2a. Membership of UKALA shall commence from the date advised in writing by UKALA and will last for a contract term of twelve calendar months.

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1 UKALA: letting agents thrive The UK Association of Letting Agents The UK Association of Letting Agents Albert Embankment To promote and protect the interest s London SE1 7TJ of letting and management agent s UKALA SCHEME RULES 08 May 2013 The Association is governed primarily by the Articles of Association, which may be changed only at an AGM or EGM, and additionally by these Rules, which may be amended from time to time by the Board. Members agree to abide by the current Articles and Rules regardless of those in place at the actual date of joining. 1. Conduct of Members 1a. Members are expected to abide by these Rules and comply with the UKALA Code of Practice. Members are expected to behave in the best interests of the Association and not bring it into disrepute. 2. Membership term 2a. Membership of UKALA shall commence from the date advised in writing by UKALA and will last for a contract term of twelve calendar months. 3. Membership renewal 3a. Membership shall be renewable on an annual basis at the invitation of UKALA and subject to the following steps being successfully completed: Step 1: The following documents must be received by UKALA in a timely manner: I. A fully completed UKALA Renewal Form signed by the Principal, a Partner or a Director of the business All supplementary documents, as specified on the UKALA Renewal Form Step 2: Upon receipt of the completed and signed UKALA Renewal Form and supplementary documents, UKALA will process the application and undertake a fitness and propriety assessment using the information supplied Step 3: If the application is successful UKALA will confirm renewal of membership in writing 3b. An invitation to renew membership is issued at the sole discretion of UKALA. Prior membership of UKALA does not confer an automatic right to be invited to renew membership. 3c. Membership cannot be granted without payment of the membership fee in cleared funds. 3d. Membership will not commence or be renewed without confirmation in writing by UKALA. 4. Changes in details 4a. Members are required to notify UKALA in writing as soon as possible, if any information provided in their original application form changes. 5. Professional Indemnity Insurance 5a. Members are required to have and maintain appropriate Professional Indemnity Insurance cover for their business for the duration of their membership. 5b. The Professional Indemnity Insurance cover must meet the UKALA Professional Indemnity Insurance minimum requirements. Details are available at 5c. Members are required to provide UKALA with proof of their current Professional Indemnity Insurance cover. One of the following must be received by UKALA within one calendar month from the date that the Professional Indemnity Insurance cover is renewed. I. A copy of the Professional Indemnity Insurance Certificate and Schedule, or The insurance policy number, if insured with Hamilton Fraser Insurance UKALA in association with The National Landlords Association:

2 5d. Members who provide their insurance policy number are deemed to have given their consent for Hamilton Fraser Insurance to check the member s policy and pass the following information to UKALA: I. The limit of indemnity, and Confirm whether the cover meets the UKALA Professional Indemnity Insurance minimum requirements 5e. In the event that a member fails to maintain appropriate Professional Indemnity Insurance cover for the duration of their membership or fails to provide evidence of appropriate cover, as specified in Section 5 of these Rules, the Board reserve the right to suspend membership, terminate membership, or take other appropriate action at the discretion of the Board. 6. UKALA Accounting Standard 6a. Members are bound by and must at all times comply with the UKALA Accounting Standard. 6b. UKALA gratefully acknowledge the Royal Institution of Chartered Surveyors (RICS) whose Rule 8 has been adopted. Protecting clients money 6c. A Firm shall preserve the security of clients money entrusted to its care in the course of its practice or business. Aim 6d. To ensure that clients money can be clearly linked to the clients to whom it belongs and is protected on their behalf in the following circumstances: Insolvency Misappropriation by any party Death of a sole practitioner Managing clients money effectively should deliver an appropriate level of confidence to RICS, firms clients, potential clients and stakeholders. What is clients money? 6e. Clients money is any money received and held by a firm that does not solely belong to it. Examples may include: Tenants deposits Rents Service charges Interest (if in an interest bearing client account) Arbitration fees Fee money taken in advance Clients money held but due to be paid to contractors Money held by members appointed as a Receiver Sale proceeds Key elements of best practice Client accounts 6f. Keep clients money in a designated account(s). 6g. Include the name of the firm and the word client - to distinguish the account from your office account. 6h. Obtain bank confirmation of account conditions, including making sure the bank doesn t combine or offset funds in your client account with any other account your firm holds. 6i. Advise client and agree terms of account handling in writing. 6j. Ensure there are sufficient funds in the account to pay amounts owing to clients as they fall due under the firm s terms and conditions of engagement. 6k. Obtain clients written approval to make payments from their accounts. Controls in the firm 6l. Bank at the earliest reasonable opportunity. 6m. Nominate authorised staff to handle money. 6n. If you make use of cash receipts to settle transactions by cash make sure your records show all cash transactions. Systems 6o. Manage transactions using an accounting system appropriate to the business. 6p. Your system should enable you to keep adequate records of your clients money holdings. 6q. A suitable software package will enable the firm to manage money effectively. 2

