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HOUSE BILL NO. 624
INTRODUCED BY J. MANGAN
A BILL FOR AN ACT ENTITLED: "AN ACT DIRECTING AN AMENDMENT TO ARM 8.54.605 AND AN AMENDMENT TO ARM 8.54.606 TO PERMIT A CERTIFIED PUBLIC ACCOUNTANT TO CHARGE OR ACCEPT A COMMISSION OR A CONTINGENT FEE FOR CERTAIN SERVICES RELATED TO INSURANCE, INVESTMENT, AND SECURITIES-BASED FINANCIAL PRODUCTS AND SERVICES; AND PROVIDING AN EFFECTIVE DATE."
WHEREAS, uniform accounting standards provide for the acceptance of commissions and contingent fees in situations that do not involve attestation services, mirroring generally accepted codes of professional conduct for the profession of certified public accountants; and
WHEREAS, more than half the states permit certified public accountants to accept commissions and contingent fees on a limited basis; and
WHEREAS, allowing certified public accountants to receive commissions and contingent fees will not injure or compromise the public interest in any way; and
WHEREAS, certified public accountants are and will continue to be subject to state and federal securities and insurance rules, regulations, and statutes, including requirements for licensure and continuing education set forth by the United States securities and exchange commission, and the professional standards set forth by the national association of securities dealers; and
WHEREAS, administrative rules currently prohibit certified public accountants from charging or accepting commissions or contingent fees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
NEW SECTION. Section 1. Board to amend rule. The board of public accountants shall amend ARM 8.54.605 to remove the language that prohibits certified public accountants from accepting a commission for a referral to a client of products or services of others. The amendment must provide that the commission is permissible for product or service sales and referrals related to insurance, investment, and securities-based financial products or services, but that a certified public accountant shall disclose to the customer the commission charge, and a certified public accountant may not charge or receive a commission for performing an audit, a financial review, or any compilation or examination of prospective financial information performed in accordance with applicable professional standards set forth by the American institute of certified public accountants or the national association of state boards of accountancy.
NEW SECTION. Section 2. Board to amend rule. The board of public accountants shall amend ARM 8.54.606 to remove any language in the rule that prohibits a certified public accountant from charging or accepting a contingency fee for insurance, investment, or securities-based products or services if the certified public accountant discloses the fee to the customer prior to any transaction and if the service for which the fee is charged does not include an audit, a financial review, or any compilation or examination of prospective financial information performed in accordance with applicable professional standards set forth by the American institute of certified public accountants or the national association of state boards of accountancy.
NEW SECTION. Section 3. Effective date. [This act] is effective July 1, 1999.
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Latest Version of HB 624 (HB0624.01)
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