Property Services Regulatory Authority (PSRA) Presentation to SCSI Seminar 16 th May, 2012 Tom Lynch PSRA Chief Executive

Transcription

1 Property Services Regulatory Authority (PSRA) Presentation to SCSI Seminar 16 th May, 2012 Tom Lynch PSRA Chief Executive

2 Property Services Regulatory Authority Contents Principal Functions of the NPSRA Licensing Investigations Agent/Client Contract Client Accounts Compensation Fund PSRA Regulations Offences/Sanctions

3 Principal Functions of the PSRA To operate a comprehensive licensing system. To specify and enforce standards to be observed in the provision of property services (e.g. education and training standards), To establish and administer a system of investigation of licensees and other persons providing property services, To establish and administer a system of investigation and adjudication of complaints, To specify the nature and minimum levels of PI Insurance, To establish and maintain: the Property Services Compensation Fund, the Residential Property Price Register, the Commercial Leases Database, and a Public Register of licensees, To promote the development of codes of practice, To act as State Competent Authority for Money Laundering and To promote public awareness and disseminate information in respect of property services, and To advise the Minister on policy matters.

4 Licensing Who Should be Licensed? A property services employer, An employee of a property services employer, A principal officer of a property services employer, or An independent contractor, Who provides, for consideration, the following services in the State, in respect of property located within or outside the State: (a) auction of private property other than land; (b) purchase or sale, by whatever means, of any estate or interest in land; (c) letting of any estate or interest in land; or (d) any services in respect of the management of an apartment complex, housing estate or other estate containing residential units carried out on behalf of a management body, including administrative services and the procurement of the maintenance, servicing, repair, improvement or insurance of the development.

5 Licensing Type of Licence Property Services Providers may be licensed to: Auction Property other than Land Buy or Sell, by whatever means, Land, Let Land Act as a Property Management Agent These reflect the different services prescribed in the Act

6 Licensing Application for a licence An application for a licence shall be accompanied by Evidence of Qualifications Accountant s Report that proper financial and control systems are in place for the protection of clients money, evidence of the availability to the applicant of the required level of professional indemnity insurance, tax clearance certificate, a certified certificate of Registration of Business name, a certified certificate of incorporation under the Companies Acts (Companies) Licence Fee, and Contribution to Compensation Fund.

7 Property Services Regulatory Authority Licence Application Forms

8 Investigations Types of Investigations The Authority may, of its own motion investigate or cause to be investigated any property service being provided by any person (whether licensed or not). in response to a complaint against a licensed Property Services Provider, investigate or cause to be investigated any property service being provided by the licensee.

9 Investigations Powers of Authority The Authority may enter, inspect, examine and search any place where he has reason to believe that a property service is being provided, require the production of any records, books or accounts or other documents or information necessary to the investigation require any person to afford him such facilities and assistance as are necessary to enable him to exercise his powers, require a Property Services Provider, or any employee or agent of such person, to authorise inspection of any bank account opened by the Property Services Provider and to obtain from that bank copies of any relevant documents.

10 Investigations Enforcement Provisions Where a Property Service Provider has been found guilty of misconduct in the course of providing a property service he/she may: be issued with a caution, warning or reprimand; be fined up to 250,000; have his/her licence suspended; have his/her licence revoked. Where found guilty of an offence a Property Services Provider may be fined up to 5,000 or be imprisoned for up to 5 years or both.

11 Agent/Client Contract PSPs must have a written agreement with client which includes: Property Services Providers details The address/description and title of the property. Details of service to be provided and amount of fee. The circumstances under which a fee becomes payable. Third parties involved Consequence of termination of agreement. Affirmation that no conflict of interest exists. Details of Professional Indemnity Insurance. Name of Bank at which Client Account will be kept.

12 Client Accounts Protecting Client Moneys The Authority may make regulations for handling client accounts including: the type of accounts which may be opened; the rights, duties and responsibilities of PSPs; the acknowledgements or statements to be issued by PSPs; the circumstances in which money other than clients money may be paid into clients accounts;

13 Client Accounts Protecting Client Moneys The Authority may make regulations for handling client accounts including: client entitlements, including the treatment or retention of interest, income or profit arising; circumstances in which PSPs are required to pay money into a client account; the circumstances and manner in which a PSP verifies compliance; the auditing of accounting records.

14 Compensation Fund The Authority will establish a Compensation Fund to compensate parties who lose money as a direct consequence of the dishonesty of a PSP. All licensees will be required to contribute to the Fund. The amount of compensation payable shall be such as represents in the opinion of the Authority reimbursement of the amount or value of the loss sustained and the reasonable costs incurred by the client in seeking to recover it

15 Authority Regulations The Authority may make regulations in relation to the following categories of licences which may be issued by the Authority and the form of such licences, procedures governing (i) the grant and renewal of licences (ii) the surrender of licences, and (iii) the processing of complaints licence fees,

16 Authority Regulations The Authority may make regulations in relation to the following standards to be observed in the provision of property services by licensees, qualifications for the grant of licences (including educational and training qualifications, required levels of professional indemnity insurance) terms and conditions on which indemnity against losses is to be available to licensees under any policy of indemnity insurance

17 Authority Regulations The Authority may make regulations in relation to the following records to be kept and the information and returns to be furnished to the Authority by licensees, contributions to Compensation Fund, and procedures for applications for grants from the Compensation Fund.

18 Offences/Sanctions Licensing Offences Client Account Offences Controlled Bank Accounts Non- disclosure 5,000 fine & 1Y Imp. Sum. 50,000 fine & 5Y Imp. Ind. 5,000 fine & 1Y Imp. Sum. 50,000 fine & 5Y Imp. Ind. 5,000 fine & 1Y Imp. Sum. 50,000 fine & 5Y Imp. Ind. 5,000 fine & 1Y Imp. Sum.

19 Offences/Sanctions Obstruction of Investigation Contravention of Regulations Protecting Whistleblowers Other Offences 5,000 fine & 1Y Imp. Sum. 50,000 fine & 5Y Imp. Ind. 5,000 fine & 1Y Imp. Sum. 50,000 fine & 5Y Imp. Ind. 5,000 fine & 1Y Imp. Sum. 50,000 fine & 3Y Imp. Ind. 5,000 fine & 1Y Imp. Sum.

20 Property Services Regulatory Authority (PSRA) Locall: Phone: Fax: www. psr.ie