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When an RMA resigns, what happens to the clients?
I used the word 'the' clients in my heading for a reason, and not the word 'their' clients. Read on to find out why.
I have recently had a migration agent resign. No problems with that so far. The agent has been with my business since 2003 and has decided to move on.
Here's the issue.
The agent has about 200 clients lodged via his ImmiAccount and that ImmiAccount is set up under his MARN. The password to ImmiAccount is set by the same agent.
Issues arising:
1. The Code of Conduct requires the RMA to sign a Form 956 with their client when lodging a sponsorship, nomination or visa application on their behalf
2. The Code of Conduct requires that the monies associated with the RMAs clients to drop into a Clients' Account. In this case, the RMA is not in control of the Clients' Account as the RMA is an employee of the business.
3. I am the owner of a business and also an RMA. I have access to the mandatory Clients' Account (see 7.1 of the Code of Conduct), but my employed RMAs do not.
4. Under Part 8.1 of the Code of Conduct, as the owner of the business and responsible for the effective control of my office /employees.
I believe the Code of Conduct is in conflict with itself.
OMARA's response to my departing agent was something along these lines:
"If you are comfortable with another agent in the business taking over your files, obtain a 956 from the clients and have them sign the 956 for another agent".
My departing RMA has validly questioned:
"What if an agent is not comfortable with another agent in the business? What if there is no other agent in the business and the owner of the business is not an RMA, but the client monies are in the clients' account for the work to be performed?"
My personal view is that all companies in Australia offering immigration advice or assistance MUST be operated by a RMA. There should not be a situation where a person (non-RMA) can set up an Australian immigration agency and employ RMAs, but at the same time, not give the RMAs control of the client monies. If an agent resigns from such a company, then the clients are left with their money in a clients account and no RMA to service their file as the company is operated by a non-RMA.
I also believe that ImmiAccount should have a Company Director-RMA override/access function for immediate take-over once an employed RMA leaves the company, so that ongoing clients, who have paid the business money to look after their cases, can continue to work for the money that has been paid.
What about the case where an RMA resigns from a migration agency, has 150 clients who have paid for services, and decides not to pursue a career as an agent any more, and decides not to re-register?
What about employed RMAs who are sick or unable to look after their clients? What if the agent can't get Form 956s to all of their clients for health or emergency reasons?
What if the clients don't agree to transfer to another agent in the business?
What if the agent has resigned, the clients just continue to be serviced by anyone, including other agents in the business, and then there is a complaint by a client to the Office of the MARA? Who is the RMA responsible for the client now?
I think there is a black hole here in Code of Conduct. The more I read the Code today, the more confused I become about what happens to clients of resigning RMAs.
Are there any RMAs out there with any ideas about how to manage this?
I have spoken to a few RMA lawyers about this and we are all now scratching our heads. Such a common issue basically has no precedent attached.
Comments
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Wednesday, 01 February 2017leaving agent: you may be breaching your non-compete clause in your employment contract. Either way, that is a really unethical way to do business.
in regards to the 956, the department released a statement that they will recognise other agents within the business, however, in practice i have not seen a change in policy. the best way is to have the director/general manager fill the 956 and then have the agent as a second agent. in regards to the immiaccount, use the company account only.
this is more of a business management issue. how to effectively manage your clients. something we have struggled with as the clients become "attached". -
Wednesday, 01 February 2017
The agreements we do are with the company and then there is a migration agent listed that will provide services. So if RMA leaves, another RMA can be appointed, naturally clients would have to give consent.
However I would like to point out another situation. If RMA decides to retire, and close the business what does he/she does with the uncompleted cases. pass them to another business, or have to keep registration going until they are all completed, which may be after his/hers death. -
Wednesday, 01 February 2017
The way how REA works, have a Officer in Effective Control; manages the office, trust account and REA working in the business; will in effect addresses much of those issues.
Being a RMA and REA at the same time, I can often see how real estate industries have a much more matured code of conduct - as well as governance model as opposed to RMA. -
Wednesday, 01 February 2017
I have been saying for years that MARA authorisation should be capable of being at the level of the organisation rather than individuals.
Have a look at what the Tax Practitioners Board does with registered tax agents: I am registered as a tax agent individually, and our partnership (which has the engagement with our tax clients) is the registered entity which trades, has an ABN, has PII, etc. -
Wednesday, 01 February 2017
Hi Liana -an interesting and very important post and I have faced it numerous times; ALL our form 956 have two agents names on the first page and then we have an attachment that lists the rest of our migration agents as authorised to respond to a DIBP matter in the situation where the main agent is away. Mind you DIBP rarely recognises the fact until we argue with them. However we still have to issue new form 956 when a migration agent leaves.
One of my big issues is with the AAT when for example you subcontract an agent to attend a hearing on your behalf and you have to completely sign over carriage of the case to that agent and then after the hearing transfer it back again. AAT just will not change the forms to allow two agents to be involved;
re the Immi account - like you, I have organisational access to all our migration agents files on immi account. It is a very interesting question in regards to whether or not I have authority to transfer them to another agent if someone leaves. In the past we have just written to the clients and advised them that their agent has left our employ and we are providing agent xyz to take over carriage of the case; if they are happy with this arrangement please sign the new 956. we have never had clients complain about this.
Someone above asked how can "head agent" be responsible for all files - sadly that is one of the big downsides of being director of a company. If a migration agent employed by the company has a complaint lodged against them they do not appear to face much problem but believe me the director gets hauled over the coals. It is a nightmare when an agent leaves and as you go through files you find errors, things missing etc that you had not been aware of. It can end up costing the company a lot of money to sort out. if clients complain about the work of that agent it is the Director who cops it.
Someone else above wrote : "I am about to leave my employer and my clients are MY CLIENTS and they are on MY IMMIACCOUNT and I am not giving my employer MY PASSWORD. Good luck trying to get the DIBP to allow the company to hand them over to my employer when I leave." - pity that person did not leave their name to ensure that no other company ever employ him. What sort of ethics does he/she have. Who has paid him for his work? His employer??? and what sort of contract did the employer give him in relation to client "ownership" should he leave the employment. Employers beware!!
Would be interested to discuss outcomes of this with your further Liana. -
Wednesday, 01 February 2017
A number of agents rent out their agent number to rogue businesses www.global-migrate.com with a disclaimer ' The company ' MAY USE ' the services of the registered agent IF REQUIRED ' Clients have been deceived into thinking monies go into a client account and the code applies to them MARA as usual as failed to deal with this issue
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Thursday, 02 February 2017
I had a client import an immiaccount file from my account and I had not provided him with the password. I believe this is still possible. All you need is TRN number and your own client account.
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Thursday, 02 February 2017
Ask the MARA for some ethical advice. .. you won't get any coherent response
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Thursday, 02 February 2017
I believe this profession is suitable for a one man show.
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Thursday, 02 February 2017
KG; Yes this profession is suitable for a one man show BUT only if the person has the skills, knowledge and contacts to ask about complex matters not handled before. It further requires the ability to know when you do not know and this is the hardest part of the practice.
OR
Will only practice in visa applications they are skilled in. This is quite difficult given the referrals from friends and relatives after you have success. Knowing when to say no is the greatest skill and responsibility in this profession.
Immigration blog
Non lawyer rma's have to open client accounts. Work in similar way to trust accounts but fortunately do move the horrendous audit fees each year!!