Four weeks ago, our industry was cracked wide open. Many in the industry including me, were excited that finally those practices that were destroying the value proposition of Strata (and our own businesses), were finally going to be addressed and banned. Fast forward a few weeks, and the radio silence from Government in relation to conflicted remuneration, is deafening. Government discussions, and the whispers on the street, of what is imminent, appears to be focused exclusively on the banning of Commissions. Now, whilst I believe that is 100% required, this is not exactly hot off the press. It has been a matter of “when” rather than “if” , for the last few years. The real jaw dropping expose revealed on Four Corners, did not actually relate to Insurance Commissions, rather conflicted remuneration. So why has Government been mute on addressing it? It has perplexed me and many others. By focussing exclusively on insurance commissions ( that absolutely need to be removed but were and still are at this very moment legal if disclosed in the correct manner). The end result is just further punishment for those in the industry that have walked the walk and played by the rules rather than try to find loopholes, and leaving those who have not unscathed. In order to allow the market to correct and seek fair and equitable pricing and practices for both Strata Operators and Owners - both of these revenue streams MUST be banned - only then will the true value of the services sought and provided be established. So, given I am merely a Strata Manager and not a highly experienced policy professional or public sector advisor, I started to question if this is simply a game of chess and we are yet to see the next move…… could the focus of NSW Fair Trading be solely on Insurance Commissions to allow another jurisdiction to tackle the bigger issue? Perhaps ASIC or the ACCC have a strategy behind the scenes. Perhaps, myself and all the other legitimately hard working, Strata Managers are just living in false hope… But maybe, these other jurisdictions are just about to enter the game??? What’s the general consensus?
#NSWFairtrading #ASIC #ACCC
#NSWFairtradingCommissioner
#strata
#bodycorporate
#fourcorners #4corners
#abc
Credit, Risk, Analysis | Policy & Procedure | VP of Credit at Primary Funding Corporation
1moThat is an all-star team right there! 🤩