What is a Solicitor’s Agreement in the context of a Registered Investment Advisor (“RIA”)?

Definition: This is an arrangement under which an RIA can legally share part of the advisory fee revenue generated by a client, with a 3rd party who initially referred the client to the RIA.

When used in an RIA context: “The RIA has a Solicitor’s Agreement with a local CPA firm, resulting in client referrals being steered to the RIA by the CPA firm.”

See also: Episode 132