AML/CTF is not the death knell for smaller firms
AIC NSW boss says Tranche 2 compliance is here but 'I don't see any evidence it's broken the camel's back'.
SOLO or small-firm conveyancers feeling overwhelmed by administrative and regulatory requirements have been urged not to despair.
Some facing the latest burden of AML/CTF compliance are reportedly tempted to sell up, retire or merge with larger firms.
But industry leaders say it’s a challenge that can be managed.
“AML/CTF is maybe another straw but I don’t see any evidence it’s broken the camel’s back,” said AIC NSW chief executive Jonathan Smithers.
The Institute’s membership currently comprises 525 separate businesses (in addition to individual members) handling over 50 per cent of NSW property transactions.
The majority are sole practitioners happy to be their own boss, working when and where they want.
“They are absolutely the backbone of the conveyancing profession,” Smithers said.
“They’re small business owners, trusted advisers and members of their communities.
“Often, they have built relationships with local families over decades.”
The burdens they face include regulation, technology costs, insurance, competition on fees, wages and rent.
But Smithers argues these are simply the cost of doing business, common to many professions.
“Yes, costs have gone up,” he said. “The challenge for conveyancers is to recognise those and charge accordingly.
“If they were to say ‘we’re unpaid agents of the government,’ well, many businesses are collecting payroll tax etc.
“We have to be bold enough to say ‘this is the service we provide, this is what it costs’.”
And, a service that is especially valuable in regional areas, where the conveyancer is often available 24/7 to guide clients through the largest transaction many will ever make.
Working for a bigger city-based firm, that personal relationship or “brand” might be submerged.
“You want to deal with someone you trust,” Smithers said, “knowing that they are going to look after your best interests. The way you want the one doctor in a practice, not just anyone who happens to be available.”
Smithers said AIC NSW is working hard to help members over the latest regulatory hurdles.
That includes education days in regional centres, webinars, weekly news updates, a member hotline and ongoing advocacy with government regulators and insurance brokers.
“We ensure that all voices are heard and that professional support is accessible, relevant and affordable,” Smithers said.
