Generated on: 2024-03-28 15:16:52
CONFIRMED MINUTES
REA BOARD MEETING 21 FEBRUARY 2024
At the
REA Board Meeting 28 March 2023 on
28 Mar 2024 these minutes were
confirmed as
presented.
Name:
Real Estate Authority
Date:
Wednesday, 21 February 2024
Time:
12:30 pm to 3:31 pm (NZDT)
Location:
REA Office , REA Office (Teams option)
Board Members: Denese Bates KC (Chair), Vern Walsh, Brooke Loader, Mele Wendt, Liz
Nidd, Tony Stack
Attendees:
Belinda Moffat, Victor Eng, Andrew Bulled, Herman Visagie, Josh Doherty,
Marie Snell, Saara Fourie
Apologies:
Latham Lockwood
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 the Board were discussed with the Chief Executive. Actions were
agreed.
1) Institute of Directors Diversity Event on 14 March.
Confirm the Board Training Budget can cover the cost of
attending Institute of Directors Diversity event on 14 March.
March: Saara has attended to this.
Due Date:
29 Feb 2024
Owner:
1.3
Karakia
1.4
Confirmation of Agenda
The Senior Leadership Team (SLT) joined at 1.47pm and the agenda was confirmed.
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Minutes : REA Board Meeting 21 February 2024 - 21 Feb 2024
1.5
Interests Register
2) Update the Interests Register
Update the Interests Register to reflect the following changes:
•
declared two new interests for adding to the register.
o
o
•
declared one new interest:
o
.
•
advised that she has stepped down from the
effective from December 2023.
Due Date:
29 Feb 2024
Owner:
1.6
Confirm Minutes
REA Board Meeting 5 December 2023 5 Dec 2023, the minutes were confirmed as
presented.
Minutes were approved as true and correct records.
All minutes were approved as written.
Decision Date:
21 Feb 2024
Outcome:
Approved
2.
Actions from Previous Meetings
2.1
Action Item List
Due Date
Action Title
Owner
20 Dec 2023
1) CPD Email Reminders
Belinda Moffat
Status: Completed on 14 Feb 2024
20 Dec 2023
2) Kia Toipoto Report
Belinda Moffat
Status: Completed on 14 Feb 2024
22 Dec 2023
3) Future Director Nomination
Belinda Moffat
Status: Completed on 14 Feb 2024
22 Dec 2023
4) Review of Board and CAC Fees
Belinda Moffat
Status: Completed on 14 Feb 2024
21 Feb 2024
5) Updates to Interests Register
Status: Completed on 14 Feb 2024
21 Feb 2024
6) Board and CAC Fees - Annual Review
Belinda Moffat
Status: Completed on 14 Feb 2024
21 Feb 2024
7) Consider options for greater use of regulatory positions guidance
in early 2024.
Status: Completed on 14 Feb 2024
21 Feb 2024
8) Annual review of regulatory positions paper
Belinda Moffat
Status: Completed on 14 Feb 2024
21 Mar 2024
6) Board Governance assessment to be undertaken by an external
Belinda Moffat
provider to include 360 review.
Status: In Progress
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Minutes : REA Board Meeting 21 February 2024 - 21 Feb 2024
Due Date
Action Title
Owner
21 Mar 2024
7) SLT leadership programme to also include CE and SLT member
Belinda Moffat
360 review.
Status: In Progress
21 Mar 2024
8) RST Case Themes
Status: Completed on 14 Mar 2024
21 Mar 2024
9) Review of Offshore Regulatory Settings
Status: In Progress
31 Mar 2024
12) Consider delivery methods of D&I topic in early 2024
Belinda Moffat
Status: In Progress
31 Mar 2024
13) Review and improve Board workplan layout.
Status: Completed on 14 Mar 2024
31 May 2024
14) Update the Board Handbook to define requirements for a quorum
Status: Not Started
30 Jun 2024
16) Māori Engagement Framework - Board Marae Visit
Belinda Moffat
Status: In Progress
The actions were taken as read with the following actions raised for discussion:
• Belinda has reached out to
from the Māori Heritage Council Board and will
update the Board once they have connected.
3.
Strategic Matters for Board Discussion and CE Report
3.1
CE Report
The report was taken as read and the following matters were discussed:
· Board Workplan: a revised layout was presented to the Board following feedback at the
last meeting. The Board supported the revised layout and requested that this be included
at the beginning of all future Board packs.
· Board 360 Governance Assessment: feedback was invited from the Board on suggested
providers. Management was given feedback on options and will now look at cost and
availability providers. Members recommended management also consider Boardroom
Practice.
