Customers were not informed that they could opt out of all the current services provided by the company that wanted them; “This means that a supplier that currently reduces fees for consultants cannot pay a routine consultant fee to a new business unless it receives instructions from customers. 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. He adds: “It must be remembered that clients allow consultant fees, unlike the commission that was in the supplier`s donation. But it`s not that simple. The acquisition company has no legal basis for using customer data to write to customers in the first place! In addition, it is worth the seller`s confirm that customers are not obliged to use more expensive offers as part of the purchasing company`s processes. Companies need to realize that acquiring a client bank is the same as acquiring a new customer – it`s just that there are a lot of new customers at once! The customer therefore needs a new commercial/customer agreement and the customer must be formally signed for the current service offer and the company`s consulting fees – even if these are identical to the previous company`s service and service charges. 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. Companies that buy customers will face different challenges. It is important that the start of the acquisition journey includes taking into account differences in the offers offered to customers.
When buying or selling a business, operators must complete the ACF control forms to inform the regulator of the changes. Clients have not been informed of a difference in the tax status (VAT) of current service charges; While a buyer can be comforted because he knows that commitments are not automatically linked to an asset and business sale the FCA rules require companies, provide customers (on paper or other sustainable media) with a written document (on paper or other sustainable support) indicating the terms of the agreement between the entity and the client (COBS 8.1.2R, non-MiFID companies and COBS 8A.1.4 EU for MiFID, equivalent third country and optional exemption). Buy a business by not changing the entity except the property. Mr. Hegarty draws attention to the regulatory responsibility of an owner who assumes the takeover of a business. He said: “The ACF`s surveillance report last February reported the acquisition of customers from other companies.” The entity that assumes it must be able to prove that there is an agreement between it and its client to provide these common services.” “When a business is acquired through the acquisition of assets, the rights and obligations (customer agreement) remain with the sales company. He said: “It will depend on the nature of the relationship with the clients and the extent of the contacts involved. If the whole deal is bought, then everything comes on the buyer, including all sources of income. It goes without saying that any integration of the acquired business, name change or other business details, change in regulatory status, etc., would then require a number of measures, including customer information, possible new terms and conditions, and, in particular, advice to suppliers regarding agency changes and the payment of trail commissions.