Generated on: 2022-03-24 14:35:54
CONFIRMED MINUTES
BOARD MEETING 15 FEBRUARY 2022
At the
Board Meeting 22 March 2022 on
22 Mar 2022 these minutes were
confirmed as
presented.
Name:
Real Estate Authority
Date:
Tuesday, 15 February 2022
Time:
9:00 am to 1:00 pm
Location:
REA Office and Zoom, office and online
Board Members: Denese Bates QC (Chair), Latham Lockwood, Liz Nidd, Mele Wendt, Tony
Stack, Vern Walsh
Attendees:
Andrew Bulled, Belinda Moffat, Josh Doherty, Nadine Thomas, Phirak
Appleton, Saara Fourie, Victor Eng, Marie Snell
1.
Opening Meeting
1.1
Board in Committee
Issues for discussion with the Chief Executive were agreed.
1.2
Board and CE alone time
Papers and issues identified by Board were discussed with the Chief Executive.
1.3
Karakia
The Senior Leadership Team joined and the meeting was opened with a Karakia.
Chief Executive Belinda Moffat introduced the Board to REA’s new Programme Manager,
1.4
Confirmation of Agenda
The agenda was confirmed.
1.5
Interests Register
No new interests were declared and no conflicts were identified for the meeting.
1.6
Confirm Minutes
Board Meeting December 2021 7 Dec 2021, the minutes were confirmed with the following
changes:
Ringa Ora corrected to read Ringa Hora.
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Minutes : Board Meeting 15 February 2022 - 15 Feb 2022
The minutes of 7 December, 17 December and 23 December 2021 we approved,
subject to one amendment.
The minutes of 7 December, 17 December and 23 December 2021 were
approved, subject to one amendment:
“Ringa Ora” was to be corrected to read “
Ringa Hora” on pg. 17 of the 7
December Board meeting minutes.
Decision Date:
15 Feb 2022
Mover:
Seconder:
Outcome:
Approved
2.
Actions from Previous Meetings
2.1
Action Item List
Due Date
Action Title
Owner
15 Nov 2021
1) Complaints Process
Status: Completed on 8 Feb 2022
16 Dec 2021
2) Staff Recognition
Belinda Moffat
Status: Completed on 31 Jan 2022
17 Dec 2021
3) Establishment of Programme Management Office
Belinda Moffat
Status: Completed on 31 Jan 2022
24 Dec 2021
4) Qualifications media release and communications
Belinda Moffat
Status: Completed on 8 Feb 2022
24 Dec 2021
5) Vaccination Policy - update MoJ
Belinda Moffat
Status: Completed on 31 Jan 2022
24 Dec 2021
6) CAC Recruitment
Status: Completed on 8 Feb 2022
31 Jan 2022
1) Monitor Jones Lang Lasalle Case and update CE and Chair on
next steps
Status: Completed on 15 Mar 2022
31 Jan 2022
11) Selection of External Counsel
Belinda Moffat
Status: Completed on 31 Jan 2022
15 Feb 2022
13) Coordinate next meeting with Minister Sio
Belinda Moffat
Status: Completed on 31 Jan 2022
15 Feb 2022
14) Organisation Structure
Status: Completed on 8 Feb 2022
15 Feb 2022
12) Update to Interests Register
Status: Completed on 8 Feb 2022
22 Mar 2022
3) Workforce Management Paper
Status: Completed on 15 Mar 2022
31 Mar 2022
5) Flexi by Default review
Status: In Progress
31 Mar 2022
6) Review statutory guides and effective production and best practice
use principles for sector
Status: In Progress
31 Mar 2022
7) Explore the use of Instagram in the REA digital marketing
approach.
Status: Completed on 23 Mar 2022
30 Apr 2022
13) Meeting with REINZ
Belinda Moffat
Status: In Progress
30 Apr 2022
14) Awareness, Communication and Stakeholder Engagement
Strategy
Status: In Progress
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Minutes : Board Meeting 15 February 2022 - 15 Feb 2022
Due Date
Action Title
Owner
30 Apr 2022
15) Property Management Regulation
Belinda Moffat
Status: In Progress
30 Apr 2022
16) Māori Engagement Strategy Approach
Belinda Moffat
Status: In Progress
31 May 2022
18) Fit and Proper Guidelines
Status: In Progress
31 May 2022
19) Supervision
Status: In Progress
Actions were taken as read and the following actions were discussed:
· 16) Fit and Proper Guidelines:
the preparation of the standard for internal review.