3 6r. We recommend client accounts together with bank and cash balances are reconciled at regular intervals in order to demonstrate control over the accuracy and completeness of accounting records. 6s. We have found that, for most firms, monthly reconciliation is an appropriate frequency to ensure suitable control. Please see the help sheet Client s Money Advice for Firms available from RICS. 7. Accountant s Declaration 7a. Members are required to provide UKALA with an Accountant s Declaration signed by a qualified accountant to confirm that the member is adhering to the UKALA Accounting Standard, as specified in Section 6 of these Rules. The Accountant s Declaration template is available to download from 7b. For firms that have been trading for less than 12 months, an Accountant s Declaration must be received by UKALA every three months until the first year of trading is completed. 7c. For firms that have been trading for more than 12 months, an Accountant s Declaration must be received by UKALA annually and within three months from the date that the member s trading year ends. 7d. In the event that a member fails to provide a valid Accountant s Declaration, as specified in Section 7 of these Rules, the Board reserve the right to suspend membership, terminate membership, or take other appropriate action at the discretion of the Board. 8. Use of the UKALA logo 8a. Members are licensed to use the UKALA logo on their letterhead and company advertising as long as they remain members of the Association. Copyright remains with the Association. Older versions of the logo (prior to May 2011) should be replaced with the current version (downloadable from website) as soon as practicable. The UKALA logo must not be used in any way in relation to branches or other offices that are not registered with UKALA and do not operate under UKALA client money protection insurance. 9. Use of the National Landlords Association (NLA) logo 9a. Members are licensed to use a modified in association with version of the NLA logo on their letterhead and company advertising as long as they remain members of UKALA. Copyright remains with the NLA. 10. Use of the National Landlords Association s (NLA) services 10a. Members are licensed to use NLA services as long as they remain members of UKALA. Copyright remains with the NLA. These services must not be used in any way in relation to branches or other offices that are not registered with UKALA. 10b. NLA provides agents access to a range of External and Internal products and services (subject to change). 10c. Use of External Services is subject to service specific terms and conditions that are available on the website. 10d. The NLA Telephone Advice Line operates a Fair Use Policy. Member s frequency & nature of use will be monitored. Where use is deemed to be excessive, calls may be restricted. 10e. Members may apply to join the NLA Recognised Supplier Scheme as a benefit of UKALA membership. The Scheme has its own terms and conditions that qualifying UKALA agents are expected to follow and adhere to. NLA reserves the right to remove the offer at any time. 11. Attendance at National Landlords Association (NLA) Branch Meetings As delegate 11a. UKALA members may attend NLA branch meetings held throughout the country as advertised on the NLA website at Permission should be sought from the meeting chair prior if it is intended to distribute any marketing materials. As exhibitor 11b. Permission to erect a stand where literature can be displayed and enquiries taken may be requested of the meeting chair prior to the event. Given reasonable notice permission will not be unreasonably withheld and there will usually be no charge. As speaker 11c. UKALA members operating in the catchment area of a branch meeting may be invited to speak at meetings from time to time. Whilst promotion of the particular agency is naturally achieved, topics should have a wide scope and be generic. 3

