What happens after payment?
Once an Agent has paid, they need to Updated Your Profile (complete their profile form), so the Compliance Vault Team can perform their checks and if needed, they will contact you directly.
Once the team confirms the success in joining the Compliance Vault the Agent will receive their personalised certificate. Keep an eye on the Compliance Checklist widget!
As a guide, assuming no issues, this will typically take 1-2 working days.
What is the minimum time period would I have to subscribe for?
Do I need a separate Client Bank Account to be compliant?
Yes. If Agents decide to not use the platform to find investors, then all Agents are required to have a separate ring-fenced client bank account. Even if their business decides they do not want to use it day-to-day, it is a legal requirement by the Estate Agency Act, that anyone connected with a property deal, is required to have their own.
Check it out for yourself in Section 12 (2) and (4) https://www.legislation.gov.uk/ukpga/1979/38/crossheading/clients-money-and-accounts?view=plain
If the Agent does not have one, then they are opening themselves up for legal prosecution. As part of Compliance Vault, we provide services of a legally separate ring-fenced and insurance backed Client Bank Account product.
Do I receive proof of my Professional Indemnity Insurance cover?
Yes. The Agent will have access to the Confirmation of Professional Indemnity Insurance Letter from our brokers, Brunel Professions, within the Compliance Vault Dashboard, under Legal Documents.
The Agent will also receive a personalised certificate by email to prove that they are fully compliant with Professional Indemnity Insurance Cover to send to their investors.
Who am I insured with?
The Agents are insured directly under SIMS Sourcing Limited, which are underwritten by multiple industry-specific insurers which means they have the best and most specific PI cover for all activities which is what makes the Compliance Vault so special.
The Compliance Vault product has been specifically designed by Sourcing Investments for Agents, Sourcers and Investors.
How much is my Public Indemnity Insurance cover for?
The Agent is covered for Site Sourcing Activities as specified in the Statement of Fact for up to £500,000 per claim (with amazing Unlimited legal costs covered in addition to the £500,000 claim).
The policy is the only industry policy that has been specifically designed for Sourcing Agents, Agents and Investors in the property industry. All you need to know is you are in safe hands!
Which type of Agents can be covered under the Compliance Vault?
The great news is all types of agents can cover under the Compliance Vault:
- Sourcing Agents
- Estate Agents
- Lettings Agents
Everything is designed to make your life easier, reduce risk and allow the Agents to focus all their time on revenue-generating tasks!
Am I covered if I have a co-sourcing agreement with another Agent?
No. The policy only covers the Agent, not any other Sourcing Agents. The devil is in the detail, for example:
If the purchasing investor is the Agents own client and have contracted directly with them using the Compliance Vault T and Cs, and they find a property through another Agent, then they need to have a clear legal agreement with the other Agent, to show that the Agent will pay them (e.g. 50% of the sourcing fee) upon completion of purchase with their investor.
You also need to make sure the Agent will see the property and have done all their own professional due diligence on the property – if the Agent cannot provide any evidence of this, and the deal goes “wrong” with their investor, the Agent may jeopardise the cover.
Only the Agent who purchased the CV is covered for their site sourcing activities, not other Agents who they deal with. They need their own PI Insurance and memberships of all the regulatory bodies.
Do I receive proof of cover for industry regulatory bodies (AML, PRS ICO)?
The Agent will receive their very own certificates directly from ICO and PRS. The Agents will be searchable on their register/website.
For AML (HMRC) registration the Agent will be covered under SIMS Sourcing and will not be searchable.
An Agent will be sent by email their own proof of CV cover to provide to investors and bodies.
What do you do after becoming compliant?
As part of Compliance Vault, on the first working day of every quarter, you are required to answer two questions about your activities. You must follow all processes and use the right documentation for your site sourcing activities that are aligned with the Statements of Fact document provided by the Insurer. This is about avoiding claims by being professional.
The quarterly submission allows the insurers to assess if there are any current risks to ongoing projects.
Important: All clients who purchase Compliance Vault must at any time inform the CV Team if there are any issues with the project that may result in a claim. Failure to do so may jeopardise your cover – so please keep open communication with us at all times!
How do I make a claim?
Contact the Customer Service Team.
Is there an Excess to pay for a claim?
Yes. If a claim is successful, there will be an Excess payable by the Agent:
- £2,500 for professional indemnity insurance
- £200 fee to pay for PRS/ICO
Please note that by following all processes designed for the Agent which minimises your risk, the likelihood of a successful claim is low.
What are the benefits within the Compliance Vault?
The SI platform provides all the services and benefits of a successful Agent, which includes:
- Integrated Escrow Services
- Renovation/Project Management Escrow Services (we send money to Main Contractor for the Agent)
- Live Conversation Area with investors and power teams
- Access to investors with capital ready to deploy into UK property
- The Agent’s very own Website for their very own investors where only they can see their deals
- Monthly Business Growth meetings with SI Sourcer Team to look to grow the Agents revenue year on year.