· No additional questions were raised relating to the actions.
3.
Chief Executive's Report
3.1
CE Report
The report was taken as read and Chief Executive Belinda Moffat highlighted the following:
· Paragraph 6 advised that Board members are being allocated REA email accounts to
ensure REA can share information with the Board securely.
·
suggested that technical support be made available to get the emails set up for Board
members. It would also be helpful to confirm compatibility with other devices such as Ipads.
· The SPE will see small adjustments to measures so the Board will not see a significant
rewrite from last year.
noted that we need to be clear about why we have not met
all targets (e.g. due to COVID, work volumes, labour shortage), to ensure those we report
to understand the reasons behind these.
· Staff requests to work elsewhere: REA has agreed to funding the equipment set up in the
new locations (excluding desk and chair), ensuring technology and health and safety
requirements are met. Belinda invited any input from the Board on similar experiences they
have had with staff relocating.
have seen arrangements where flights back
to the office base are self-funded, or an allowance has been offered to contribute to those
flights.
· Paragraph 28 notes that REA’s lease is due for a rent review.
·
noted Melbourne offices are downsizing due to people opting to work from home long-
term.
· Consultation on the Regulation of Property Management paper was due to commence on
14 February but may be delayed as confirmation had not yet come through at the time of
this meeting.
· The
Conversation with REA event date has been moved to 2 March and will be an online
event.
has agreed to join the panel. Board members were invited to observe and
were asked to let
know so that they can be sent the link.
Public Records Act Audit Report
· The report was noted and Belinda confirmed that the Senior Leadership Team was
comfortable with the final ratings. There is still work to be done and the feedback has been
useful.
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Minutes : Board Meeting 15 February 2022 - 15 Feb 2022
· The next step for us is an information roadmap with the assistance from a consultant. IT
has been updating our information systems strategic plan (ISSP) and will bring those to the
Board in March or April.
BCP COVID-19 Preparation
· The update was taken as read and the Board had no additional comments.
Qualifications Project Update
The update was taken as read and the following matters were discussed:
· Level 6 is looking to be available from June 2022.
·
mentioned a Queensland contact called both REA and REINZ and was told there
will be nothing available until next year.
confirmed Level 5 version 1 is available
and has been offered throughout last year. Version 2 will be offered this year. REA sent out
communications about this to the sector on 31 January and the information is available on
the REA website.
Other matters that were discussed:
·
highlighted that Settled website traffic numbers have gone down and asked
whether we have not been as actively promoting it. Belinda noted that numbers had
levelled off after some strong results based on COVID information being added on the
website in previous months. There is more information on REA’s digital marketing included
in the Select Committee responses later in the meeting.
· The Board would like to see reporting in from
as Programme Manager and Belinda
noted SLT had a view to reporting on this through the performance report and Audit and
Risk Committee.
· Te Tiriti workshop planning is underway.
Recommendations
It was recommended that the Board:
Note the contents of this paper and provide feedback on any matters raised.
Outcome: Noted.
8) Qualifications FAQs and Website Information
Check and update REA’s FAQs and information on the website to ensure we
are giving the right information about the availability of qualifications.
March 2022: verbal update to be provided by
at March meeting
Due Date:
31 Mar 2022
Owner:
11) REA Emails for Board
Arrange training for the Board on the use of their new REA email accounts and
check compatibility with mobile devices such as iPads.
15/03/22 Email addresses have been set up and individual training sessions will
be coordinated in the next few weeks.
Due Date:
1 Apr 2022
Owner:
4) SPE Narrative
CE to look at the narrative around the SPE, emphasising resourcing, COVID
impacts and higher workload as reasons for not meeting all targets in 2021/22.
March 2022; underway with first draft
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Minutes : Board Meeting 15 February 2022 - 15 Feb 2022
Due Date:
23 Mar 2022
Owner:
Belinda Moffat
17) Programme Manager reporting to be captured in the performance report.
Programme Manager reporting to be captured in the performance report.
March 2022: Options for reporting presented to Audit and Risk Committee in
March meeting.
Due Date:
30 Apr 2022
Owner:
10) Te Tiriti o Waitangi session with
Arrange a Te Tiriti o Waitangi session with
outside the 22 March
Board meeting.
