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Can the third-party solicitor’s referral fee be paid from the investment advisory fee charged by the registered investment adviser?


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Can the third-party solicitor’s referral fee be paid from the investment advisory fee charged by the registered investment adviser?

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Yes, the investment advisor firm can pay a portion of the ongoing investment advisory fee charged to the client each billing period as long as such payments are consistent with the Form ADV and separate written solicitor disclosure given to the client and in accordance with the requirements of SEC Rule 206(4)-3.

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