Fca Client Agreements For Transferring Investment Business

A company must inform a customer in a timely manner of any substantial changes in the information provided under this rule that is relevant to a service provided by the company to that customer. It seems that not a week goes by without one or two other acquisitions being reported in the financial media. Some reflect the continued progress of the growing number of “consolidators,” while others are just a more modest takeover, inspired by entrepreneurs looking for a retirement exit. In the event of a change in a service provider or a service change itself, companies must act in the best case and in the best interests of the customer and provide the customer with information that is fair, clear and not misleading. B. Two weeks after the first one, a follow-up communication should be sent to all customers who do not respond. We should be satisfied that newly acquired customers are treated fairly and the receiving company should report to us at the expiry of the three-month period. vi. declare that the customer may cancel the transfer or any current service that the purchase transaction intends to provide; “A clear process for recording customer instructions is therefore a top priority.” As the table above shows, a distinction is made between the acquisition of a business and the acquisition of a client bank. Only business purchases must be notified to the FCA. Changes to control obligations are at stake, with exceptions and exceptions. However, it is clear that a complete acquisition of a regulated business is not verifiable. In addition, prior authorization from the FCA is required to allow the acquisition to continue.

8. Make a formal assessment of suitability for the replacement business before deferring customers` money, including all relevant costs. Viii. Ask the Customer to confirm in writing their consent to the transfer. Mr. Hegarty draws attention to the regulatory responsibility of an owner who assumes the takeover of a business. He said: “In the FCA`s surveillance report last February, we were talking about acquiring clients from other companies. The rules published in a Statement of Principles (23 pages / 552KB PDF) impose requirements on investment platforms to allow consumers to transfer units in mutual funds to both platforms via a cash transfer.

Platforms must also request a change in unit classes if necessary to allow in-specie transmission and ensure that consumers switching to a new platform have the ability to convert them into smaller units, provided they are available. The details of the service offer and fees must be clearly communicated to each client and the disclosure must be consistent with the information standards for consultants` fees. For James Dingwall, the “quality and volume” of customer data is a major innovation problem. He explains: “Our due diligence procedure requires a list of all active customers who are active as customers for whom the selling company has been providing a service lately or who is currently offering it. Therefore, in the absence of an explicit legal basis for the transmission of data to the buyer, it is necessary to contact customers through the selling company in order to create a legal basis for the transmission of data. FCAL`ACF has a binding interest in (most) acquisitions and has shown that some aspects of the acquisition process are more focused, particularly the impact of the acquisition on customers. They expect companies to prove that the needs of customers have been duly taken into account in the business decision. The following aspects must be taken into account: Our rules (COBS 8.1.2R of the Manual) require companies to submit customers to a written document (on paper or other sustainable support) describing the terms of the agreement between the company and the customer.