SCA has its Say
[on NSW changes about strata manager conflicts of interest, commissions and disclosures]
Following the announcement by the NSW Minister for Better Regulation and Fair Trading of major changes to law controlling strata manager conflicts of interest, commissions and disclosures, which you can read about in the Daily Post 3 Months Later, the NSW Govt moves on Strata Managers, SCA NSW has its say.
You can read it in full below.
Basically, SCA says:
They support the proposed changes.
They support improved practices that benefit the whole strata sector.
They have been and will continue to work with the NSW government on these issues.
They are continuing their efforts to improve strata management business practices.
They thank the NSW government for their actions and support [??].
Maybe I’m wrong. But, to be honest, I’m a bit surprised by SCA’s response for a few reasons.
First, it looks to me like they’ve been blindsided by the announcement since it comes before the NSW Fair Trading investigation into Netstrata is completed, before SCA’s ethics complain into Netstrata is completed, 1 week before the first of SCA’s improvements [insurance commission disclosure best practices] come into force, and before they’ve started work on the issue themselves.
Second, there’s virtually no details about the proposed changes to what strata managers should do from the NSW Government, so who can you support the changes without knowing or understanding what they are?
Third, as the leading strata manager industry body where most managers say that their businesses rely on strata insurance commissions for profitability shouldn’t they be fighting to keep them for their members rather than capitulating without a fight [and instead thanking them]?
Fourth, there’s still been no seriously considered position outlined, published or discussed by SCA [or anyone] on these serious, complicated, multi-dimensional and industry ingrained issues and instead there’s been a series of simplistic positions adopted by commentators like: be supremely ethical like the lawyers; it’s fine since everyone does it and we disclose; the law is X and that’s it; or; it will go away [like it always has].
It sounds like “Yes Sir, No Sir, Three Bags Full Sir’ to me.
So, I predict that the 2024 Strata Insurance Crisis will continue to surprise everyone as the weeks roll by.