Referral Program Compliance

Transparency and trust – new client referral guidance for ADGM CSPs 📋🤝   As part of ADGM’s commitment to fostering a high quality CSP ecosystem, the Registration Authority has published guidance for ADGM CSPs on referral and agency arrangements.   The guidance discusses the following key requirements that a #CSP should consider before entering into a client referral or agency arrangement with a 3rd party: ✅ Transparency ✅ Acting in the interests of clients ✅ Fitness and propriety ✅ Conflicts of interest ✅ Monitoring and management of compliance   Generally, referral and agency arrangements where an ADGM CSP does not have direct access to or contact with a client are not compatible with the above requirements.   Background context: In April 2021, ADGM introduced a comprehensive regulatory framework for the provision of corporate services (in addition to existing AML requirements). The framework was strengthened in 2023 reflecting the critical gate keeper and client service roles that CSPs play. #ADGM #CorporateServices #Guidance #RegulatoryCompliance #BusinessEthics #Referrals #AgencyArrangements #AML #TCSPs #DNFBPs

Referral fees and Disclosure requirements... Summer Gorlick wrote a very interesting and informative piece in Inman the other day on a seldom discussed topic (and practice) in the real estate Industry, the disclosure of referral fees to clients. The practice of referral fees is not without controversy. In the article, Summer, speaking as a Compliance expert, highlights the ambiguity surrounding the disclosure of referral fees to clients. She emphasizes that the critical question isn't merely about the obligation to disclose but also about understanding the broader implications of such practices. She encourages real estate professionals to delve deeper into the ethical and compliance aspects of referral fee activities, especially in an era pushing for greater transparency, understanding that legal requirements vary by state. In California, for example, real estate licensees must disclose all compensation, fees and profits received from a transaction to their clients. "While the law doesn’t explicitly mention referral fees, they unquestionably fall under this requirement. Any lingering doubt is resolved by the California Department of Real Estate, which has issued advisories clarifying that referral fees must be disclosed." In 2016, Summer co-authored a comprehensive piece on referral fee activities with former California Real Estate Commissioner Wayne Bell, which was published by the Department of Real Estate. That deep dive into the regulatory framework made one thing evident: California licensees are required to disclose all compensation, including referral fees. Nevertheless, eight years later, these disclosures remain the exception rather than the norm. Recent legal actions have further spotlighted the issue. For instance, the Consumer Financial Protection Bureau (CFPB) accused Rocket Homes and The Jason Mitchell Group of engaging in an illegal kickback scheme, alleging that they provided inducements to real estate brokerages to steer clients toward their mortgage services. Such cases underscore the importance of adhering to regulations like the Real Estate Settlement Procedures Act (RESPA), which prohibits kickbacks and mandates transparency in real estate transactions. Summer concludes that while referral fees offer a pathway for agents to expand their business and income, it's imperative to navigate this "twilight zone" with a keen understanding of both ethical considerations and legal obligations. As the industry evolves, professionals must critically assess their referral practices to ensure they align with the overarching goals of transparency and integrity. https://lnkd.in/dCg7tQum John Reilly Terri Murphy Summer Goralik

I’ve spent more 10+ years helping behavioral health and SUD leaders protect their reputations—and sometimes rebuild them. I’ve seen some stuff folks: The well-meaning provider who didn’t vet their marketing agency. The investor who overlooked a shady lead-gen funnel and lax compliance protocols during due diligence. The care team delivering great outcomes overshadowed by bad actors in the space. So when I saw the FTC’s latest lawsuit (nice reporting by Chris Larson) against a network accused of deceptive marketing, it wasn’t surprising. But it was still frustrating. Because every time a case like this breaks, it harms the trust that good providers and care navigators work so hard to earn. If you work in treatment, recovery, marketing, investing, or care navigation—here’s what matters now: 1. This isn’t just about ads. It’s about trust. What patients and families see online shapes what they believe about your care. If your ads are misleading or your call center buries disclosures, you’re not just risking a lawsuit—you’re undermining credibility with everyone who matters: regulators, referral sources, and the people you serve. 2. Accreditation is more than a badge—it’s a backbone. LegitScript, CARF, Joint Commission—these standards are critical. They are not just marketing talking points; they reflect deep work around clinical excellence, transparency, and compliance. If your partners aren’t aligned with them, that’s a red flag. 3. Investors: due diligence isn’t just financial, it’s reputational. The FTC named specific individuals in this case. If you’re looking at a treatment business, your diligence should go beyond spreadsheets. Understand the marketing footprint. Know the leadership team’s history. And yes, loop in experienced PR pros before the deal closes, not just before or (wince), after the headlines hit. 4. Storytelling starts with truth-telling. Your strongest narrative doesn’t come from a flashy campaign; it comes from your patients, your staff, your clinical data, your ethics. Consistency across intake, treatment, discharge, and follow-up builds a brand that lasts. 5. The referral industry has made real progress, but it’s still vulnerable. I work with care navigators and digital health partners who follow the highest legal and ethical standards. These are the folks we should be lifting up. The entire sector benefits when we spotlight ethical options—and push out the shady players who risk it all for short-term wins. 6. Your brand is only as strong as your weakest link. One deceptive ad, one misaligned vendor, one misleading landing page can do immense damage. If you’re growing fast, be even more cautious. Protect the reputation you’re building. TL/DR: ➡️ If you’re serious about helping people recover, your business model should reflect it at every level. ➡️ Be transparent. Stay compliant. Lead with integrity. ➡️ Build a story your stakeholders will be proud to stand behind.

