In a joint venture alliance, who “owns and controls” the client relationship? What if one venture participant decides to leave at some point in the future?
Normally, client relationships belong to the venture itself. If the venture is modified or dissolves in the future, then the participants can pre-arrange the terms under which one buys out the other, or else the venture is sold or transferred to a third-party. You should be aware that insurance companies and securities broker-dealers are subject to rules and regulations that may require them to continue communicating with their policyholders or clients after the agent or registered representative has ended ties with the firm. However, none of these rules will affect your ability to continue to serve your clients or offer them traditional CPA services and most types of financial services, if you wish.
Related Questions
- In a joint venture alliance, who "owns and controls" the client relationship? What if one venture participant decides to leave at some point in the future?
- What happens to the software if a client decides they want to leave and go to another hosting company?
- Is the client ever charged any fees other than the Joint Venture monthly payment?
