commission on investment
Is it legal to earn a commission on money invested by a friend in another friend's day trading business?
Re: commission on investment
Yes, it is legal - but not as a "commission" per se. I am assuming you are not a licensed FINRA broker as well, correct?
In order to do this correctly, you should have a agreement that spells out the % earned as a pure "introduction fee". The SEC has passed judgment on such fees as being legit. HOWEVER, you cannot, according to the SEC, move beyond just making the introduction to the source of the financing into advising the company or client - eg, structuring the investment.
This is a fairly complex area of the law. There are a lot of moving parts. Feel free to contact me directly so I may provide you with a more comprehensive response - [email protected]
