Which statement best describes fee splitting with non-licensees?

Which statement best describes fee splitting with non-licensees?

• A. Disclose with client consent and ensure no conflict of interest; may share fees with non-licensees under those conditions.
• B. Fee sharing with non-licensees is always prohibited.
• C. Fees must be split evenly among all parties without client consent.
• D. Fee sharing with non-licensees is allowed without disclosure.

Answer: (A)

The concept being tested is that fee sharing with someone who isn’t licensed is allowed only when you fully disclose the arrangement to the client and obtain their consent, and when there’s no conflict of interest. This means you’re transparent about who gets paid, what they did, and how it affects the client’s interests. As long as the non-licensee’s involvement doesn’t require a license and the client agrees to the arrangement, sharing fees is permissible. If you don’t disclose the details or you proceed despite a possible conflict, you’d be stepping into improper territory. Conversely, insisting on an outright ban or requiring equal splitting or unconsented sharing would not reflect the ethical duty to be transparent and act in the client’s best interest.

The concept being tested is that fee sharing with someone who isn’t licensed is allowed only when you fully disclose the arrangement to the client and obtain their consent, and when there’s no conflict of interest. This means you’re transparent about who gets paid, what they did, and how it affects the client’s interests. As long as the non-licensee’s involvement doesn’t require a license and the client agrees to the arrangement, sharing fees is permissible.

If you don’t disclose the details or you proceed despite a possible conflict, you’d be stepping into improper territory. Conversely, insisting on an outright ban or requiring equal splitting or unconsented sharing would not reflect the ethical duty to be transparent and act in the client’s best interest.