Generated on: 2023-08-23 23:33:55
CONFIRMED MINUTES
REA BOARD MEETING 20 JUNE 2023
At the
REA Board Meeting 23 August 2023 on
23 Aug 2023 these minutes were
confirmed
with the following changes:
Inclusion of action relating to complaints analysis which was omitted.
Name:
Real Estate Authority
Date:
Tuesday, 20 June 2023
Time:
9:00 am to 12:08 pm (NZST)
Location:
REA Offices, Level 4, Todd Building, 95 Customhouse Quay, Wellington
Board Members: Denese Bates KC (Chair), Mele Wendt, Latham Lockwood, Tony Stack, Vern
Walsh
Attendees:
Belinda Moffat, Victor Eng, Nadine Thomas, Andrew Bulled, Josh Doherty,
Herman Visagie, Saara Fourie
Apologies:
Liz Nidd
Guests/Notes:
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. The following key
points were noted for the minutes:
• Conversation with REA was discussed, with
attending on behalf of the Board.
The event saw a great turnout and resulted in excellent discussion.
• The team also visited Esk Valley, with the reality of the aftermath of Cyclone Gabrielle quite
confronting.
1.3
Karakia
The Senior Leadership Team joined and the meeting was opened with a Karakia at 10.12am.
1.4
Interests Register
· No new interests to declare and no conflicts were identified.
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Minutes : REA Board Meeting 20 June 2023 - 20 Jun 2023
1.5
Confirm Minutes
REA Board meeting 24 May 2023 24 May 2023, the minutes were confirmed with the
following changes:
Approved subject to several minor amendments.
Approved subject to amendments to section 5.2 as discussed
The following amendments were requested:
· Section 5.2 on pg. 21 required some grammatical corrections.
Decision Date:
20 Jun 2023
Mover:
Seconder:
Outcome:
Approved
1.6
Confirmation of Agenda
The agenda was confirmed.
2.
Actions from Previous Meetings
2.1
Action Item List
Due Date
Action Title
Owner
31 May 2023
2) Translation of Values - share details of Palmerston North contact
Status: Completed on 24 May 2023
31 May 2023
3) Consider translating final values to te reo Māori. Connect with
Belinda Moffat
on this.
Status: Completed on 13 Jun 2023
20 Jun 2023
RST to explore range of channels for CAC appointees including
Māori and Pacific networks
Status: Completed on 15 Aug 2023
20 Jun 2023
6) Update the Interests Register with any new interests declared by
Board members
Status: Completed on 31 May 2023
20 Jun 2023
7) Political Neutrality - Share PSC Resources
Belinda Moffat
Status: Completed on 13 Jun 2023
20 Jun 2023
Review Policies every two years unless there is a need for changes
earlier
Status: Completed on 15 Aug 2023
20 Jun 2023
Present action plan to the Board relating to Barriers Faced by
Diverse Consumer Groups Research
Status: Completed on 14 Aug 2023
20 Jun 2023
10) Increase the font size on PMO schedule
Status: Completed on 13 Jun 2023
20 Jun 2023
11) Upload presentation slides from the CIP workshop to BoardPro
and the Intranet.
Status: Completed on 6 Jun 2023
20 Jun 2023
12) Sensitive Expenditure and Conflicts Policies to be reviewed &
brought back to the Board
Status: Completed on 12 Jun 2023
30 Jun 2023
Prepare Terms of Reference for the Board Advisory Committee -
Belinda Moffat
Regulation of Property Management
Status: Completed on 13 Jun 2023
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Minutes : REA Board Meeting 20 June 2023 - 20 Jun 2023
Due Date
Action Title
Owner
31 Jul 2023
Flexi by Default review
Status: In Progress
31 Jul 2023
Management to review CAC and Board fees frameworks
Belinda Moffat
Status: Completed on 14 Jun 2023
23 Aug 2023
Conduct further analysis on increase in CAC referrals
Status: In Progress
31 Aug 2023
Finalise a plan for rolling out project management training to all staff Belinda Moffat
and Board.
Status: In Progress
31 Aug 2023
to oversee CE Role Sizing.
