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Intermediaries

An adviser can obtain clients indirectly through intermediaries that directly interface with investors. Five of the most common intermediaries are:

Solicitors

Solicitors are non-employees of the advisers who receive a fee for referring clients to the adviser.

Adviser Supermarkets

A number of broker-dealers market adviser supermarkets to their customers. An adviser supermarket is a list of investment advisers that typically includes performance and other information about each adviser. To remain on the list, an adviser must execute a certain amount of its client trades through the broker-dealer.

Wrap Account Programs

Wrap account programs are sponsored by broker-dealers that offer investment programs with a single asset-based fee and no commission charges. These broker-dealers provide brokerage services and split the fee with advisers who provide investment management services.

Sub-Adviser Programs

A number of advisers employ quantitative and qualitative measures to select sub-advisers to manage the clients of the advisers.

Retirement Plan Administrators

Most employee and other retirement plans outsource administrative functions to third-party administrators. Such administrators often have special access to plan trustees and can give advisers the opportunity to make a pitch in "beauty contests" to retirement plan trustees.


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