Regulation R and incentives

Did this affect anyone's referral program; i.e. employee referrals to financial services? How did you address it? Tx

We revised our policies and modified our referral program. We pay a nominal, one-time referral fee of $25 for a qualified referral by a non-licensed employee. No additional referral credit toward a branch performance or other retail bonus point program is available to non-licensed employees. The referral fee is contingent on the purchase or sale of a security, the opening of a brokerage account or the type of security transaction. A “qualified” referral is defined as a customer that keeps an appointment with a Financial Consultant.

I thought the referral fee could not be contingent on whether or not a sale was made? Thanks for the input.

OOPS TYPO. It can't. But it can be contingent on whether the individual actually meets with the securities rep.