1. (a) A person shall not for a commission recommend or refer to a client any product or service or refer any product or service to be supplied to a client, or receive a commission, when the person also performs services for that client requiring independence under §501.70 of this chapter (relating to Independence).
2. (b) This prohibition applies during the period in which the person is engaged to perform any of the services requiring independence and during the period covered by any of the historical financial statements involved in such services requiring independence.

3. (c) A person who receives or agrees to receive, pays or agrees to pay; other compensation with respect to services or products recommended, referred, or sold by him shall, no later than the making of such recommendation, referral, or sale, make the following disclosures in writing:

   1. (1) if a client, the nature, source, and amount of all such other compensation; or
   2. (2) if not a client, the nature and source of any such other compensation.
4. (d) The disclosure shall be made regardless of the amount of other compensation involved.
5. (e) This section does not apply to payments received from the sale of all, or a material part, of an accounting practice, or to retirement payments.

Source Note:The provisions of this §501.71 adopted to be effective June 11, 2000, 25 TexReg 5337; amended to be effective February 4, 2004, 29 TexReg 963; amended to be effective February 17, 2008, 33 TexReg 1092.