Bolton-based property law firm Amity Law has become the first conveyancing practice to appoint PEXA as its third party managed account provider (TPMA), after receiving approval for the move from the Council of Licensed Conveyancers (CLC).
The announcement follows the Financial Conduct Authority’s (FCA) approval of the digital property exchange platform’s application to become an Authorised Payment Institution (API). PEXA can now handle client funds on behalf of Amity, enabling it to automate the settlement of funds and lodgement of title almost instantly for any transactions that use Amity as the conveyancer.
‘This is a process which PEXA has already proven is possible following the completion of the first ever fully digital purchase transaction in June, paving the way for the industry to establish greater security and certainty for all’, PEXA said.
Joe Pepper, UK CEO at PEXA, said the move is ‘hugely significant’. He commented:
“[It] sets the precedent for the rest of the market to follow, showing the robustness of our systems and controls and giving firms further confidence we operate with the highest standards of security and compliance.
“Having already proven that transactions can be digitalised, this will help us drive further momentum in the UK when it comes to the deployment of the right infrastructure and we’re looking forward to working with the industry in the lead up to the full launch of Sale and Purchase in the coming months.”
Sarah Ryan, head of legal practice and finance & administration at Amity Law, described the deal with PEXA as ‘a game changer’. She added:
“It reduces the risk of fraud for us and creates a safer, more transparent and more certain completion process to remove some of the angst borrowers currently feel. It’s a positive step in our own digitalisation journey, and we’re excited to see the impact.”
Referring to the announcement, the CLC said it is committed to fostering a regulatory environment that encourages innovation, delivers quality outcomes, and safeguards consumers from harm.
‘TPMAs can deliver added security, transparency and efficiency to the home buying and selling process and we hope to see more practices adopt them’, said director of finance and operations Jason Hinrichsen.
“If any CLC practice would like to speak to the CLC about using a TPMA we would be happy to engage with them.”
2 responses
But Amity Law is owned by PEXA, so why is this news….
‘Journalist’ failed to mention Amity is owned by pexa