Conflicts, Fees & Referrals: What’s Allowed

Conflicts, Fees & Referrals: What’s Allowed (For Professionals)

The 60-second version

• Client-pays is safest. Clients purchase Family Harbor directly; you can recommend it like any other software or organizer.

• No referral fees to attorneys. Most jurisdictions prohibit lawyers from paying or receiving referral compensation or sharing fees with non-lawyers.

• Advisors can sometimes use paid referrals, but only under strict rules (e.g., SEC Marketing Rule for RIAs: written agreement, required disclosures, oversight).

• Insurance has anti-rebating rules. Don’t give cash/gifts contingent on a sale; keep “thank-you” items nominal where permitted.

• “Free partner access” = access, not compensation. Family Harbor can let you view client progress in their own Drive at the client’s direction. That’s not a kickback—just the client authorizing collaboration.

What you generally cannot do

Attorneys (bar rules vary by state)

• No fee-splitting with non-lawyers.

• No paying for referrals (anything of value for recommending your services).

• Allowed: pay reasonable advertising/directory costs; non-exclusive reciprocal referrals if clients are informed and judgment isn’t compromised.

Investment advisers / planners

• Cash or non-cash referral compensation may be allowed only if your firm’s policy and the SEC Marketing Rule (or comparable state rule) are met: written agreement with the promoter, clear client disclosures, oversight, and books/records. Many RIAs prohibit paying attorneys for referrals.

Broker-dealers / registered reps (firm policies apply)

• Gifts/entertainment limits (e.g., modest dollar caps) and no sharing commissions with unregistered persons. Treat cross-professional “thank-you” gifts cautiously and track them.

Insurance agents/brokers

• Anti-rebating laws: avoid giving items of value conditioned on purchasing a policy. Education and generic materials are usually fine; contingent perks are not.

Family Harbor models that stay clean

Client-Pays (recommended default)

• You introduce Family Harbor; the client buys it directly from Family Harbor.

• You may receive no compensation from Family Harbor for that mention.

• Family Harbor can provide co-branded educational PDFs (non-contingent, no value transfer).

Firm-Sponsored Seats (compliance-friendly)

• Your firm purchases seats for your own clients like other software.

• This is not a referral fee; it’s provisioning a tool you use in engagement.

• Disclose the arrangement in your engagement letter (who pays, what the tool does, that Family Harbor is not legal/tax advice).

Free Partner Access (not compensation)

• With the client’s consent, Family Harbor can add you as a Viewer/Commenter to their own Drive folder and show progress summaries.

• This is access the client grants; no money changes hands.

Co-marketing (safe version)

• Educational webinar or checklist where each party pays their own costs, co-brand is disclosed, no lead bounties are paid.

• You may appear on a neutral “Find a Professional” page without pay-to-play.

If you want paid referrals (advisors only, where allowed)

1. Check firm policy. Many ban it outright.

2. Written agreement with the promoter (you or your firm, depending on setup).

3. Client disclosures that compensation is paid, by whom, for what.

4. Oversight + recordkeeping under the SEC Marketing Rule (or state equivalent).

5. Attorneys should not accept referral compensation from Family Harbor.

Conflicts of interest: how to handle

• Disclose the tool and your relationship. “We use Family Harbor to help organize documents; you keep files in your own Google Drive. We don’t receive compensation if you purchase it.”

• Don’t make it a condition of representation/advice. Offer alternatives if the client doesn’t want it.

• Keep originals in the client’s custody. You work by link.

• Document consent when you’re given access to client folders (who, what, when, scope).

What Family Harbor will and won’t do

• Will: keep documents in the client’s own Google Drive/Dropbox, offer checklists, reminders, and collaboration links; provide co-branded education if you’d like; give you view/comment access when the client invites you.

• Won’t: pay referral fees to attorneys; request custody of client documents; provide legal/tax advice.

Decision guide

• You’re an attorney → Use Client-Pays or Firm-Sponsored Seats. No referral compensation. Disclose use in your letter.

• You’re an RIA/CFP → Default to Client-Pays or Firm-Sponsored. If considering paid referrals, follow firm policy and the SEC Marketing Rule to the letter.

• You’re an insurance producer → Avoid anything that looks like a rebate/inducement tied to a sale. Stick to client-pays or firm-sponsored.

Suggested disclosures you can copy

Fees, gifts, and co-branding—what’s typical

• Directory listing: no payment; neutral alphabetized listing.

• Co-branded handouts: educational PDFs at no charge; not tied to referrals.

• Gifts: if your channel permits small gifts, track them and stay well below any caps. Never contingent on a client buying.

• Discount codes for clients: fine when offered publicly or across your entire book; avoid “per-referral” kickbacks.

Tracking referrals without compensation

• Ask “How did you hear about us?” on the Family Harbor checkout.

• Share periodic lead attribution reports with you (counts, not payments).

• Keep a simple Partner ID on links for attribution only.

Quick compliance checklist (use before rollout)

• You’ve picked a model: Client-Pays or Firm-Sponsored.

• Engagement letter updated with Family Harbor description and optionality.

• No referral compensation (or, if permitted for RIAs, you have a written promoter agreement + client disclosures + oversight plan).

• Staff trained: don’t download originals; use links; remove access when engagement ends.

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