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The impetus behind this investigatory push stems from the flood of feedback ACIL received following their initial disclosures. Leveraging this outpouring, ACIL is currently conducting a comprehensive survey to gather a broad spectrum of experiences, focusing on the nature and scope of these reported issues.
"We are compiling concrete evidence that will serve as a foundation for advocating systemic reform in the industry. This will also aid us in promoting transparency, and our efforts should not be seen as an isolated endeavor by ACIL alone," stated Tyrone Shandiman, the chairperson of ACIL.
Previously, ACIL brought to the attention of the Australian Securities and Investments Commission and the Australian Competition and Consumer Commission a series of 146 problematic instances. These involved practices around the appointment and payment of strata manager brokers that warrant further scrutiny. ACIL has pushed for these regulators to consider a comprehensive review of these practices.
ACIL is reaching out to encourage stakeholders—whether they're individuals, companies, or industry professionals—to provide feedback through an online survey. This survey, which can be completed anonymously, welcomes contributions until the deadline on April 3.
"We're particularly keen to hear from companies adversely impacted by such strata practices, as well as whistleblowers—current or former employees within strata management firms or related insurance brokerages—who can provide insider perspectives," added Mr. Shandiman.
ACIL has called into question certain practices where strata managers have transitioned property owners to unreasonably high remuneration schemes, flagging an opaque veil over the fees and commissions charged to insured property owners.
Meanwhile, the Strata Community Association (SCA) has embarked on developing a 'best practice guide' aimed at bolstering transparency within the complex framework of remuneration agreements that define broker-strata manager relationships.
The focus of SCA's guide is to provide comprehensive disclosure on the nature of commissions, potential conflicts of interest, and a transparent breakdown of remuneration between relevant parties. After implementing educational initiatives and thorough assessments, SCA plans on incorporating these disclosure practices into its official Code of Conduct starting from the subsequent year.
Published:Thursday, 21st Mar 2024
Source: Paige Estritori
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