How brokers can manage staff exits and safeguard their reputations

Earlier this month, the Mortgage and Finance Association of Australia (MFAA) published MFAA Resource: What to do when someone leaves your business in order to provide practical steps for broking industry leaders encountering this often tricky part of running a business.

Created in response to member feedback, this resource addresses both recruitment and departures. It includes template clauses for employment agreements, guidance on safeguarding client information and intellectual property, and strategies for resolving disputes and maintaining business continuity.

MPA took a deep dive into the resource to uncover the key steps broking businesses should follow.

“Whether they are employed or contracted, and whether their role is as a broker, loan writer, or in a support capacity, it is important to manage their exit properly,” the MFAA said. “Failure to do so can expose your business to data breaches, lost clients, reputational damage, and potential non-compliance with privacy and licensing obligations.”

MFAA members can gain full access to this invaluable resource here. The association cautions that the resource does not constitute legal advice.

Make yourself a departure protocol

The MFAA recommends:

• Assigning a clear responsibility for managing the exit process, such as HR or management

• Conducting exit interviews, retrieving company property and managing information/technology access

• Communicating the departure internally and externally as appropriate

• Reviewing and updating employment or contractor agreements to reflect current legal requirements

“Whether you operate under your own Australian Credit Licence (ACL) or through an aggregator’s ACL, you remain responsible for the conduct of your business and the security of your clients’ information,” the MFAA said.

Get your legal protections in order

The MFAA recommends:

• Ensuring agreements contain confidentiality, intellectual property, and non-solicitation clauses

• Clearly outlining what must happen when someone leaves, including data return and destruction

• Preventing the individual from soliciting clients or staff after leaving

• Addressing dispute resolution and risk mitigation in contracts

“Well-drafted employment and contractor agreements are essential to protect your business,” the MFAA said.

Communication is key

The MFAA recommends:

• Notifying affected clients and providing updated contact details

• Informing aggregators, lenders, and regulatory bodies (such as ASIC) as required

• Removing broker authority from lender panels and reassigning in-flight applications if necessary

• Sending a written reminder of ongoing obligations to the departing individual

• Clearly communicating new contact details to clients and explaining the change

• Ensuring all client records are up to date and that no data is transferred unlawfully

Access, technology and information security

The MFAA recommends:

• Swiftly revoke access to all business systems, including CRM, portals, cloud storage, messaging, and authentication apps

• Retrieving all physical assets, such as laptops, mobile phones, and hard-copy files

• Removing email and system access, update passwords, and audit for any unauthorised access

• Removing all references to the departed individual from company websites, email signatures, and marketing content

“Time delays can result in unauthorised communications, data exports, or continued contact without legal basis,” the MFAA said.

Financial and reputational considerations

The MFAA recommends:

• Reviewing and confirming commission arrangements, including any outstanding payments or clawbacks

• Ensuring all financial agreements are up to date and in line with company policy

• Assigning client handovers

• Ensuring you’re aware of non-solicitation obligations and knowing how to respond to breaches

• Auditing your website and socials to ensure all references to departed employees are removed

“Departures often raise questions about revenue sharing, trailing commissions, or outstanding payments,” said the MFAA. Furthermore, “departures can impact internal morale, client retention, and your reputation in the market”.

Finally, the MFAA outlined a few post-exit red flags to keep an eye on:

• Unexplained client losses and disengagement

• Marketing campaigns targeting your clients

• Misuse of your business name by former employees and contractors

The MFAA said that managing staff transitions can be challenging – but with the right foundation in place, it's also a chance to reinforce professionalism and protect your business.

“The new MFAA guide empowers business owners to plan ahead: from recruitment to exit. By adopting these clear, structured steps, you can navigate departures smoothly, maintain client trust, and ensure your business remains resilient and forward moving,” the association said.