Can the third-party solicitor’s referral fee be paid from the investment advisory fee charged by the registered investment adviser?
Yes, the investment advisor firm can pay a portion of the ongoing investment advisory fee charged to the client each billing period as long as such payments are consistent with the Form ADV and separate written solicitor disclosure given to the client and in accordance with the requirements of SEC Rule 206(4)-3.
Related Questions
- What are the basic regulatory requirements for a solicitor referral arrangement between an SEC registered investment adviser and a third-party (non-employee)?
- Should there be a specific disclosure within the Form ADV if a registered investment adviser pays a referral fee to a third-party solicitor?
- Does a third-party solicitor have to be registered as an investment adviser or investment adviser representative?
