Referrals and recommendations
16 Referrals and recommendations
In this rule —
supplier means a person supplying any goods or services and includes a finance broker and a settlement agent.
An agent or sales representative who recommends a supplier to a client must disclose in writing to the client —
any significant relationship, connection or affinity between the agent or sales representative and the supplier; and
any potential conflict of interest, and the nature of that potential conflict of interest, arising from the relationship, connection or affinity referred to in paragraph (a).
An agent or sales representative who recommends —
a supplier, other than a settlement agent, to a client must disclose in writing to the client any commission accepted, directly or indirectly, by the agent or sales representative from any person for the recommendation; or
a settlement agent to a client must not accept, directly or indirectly, any commission from any person for the recommendation.
Before being appointed to act by a client who has been referred by any person to an agent or sales representative, the agent or sales representative must disclose in writing to the client any commission paid or given by the agent or sales representative, directly or indirectly, for the referral.
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