4 12. Complaints referrals 12a. All members must have an in-house complaints process (as set out in the UKALA Code of Practice). Where that process is exhausted and the complainant remains unsatisfied, they must be informed of how to refer further. The complainant should be given the appropriate information regarding complaints to UKALA contained on the Association website. 12b. Correctly submitted complaints may be accepted by UKALA from landlord clients or prospective clients, tenants or prospective tenants, or other third parties at its sole discretion. A Board member may also raise a complaint where no other has been received in the event UKALA becomes aware of information of concern and possible breach of the UKALA Code of Practice or these Rules may have occurred. 12c. It is a condition of membership that in the event that a complaint is identified to be serious and or of a financial nature, UKALA may immediately pass on details of the complaint to Hamilton Fraser Insurance to investigate. The Board may also, at its sole discretion, suspend a member during the investigation. 12d. Complaints received will be assessed and where not found to be frivolous or vexatious, the member will be required to make a formal response to UKALA. The UKALA Executive (assisted by his team) will attempt to resolve the complaint to mutual satisfaction. 12e. The member shall be expected to co-operate fully with any investigation by UKALA or its appointed representative, whether suspension has occurred or not. Depending on the nature of the complaint this could include arranging an onsite visit to the address at which the accounting records are held. 12f. It is a condition of membership that the member fully co-operates with an onsite visit, if one is necessary. The member will be required to produce or make available any records and documents as necessary for inspection and review by UKALA or its appointed representative. 12g. If UKALA accepts that the member concerned is not in breach of the UKALA Code of Practice or these Rules, the UKALA Executive will write to the member informing them that no further action will be taken. 12h. If UKALA accepts that the member concerned is in breach of the UKALA Code of Practice or these Rules, the UKALA Executive will write to the member informing them of UKALA s conclusion and the proposed remedy. Remedies may include: I. Recommending that the member undertake development for their staff Advising the member in writing of UKALA s recommendation of best practice to adopt in the future relating to the issues raised in the complaint 12i. If UKALA accepts that the member concerned has breached the UKALA Code of Practice or these Rules and decides that the breach is of sufficient gravity to warrant exclusion from membership of UKALA, the UKALA Executive will write to the member advising them that the Board is minded to exclude them from membership. In this situation, the following procedure will apply: I. Immediate suspension of member benefits I IV. The member will be offered the opportunity to make written representations within one calendar month as to why the Board s decision should not be confirmed. Oral representations will not be accepted The Board will take account of any written representations and either confirm or amend its decision The UKALA Executive will write to the member to inform them of the Board decision 12j. The member or the complainant may appeal against UKALA s decision. Appeals will be considered by an independent adjudicator. The party submitting an appeal must submit this in writing and agree to: I. To accept as final the decision of the independent adjudicator, and To lodge with UKALA an amount to be determined by UKALA to cover costs and disbursements incurred by UKALA. This amount will be returned to the appellant should the adjudicator not uphold UKALA s decision 12k. The independent adjudicator is an independent professional who has experience of dispute resolution and housing issues. He is contractually engaged by UKALA to provide an impartial case examination and dispute resolution service, either through case review, mediation or other method as he considers appropriate. Under these scheme rules, UKALA members are obliged to accept the rulings and recommendations of the independent adjudicator. 12l. The UKALA Code of Practice and these Rules cannot and does not supersede the normal operation of the law. A complainant retains the right throughout the process to choose to go to law; in this event, the complaint would be halted, as the courts take precedence over the Code and these Rules. Similarly, the UKALA Code of Practice or these Rules cannot be used to re-open an issue on which the courts have already adjudicated. 4

5 13. Suspension of membership 13a. Notwithstanding the Complaints Referrals in Section 12 of these Rules, the Board reserves the right to suspend membership with immediate effect where potentially serious or financial matters come to their attention, regardless of whether the member s internal complaints process has been completed. 13b. In the event of a member being suspended for whatever reason, UKALA will remove all reference to the member and their details from the UKALA Agent Directory. 13c. The member must also take all reasonable steps to cease promoting themselves as a UKALA members including any making reference to UKALA Client Money Protection Scheme. 14. Resignation of membership 14a. A member may resign their membership by giving notice to UKALA in writing. 14b. In the event that a member resigns their membership, the member concerned will no longer be covered by the UKALA Client Money Protection Scheme. This will take immediate effect from the date that the notice of resignation is received by UKALA. 15. Termination of membership 15a. UKALA will notify the member in writing, addressed to the member s Head Office, that its membership has been terminated and will give a brief explanation why. UKALA at its discretion may also notify any branch offices of the member. 15b. In the event that membership is terminated, the member concerned will no longer be covered by the UKALA Client Money Protection Scheme. This will take immediate effect from the date confirmed in writing by UKALA. 16. Change of ownership or control, etc. 16a. Membership of UKALA is not transferable and shall cease upon the sale, disposal, merger or otherwise or acquisition of the members business and/or portfolio, including change of control. Membership may be offered to the new or acquiring Principal, Partners or Directors, at the discretion of UKALA. 17. Cessation of membership 17a. In the event of membership of UKALA ceasing for whatever reason the following will apply: 17b. The member will no longer be covered by the UKALA Client Money Protection Scheme and not be able to use UKALA s services. 17c. The member must take all reasonable steps to inform client landlords and current tenants and other relevant parties that their membership of UKALA has ended. 17d. The member must stop using and or remove where displayed, all UKALA branded material with immediate effect. This includes all stickers, membership certificates, posters, flyers, business cards, etc. 17e. The member must cease from promoting themselves as a UKALA member including making reference to UKALA Client Money Protection Scheme. 17f. The member must stop using the UKALA and modified NLA logos and remove them from all printed material and online. Logos held in electronic systems must be deleted and any CDs should be destroyed. 17g. UKALA will remove all reference to the member concerned and their details from the UKALA Agent Directory. 17h. For the avoidance of doubt, in the event of membership of UKALA ceasing for whatever reason, the member shall not be entitled to any refund of membership subscriptions. The member shall also remain liable for any unpaid membership subscriptions, fees or other payments that were incurred during membership. In the event that the member had opted to pay by monthly direct debit, this includes any future payments that would have been payable within the term of membership. 18. Member Data 18a. All Member data as provided on the UKALA Application Form and UKALA Renewal Form and the minimum limited of indemnity shall be held on an electronic database. UKA/SR/V2/0513 UKALA in association with The National Landlords Association:

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