Status: Completed on 15 Aug 2023
31 Aug 2023
Amend the Declaration of Interests and Managing Conflicts Policy
Status: Completed on 15 Aug 2023
30 Sept 2023 REA Emails for Board
Status: In Progress
30 Sept 2023 Separation of aged cases
Status: In Progress
30 Sept 2023 Develop a leadership programme for SLT and Tier 3 Leaders
Status: In Progress
30 Sept 2023 Invite the REINZ Board Chair to a future REA Board meeting.
Belinda Moffat
Status: In Progress
30 Sept 2023 Board Members to declare personal engagements with Real Estate
Agents in the last 12 months
Status: In Progress
24 Oct 2023
Organise Board Project Governance Training at a future Board
Belinda Moffat
meeting
Status: Completed on 14 Jun 2023
31 Oct 2023
Māori Engagement Framework - Board Marae Visit
Belinda Moffat
Status: In Progress
31 Oct 2023
Bring policy for dealing with difficult people to Board
Belinda Moffat
Status: In Progress
30 Nov 2023
Transaction Reports
Status: On Hold
Actions were taken as read.
3.
Chief Executive's Report
3.1
CE Report
The report was taken as read and Belinda Moffat, Chief Executive, highlighted the following:
· The election period commences on 14 July and it is important to be mindful of the dynamic
political environment, particularly around the regulation of property management. Political
neutrality is critical.
· Key focus for CE and SLT members has been CIP consultation and Regulation of Property
Management policy support.
· The CE invited insights from the Board on what they are seeing in the sector and feedback
suggested that high house prices are unlikely to be an election issue given the current
market, but housing remains a focus.
· Consultation on the draft PSC Code of Conduct guidelines: the CE highlighted greater
detail and a different approach taken by the Public Service Commission. The Board was
invited to provide any feedback to the Chief Executive and General Counsel for inclusion in
the response. The Board indicated general support for the draft Code of Conduct
guidelines.
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Minutes : REA Board Meeting 20 June 2023 - 20 Jun 2023
· Emissions have been assessed and travel is the highest contributor to REA emissions,
although REA is not a high emitter overall due to our organisational size. The Board will be
asked to consider any changes to travel at Board level to assist with REA’s emissions
reduction, but it was agreed that the benefit of in-person Board meetings outweighs the
need to reduce travel. It was noted that Board Committee meetings are already held online.
Board attendance at other events could be limited to one or two members and consider
logistics when nominating Board representatives for attendance at each event.
· REA held a staff offsite which took place at Wharewaka on 1 June. There were a number of
internal and external speakers covering a range of topics and the feedback from the staff
survey has been really positive.
· Following on from Te Kākano, REA is now thinking about how to prepare the sector for the
next mandatory Diversity & Inclusion topic, looking at the lessons we have learned around
communicating to the sector, and taking REINZ on the journey.
· The Head of Engagement, Insights and Education,
highlighted that REINZ
support the topic, and it is whether it should be mandatory that is the point of debate. The
next step is to focus on practical application of what licensees have learned which builds
on Te Kākano.
· Noted that interim audit is underway.
· Noted positive feedback from Conversations with REA in Hawke’s Bay.
The Board discussed the following matters:
· Emissions noted and discussion held on the importance of meeting face-to-face whilst also
meeting reduction targets in other ways. Management will work on a reduction plan once
baseline emission levels are finalised.
· Board supported supplemental papers being made available online only: especially given
the sensitive nature of some of those papers and risks with sending them by post, along
with printing, courier costs and emissions. It also helped the Board focus on the papers that
they need to read to inform their decision-making.
· Tikanga and how this may be built into CPD: Management to discuss with Law Society and
consider elective topic. REA is currently focused on bias and discrimination in real estate,
and discussion on Tikanga will flow from Te Kākano.
· The Board reiterated support for mandatory D+I topic and supported work to ensure good
communication with the sector and REINZ on the purpose of the topic and relevance to the
sector: fairness and professionalism. It was noted that Te Kākano and D+I may require a
mindset change and a cultural shift for some in the sector.
Recommendations
It was recommended that the Board:
•
Note the contents of this report.
•
Discuss the health and safety update and provide feedback on any issues arising
•
Discuss and provide feedback on any other matters raised in this report where indicated.
Outcome: Noted, discussed and feedback provided.
RPM Funding Letter to the Minister
Send the Board a copy of the letter to the Minister relating to the funding of the
Regulation of Property Management once it is finalised.
August: In August Board Pack - Item 5.3
Due Date:
30 Jun 2023
Owner:
Belinda Moffat
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Minutes : REA Board Meeting 20 June 2023 - 20 Jun 2023
3.2
Break
4.
Board Papers for Approval or Discussion
4.1
Policies and Terms of Reference Review
The following two policies and Property Management Regulation Committee Terms of Reference
were presented to the Board for discussion and approval.
Sensitive Expenditure Policy
Sensitive Expenditure Policy
Minor amendments were required:
• Paragraph 34: correction to the word “assets” (missing an e)
• Paragraph 57.a: correction to the word “ensuring” (currently ensuing).
