Final answer:
Non-cash compensation under FINRA rules excludes items of little to no value or incentives not specific to one product, distinguishing them from items such as gifts or paid travel.
Step-by-step explanation:
Under the rules set by the Financial Industry Regulatory Authority (FINRA), non-cash compensation in connection with the sale of variable contracts refers to any form of compensation that is not cash, given to an associate for the sale of certain investment products.
This can include things like gifts, travel expenses, meals, and other forms of compensation.
However, non-cash compensation does not include items that have little to no value, like promotional items with the company's logo, or compensation and sales incentives that are based on total sales that are not specific to one product.