22/03/22 session booked for Friday 25 March 2022 from 12:30-2:30pm.
Due Date:
1 Apr 2022
Owner:
Belinda Moffat
3.2
Morning Tea Break
A 15 minute break was held from 10:30-10:45am
4.
Board Papers for discussion and approval
4.1
Select Committee Questions
Belinda highlighted the following:
Belinda informed the Board that REA has not been called to attend a hearing before the
Select Committee this year. These written responses are being provided to the Committee
as per standard annual procedure.
REA received some new questions about restructuring since the last review.
Question 50 notes our strategy to reduce our digital marketing spend and provides more
information to support
earlier question.
Question 88 relates to REA’s turnover which is slightly higher that average but still on par
with REA’s turnover over the past five years.
Engagement of consultants are discussed in questions 68-75 is always an area of interest
in terms of areas of expenditure.
Sensitive expenditure questions 42 – 45 were noted as areas of focus.
The Board made the following comments:
Typographical errors noted
Some commentary should be added about salary caps and challenges with recruiting to
explain turnover in question 88.
In response to a question, Belinda confirmed that the responses are made available to the
public.
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Minutes : Board Meeting 15 February 2022 - 15 Feb 2022
Approve the contents of this paper and provide feedback on any matters raised.
It was recommended that the Board:
Approve the contents of this paper and provide feedback on any
matters raised.
Outcome: Approved subject to making the discussed amendments.
Decision Date:
15 Feb 2022
Mover:
Seconder:
Outcome:
Approved
2) Make amendments to Select Committee responses as discussed.
Make amendments to Select Committee responses as discussed.
Due Date:
10 Mar 2022
Owner:
4.2
- Intervention Recommendation Paper
Approve REA taking steps to intervene in the pending appeal brought by
Recommendation: It was recommended that the Board:
·
·
Approve REA taking steps to intervene in the pending appeal brought by
Decision Date:
15 Feb 2022
Mover:
Seconder:
Outcome:
Approved
4.3
CAC Recruitment
Head of Regulatory Services, took the paper as read and highlighted the following:
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Minutes : Board Meeting 15 February 2022 - 15 Feb 2022
There strong candidate applications had been received.
There are three current vacancies but two more lawyers will be finishing their 5-year terms
later this year.
There can be ongoing recruitment challenges with having a maximum term of five years. A
number of members finish next year and also a large group finishing up around the same
time in 2024.
The Board discussed the following:
· There is a 2.5 year stand-down period before they can be reconsidered as a CAC panel
member.
· Strong calibre of candidates acknowledged and agreed that unsuccessful candidates be
advised that there will be future opportunities.
Recommendation: It is recommended that the Board:
·
Note the preferred candidates for recruitment of five CAC panel members.
·
Outcome: noted.
4.4
Break
The Board took a break from 12:00-12:05pm.
5.
Board Papers for noting
5.1
November-December 2021 Performance Report
Belinda highlighted the following:
The report was republished due to a couple of data discrepancies.
Licensee number remain high so revenue is strong and REA is in a good position with
managing costs.
are still seeing good enrolments for salesperson qualifications.
Complaints volumes remain at a solid level.
Progress is being made on EIE strategies.
Head of Corporate Services, highlighted the following:
Pg. 161 shows the financial results in the revenue and expenditure statement. Revenue is
up by $1.1M.
Expenditure is down with COVID and vacancies contributing to this.
Overall, REA is comfortable with their financial position.
The Ministry of Justice has advised that we need to go through a budget bid process if we
had a shortfall so having adequate reserves is important.
Head of Regulatory Services, highlighted the following:
Bulk license renewals are coming up and this gives us a strong indication of the perception
of the market or forecast of the year ahead in terms of licensee numbers.
The Board discussion noted the following:
Agent licenses can be attached to multiple companies.
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Minutes : Board Meeting 15 February 2022 - 15 Feb 2022
Supervision ratios are high. The supervision model does not specify how many people you
need to supervise and how closely. CACs are picking up where supervision should have
been provided, particularly for salespersons, but the only way we can monitor this is by
REA receiving a complaint.
EIE is undertaking work to better understanding supervision models to inform potential
enhancements to the supervision standard.
