Principality Building Society Conveyancing Panel Information

Principality Building Society’s answer to this question can be found at section 6.4.4 of their CML Part 2 requirements

Lexsure only know of two or three lenders that operate a separate conveyancing panel where the mortgage advance is over a certain level. You should nevertheless check directly with Principality Building Society. At one stage HSBC would only allow Sole practitioners to act for them where the mortgage was below £150,000. We are not sure if HSBC still operate such a condition. In your case it is best to check with Principality Building Society

You might expect Principality Building Society via their Part Two requirements to address this but the Handbook makes no mention on time frames. Do look at the Terms of Principality Building Society’s Conveyancing Panel Appointment that you previously signed. For a number of banks these Terms include a clause along the following lines: ‘To keep us informed of the reasons for any delay in your being able to send the title deeds and documents we require to us within 3 months of completion or evidence of proof of registration within that period. (We will send reminders if the deeds have not been received but will not acknowledge receipt of deeds’ It is important to keep Principality Building Society updated. Law firms can often compound their problems by not communicating with the lender when there is a delay or problem.

The answer to this question really depends on the reason that your firm has been removed off the Principality Building Society conveyancing panel. The top 3 reasons are as follows:

1. lack of transactions
2. the lawyer is a sole practitioner
3. as part of the HSBC panel reduction.

In these three circumstances it is unlikely that you would expected to take any action. Disclosure and other compliance considerations are more likely to be relevant if the reason for removal is due to breaches of lender requirements or allegations of fraud or negligence. Whether the reasoning should trigger a disclosable 'material' breach will depend on the firm and the circumstances around possible failures to comply with the SRA Authorisation Rules, and the SRA will judge each case on its own merits. Factors such as the detriment or risk of detriment to clients, the scale of the issue and overall impact on the firm will need to be considered in deciding whether a failure is 'material'. As the COLP you will need systems to identify patterns of breaches. Even if you don't consider there to be regulatory implications the firms COFA should give some thought to whether she/he needs to take any action as result of being removed from the Principality Building Society conveyancing panel.

The best placed professionals to answer this question are your insurance brokers. The chances are that on the basis that you have not been removed for fraud or negligence reasons that there will be little or no impact. The main reason why a firm would be removed off of a lender panel is due to low volume of conveyancing cases although there may be a number of criteria for Principality Building Society solicitor panel membership. Please remember that it is always important that you complete your insurance forms accurately.

You would be advised to contact Principality Building Society to obtain standard documents. The CML Handbook contains an express question for lenders to enumerate who to contact to obtain standard documents. Principality Building Society in their Part 2’s state: Always remember to disclose the firm’s Principality Building Society conveyancing panel number.