3117. Mutual fund sales incentives

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    1. For purposes of section 3117, the term "non‑cash sales incentive" includes, without limitation, domestic or foreign trips, goods, services, gratuities, advantages, benefits or any other non-cash compensation.
    2. A Dealer Member, related company, partner, employee or Approved Person of the Dealer Member or related company, must not, directly or indirectly, accept or pay any non‑cash sales incentive in connection with the sale or distribution of mutual fund products.
    3. The prohibition against non-cash mutual fund sales incentives in section 3117 does not apply to:
      1. non-cash sales incentives earned or awarded through a Dealer Member’s internal incentive program for which eligibility is determined with respect to all services and products offered by the Dealer Member,
      2. commissions or fees payable in cash and calculated with reference only to particular sales or volumes of sales of mutual fund,
      3. service fees or trailing commissions,
      4. cost of marketing materials, or
      5. normal and reasonable business promotion activities taking place where the recipient is employed or resides.

    There is no history log for this rule.

    There is no history log for this rule.