REA Board Strategy Session
REA Board 21 February 2024
Name:
Real Estate Authority
Date:
21 February 2024
Time:
9.00am – 12.00pm
Location:
REA Office, 4/95 Customhouse Quay, Wellington
Board Members:
Denese Bates KC, Vern Walsh, Liz Nidd, Tony Stack,
Latham Lockwood, Mele Wendt, Brooke Loader
Apologies:
Attendees:
Belinda Moffat (Chief Executive), Victor Eng (Head of
Corporate Services), Josh Doherty (Head of Regulatory
Services), Andrew Bulled (Head of People and
Capability), Herman Visagie (General Counsel), Marie
Snell (Programme Manager),
(Communications and Engagement Manager) Saara
Fourie (Executive Assistant – taking notes)
Welcome Karakia and Objectives
The CE introduced the strategy session, noting the purpose is to build on the
strategic stocktake in September 2023 in which the Board reviewed REA’s
strategy, assessed progress made so far, and agreed it remains fit for
purpose with no major transformational change required. There are
opportunities for adjustments and refinements, and there is still much to
deliver within the existing strategy.
The Board Chair acknowledged the changing world around us, with the
progression of the Regulation of Property Management still unclear, a number
of pending legislative changes, and a new government with a new set of
priorities.
Our Operating Context
SWOT and PESTEL Review
led the Board through the SWOT and PESTEL outputs from the 2
February SLT offsite, specifically highlighting the key changes posed by the
SLT.
The Board was invited to comment on any of the updated strengths,
weaknesses, opportunities, and threats, along with the external factors that
may impact REA in the next year.
Discussions focused on:
o Staff resistance to change: noted mostly long-term staff who have
been with REA since its inception and change management principles
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have been applied to manage this and support all staff to engage in
new approaches. It was noted that all views are encouraged, and the
knowledge of our long-term staff important to nurture.
o Impacts of RPM: enthusiasm for this, although we are mindful of the
need for specialist expertise during the establishment. There are two
very different sets of capabilities for real estate and property
management regulation, although REA’s regulatory framework should
be well-aligned for putting into place for RPM.
o Quality of CPD providers: disestablishment of Te Pūkenga and any
possible impacts on the education framework for qualifications and
CPD.
o Education: threat includes ability of education providers to deliver in a
fractured education environment, may impact quality of REA education
programme.
o Robustness of certificate four and work to be done with NZQA.
o Agreed the CPD review is a strategic priority for REA moving forward.
The changing tertiary education sector is to be added into the SWOT
analysis.
o Harm prevention and building relationships with diverse communities
remains an area of focus. There are opportunities to work with other
government entities in the property ecosystem to collaborate in this
space. Our work needs to extend beyond digital and guides and extend
to building networks and relationships.
o Deepening our engagement strategy: building relationships with
diverse communities requires capacity to grow and maintain our reach,
both with in person meetings and online.
o Disclosure and licensees adequately reviewing LIMs to identify issues
for disclosure.
o Improving financial literacy as part of improving the pathway to home
ownership.
o Consumer guides: mandating for delivery to both parties (seller and
purchaser) would be ideal, and the timing of consumers receiving
these (at open homes not when being presented with a sale and
purchase agreement).
o Discrimination and barriers to entry research findings: work is needed
to improve conduct and access to information about the transaction
process and about REA based on these findings.
o Two changes were requested to the opportunities slide on pg. 19
Change “Maintain cultural capability” to “Continue building
cultural capability.”
“Maintain awareness of REA and Settled websites” should be
changed to “increase awareness of…”
o Discussion on commitment to Te Tiriti. This work is ongoing and
further work to be done to support sector in understanding needs and
interests of Maori and role of te Tiriti in relevant real estate legislation
and processes. Only a small group in the sector has pushed back on
our work in this space. Agreed that it remains core part of our work
unless we are legally compelled to adjust.
o Continue focus on settled and rea.govt.nz
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External factors discussed:
o AML and CCCFA
o Bright-line changes
o Interest deductibility changes
o Climate change impact on land
o Litigious environment
o RMA and property development
o Changes in local and central government operations and policy
o Falling interest rates and preparing for an upturn in the market
o Seeing a lot of dissatisfied buyers who purchased when there was low
stock and ended up settling/compromising. Potential increase in
complaints?
Overview of financial position and risks:
o
updated the Board on REA’s projected financial position and
presented a handout.
o Government expectations on reduced use of consultants/contractors:
REA not a high user but
Progress Against our Current Strategy
led this session, running through the six strategic priorities and
looking at progress and areas where there is further work to do. It was noted
that a lot of the items for discussion were already covered in the above
discussions.
The Board was invited to comment on any areas they feel REA should invest
more in, pull back on, approach differently or change. Discussions included:
1. Inform and engage with consumers across diverse communities
Relationships: we need to leverage government networks and extend our
reach, include community law and groups such as Citizens Advice Bureau,
banks, lawyers
How do we evaluate how well we reach migrant communities?
Engagement with consumers: we have RELF, Conversations with REA, IAGs
and sector Pānui etc to engage with licensees, but the question was posed as
to whether our level of engagement with consumers was sufficient. The Board
agreed the current level of engagement with sector is about right, but
increased engagement with consumer groups was needed, need to keep
raising awareness of REA as regulator.
We want to make REA a household name, so people know we exist
.
2. Deliver independent and effective and accessible disciplinary process
and hold poor conduct to account
Be ready for RPM
Implement and achieve the benefits of CIP
Combine priority six with this priority
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3. Educate and engage with licensees
Level of engagement with sector is about right, additional engagement
should focus on consumer groups.
Support CPD improvements and navigating the changing education
context
4. Demonstrate commitment to Te Tiriti o Waitangi Discussed the best articulation of this priority for the new SOI.
volunteered to support any development work on this.
Noted that the
Lands decision provides a suitable articulation of the obligation
of good faith that REA and public sector entities should seek to meet
Our work on data sovereignty and positive procurement are further examples
of our work under this priority
Growth of Māori licensees in the sector – how are we supporting them to
meet their obligations? We need to build our data. Currently it is optional to
provide ethnicity in the survey, so we do not have a full picture of the current
state. Increase representation on our sector engagement groups, IAGs etc.
Agreed that a Maori advisor is not required provided we remain open and
connected to engagement with partners across the sector and government.
We will work to uphold whakawhanaungatanga, good faith, participation,
partnership, and protection
Engagement with Māori procurement platforms would beneficial (we do this
already through the positive procurement programme)
The Board confirmed the wording of priority four remains unchanged
5. Raising Awareness of REA Across Diverse Communities
The Board agreed our focus needs to be on all areas of diversity, not just
ethnicity. This becomes part of priority one.
6. Increase Regulatory Effectiveness:
The Board agreed to the suggested amalgamation of priorities 2 and 6.
Review of Strategy: Future Strategic Focus
led this session. Agreed future focus is on:
SEP
Embedding improvements from CIP
Continued focus on diverse communities. Developing deeper relationships
and networks
Raising awareness of REA as a household name
Being ready for RPM
Supporting a strong education programme, which supports the sector to get
the basics right, and ensuring consistency of quality of conduct across the
country. Focus our attention on those who present the greatest risk of harm
Keeping up with legislative changes and supporting sector compliance.
Engaging with new agencies and understanding new ways of working in real
estate.
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Understanding technology advancements, use of AI and ensuring our
regulatory environment keeps up with the pace of change in this space.
Additional measures could include:
- Consumer awareness of REA increased.
Legal team to prepare short summary of
Lands case for Board.
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