Comp Question...placing a large 401K

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Aug 9, 2009 7:38 am

Can someone "broker" the placement of a large 401K deal and receive compensation from the broker/dealer?

For
example...say I have the ability to direct or place a large 401K. I
interview several broker dealers and decide on three finalists. Can I
receive compensation to place the deal? Note, while I am licensed, I
will not be int he employ of a broker dealer. I will be acting on my
own.

If I can be compensated, what is the typical fee arrangement? Up front 1-2 percent?

I asked this over on the Legal Forum as well.

Aug 9, 2009 12:00 pm

No.

Aug 9, 2009 8:00 pm
BoeskyMilliken:

Can someone "broker" the placement of a large 401K deal and receive compensation from the broker/dealer?For

example...say I have the ability to direct or place a large 401K. I

interview several broker dealers and decide on three finalists. Can I

receive compensation to place the deal? Note, while I am licensed, I

will not be int he employ of a broker dealer. I will be acting on my

own. If I can be compensated, what is the typical fee arrangement? Up front 1-2 percent?I asked this over on the Legal Forum as well.





Get a 65, register as an investment advisor. and charge a consulting fee. Then you can be compensated. Do you have a 65?

Aug 9, 2009 9:09 pm

I am series 7 & 8 licensed.

But, I  just left my employ with a broker dealer. So, I guess my licensed is going to be parked/shelved until I find a place to sponsor me.

Anyway, yes, I am licensed.

Can I charge a fee as an RIA then? Will the wire house pay my fee if I bring them this $100MM+ 401k?

Aug 10, 2009 7:52 am

How do you plan on charging a fee as an RIA when you aren't an RIA?  

Aug 10, 2009 4:14 pm
BoeskyMilliken:

I am series 7 & 8 licensed. But, I just left my employ with a broker dealer. So, I guess my licensed is going to be parked/shelved until I find a place to sponsor me. Anyway, yes, I am licensed. Can I charge a fee as an RIA then? Will the wire house pay my fee if I bring them this $100MM+ 401k?





I said, get a series 65.



How about this? You bring me that 100MM 401k, and I'll pay for you to get your 65 and come work for me and receive your cut.

Aug 10, 2009 4:22 pm

Sorry, I missed that about the 65.

All joking aside, I probably should so I can place business.

Aug 11, 2009 12:19 pm

I'll give you a hundred dollars worth of nice gifts.

Aug 11, 2009 12:25 pm
Moraen:
BoeskyMilliken:

I am series 7 & 8 licensed. But, I  just left my employ with a broker dealer. So, I guess my licensed is going to be parked/shelved until I find a place to sponsor me. Anyway, yes, I am licensed. Can I charge a fee as an RIA then? Will the wire house pay my fee if I bring them this $100MM+ 401k?



I said, get a series 65.

How about this? You bring me that 100MM 401k, and I'll pay for you to get your 65 and come work for me and receive your cut.

 
What a wonderfully generous offer you made.  You're such a nice guy to offer such a deal to him.  I hope, for your sake, that he takes you up on the offer. 
Aug 11, 2009 1:12 pm
Spaceman Spiff:
Moraen:
BoeskyMilliken:

I am series 7 & 8 licensed. But, I just left my employ with a broker dealer. So, I guess my licensed is going to be parked/shelved until I find a place to sponsor me. Anyway, yes, I am licensed. Can I charge a fee as an RIA then? Will the wire house pay my fee if I bring them this $100MM+ 401k?

I said, get a series 65. How about this? You bring me that 100MM 401k, and I'll pay for you to get your 65 and come work for me and receive your cut.



What a wonderfully generous offer you made. You're such a nice guy to offer such a deal to him. I hope, for your sake, that he takes you up on the offer.





Unlikely. I sent him a PM, and haven't received anything back. My guess is he got smart and contacted somebody to help him get his 65 or 66 and realized that it doesn't cost much to do that.



I guess I could have been nicer.