N.J. Admin. Code § 13:29-3.8

Current through Register Vol. 56, No. 16, August 19, 2024

Section 13:29-3.8 - Contingent fees

(a) A contingent fee is a fee established for the performance of any service pursuant to an arrangement in which no fee will be charged unless a specified finding or result is attained, or in which the amount of the fee is otherwise dependent upon the finding or result of such service.

(b) For the purposes of this section, a fee is not contingent if:

1. It is fixed by a court or other public authority; or

2. In tax matters, it is determined based on the results of a judicial proceeding or the findings of a governmental agency.

(c) A licensee in public practice shall not receive a contingent fee for performing any professional services from a client for whom the licensee or the licensee's firm performs:

1. An audit or review of a financial statement;

2. A compilation of a financial statement accompanied by a report; or

3. An examination of prospective financial information.

(d) The prohibition set forth in (c) above applies during the period in which the licensee or the licensee's firm is engaged to perform any of the services listed, and the period covered by any historical financial statements involved in the listed services.

(e) A licensee in public practice shall not receive a contingent fee for preparing an original or amended tax return or claim for a tax refund for any client.

(f) Any licensee who receives a contingent fee pursuant to this section shall comply with all applicable Federal and State securities laws, rules promulgated thereunder, and registration requirements, including, but not limited to, the Investment Advisers Act of 1940 ( 15 U.S.C. §§ 80b-1 et seq.), the Uniform Securities Law(1997) (49:3-47 et seq.), the Securities Act of 1933 ( 15 U.S.C. §§ 77a et seq.), and the Securities Exchange Act of 1934 ( 15 U.S.C. §§ 78a et seq.).

N.J. Admin. Code § 13:29-3.8

As amended, R.1982 d.407, eff. 11/15/1982.
See: 14 New Jersey Register 895(a), 14 New Jersey Register 1309(b).
Deleted old text concerning commissions, brokerages, fees and added new text concerning contingent fees.
Repeal and New Rule, R.1998 d.531, effective 11/16/1998.
See: 29 New Jersey Register 4737(a), 30 New Jersey Register 4055(b).
Section was "Contingent fees".