Solicitor Agreement

[torrid]

According to this resource, for example, you may need to be licensed with your state. The Nasaa . org site has an article on it but I am not allowed to post it due to forum not allowing it.

Advisers must register or become licensed with their state if they:

• Have less than $25,000,000 in assets under management.
• Provide only financial planning or other services that do not involve regular and ongoing management of clients' securities.
• Solicit clients on behalf of other advisers but provide no advice themselves.

Also see this resource which has some good info on Solicitor Referral agreements. Search google for RIA compliance consultants and on left hand navigation look for "Solicitor" on the nav under the Frequently Asked Questions.

I have no relationship with either of these websites.
-T

 

[rickyponting]

It is under employment law which is not illegal.

 

[Stephen]

It's a zombie thread! Shoot it! FYI we never could agree on a split or how client hand offs would be handled, so we both walked away from the table regarding the solicitor agreement.

The End

 

[VolAgent]

It's a zombie thread! Shoot it! FYI we never could agree on a split or how client hand offs would be handled, so we both walked away from the table regarding the solicitor agreement.

The End

Smart move. If you can't agree in the beginning, it won't get better.

 

[fvda_tradepmr]

I believe each State Securities Investment Advisor Department will most likely have their own rules, policies. I know some states do not require the person you are sharing fees with to be licensed while other states do not have that exemption.

I would recommend contacting the securities department of your state to determine what is applicable in your situation. Worst case scenario is you obtain your Series 65 Investment Advisor License and become an Investment Advisor Representative of the RIA firm. But again, I would definitely contact your state regulator and inquire with them directly.

If the individual you are working with is also FINRA Registered, his/her Broker-Dealer firm might have their own separate requirements, procedure, etc., etc.