According to FINRA rules, which types of noncash compensation are permissible in the sale of variable contracts?

The permissible types of noncash compensation in the sale of variable contracts include gifts, meals, and other similar items. FINRA rules allow for these types of noncash compensation as long as they do not exceed the prescribed monetary limits and are not contingent upon sales goals or other performance measures. This ensures that the incentive structures in place do not compromise the integrity of the advisor's recommendations or the interests of the clients.

In contrast, cash bonuses are generally not permissible due to concerns over conflicts of interest and the potential influence of immediate financial incentives on an advisor's recommendations. Performance-based incentives may also be prohibited or restricted as they might encourage an advisor to prioritize personal gain over the client's best interests. Exclusive event invitations, while not strictly prohibited, usually must be assessed under overall compliance guidelines to ensure they don't create undue influence. Thus, gifts and meals align with the guidelines since they are tangible expressions of appreciation without direct monetary compensation involved.