What a broker should do when offering assistance to solicit new agents
02/09/2017 | Author: Editorial Staff
Can a broker solicit new sales agents by promising to provide them leads in exchange for a required payment?
Yes. However, this activity triggers the Business Opportunity Rule, which is a federal law requiring a brokerage to provide the sales agent with the Federal Trade Commission’s one-page disclosure notice, Disclosure of Important Information About Business Opportunity. A brokerage can offer advertising or training in its solicitation without triggering the Business Opportunity Rule if it does not promote these activities as leading to the sales agents’ success. Instead, the brokerage’s solicitation should focus only on the assistance provided.
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