Commission Splits w/ Advisor from Another BD

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Jul 11, 2008 1:10 pm

I'm curious if anyone out there has had experience setting up commission split arrangements with advisors who are not apart of their own broker-dealer.  I've struck up a good relationship with two agents from seperate broker-dealers (who are not looking to change I might add) that I believe could be further built upon.  They are both securities licensed, but one has found the health insurance arena to be so lucrative for him in the last two years that he's doing very little wealth management.  He's got a good chunk of clientele that he brought with him from a previous broker-dealer that he really has no time to service and do additional business with.  The other advisor writes so much 401(k) business, that he has little time for the individual opportunities that arise from it.  He's got 30-40 plans that he services 4x plus every year and does a great job at it.  I've approached both about helping them out and obviously that's an extra layer of service they can offer their clients that they weren't getting before and puts more dollars in all of our pockets.  My broker-dealer seems agreeable to doing this.  I just want to have my i's dotted and t's crossed from a compliance standpoint.  I'd be interested in hearing from anyone who's doing this or tried to do this previously to see what your experience has been and what should one look out for when doing this.  I read these boards all the time and they've been very helpful...    

Jul 11, 2008 7:09 pm

Commissions cannot be split with different b/d...if you passed the 66 you will recall this question being asked ad nauseum

Jul 11, 2008 8:28 pm

I think not. But just ask your compliance officer. You will have to clear the arrangement through them anyway, so just ask. Better yet, don't you have a compliance manual online that you can refer to?

Jul 14, 2008 11:12 am

Would a finder's fee arrangement work better?