Termination of a business relationship
Frequently Asked Questions
In the financial sector, there are a number of reasons why a business relationship may be terminated. The financial services provider may want to retire, close the business, down-size its business, terminate the business relationship due to legislative requirements such as those imposed by the FIC or in the alternative a client may also wish to terminate his/her business relationship with an organisation.
Whatever the reason, it is important to remember that the client must be treated fairly in the process. The General Code of Conduct for authorised financial services providers(FSP) and representatives regulates the conduct of financial services providers. It also provides guidelines and regulations to an FSP to effectively manage the termination of a business relationship or business agreement between the client and the FSP and what is required when an FSP wish to terminate it business.
The Treating Customers Fairly (TCF) outcomes require that an FSP demonstrate that it delivers the outcomes to clients which includes that customers do not face unreasonable post-sale barriers imposed by firms to change product, switch provider, submit a claim or make a complaint
Financial Services Providers are thus for this reason required to include succession planning and a proper procedure for the termination of a business relationship in the organisation's governance framework.
In our Frequently Asked Questions section, we answer some of the questions you may have in relation to the termination of a business relationship or the termination of business.