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NPRRA Members May Not Dispense Legal Advice

NPRRA Members May Not Dispense Legal Advice

NPRRA members have experience and knowledge that can be drawn upon to help clients navigate jurisdictional anomalies and avoid filing rejections; however, members are not licensed to practice law and must take great care to avoid dispensing information in any capacity that could be construed as legally advising. Many questions can only be properly addressed by a qualified and licensed attorney. The unauthorized practice of law can have grave consequences for the perpetrator of the offense as well as for those who receive the unauthorized legal advice.

Examples of some instances where NPRRA members may not be able to help their clients include:

  • Determine applicable scope of searches required for a transaction
  • Advise on appropriate stock structure
  • Advise on which entity type is appropriate (Corp, LLC, LP, General Partnership, Trust, etc. . .)
  • Determine whether an entity is required to qualify or pay taxes within a jurisdiction based on business activities
  • Determine jurisdiction(s) in which UCC filings may be required for a particular transaction
  • Draft UCC collateral descriptions

The above list is by no means exhaustive. Each NPRRA member is encouraged to provide training and set guidelines for its staff members, clearly indicating when a client should be referred to an attorney.

NPRRA is a trade association, and as such, makes certain educational materials and best practices recommendations available to members. NPRRA requires as a condition for membership that members agree to adhere to its ethics policy, which expressly states members will avoid the unauthorized practice of law; however, NPRRA in no way warrants that any member will abide by these standards and NPRRA may not be held liable in any way for any member’s failure to uphold these standards.

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