• Paragraph 63: delete “…and be an appropriate amount.” Should now
read “63. Donations should be approved by the Chief Executive.”
• Paragraph 71: Delete surplus word “at”.
Outcome: Approved subject to the above amendments.
Decision Date:
20 Jun 2023
Mover:
Seconder:
Outcome:
Approved
Communications Policy
The following matters were discussed:
• Minor amendments were required to paragraph 26 and 27: “…regulatory services team is
responsible.” in both instances.
• REA does not have a policy or clauses in any policies relating to advertising spend and
focus. Approval of the policy was held pending further work by management on additional
advertising clauses.
• The updated policy will be considered by ARC and brought back to the full Board to sign off
in August.
Property Management Regulation Committee Terms of Reference
...
Property Management Regulation Committee Terms of Reference
General Counsel, introduced this paper and highlighted the
following:
• The Board Chair has seen this draft but this is the first time this has
been presented to the full Board.
• It is intended to be an advisory committee and will convene as needed.
• Reporting will continue to go to the main board with the Committee
convened on specific issues requiring consideration.
The Board discussed the following:
• The timeframes for establishment of the Committee to be updated to
record that the Committee was approved to be formed in April 2023 and
established in June 2023.
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Minutes : REA Board Meeting 20 June 2023 - 20 Jun 2023
• Whether voting requirements were needed: Scenarios where voting
might be needed were discussed i.e. in the unlikely event that there is a
strong difference of opinions. The voting reference is to remain.
• Committee is designed to be agile and nimble. There are no formal
delegations. The Terms of Reference achieve this purpose.
• The Chair has appointed
to be the Chair of the Committee.
Decision Date:
20 Jun 2023
Mover:
Seconder:
Outcome:
Approved
Communications Policy
Bring back the updated Communications Policy with additional advertising
clauses.
August: endorsed by Audit and risk in July, for Board approval in August
Due Date:
23 Aug 2023
Owner:
4.2
2023/24 Statement of Performance Expectations
The Statement of Performance Expectations (SPE) for the year ending 30 June 2024
was approved
The paper was taken as read and
highlighted that this is the final
iteration for approval. The key changes since the last review are to the balance
sheet. No changes have been made to the commentary/narrative.
The Board did not have any additional questions or comments.
Recommendations
It was recommended that the Board:
a. Approve the Statement of Performance Expectations (SPE) for the
year ending 30 June 2024.
Decision Date:
20 Jun 2023
Mover:
Seconder:
Outcome:
Approved
4.3
Engagement, Insights and Education (EIE) Update
The paper was taken as read and
highlighted three key aspects to the paper for
discussion, endorsement or approval:
· The Board was invited to provide any comments on the supervision standard
supplementary guidance. No comments or queries were received from the Board. It
was noted that these may be released as guidelines (rather than guidance).
· Barriers to Participation research:
The Research may be
used in CPD and other presentation materials as examples of issues to be addressed.
· Restrictions on digital marketing in election period: discussion was invited on whether
paid advertising should continue during this three-month period. There is public interest
and need which justifies general advertising of Settled on Facebook but the consensus
was that no new paid advertising campaigns should run during that time.
The Board discussed the following:
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Minutes : REA Board Meeting 20 June 2023 - 20 Jun 2023
· It was noted that CE is expected to be across all advertising campaigns under the PSC
guidance.
· CPD Diversity & Inclusion Topic 2: The Board supported the framing of “Engaging with
customers and clients fairly”. The narrative must continue to be very positive – framing
with terms like fairness and equity, rather than negative framing like bias, inequity, and
discrimination.
Approved subject to confirmation of wording change - Guidance/Guidelines.
Recommendations
It was recommended that the Board:
a. Note the contents of this paper and provide feedback on any matters
raised
b. Approve the REA Supervision Standard Supplementary
Guidance/guidelines
c. Endorse the recommended actions for the use of the Barriers to
Participation Research Report.
Outcome: Approved subject to confirmation of wording change to the
Supervision Standard Supplementary Guidance/Guidelines.
Decision Date:
20 Jun 2023
Mover:
Seconder:
Outcome:
Approved
Provide the Board with the final version of the Barriers to Participation research
report
Provide the Board with the final version of the Barriers to Participation research
report once available.
Due Date:
23 Aug 2023
Owner:
5.
Board Papers for noting
5.1
Regulatory Services Team Paper
The paper was taken as read and
highlighted the following points:
· Trust account audit is about to get underway.
· CIP people changes are a key focus area.
· Clarification around the rules for number of bedrooms advertised is being looked into, in
terms of what guidance can be given to the sector. An example of the challenges was
where there two local councils who applied different rules for defining the number of
bedrooms in a property was highlighted in Hawke’s Bay Conversation with REA
discussions.