· Letter from Minister of Finance regarding fiscal sustainability: the Board was invited to
provide feedback on points to include in the letter of response. The Board supported the
key points proposed noting that REA has always maintained a focus on fiscal sustainability
and prudent spending. The Board agreed to note that REA has an IT transformation project
underway
.
· Initial meeting with the new Associate Minister: a BIM and quarterly report have been
provided and a meeting request has been extended to her office. We are awaiting
response.
· Future Director Programme: discussed diversity of candidates that have come through,
and noted that interviews will now be arranged.
· Real Estate Leaders Forum on 7 March: Confirmed Board attendance by
.
· CPD Audit: Results were discussed. Overall a very positive completion rate.
· OIAs: looking to put a management plan in place for our repeat requester due to the
pressure it is putting on REA resources to fulfil these bulk requests.
· IAG candidates: confirmed there is Māori representation among the candidates with three
identifying as Māori on applications.
· Diverse Communities initiatives: discussed resourcing requirements for delivering
these. Members suggested that rather than focus on just the Asian Business Association,
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Minutes : REA Board Meeting 21 February 2024 - 21 Feb 2024
staff engage with a wider Asian/Pan-Asian network. Further consideration to be given to
engagement for initiative 1.
· Highlights: reduction in attrition, reduction in privacy breaches, reduction in EAP usage,
successful delivery of our first internship.
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.
10) Add Board workplan at the beginning of future Board packs and to BoardPro
Include Board workplan at the beginning of future Board packs for easy
reference and add to BoardPro.
Due Date:
28 Mar 2024
Owner:
3) Circulate bios of REA's summer interns to the Board
Circulate bios of REA’s summer interns to the Board.
March:
has attended to this.
Due Date:
29 Feb 2024
Owner:
15) Broaden engagement scope for the first diverse community initiative
Broaden engagement scope for the first diverse community initiative (action
assigned to
)
March: under consideration by EIE
Due Date:
1 Jun 2024
Owner:
Belinda Moffat
3.2
Changes to Strategic Environment
There were no new strategic risks or issues for discussion that have not already been covered in
the papers.
4.
Board Papers for Approval or Discussion
4.1
Select Committee Questions and Responses
Management provided an overview of the key changes to previous questions and highlighted
questions 143, 152 and 153 for discussion.
The Board noted the comprehensive response and considerable work required to respond to the
question. The Board requested the following changes:
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Minutes : REA Board Meeting 21 February 2024 - 21 Feb 2024
• change to the response to Question 153 to “…and possible extension of mandate…”
• Question 59 typographical error.
The Board discussed the following:
• The review process is resource intensive and queried whether other Crown entities that are
also levy funded face the same level of reporting requirements. Management responded
that this is part of the Crown Entities Act requirements and facilitates transparency and
accountability to the public. Management noted the Select Committee work to refresh
scrutiny processes that was reported to the Board last time.
• It was noted that there is no hearing for REA this year, but the information provided will be
made publicly available once considered by the Select Committee.
Recommendation was approved subject to the requested changes.
Recommendations
It was recommended that the Board:
a. Approve the responses to the Select Committee Annual review
questions.
Outcome: Approved subject to the requested changes.
Decision Date:
21 Feb 2024
Outcome:
Approved
4.2
Financial Forecast 30 June 2024
The paper was taken as read and management highlighted the following:
• Bulk renewals are commencing which will better inform our licensee levels for the year
ahead. Current expectation is a reduction in 200 licensees.
• Forecast is better than budget, reflecting REA’s focus on fiscal sustainability and prudent
cost management.
The Board discussed the following:
• What is the projected level of legal expenditure in the next financial year? Management
noted the increase in complex cases requiring additional expertise and external resourcing
to work through these cases. Members asked that the budget for 2024/25 reflect the need
for increased legal expenditure, given the important role of legal advice in complaints,
tribunal and other regulatory matters.
• Management emphasised the unpredictable nature of forecasting and the importance of
the quarterly review process.
•
Recommendations
It was recommended that the Board:
a. Note the revised Financial forecast for the year ending 2023/24 and the projected cash
position.
Outcome: Noted.
4.3
Systems Enhancement Project (SEP) RFP Update
The paper was taken as read and
highlighted the following:
•
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Minutes : REA Board Meeting 21 February 2024 - 21 Feb 2024
•
•
•
•
•
•
•
Recommendations
It was recommended that the Board:
a. Note the progress update regarding the Systems Enhancement
Project
.
Outcome:
Decision Date:
21 Feb 2024
Outcome:
Not Approved
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Minutes : REA Board Meeting 21 February 2024 - 21 Feb 2024
March: Complete and Board decision confirmed.
