So I managed to find a Referee and he did use my code, however it says "Your friend has yet to purchase and play Destiny: The Taken King. Once they have completed the necessary steps, you will be Linked Friends."
He does have the full Destiny: Fallen King but just started playing the normal campaign. Do I have to wait for him to beat the main story then start on the Taken King Campaign to start the Linking Process?
So does this mean I cant referee new players less than 10 since they didn't start on the taken king story line yet?
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You don't have to wait. Has your friend entered the code for Taken King that came in the box?