Accountants who receive fees or commissions for client introductions know: managing the commercial elements of this vital activity, including gathering their client’s consent, is often painful, awkward, and admin-heavy.
The ICAEW’s Code of Ethics and the DPB (Investment Business) Handbook lays out clear requirements for firms to
“...obtain client consent and notify clients of the amounts received”
Despite this, its 2022 Practice Assurance Monitoring Report revealed gaps on this issue at 51 of the firms reviewed, with common pitfalls including failing to notify clients in writing about the commissions received and not obtaining client consent to retain the amounts.
In addition to these breaches, fee-sharing regulatory requirements can lead to:
Firms may leave money on the table by a) not refer as much as they could, or b) avoiding having commercial agreements for referrals, when they could be commercialising an important service for their clients.
Firms having to gather consent from clients manually, often requiring them to build out internal processes for gathering consent, maintaining meticulous records, and ensuring that supporting documentation is in place.
Automated compliant fee sharing
That’s why we’re delighted today to launch automated compliant fee-sharing, built in collaboration with ICAEW, that enhances compliance and drives operational efficiency when commercialising professional referrals.
RQ now automates the process of securing client consent for fee-sharing, with ICAEW approved disclosure letters, automated client e-signatures, and a robust audit-trail; as well as automating the payment of fees between firms.
This breakthrough addresses a critical challenge faced by accountants, as well as solicitors, ensuring seamless adherence to regulatory guidelines while streamlining the consent-gathering process.\
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How it works
Just make your referral as usual and, if fee-sharing is included, RQ will give you the option to automatically populate and share an e-signature letter with clients, securing their consent in seconds.
The platform can also be used to automate the payment of fees due automatically between accountant and IFA, solicitor, R&D tax, or other professional firm.
Why does this matter?
By automating the process of securing client consent for fee-sharing, RQ helps accountants navigate complex regulatory requirements with ease, and supports them in conducting and commercialising this vital activity for their clients.
- Compliant: RQ ensures that firms meet all regulatory requirements by automating the consent process, reducing the risk of non-compliance
- Efficient: Automating the consent process saves time and resources, allowing firms to focus on providing valuable services to their clients rather than getting bogged down in administrative tasks
- Client friendly: The streamlined process provides a better experience for clients, who can quickly and easily provide their consent without the need for back-and-forth communications
- Accurate Records: The system maintains comprehensive records of all consents obtained, ensuring that firms can easily demonstrate compliance during monitoring visits
Get started
To learn more about fee-sharing with RQ, book a demo with our team today.
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