Changing Managing Agents: A Checklist for Trustees
Trustees change managing agents for one reason more than any other: they cannot get hold of anyone. Before you sign with a new agent, here is what to check and how the handover should run.
Check before you appoint
PPRA registration: ask for the firm's current Fidelity Fund Certificate. A managing agent without one may not legally operate.
Who you will deal with: ask for the name and direct number of your portfolio manager, and how many schemes they look after.
Reporting: ask what monthly financial reports trustees will receive, and when.
Arrears: ask how arrears are followed up and when accounts go to attorneys.
The agreement: read the notice period, the fee schedule and what is charged as an extra.
Ending the current agreement
Check your existing management agreement for the notice period and how notice must be given. Trustees should resolve to terminate and appoint in minutes, and give written notice in line with the agreement.
The handover
The outgoing agent must hand over the scheme's records and funds. At a minimum ask for: bank statements and trust account balances, the owner ledger and arrears list, the latest financial statements and budget, insurance policy and claims history, minutes and registers, service provider contracts, and the maintenance plan.
A good incoming agent chases the handover for you. Ours is followed by a free compliance check of the scheme, and if anything needs to change, we let your trustees know and help put it right.
Questions about your scheme? Phone us on 010 448 0822 and you will speak to a person who knows your file, not a call centre.
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