One month or so after the start of the 2024 Strata Insurance Crisis caused by the ABC News report ‘name’ Strata Community Association Australasia has announced the 10 things [6 national and 4 for NSW] it is doing to deal with it.
So, what are they [with some of my initial thoughts]?
NATIONAL ACTIONS
1. They’re bring forward the date when SCA strata manager members must adopt and comply with the SCA Best Practices Insurance Disclosure Guide from 1 January 2025 to 30 June 2024. So, everyone only needs to wait another 2 months.
Find out more about the Best Practice Guides in the Daily Post More info on SCA’s Strata Insurance Best Practice Guidelines.
2. A new and independent chairperson is being appointed to the SCA’s panel that handles complaints about its Code of Conduct. So, that’s a relief. But then again, we don’t know who it is yet.
Find out more about the Code of Ethics in the Daily Post The Strata Community Association NSW Code of Ethics here.
3. The fee SCA used to charge for complaints about its Code of Conduct has been eliminated, he compliant process has been improved, and extra resources allocated. OK.
4. Starting to develop best practice guides for strata manager members about conflicts of interest and other [non insurance] disclosures. So, that’s also great depending on what they say and how they take.
5. Running webinars, providing materials and answering enquiries for SCA members to help them handle strata insurance commission, other commission/benefit, and conflict or interest issues. OK.
6. Supporting the 4 SCA NSW actions.
NEW SOUTH WALES ACTIONS ONLY
7. An independent person is investigating the allegations in the @ABCNews reports for SCA NSW and will report by 31 May 2024. I can’t wait to see who is doing the investigation and read the report if it’s published.
8. Conducting extra sample audits of strata manager members’ compliance with disclosures and conflict of interest obligations. So, worthwhile but since we don’t know how many sample audits SCA NSW conducts now, more may still not be very many.
9. Updating its audit processes to focus more on disclosures and conflict of interest obligations.
10. Continue to comply with its ongoing liaison obligations with Professional Standards Australia in relation to the SCA Strata Managers Professional Standards Scheme.
Find out more about the Strata Managers Professional Standards Scheme in the Daily Post SCA’s Professional Standards Scheme Explained.
So, apart from what appears to be routine member management matters, there’s an investigation into 1 member, asking other members to improve insurance commission disclosures sooner, some training and a few extra member checks, there’s not much to see here.
Perhaps, the outcome of the Netstrata investigation will be more interesting.
And, you can read SCA Australasia’s summary of their 10 action steps here.