|(a) A person shall not for a commission, compensation or other benefit 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, compensation or other benefit when the person also performs services for that client requiring independence under §501.70 of this chapter (relating to Independence). (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. (c) A person who receives, expects or agrees to receive, pays, expects or agrees to pay, other compensation in exchange for services or products recommended, referred, or sold by him shall, no later than the making of such recommendation, referral, or sale, disclose to the client in writing the nature, source, and amount, or an estimate of the amount when the amount is not known, of all such other compensation. (d) 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; amended to be effective April 15, 2009, 34 TexReg 2379; amended to be effective December 7, 2011, 36 TexReg 8233