S.D. Admin. R. 20:75:05:03
A licensee in public practice may not perform any professional services for a commission or contingent fee for, or receive such a commission or fee from, a client for whom the licensee or licensee's firm also performs:
This prohibition applies during the period in which the licensee or the licensee's firm is engaged to perform any of the services listed in this section as well as the period covered by any historical financial statements involved in any such listed services.
For purposes of this section, a contingent fee is a fee established for the performance of any service pursuant to an arrangement in which no fee is 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 the service.
A licensee's fees may vary depending, for example, on the complexity of services rendered. Fees are not regarded as being contingent if they are fixed by courts or other authorities or, in tax matters, if they are based on the results of judicial proceedings or the findings of governmental agencies. The preparation of original or amended tax returns or claims for refunds does not fall within these exceptions.
A licensee who is not prohibited by this rule from performing services for or receiving a commission and who is paid or expects to be paid a commission shall disclose that fact to any person or entity to whom the licensee recommends or refers a product or service to which the commission relates.
Any licensee who accepts a referral fee for recommending or referring any service of a licensee to any such person or entity or who pays a referral fee to obtain a client shall disclose such acceptance or payment to the client.
S.D. Admin. R. 20:75:05:03
General Authority: SDCL 36-20B-12(4).
Law Implemented: SDCL 36-20B-40, 36-20B-41.