Skip navigation

Legal or compliance question

or Register to post new content in the forum



  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Aug 9, 2009 11:31 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?

Aug 10, 2009 3:37 pm

I don’t think ypu can do it that way. If the plan was fee based, then you could aproach a RIA (like me) as a solictor and work out a fee sharing arangement.

  If you try to do that with a broker dealer, that may be looked upon as a soft dollar arangement. Instead they would want you licensed with the firm.