I want to be Compliant but my Investor says “No” to Personal Data Collection

Property sourcers and investors have to work together because that is the only way to create a successful relationship. In order to do this, the relationship has to be a two-way thing but there are some things that an investor has to do in order to increase the confidence that property sourcers have in them. In the majority of instances, relationships are healthy and fruitful, especially when it comes to the collection of personal data but there are cases where it can prove difficult.

Naturally, as a property sourcer, you are going to want to do everything properly and you are going to want to remain compliant, ensuring that you remain within the confines of the law. However, some investors can make this difficult for you and so, how you deal with this is crucial.

Some investors will make excuses

The reality of the situation is that there are some investors who will make as many excuses as they can in order to avoid handing over any personal information. It is not simple to handle and it can prove frustrating, particularly when you the excuses are not backed in any kind of way.

When you request the personal data of investors you would like to work with, you can find that they might refuse to provide you with it or they might even believe that it is not you who should handle the information.

However, this is an important part of the process because property sourcers have to legally, collect all relevant data in order to carry out their full service. There is no hiding away from the reality of the situation because you have to meet your specific obligations that relate to the Money Laundering Regulations 2017.  While you are fully aware of the ramifications of not meeting these obligations, investors might not because all they want to do is view the deals that are available to them.

In order to remain compliant with the Money Laundering Regulations, there are certain aspects that you have to adhere to.

If an investor pays you, then you are required to collect all relevant data at the earliest point in the relationship with the latest point being when the investor has agreed to use the services that you have on offer.

If a seller is paying you, then you legally have to collect the relevant date when the seller has agreed to accept an offer on a deal.

Managing an Investors who Objects

However, if an investor objects to providing you with the details that you require, how do you go about dealing with the situation?

Essentially, there are two simple options and choosing the right one all depends on how you feel about the relationship and where it could go.

So, you can choose to walk away or you could opt to build trust between yourself and the investor and often, the latter is the better option of the two. At this point, it is worth understanding that the relationship is in its early stages and so, you should be able to understand to some extent why an investor would not be willing to hand over their personal details. We live in a world where we are told constantly to be mindful of who we share our information with and so, you should expect investors to work with an element of caution.

As a property sourcer, it is your role to build trust and that can take time but the success of a sourcing company is underpinned by the level of trust shared between you and investors. So, you can arrange meetings, hold phone calls and speak via email while doing all you can to alleviate their concerns. Despite your efforts, there is every chance that an investor will still refuse to pass you their personal information and at that point, it is time to thank the investor for their interest but it is time to walk away.

So, if an investor refuses to provide you with the information that enables you to remain compliant with the law but also deliver the service you offer then you should avoid working with them.

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