Principal Brokers who solicit brokers may need to comply with the Federal Trade Commission rule requiring a new disclosure. The Business Opportunity Rule (BOR) may apply. Any Principal Broker who actively solicits brokers and offers some kind of tangible assistance in return for a required payment could fall under the rule.

If you recruit brokers look at your recruiting practices to determine if the BOR applies to them. If so, then you should closely review the disclosure requirements and work with legal counsel when making the disclosures.