The compensation element of being in investment adviser is satisfied by the receipt of any economic benefit, whether in the form of an advisory fee or some other fee relating to his total services rendered, commissions, or some combination of the foregoing. It is not necessary that the enrolled agent provides investment advisory and other services to client charges separate fee for the investment advisory portion total service. The compensation element is satisfied that the single fee is charged for a number of different services, including investment advice or the issuing of reports analysis is concerning securities. The fact that no separate fee is charged for the investment advisory portion the service could be relevant to whether the person is in the business of giving investment advice.
Is not necessary that the advisers compensation be paid directly by the person receiving investment advice only that the investment adviser receives compensation rum some source for his or her services. A person providing a variety services to client, including investment advisory services, for which the person receives any economic benefit, for example by receipt of a single fee or commissions upon the sale the client of insurance products or investments, is providing investment advisory services for compensation. As you will learn in the fast forward academy course, it is important to be upfront with your clients regarding the fee's that you charge. You should always get written approval from your client, whenever your fee's change dramatically or the overall structure of your services change. Also, while there is nothing inherently wrong about receiving fee's from other parties for referrals, you should always do what is in your clients best interest. Simply put, you should not base referrals or make investment related decisions with your clients funds, on the basis of fee's or income you may receive. While you may get greater short term personal financial benefits from doing so, in the long run, it will cost you far more.