The Promoter Agreement enables GVA advisors to establish strategic referral partnerships with other professionals, such as certified public accountants (CPAs) and attorneys, or their firms. In return for referring new clients, these professionals receive a share of the advisory fee revenue.
To initiate the process, contact compliance with the subject line “Promoter Agreement” and request a copy of the agreement.
- Have the Promoter complete the agreement and send it to compliance@greatvalleyadvisors.com for official review.
- If approved, GVA will establish a promoter split rep ID (i.e. SOL1) based on the split percentage listed in Exhibit 1 of the Promoter Agreement.
- DO NOT USE THIS REP ID ON THE ACCOUNT OPENING PAPERWORK.
- The Promoter must have the prospect sign the Promoter Disclosure Document (Exhibit 2) and provide a copy to the advisor.
- During the account opening process, you must include the Promoter Disclosure Document (Exhibit 2) in the documentation sent to GVA. This agreement should be sent to commissions@greatvalleyadvisors.com for us to identify the Promoter arrangement.
The Promoter Program is designed for individuals or professionals who will be compensated solely for fee-based relationships. Through this program, promoters can earn a portion of the advisory revenue by referring investment advisory clients to a GVA advisor. Promoters continue to receive compensation for as long as the referred clients open and maintain fee-based investment advisory accounts with the RIA. The referring promoter is not permitted to offer ongoing asset management services or provide investment advice to any client or prospective client on behalf of GVA or its advisors. Additionally, GVA will not maintain securities registrations for professionals involved in the Promoter Program. As amended, these arrangements are regulated by the advertising rules under the Investment Advisers Act of 1940, with updates effective May 4, 2021. According to these rules, referring parties are officially designated as “promoters,” and their referrals are considered “endorsements” if they receive any form of direct or indirect compensation in exchange for the referral.
The program is available to most professionals, though certain individuals may be ineligible if participation conflicts with their current business or professional affiliations. All applicants are responsible for consulting with their respective state board and professional regulatory body before applying to ensure their eligibility to participate in the program. The following individuals will be ineligible to be a Promoter at GVA:
- Those with fiduciary control of client assets
- CPAs who perform attestation services
- People subject to an order by the Securities and Exchange Commission (SEC) or a state securities commission, and those with a criminal conviction.
They are not permitted to provide investment advice as part of this program. Promoters’ roles are strictly limited to introducing and referring prospective clients to a GVA Financial Advisor for investment advisory services. They are not permitted to provide investment advice, nor can they recommend or endorse GVA or the financial advisor as an investment manager as part of the program.
Yes. Promoters are required to provide the referred client with our Disclosure Document either prior to or at the time of establishing the account.
Yes, Promoters may have multiple referral relationships with entities not associated with LPL Financial. However, these relationships must be disclosed, reviewed, and approved by LPL Financial through a separate questionnaire.
Yes, promoters can receive compensation ranging from 10% to a maximum of 40% of the advisor’s payout.
Promoters must comply with their state licensing requirements. Many states require some form of licensing, so professionals should verify the specific requirements with their state authorities.
Promoters may not present themselves as an investment advisor representative (IAR) of GVA or as otherwise associated with GVA, and they are not permitted to market their relationship with GVA in any manner. However, the GVA advisor can create a general communication, such as a bio or an overview of their services, which must be approved by compliance. Once approved, this material can be provided to the Promoter for distribution to the individuals they are referring.
