Section 26.01 - Retention of a Consultant(1) Any board which employs a consultant must apply for approval of the consultant from the Commission by filing an application for approval on Form 25 with the Commission. Such application shall take place with respect to consultants employed as of the effective date of 840 CMR 26.00, prior to the board executing a contract extension, renewal or new contract or six months after the effective date of 840 CMR 26.00, whichever is earlier.(2) Any such consultant must be registered as an investment adviser pursuant to the Investment Advisers Act of 1940 ( 15 U.S.C. 80b - 1et seq.).(3) Any such consultant must be deemed a qualified consultant by the Commission prior to providing services to the board.(4) Boards shall use the following process in selecting consultants: (a) Boards shall establish specifications and criteria for selection including: 1. whether a full-line consulting firm will be employed or whether a limited-line firm will be employed;2. the type of firm to be selected (a firm offering a wide range of products or services or a firm specializing in the consulting area);3. the experience of the consulting firm's personnel;4. an initial determination as to whether the existing consultant will be retained automatically;5. the range of fees that are considered tolerable; and6. he consultant's experience in policy restrictions including South Africa and Northern Ireland and tobacco.(b) A written contract shall be executed stating all terms and conditions of employment including, but not limited to, an itemized list of services to be provided, term of employment, fees and termination provisions. No contract shall contain a provision which requires the indemnification of the consultant by the retirement board. A copy of every contract shall be retained by the board and be subject to audit by the Commission.(5) Fee schedules shall not be based on a percentage of assets but shall be based on a fixed dollar amount based on services provided.(6) A consultant shall inform the and the board of any arrangements, oral or in writing, for compensation or other benefit received or expected to be received by the consultant or a related person from others in connection with the consultant's services to the board.(7) A consultant shall disclose to the Commission and the board any compensation paid or expected to be paid, directly or indirectly, by the consultant or a related person to others for referring the services of the consultant to the board.(8) A consultant shall disclose to the Commission and the board in writing any conflict of interest the consultant may have which could reasonably be expected to impair the consultant's ability to render unbiased and objective advice.(9) All consultants shall submit Form ADV Part II of the Uniform Application for Investment Adviser Registration to the board and to the Commission.