Ethics

As a CPA, isn't it illegal for me to accept commissions?

Many of our Advisors had the same concern when they initially considered getting into this business. We understand this concern. After all, you worked hard to obtain your CPA designation — it's your bread and butter, and we want to protect that too.

There used to be a statutory concern for CPAs across the United States if they accepted commissions; however, since the Federal Trade Commission filed its injunction against the AICPA charging that their restriction on commissions was a prohibitive trade practice in the late 1980s, 47 states and/or state CPA societies have overturned their statutes or rules in favor of CPAs receiving commissions.

If you live in a state that does not allow CPAs to accept commissions, you can offer fee-based services by adding an Investment Adviser Representative affiliation to the securities affiliation. This additional affiliation is designed for professionals who want to complement their Registered Representative activities by providing financial plans for a fee and asset management on a fee basis.

As a CPA, can I offer financial services to all of my clients?

You can offer financial services to all of your non-audit clients. Independence is crucial to audit work; offering financial services in those situations may make it impossible for you to maintain your independence.

What if I don't feel comfortable accepting commissions?

If you don't feel comfortable accepting commissions, you should look at adding an Investment Adviser Representative affiliation to the securities affiliation. Choosing this additional affiliation option will enable you to charge hourly fees and offer any of our world-class, fee-based money management programs. These very flexible programs cover virtually all the different client needs you will encounter. The minimum investments start as low as $25,000. No matter what method you choose (commissions or fee-based), we have the support and solutions you need to be successful.

Is receiving financial planning revenues a conflict of interest?

Planning revenues are an acceptable form of compensation. The main consideration is meeting the needs of your clients. If you are concerned, ask your clients whether they think it is a conflict of interest. You will likely find they do not consider it a conflict and that most prefer to pay someone they trust to help them with their financial planning needs. Earning a commission is simply fair compensation for your work.