Stuart Alexander launches network

Broker Stuart Alexander has launched an appointed representative network for property managing agents.

Many managing agents, both residential and commercial, place insurance, collect premiums and assist with claims as part of their service to property owners, and as such fall under the FSA's regulations as secondary intermediaries.

Stuart Alexander has many property agents as clients. Business development manager Andy Poole said the initial motivation for the network was to examine ways to best serve these clients.

The decision was reinforced after conversations with the Association of Residential Managing Agents (ARMA) and the Royal Institution of Chartered Surveyors (RICS), who are concerned about the impact of FSA regulation on their members, Poole said.

Under FSA rules, brokers with five or more appointed representatives must establish a network.

"To our knowledge no other broker in the UK has set up a network," Poole said.

The network is open to both residential and commercial agents who meet certain criteria.

Network members will be required to have their own professional indemnity insurance and will not be allowed to have other principal agents.

"It's not an easy way out but it is a great solution," Poole said.

He said that to date "a number" of managing agents had signed up to the network.

ARMA executive secretary David Hewett said that none of the options open to managing agents, which include becoming directly regulated, becoming an appointed representative or becoming an introducer, was particularly attractive, due to the way managing agents collect money from property owners.

To help its members, ARMA, in conjunction with Biba, has produced a guidance note highlighting the issues and impact of regulation, and the options open to managing agents.

Biba regulation and compliance manager Steve White said that Biba became involved after being contacted by members concerned about their property managing agent clients.