Protocol: Open Market Investment Agency

The IPF issued the ‘Protocol: Open Market Investment Agency’ in November 2014, setting out good practice to ensure transparency in property investment sales and acquisitions. 

The ‘Protocol’ was developed by an IPF cross-industry working group, chaired by Martin Moore, comprising property investors and agents, as well as representatives from the legal and accountancy professions (members of the group are listed below). It seeks to ensure that property agency firms have clear and concise guidance as to how they can demonstrate to clients buying or selling investment properties that there are barriers in place to prevent conflicts of interest. The Protocol focuses on how agents should deal with multiple introductions to investment properties and instances of ‘dual agency’ when they are approached to act on a proposed acquisition when they are already instructed by the vendor. 

Protocol: Open Market Investment Agency


On 29 January 2016, CBRE, JLL, Cushman & Wakefield, Knight Frank and Savills launched a jointly funded video, ‘Managing Conflicts of Interest’, to share with other firms in the investment agency market. The aims of the video, which complements the Protocol document, are to emphasise the risk that conflicts represent and to provide guidance regarding multiple introductions, dual agency, incremental advice and barrier policies. 

 

Whilst it is expected that each organisation will approach the detail of managing conflicts of interest in their own way, also included here to download is a sample barrier policy (an information barrier template) and a sample letter to clients when conflicts arise. 

Example of a Barrier Policy

 

Standard Conflict Letter


Members of the IPF Protocol Working Group

Chairman

Martin Moore

Members
Gordon Aitchison – Legal & General Property
David Allen – Shortland Penn & Moore
Jason Baggaley – Standard Life Investments
Rupert Clarke 
David Erwin – Cushman & Wakefield
Sue Forster – IPF
Dean Hodcroft - EY
Simon Hope – Savills
Stephen Hubbard – CBRE
Chris Ireland - JLL
Peter MacColl – Knight Frank
Mark Morgan – Morgan Williams
Chris Morrish – GIC
Imogen Moss – Allen & Overy
Fiona Rowley – M&G Real Estate
James Watson – Colliers International
Chris Taylor – Hermes Real Estate

(Organisations correct at time of paper publication)

For further information, contact:

Martin Moore (Chairman)
T: 07740 950422 
E: martinrmoore@live.co.uk

Sue Forster (Chief Executive, IPF)
T: 0207 194 7922
E: sforster@ipf.org.uk