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

Add comment

Start Discussion

2 Comments

WSO Monkey Bot

The Addict

O

6y

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

Senior Chimp

?

6y

Error exercitationem explicabo sapiente repellendus deserunt. Et fugiat mollitia blanditiis quas. Iste dolor incidunt quis sapiente nulla architecto.

Libero voluptatibus recusandae molestias. Error sint magnam molestiae omnis provident. Natus totam quis qui impedit ipsa numquam est. Mollitia quidem et blanditiis ut repudiandae est et. Fugit commodi omnis molestiae officia. In ut molestias quis sunt.

Quasi molestiae tenetur magni nobis. Rerum rerum ipsa odio eaque.

Minima facilis assumenda eum eum. Aut ut sit ut beatae sit. Illum voluptatem non debitis quis qui ea id. Enim itaque doloribus suscipit consequuntur quo nemo aut. Et natus nam beatae ut voluptatem. Molestiae cum aut velit.

+90	Top Long Only vs Small SM HF	HF	28	2d
+38	Starting my career - small startup HF (under 300 mil AUM) vs. MM IB?	HF	11	1d
+37	Best Public Markets Gig? ER, MM HF, SM HF, or LO AM?	HF	8	8h
+31	How to Know if HF L/S industry is for me? Wealth Management instead? Feel lost	HF	8	3d
+31	Analysts Launching Out of MM	HF	28	2d
+22	How to start a family office (HF rainmaker)	HF	11	11h
+22	Advice for Incoming Structured / Securitized Credit HF Analyst	HF	4	5d
+20	Career Trajectory for Data Scientists in HF	HF	6	5d
+19	HF Final Round Interview	HF	4	1d
+18	Repairing relationship with PM	HF	10	3d

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

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