eTrade 2012 Annual Report Download - page 230

regulations if they are (1) nominal in value (i.e., less than or equal to US $100 in value); (2) appropriate, customary and reasonable
meals and entertainment at which the giver is present, such as an occasional business meal or sporting event; or (3) appropriate,
customary and reasonable gifts based on family or personal relationships, and clearly not meant to influence E*TRADE business.
In addition to the restrictions in the paragraph above, nominal non-cash gifts (with a value less than or equal to US $100) and
entertainment should only be accepted if a reasonable person would be satisfied that the gift or entertainment did not influence the
employee’s judgment or the performance of his or her duties. Under no circumstances may employees and officers accept any gifts or
entertainment that could create a conflict of interest or the appearance of impropriety. The Compliance Department maintains a log of
gifts received by all employees. Any employee who receives a gift must report it to the Compliance Department. If employees have
any questions regarding the appropriateness of a gift or entertainment, employees must contact the Compliance Department or send
an email to: [e-mail] before accepting the gift or attending the event.
Providing Gifts, Meals or Entertainment
E*TRADE policy, applicable laws, rules and regulations may prohibit employees from providing gifts, meals or entertainment in
excess of specified monetary levels (or of any value, in some cases) to customers, vendors, suppliers, and other third parties. More
specifically, FINRA rules effectively prohibit E*TRADE employees from providing gifts in excess of $100 per person annually to
third parties with which E*TRADE has a prospective or existing business relationship. When permitted by law and consistent with
accepted business practices and ethical standards, employees and officers may give gifts of nominal value or provide meals or
entertainment to customers, vendors, suppliers and other persons who have business relationships with E*TRADE. Regardless of
dollar value, however, in no event should gifts should be given or entertainment provided if public disclosure of the circumstances
would embarrass E*TRADE or the giver of such gift or provider of such entertainment.
In all cases, employees must provide complete and accurate expense reports for all gifts and entertainment expenses paid for by
E*TRADE.
Please note that special restrictions often apply to gifts and entertainment provided to government or SRO employees, even of
nominal value. In addition, political contributions may be subject to the rules of the Municipal Securities Rulemaking Board and
employees are required to comply with such rules.
If you have any questions regarding any of these policies or rules, contact Associate Surveillance within the Compliance Department
or send an email to: [e-mail].
Approval of Nonconforming Gifts, Meals or Entertainment
The Executive Vice President responsible for each employee’s business unit, together with the appropriate Compliance Officer and
the Company’s Secretary and General Counsel, may approve, on a case-by-case basis, the acceptance or provision of a gift, meal or
entertainment that is not specifically permitted under this Section or that is prohibited under this Section. Any such approval must be
in writing and pursuant to full written disclosure of all relevant facts, including the name of the donor/recipient, the circumstances
surrounding the offer and acceptance, the nature and approximate value of the gift or other event, and the reason why it cannot or
should not be returned or refused, in the case of accepting a gift, or the reason why the gift should be permitted, in the case of
providing a gift.
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