(a) No person shall hold himself or herself out, directly or indirectly, to the public as a financial planner, investment adviser, consultant, financial counselor, or any other specialist engaged in the business of giving financial planning or advice relating to investments, insurance, real estate, tax matters, or trust and estate matters if the person is in fact engaged only in the sale of insurance policies or contracts.

(b)(1) No person shall engage in the business of financial planning without disclosing to the client before the execution of the agreement provided for in subsection (c) of this section or the solicitation of the sale of a product or service that:

(A) He or she is also an insurance salesperson; and

(B) A commission for the sale of an insurance product will be received in addition to a fee for financial planning, if it is the case.

(2) The disclosure under this subsection may be made by including it in a disclosure document required by federal or state securities law.

(c) All fees, other than commissions for financial planning by an insurance producer, shall be based upon a written agreement signed by the party to be charged in advance of the performance of the services under the agreement. A copy of the agreement shall be provided to the party to be charged at the time the agreement is signed by the party. The agreement shall specifically state:

(1) The services for which the fee is to be charged;

(2) The amount of the fee to be charged or the manner in which it will be determined; and

(3) The client shall not be required to purchase an insurance product through the person furnishing the agreement.

(d) The person furnishing the agreement shall retain a copy for at least 3 years after completion of services. A copy shall be available to the Commissioner upon request.

(Apr. 3, 2001, D.C. Law 13-265, § 115, 48 DCR 1225.)