Paying for referrals compliant

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Aug 10, 2005 7:22 pm

Is it compliant (by NASD and or Merrill) to offer to pay for a referral
from a cpa or attorney or a well connected friend/ acquaintance??



thank you

Aug 11, 2005 3:21 pm

I am not an attorney, but I do not believe it is allowed. 
However, I think some brokerage firms have programs by which you can
share advisory fees with a CPA if they are properly set up as a
registered investment advisor.  Don't know if Merrill this ability
currently or not.

Sep 8, 2005 11:36 pm

Morgan Stanley has an "Alliance Program" for thier managed account platforms where they can pay a licensed CPA or Attorney a percentage of the annual fee.  The requirements vary from state to state though.  I think it's a great program if you can find CPAs who are licensed, but are too busy to make the investment side a business focus.

Sep 9, 2005 10:29 am
iconsult100:

Morgan Stanley has an "Alliance Program" for thier managed account platforms where they can pay a licensed CPA or Attorney a percentage of the annual fee.  The requirements vary from state to state though.  I think it's a great program if you can find CPAs who are licensed, but are too busy to make the investment side a business focus.


Merrill and a number of other firms have the same sort of programs.