Rule 20-12-.04 - Commissions(1) "Commission" means any item of value given or received by a licensee to or from any third party in return for suggesting the purchase of any product or service.(2) A licensee shall not recommend or refer to a client any product or service in exchange for a commission, recommend any product or service to be supplied by his or her client to a third party, or receive a commission when the licensee or the licensee's firm also performs for that client: (a) An audit or review of a financial statement;(b) A compilation of a financial statement when the licensee expects or reasonably might expect that a third party will use the financial statement and the licensee's report does not disclose a lack of independence; or(c) An examination of prospective financial information.(3) The prohibition of subsection (2) of this section applies during the period in which the licensee is engaged to perform any of the services listed in subsection (2)(a), (b), and (c) and the period covered by any historical financial statements involved in the listed services.(4) A licensee who is not prohibited from receiving a commission and who is paid or expects to be paid a commission shall disclose that fact, in writing, to any individual or entity to whom the licensee recommends or refers a product or service to which the commission relates.(5) A licensee who accepts a fee for recommending or referring any service of another licensee to any individual or entity or who pays a fee to obtain a client shall disclose, in writing, the receipt or payment of the fee to the client.(6) This rule shall not prohibit: (a) Payments for the purchase of an accounting practice; or(b) Retirement payments to individuals, and their heirs or estates, who were formerly engaged in the practice of public accountancy.Ga. Comp. R. & Regs. R. 20-12-.04
O.C.G.A. Secs. 43-3-8, 43-3-21.
Original Rule entitled "Commissions" was filed on February 9, 1978; effective March 1, 1978.Amended: F. Dec. 17, 1996; eff. Jan. 6, 1997.Amended: F. Feb. 4, 2015; eff. Feb. 24, 2015.