Most executives underestimate what it really takes to run a referral program at scale. Last week, a VP of Talent told me his team could handle everything with a Google form and some basic tracking. On the surface, that seems fine: someone shares a contact, you hire them, everyone wins. But that is like saying a car is simple because it moves you from point A to point B. Referrals are still the highest ROI recruiting channel. The challenge is what is under the hood. A car works because the engine, transmission, electrical systems, and cooling systems all work together. If one component fails, the whole system stops. Your referral program has the same kind of dependencies. Your ATS needs to communicate with referral tracking. Payroll needs accurate reward information. Reporting needs clean data to prove ROI to leadership. Every integration adds complexity. Candidate status updates trigger payments and compliance reporting. Attribution logic creates questions: if three people refer the same candidate, who gets credit? What if the candidate applies through a different channel? These rules need to be clear before disputes start, not after. Then there is compliance. Finance tracks who received what and when. HR needs audit trails that hold up under scrutiny. If you want referrals to scale, you have two options: 1. Build sophisticated internal systems with dedicated engineering support 2. Use a platform designed for this specialized challenge Referrals deliver incredible results when you respect the systems that make them work. Treating them like a weekend project kills ROI before you even start.

Why do many B2B referral programs collapse under their own initial success? For our last chapter of the B2B User Referrals Guide 2.0, we teamed up with Linus Hallberg (Product Manager at Typeform) and Dr. Martin Friedberg (Tax Advisor, CMS) to discover the real challenges of scaling referral programs. Here's what we found out: 👉 The scaling dilemma is real In-house gives control but demands engineering resources. Third-party tools help automate but rarely cover everything. 👉 Fraud prevention is non-negotiable Recurring payouts (e.g., 25% capped at €500) ensure profitability and let you halt rewards if fraud occurs. 👉 Tax & KYC compliance can sink you Each country has specific tax thresholds: US requires 1099-MISC form for earnings over $600, Germany has VAT requirements at €25,000. 👉 Optimize with data Track sharing rates, unique clicks, conversion metrics, and implement A/B testing. Typeform saw a 512% increase in referral activity after implementing data-driven improvements. 👉 Scale smart, not fast Implement small, controlled experiments and analyze impact before rolling out at scale. Find the full guide here: https://lnkd.in/e4HaZegD #b2bgrowth #referralmarketing #saas

On Monday's #TCG Auditing, Coding and Compliance Roundtable we discussed why it is potentially illegal to provide services for free to other physicians or those who potentially refer patients to our organization. Let's take a closer look at this topic. Offering free services to other physicians can violate the Anti-Kickback Statute, the Stark Law, state laws, and principles of fair market value, and undermine ethical standards and patient trust. Laws and regulations exist to ensure healthcare providers make decisions based on the best interests of their patients, free from undue financial influence. Compliance is crucial to maintaining the integrity and trustworthiness of the healthcare system. Let's look at a few of these closer... 1. The federal Anti-Kickback Statute (AKS) prohibits the exchange (or offer to exchange) of anything of value to induce or reward the referral of federal healthcare program business. Offering free services to other physicians could be seen as an inducement for referrals. Violations can result in severe penalties, including fines, imprisonment, and exclusion from federal healthcare programs. 2. The Stark Law prohibits physicians from referring patients for certain designated health services (DHS) to entities they (or their immediate family members) have a financial relationship with, unless an exception applies. Offering free services could create a financial relationship that might lead to prohibited self-referrals. 3. Many states have their own AKS and self-referral laws that mirror or expand upon federal regulations. These laws also prohibit offering free services to other physicians if the intent is to influence referral patterns or gain a competitive advantage. 4. Healthcare regulations often require that any exchange of goods or services between healthcare providers be conducted at fair market value (FMV) or as commercially reasonable. Offering services for free can be considered a violation of these principles, as it deviates from the norm of FMV transactions and can be construed as an improper incentive. 5. Providers and others engaging in the delivery of healthcare services are expected to adhere to high ethical standards and compliance practices. Offering free services to other physicians can be seen as an unethical practice that undermines the integrity of the system. It can lead to conflicts of interest, where clinical decisions are influenced by financial relationships rather than patient welfare (Medically Appropriateness, Necessity, and Reasonableness). 6. The primary concern should always be the welfare of patients. Offering free services to induce referrals can compromise patient trust and the quality of care. Patients must be confident that medical decisions are made based on clinical need rather than financial incentives. If you have not spent time with the all-star panel of compliance experts on our roundtable then you are missing out on a lot!