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.
1 – Identify a Promoter you want to work with and make sure they meet their state specific requirements.
2 – The Promoter will complete their state specific requirements along with a GVA Promoter Agreement and Bad Actor Certification. Email these to compliance@greatvalleyadvisors.com
3 – If approved, GVA commissions will establish a promoter split ID (i.e. SOL1) based on the split percentage listed in exhibit 1 of the Promoter Agreement in Advisor Bob.
- Do not use this ID on the account paperwork.
- GVA commissions will send the Promoter an ACH form via Docusign to complete for payment.
4 – The Promoter has the clients sign/date Exhibit 2 on the Promoter Agreement Form (pages 9 & 10) and sends to the Advisor. *Promoter will not be paid if this form is not obtained by them and sent to the advisor*.
5 – The Advisor sends the CEA (mark the “Promoters” box in Exhibit A) along with Exhibit 2 from the Promoter Agreement Form (pages 9 & 10) to GVA for processing.
- Submit forms thru GVARIA.com “submit secure files” link
- Submit thru eSignature
- Email forms@greatvalleyadvisors.com
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.
Q: Who is a Promoter?
A: 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.
Q: What types of professionals can participate in the program?
A: 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.
Q: Can they provide investment advice and what is their role?
A: 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.
Q: Are there any required actions a promoter must take?
A: Yes. Promoters are required to provide the referred client with our Disclosure Document either prior to or at the time of establishing the account. The promoter will obtain client signatures on exhibit 2 (pages 9 & 10) of the Promoter Disclosure Document and send to the advisor they are working with. The advisor will submit these 2 pages to GVA with the completed/signed CEA.
Q: How is the Promoter compensation decided, and how are they compensated?
A: Compensation is determined through an agreement between the GVA advisor and the Promoter before any referrals are made. Compensation is documented through GVA disclosure form provided at the time of the referral and signed by the client. After the fee-based advisory account is activated, compensation is calculated and sent directly to the Promoter by GVA through a split in AdvisorBOB. This will happen at the same time the GVA advisor is paid. This arrangement continues as long as the client’s investment advisory account remains open or until the alliance is terminated by either party.
Q: Is there a compensation limit?
A: Yes, promoters can receive compensation ranging from 10% to a maximum of 40% of the advisor’s payout.
Q: What are the licensing requirements?
A: 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.
Q: Can Promoters market their relationship with GVA?
A: 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.
Q: If I have a Promoter identified, how do I get started?
A: To initiate the process, contact compliance with the subject line “Promoter Agreement” and request a copy of the agreement and “Bad Actor” certification. Have the Promoter complete the agreement and certification and send it to compliance@greatvalleyadvisors.com for official review. If approved, GVA compensation will establish a split rep ID (i.e. SOL1) based on the split percentage listed in the agreement in AdvisorBob. GVA Compensation will send an ACH form out via Docusign for compensating the Promoter.
