does client referal means broker refer clients to fund management company. so fund management company can allocate more trade to broker and the broker get the benefit?
Nope. You can pay a cash referral fee to the broker as long as the agreement is disclosed, but you cannot pay for referrals out of client brokerage (more trades sent to the broker), even if it is disclosed.
so fund management company never refer clients to broker, only broker refer clients to fund company, but why broker refer clients to fund company? this will reduce their revenue. because cleints go to the fund company and was given IPS and become discretionary account, they will not but/sell shares through broker.