial Industry Regulatory Authority has filed with the Securities and Exchange Commission a notice of its proposal to adopt a new gift and entertainment rule.

The new regulation FINRA Rule 3220 (influencing or rewarding employees of others)—will replace the old NASD Rule 3060 and the New York Stock Exchange Rule 350, as FINRA consolidates its rulebook in the aftermath of the merger between NASD and NYSE’s regulatory arm.

The old rules prohibit broker-dealers from giving gifts or gratuities in excess of $100 per year to any person where that gift is in relation to the business of the recipient’s employer. FINRA is proposing that NASD Rule 3060 be adopted without material change because of the “clarity of the existing regulatory standard,” specifically the $100 gift limit. FINRA also argues NASD Rule 3060 is “well understood” by its members and that its interpretive guidance has further clarified the rule’s requirements.

As for the old NYSE rule, FINRA proposes the elimination of several provisions, including one which permits member firms to obtain prior written consent of the recipient’s employer for any gift over $100, arguing that the gift rule establishes a fixed amount and that there is no business justification for giving gifts greater than the established limit.

FINRA Rule 3220 will go into effect after SEC approval and 35 days after it has been printed in the Federal Register.