I work for a small service business and was recently made aware that one of our reps is in a relationship with a client. She works on that account and has done a good job of increasing our revenues from them (I know what you're thinking, but this would not have been possible based on the relationship alone). Our company owner has been hesitant to address the issue, despite the obvious conflict of interest, as he is fearful of losing the account in already tough economy. My advice to him is that with the high possibility of this situation ending badly, we should at a minimum reassign her and do what we can to maintain the busness.
Has anyone dealt with a similar circumstance?