· Trend of flexi-space in architecture (office space vs bedroom space).
· Early Resolutions table under paragraph 6 shows a significant increase in complaints,
so we will be looking into these complaints to look for the reasons behind this spike. A
significant number appear to be from prospective buyers which is interesting in a quiet
market. Some data analysis will be required to better understand.
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Minutes : REA Board Meeting 20 June 2023 - 20 Jun 2023
· Licensee numbers have now dropped below 16,000 (15,986 average). This drop is
driven by fewer new or renewed applications, not necessarily people leaving the
industry.
Recommendations
It was recommended that the Board:
a.
Note the contents of the Report and provide feedback on any matters raised.
Outcome: Noted
Conduct data analysis on the increase in complaints to look for trends/drivers
The Early Resolutions table under paragraph 6 of the June RST paper shows a
significant increase in complaints. Conduct data analysis to ascertain the
reasons behind this spike.
Due Date:
19 Sept 2023
Owner:
5.2
Legal Team Paper
The paper was taken as read and
General Counsel, highlighted the following:
· Litigation:
·
·
·
invited comments or suggestions for improvements to these legal updates to
ensure the Board has the information they need.
The Board discussed the following:
· Is there a CPD topic on Trust Accounts?
confirmed there is one.
Recommendations
It was recommended that the Board:
a.
Note the contents of the Report and provide feedback on any matters raised.
Outcome: Noted
5.3
Property Management Regulation Update
The paper was taken as read and Belinda Moffat highlighted the following:
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Minutes : REA Board Meeting 20 June 2023 - 20 Jun 2023
· Number of property managers regulated could be anywhere between 2.5k and 7.5k.
· Process of educating those that don’t even know this change is happening will be
important.
· REA may need to provide further guidance and input to HUD and the Select
Committee. REA could seek to be a technical advisor during this stage.
· SLT is meeting in July to discuss planning for the establishment team.
The Board noted the update and raised the following comments or questions:
Recommendations
It was recommended that the Board:
a. Note this report
Outcome: Noted.
5.4
PMO Report on Projects and Key Initiatives
The paper was taken as read and Belinda Moffat highlighted that:
• projects are moving at pace
• Some projects are in amber, a number are in green
• CIP Project Manager and Project Coordinator are making great progress.
The Board noted the paper and agreed the updated schedule was easier to read.
Recommendations
It was recommended that the Board:
a. Note the contents of this paper and provide feedback on any matters raised.
Outcome: Noted.
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Minutes : REA Board Meeting 20 June 2023 - 20 Jun 2023
5.5
Complaints Improvement Project Update
The paper was taken as read and
Head of Regulatory Services, highlighted the
following:
· Consultation is underway and while there is some uncertainty, there is great support for
why we are making the changes. Significant work is underway around change
management.
· REA is about to commence CAC member recruitment for 13 new CAC panel members
and we have been looking at ways to attract more diverse perspectives. Work is
underway to look at advertising channels and networks to reach out to.
Recommendations
It was recommended that the Board:
a. Note the update on the Complaints Improvement Project
Outcome: Noted.
5.6
Systems Enhancement Project (SEP) Update
joined the meeting for this paper.
The paper was taken as read and
highlighted the following:
· Paragraph 5 highlights the options in phase 1.
Recommendations
It was recommended that the Board:
a. Note changes to the SEP Governance structure and changes to Steering Group
b. Note the progress update of the Systems Enhancement Project
c. Note the Steering Group approval to upgrade
d. Note the SEP Project Scope change and that Business Case will be at an Enterprise
level with a target date of August 2023
e.
Outcome: Noted.
5.7
Audit & Risk Committee Six-monthly Report June 2023
The paper was taken as read and
Head of Corporate Services, highlighted the
following:
· This is the six-monthly report to the Board on Audit & Risk activities.
The Board discussed the following:
· One correction: the Auditors could not find time to meet with the Audit & Risk
Committee rather than the other way around so this could be amended in the report.
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Minutes : REA Board Meeting 20 June 2023 - 20 Jun 2023
Recommendations
It was recommended that the Board:
a. Note the Audit & Risk Committee’s six-monthly report to June 2023.
Outcome: Noted.
6.
Other Business
6.1
General Business
There was no general business discussed.
6.2
Closing Karakia
The meeting was closed with a Karakia at 12.08pm.
6.3
Lunch 12.50pm
7.
Close Meeting
7.1
Close the meeting
Next meeting: REA Board Meeting 23 August 2023 - 23 Aug 2023, 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!
Signature:
Date:_23/08/2023
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