Asking for Referrals

Asking for an Introduction

An introduction can give a prospective client context. It does not guarantee fit, a sale or permission to contact someone. Ask only when appropriate to the relationship and make a refusal easy.

A Simple Invitation

"If someone you know would find a conversation helpful, you are welcome to share my approved contact details. There is no obligation to introduce anyone."

An accurate description of whom you serve may help. Do not pressure a client to disclose a friend's sensitive financial circumstances or supply a contact list.

Make It Easy and Protect Privacy

1. Offer firm-approved contact information or an introduction template.
2. Let the client and prospective client choose the channel and whether to participate.
3. Check applicable outreach restrictions; a mutual friend is not automatic consent.
4. Thank the introducer without disclosing whether the person became a client or details of their finances unless an appropriate permission or legal basis exists.

Gifts, Payments and Public Praise

Do not promise cash, a fee discount or a gift for a referral without compliance review. Broker-dealer payments may raise registration issues under FINRA Rule 2040. For advisers subject to the SEC marketing rule, testimonials, endorsements and compensated referrals can trigger disclosure, oversight, written-agreement and eligibility requirements, subject to specific exceptions. A small gift is not automatically exempt. State requirements and firm policies may also apply.

Do not suggest a public review as a workaround for a client who declines introductions. Obtain approval before requesting or reusing testimonials, client stories or performance claims. Calling a referral an introduction does not change the applicable requirements.

Sources: SEC marketing guide, FINRA Rule 2040, SEC privacy rule.