If I have an investor who is willing to refer some of his friends for a percentage of my performance fee, does investor need to be registered with some regulatory agency? Assume the business is based in New York. Also assume the investor is not actively soliciting or negotiating the deal. THey are just giving me their friends contact info. They are even disclosing to their friends that they are making a percentage of the performance fee. THanks for any help you can provide. If you need more details about the circumstances to make a more appropriate reccomendation, don't hesitate to ask.