Are any other community banks out there serving as referral partners for investment advisory firms? We have a yearslong relationship with a nationwide firm, and apparently in Nov 2022, the SEC changed the rules. For one thing, we'd have to be called a "Promoter" rather than a "Solicitor" of business. As before, we'd have to get clients to sign that we will earn 20% of their investment advisory fees.

But also there would be 2 forms to choose from rather than 1 (depending on the type of client being referred), and under the rule, we can't be a promoter unless we are, ourselves, a registered advisory firm (we aren't) or are exempt from registering (I don't know that we are, and can't imagine why we would be).

So I don't know but I think the SEC rule means we can't refer business to them or any other investment advisory firm anymore. Anyone have any experience with this?


https://www.jackolg.com/legal-risk-management-tips/a-breakdown-of-the-secs-amended-promoter-rule/

https://www.paulhastings.com/insights/rapid-rulemaking/reminder-about-secs-new-marketing-rule-for-investment-advisers-1#:~:text=Testimonials%20and%20Endorsements.&text=Advertisements%20must%20clearly%20and%20prominently,compensation%20and%20conflicts%20of%20interest.