If a friend refers a client to a hedge fund, do they have to be registered with the SEC?

Had a few friends ask to refer some friends of theirs to a hedge fund, but wanted some type of comission/finders fee. Although I was not sure if you technically have to be a registered broker with the SEC to be paid for referring prospective investors to hedge funds?

Can anyone comment on that? What if it is a real close friend rather than someone doing outbound sales to random people? Also, what are average % commission given, for example on a $500k investment?

Thanks

199 WSO Academy Hedge Fund Session Reviews: 4.77/5

Class of '29 Sep 2026 Cohort

5.00/5

Hedge Fund LinkedIn Review

“My meeting with Kevin Lee was super helpful and went well beyond what I originally expected. We met to discuss my LinkedIn profile, but the conversation also covered the hedge fund space and how I’m thinking about my career as a whole. I really appreciated being able to talk about both how I present myself professionally and the broader direction I want to take. As someone interested in hedge funds but also exploring other paths in finance, it was helpful to have a conversation that connected my profile to my actual interests and goals. Kevin gave me a lot to think about, and I left feeling clearer about my next steps. Overall, I really appreciated his time and willingness to go beyond the original purpose of our meeting.”

Class of '26 Sep 2026 Cohort

4.56/5

Hedge Fund Mock Interview

“He was very responsive and prepared for the meeting. He actually read the JD, resume, and looked up linkedin which sometimes other mentors doesn't actually go over those to prepare things beforehand. I appreciate his direct comments I think it saved time and actually helped me to know exactly where to improve. I also appreciated him admitting if he doesn't know about specific HF strategy. Only thing I'd suggest for him is probably sending actionable key takeaways after the meeting because other mentors did and that was very helpful. ”

See All 11,755 WSO Academy Reviews

2 Comments

WSO Monkey Bot

O

8y

ratman2050, hey, look at the bright side, at least you didn't get a ton of monkey shit thrown at you...here is my best guess on threads that might be helpful:

Do hedge fund managers need to be register if the LLC is located in Wyoming? In the state of Wyoming you do not need to register as an investment advisor. If my hedge fund is ... But the Advisers Act of 1940 Section 203A(a)(1)(A) forbids you to register with the SEC unless you ... to do for this project. Thank you so much for any help
The 24 Interview Lessons I Learned on the Way to Getting My First Full Time Job the love of God, if they ask how do you keep up with markets, say (at least) "the FT, the ... set off alarm bells along the lines of "what if they do that in front of the client?". 12. ... you do get the job, being
From 2 GPA, to Bulge Bracket and Hedge Fund Fortunately my boss in the hedge fund was satisfied with my work, and was willing to offer me another 3 months ... targeting hedge fund. If you target to be a trader, you can foresee how trading will looking in say 10-year ... not being able to graduate with your best
Looking To Start a Fund, In Search of Advice they have already earned. Beyond that, I think my dream job would be running a hedge fund, and recently ... and do it willingly for free because they are friends just trying to make some money ontop of what ... "Why don't I stop telling them what to do with their money, and rather j
Hedge Fund Careers: Guide to Landing a Hedge Fund Job Out of Undergrad and Beyond you want to be in a systematic hedge fund / CTA fund, you'll need to do some kind of programming ... career versatility both within and outside hedge funds. If you have even the slightest desire to one day ... without full-time experience starts with an
If I don't have money to go to a semi-target/target then how do I break into Investment Banking (or be successful at life)? OK so I'm not going to bore you, 4.0 CC student who has done some great ECs with a difficult ... future and they're piss broke. Now I did good in high-school and got accepted to some decent schools ... private loans since fucker Freshman admits take all the FAFSA money. So how am I supposed to break into ...
AMA- Analyst at $1.5B Endowment Fund strategy is a hedge to the rest of the portfolio, there's nothing we do to interact with the portfolio ... people on here are talking about. If you have ever wondered where hedge funds, PE funds, credit funds ... role where you need to t
More suggestions...

Or maybe the following users have something to say: Jamoldo @metalalpha" no homo

If those topics were completely useless, don't blame me, blame my programmers...

Reply

Quote

Report

Other

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Tetrazini

?

8y

Quam neque et hic dicta nihil quis quia. Doloribus aliquam non sit rem et commodi recusandae assumenda.

Excepturi dolorem praesentium quia velit totam nam. Eius consequuntur deserunt voluptate ducimus est numquam voluptatibus. Provident atque sit veniam dolorum quasi impedit.

Aut sint nostrum voluptatem earum tempora laborum. Perferendis quo totam non. Eveniet dolorum sint vel itaque enim natus dolores. Provident nihil dolores aut. Id odit officia magnam. Eum optio est unde expedita nisi.

Aut molestias debitis sunt similique vitae sunt iste velit. Unde architecto dolorem ab dolorem libero optio. Numquam unde occaecati porro eius praesentium. Exercitationem corporis dolorem facere qui ducimus modi quia tempore.

Reply

Quote

Report

Other

+21	Future of L/S	5	2d
+17	Latest blow up / wind down	25	2d
+15	James Fishback	7	7h
+12	Looking for Fund to Partner With - LMM Activist	4	5h
+10	SM L/S Compensation?	3	7h
+9	Moving from credit to equity?	3	4d
+9	MMHF Central Execution Trajectory/Advice	1	1d
+9	How to prep for credit HF?	4	1d
+3	Jensen Huang	1	5m
+3	Chefs at Pod Shops	2	3d

1	redever	99.2
2	Secyh62	99.0
3	kanon	99.0
4	BankonBanking	99.0
5	CompBanker	98.9
6	DrApeman	98.9
7	dosk17	98.9
8	GameTheory	98.9
9	Betsy Massar	98.9
10	Jamoldo	98.8

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

If a friend refers a client to a hedge fund, do they have to be registered with the SEC?

Score Breakdown

Feedback

Score Breakdown

Feedback

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

If a friend refers a client to a hedge fund, do they have to be registered with the SEC?

See All Comments - 100% Free

Trending Content - Hedge Fund Forum