Principles that all firms must agree to include fixed fees and any accompanying service proposition guarantees, for example no-sale no legal fees.
Firms must also agree to establish electronic links with the panel manager Countrywide to facilitate case allocation and case tracking.
Only CQS accredited firms by the Law Society of England and Wales will be accepted.
Firms must also agree to Solicitor Regulation Authority and CCJ checks.
Mandatory requirements for firms include registration with the Solicitors Regulation Authority or the Council of Licensed Conveyancers.
Also mandatory is that firms must have a minimum of two licensed conveyancers or qualified solicitors; the panel firm entity should have been actively trading in purchase and sale conveyancing for at least six months; firms must have personal indemnity insurance of at least £2m.
HSBC must also agree with the corporate structure of a firm. Firms should be established as a partnership, limited liability partnership or any other corporate structure as agreed by HSBC with a minimum of four regulated principles, if SRA regulated, or four managers of a recognised body, if CLC regulated, or a minimum of four company directors.
All panel firms must have also completed a minimum of 250 conveyancing transactions excluding mortgages over the previous two years on an ongoing basis.
On 6 January 2012 HSBC launched a conveyancing panel managed by Countrywide.
Currently the panel only has 43 firms on it. Previously HSBC would use a customer’s firm to undertake its own legal requirements.
It will now however charge a customer should they wish to use a conveyancer which isn’t on HSBC’s panel.
Last month chief executive of the Law Society, Des Hudson wrote to HSBC voicing solicitor’s displeasure at the move to operate a restricted panel.
Hudson said that the decision by HSBC was damaging both to the consumer interest and to the profession and that it operated to no one-s interest other than the short term interests of Countrywide and HSBC.
Martijn van der Heijden, head of lending at HSBC, responded to the Law Society today: “With the customer in mind, HSBC is and always has been open to having constructive conversations with the various law societies.
“We recognise the pragmatic approach taken by The Law Society of Scotland which has resulted in Scottish lawyers and HSBC’s legal representatives being able to work harmoniously to deliver great service to Scottish homebuyers.
“We are also in close contact with the Law Society of Northern Ireland. Our door has always been open to Des Hudson.”
Van der Heijden added that HSBC’s primary concern was to provide choice to its mortgage customers and for them to benefit from an efficient conveyancing service.
He said: “We welcome all Law Society CQS accredited firms onto the panel providing they can offer our customers the benefits we have introduced including competitive fixed fees, a no sale / no fee guarantee and electronic 24 hour case tracking.”