Disclosure, particularly for sight unseen purchases continues to be a consistent challenge
for the industry and there are a lot of drivers behind disclosure complaints. Sight unseen
disclosure complaints certainly make up a number of these complaints, along with
misrepresentation.
Pg.166 and 167 and delays in clearing the backlog until November/December were noted
as a typo. Staff are addressing the backlog based on the seriousness of the cases and we
have completed the recruitment so the facilitator team is at full capacity – improvements in
the backlog should be seen soon.
Every case should have contact/an update from REA at least monthly, particularly cases
going through a CAC process as this takes longer. In Early Resolutions, once a case is
assigned the party should be getting fairly regular contact.
will have an updated timeline on complaints improvement project for the
April Board meeting.
Recommendations
It was recommended that the Board:
Note the contents of this paper and provide feedback on any matters raised.
Outcome: Noted
12) Complaints Improvement Project Update to be provided at the April Board
Meeting.
Provide an update report on the Complaints Improvement Project including an
updated timeline for the April meeting.
Due Date:
27 Apr 2022
Owner:
5.2
People and Capability Quarterly Report (September - December 2021)
Head of People & Capability, took the paper as read and highlighted the following:
REA's COVID-19 risk profile has improved with a
vaccination rate and a robust
vaccination policy (that permits flexibility for working arrangements for those not
vaccinated).
Compliance training on integrity progressing well with staff.
The 90 Day Plan from the Culture Club was included to show intentions to boost REA’s
culture and wellness activities.
The Board made the following comments:
Further information on ethnicity pay parity is sought.
Booster shots are part of the Vaccination policy.
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Minutes : Board Meeting 15 February 2022 - 15 Feb 2022
The Board appreciated the updated organisation chart and noted further work on workforce
planning is underway.
Recommendations
It was recommended that the Board:
Note the contents of the Report and provide feedback on any matters raised.
Outcome: Noted
9) Provide an update on ethnicity and tenure pay parity.
Provide an update on ethnicity and tenure pay parity.
Due Date:
31 Mar 2022
Owner:
5.3
Regulatory Services Paper
took this paper as read and highlighted the following:
·
Fit and proper standard: The Cavanagh case has resulted in us doing a deeper
assessment of license applications where there is perhaps a criminal history to understand
the current risk.
·
There is limited public awareness about new license applications. They used to be in
newspaper but no longer.
·
Stale Qualifications: new regulations went live from 1 February. REA has had four
applications since then and no concerns have been raised.
The Board made the following comments:
·
Disclosure of convictions is not explicit on the prescribed license application form as it talks
about convictions relating to dishonesty or any other reasons an applicant would not meet
fit and proper standards. REA does do police checks and good character assessments.
Applicants know they will be vetted by police so convictions will be revealed through this
process.
·
Trust Account Audit noted
were referred to a CAC for further consideration which
is in line with what REA had seen through this process in previous years.
Recommendation: It is recommended that the Board:
·
Note the contents of this paper and provide feedback on any matters raised.
·
Outcome: noted.
5.4
Legal Team Paper
The Legal Team Paper was taken as read and
highlighted the following points:
·
·
·
·
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Minutes : Board Meeting 15 February 2022 - 15 Feb 2022
Recommendation: It is recommended that the Board:
·
Note the contents of this paper and provide feedback on any matters raised.
·
Outcome: Noted.
6.
Other Business
6.1
General Business
·
Minister Kris Faafoi intends to conduct an in-person visit to REA as he is visiting all Crown
entities this year. This may need to be online but the CE is exploring dates and getting some
background information ahead of the visit to clarify whether he will join with Minister Sio and
what he is interested in hearing about.
6.2
Closing Karakia
7.
Close Meeting
7.1
Close the meeting
Next meeting: Board Meeting 22 March 2022 - 22 Mar 2022, 9:00 am
Unuhia, unuhia
Draw on, draw on,
Unuhia ki te uru tapu nui
Draw on the supreme sacredness
Kia wātea, kia māmā, te ngākau,
To clear, to free the heart,
te tinana, te wairua t e ara takatā
the body and the spirit of mankind
Koia rā e Rongo, whakairia ake ki runga Rongo, suspended high above us (i.e. in ‘heaven’)
Kia tina! TINA! Hui e! TĀIKI E! Draw together! Affirm!
31.3.22
Signature:____________________
Date:_________________________
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