Rule 206(4)-3 under the Investment Advisors Act of 1940 governs cash payments to solicitors. The rule states that it may be unlawful for any advisor required to be registered pursuant to Rule 203 of the Act to pay a cash fee to a solicitor with respect to solicitation activities unless the investment advisor is registered under the Act, and the solicitor meets specific requirements and is not subject to statutory disqualification.
More specific and detailed information is available by clicking on the links below:
Investment Advisers Act of 1940 Rules – (275.206(4)-3)
Model Solicitor's Agreement
Model Solicitor's Disclosure Document
Form ADV – Part II