May an investment adviser registered with the United States Securities and Exchange Commission (“SEC”) pay a third-party (non-employee) to solicit or refer new investment advisory clients?
Yes, an SEC registered investment adviser firm may pay cash referral fees to a third-party (non-employee) that solicits investment adviser clients on behalf of the registered investment adviser firm only if such a solicitor arrangement is in compliance with SEC Rule 206(4)-3 under the Investment Advisers Act of 1940.
Related Questions
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