Due Date:
29 Feb 2024
Owner:
4.4
Formal Warning Policy
The paper was taken as read and the General Counsel,
noted the following
points:
· This policy is closely aligned with REA’s Prosecutions Policy. While connected to that
policy but is a standalone policy.
· A warning is an important regulatory tool for dealing with conduct that may be the
subject of offences, that might otherwise be prosecuted in the Courts. It can help to
stop misconduct and prevent harm effectively.
· The warning option is not currently available to CAC’s but further analysis is being
undertaken to determine if it could be extended to CACs.
The Board discussed the following:
·
Management referred to the Solicitor-General’s Guidelines which notes
prosecution is the least preferred option if other regulatory responses are available. It
assists with ensuring the court process is reserved for the appropriate cases and
affords the opportunity to correct behaviour in an expedient and proportionate way.
· A warning can only be used once REA has completed an investigation.
· Warnings may be published on REA’s website without identifying those involved.
There are a range of publication options that are noted in the policy and would be
considered depending on the facts of the case.
· The policy can apply to unlicenced trading or trust account offences, but not to
complaints going through the CAC process.
· A reference to this policy will be added to the Prosecutions Policy under the CE’s
delegation to make administrative changes to policies to ensure the two are aligned.
· Decision making: In the unlikely scenario where the CE and General Counsel disagree
on whether a warning should be issued, it would be escalated to the Board.
Recommendation approved.
Recommendations
It was recommended that the Board:
a. Approve the Formal Warnings Policy.
Outcome: Approved.
Decision Date:
21 Feb 2024
Outcome:
Approved
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Minutes : REA Board Meeting 21 February 2024 - 21 Feb 2024
5.
Board Papers for noting
5.1
Regulatory Services Team Paper
The paper was taken as read. The Board did not have any questions or comments.
Recommendations
It was recommended that the Board:
a.
Note the contents of the Report and provide feedback on any matters raised.
Outcome: Noted
5.2
Legal Update
The paper was taken as read and the following points where noted:
•
• Parties continue to be more litigious with complaint volumes increasing, and more appeals
being pursued. It was noted that there has not been an increase in CAC or Registrar
decisions being overturned, indicating that decisions continue to be robust and of high
quality.
Recommendations
It was recommended that the Board:
a.
Note the contents of this paper and provide feedback on any matters raised.
Outcome: Noted
5.3
People and Capability Quarterly Report (Q2)
The paper was taken as read.
The Board discussed the following:
• Exit interview comments: all comments came from the one exit interview and most areas of
improvement already have work underway.
• Performance reviews and KPIs: REA encourages informal 1:1 meetings with staff, and
holds mid-year reviews and annual reviews for all staff.
• The Board asked that management ensure that this process is articulated in the select
committee questions.
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 21 February 2024 - 21 Feb 2024
11) Add values to Strategic Framework one-pager
Add values to strategic framework one-pager if possible.
March: In progress but may be too cluttered, so will be incorporated into the SOI
and SPE in another place.
Due Date:
28 Mar 2024
Owner:
5) Check performance review references in select committee responses (Questions
132, 186).
Check performance review references in select committee responses
(Questions 132, 186).
March: completed
Due Date:
29 Feb 2024
Owner:
Belinda Moffat
5.4
PMO Report on Projects and Key Initiatives
The paper was taken as read. The Board did not have any questions or comments.
Recommendations
It was recommended that the Board:
a. Note the contents of this paper and the attached PMO report.
Outcome: Noted.
5.5
Complaints Improvement Project Update
The paper was taken as read. The Board did not have any questions or comments.
Recommendations
It was recommended that the Board:
a. Note the update on the Complaints Improvement Project
Outcome: Noted.
5.6
Property Management Regulation & REAA Amendments Update
The paper was taken as read and the following points were highlighted:
· Select Committee submissions were heard on Monday 19 February. Key submission
themes were summarised for the Board, including references to existing community
housing regulatory framework, desire for a landlords register, and strong support for the bill
to proceed.
· A number of submitters expressed concern about the unregulated state of the sector, and
harm to renters.
· REA continues to be available to provide advice to HUD on any matters that may be raised
by the Select Committee for guidance.
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Minutes : REA Board Meeting 21 February 2024 - 21 Feb 2024
The Board did not have any questions or comments.
Recommendations
It was recommended that the Board:
a. Note this report.
Outcome: Noted.
6.
Other Business
6.1
General Business
The Board was pleased to see existing staff progressing into new positions which retains
institutional knowledge and experience.
7.
Close Meeting
7.1
Closing Karakia
The meeting was closed with a Karakia at 3.31pm.
7.2
Close the meeting
Next meeting: REA Board Meeting 28 March 2023 - 28 Mar 2024, 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: 28 March 2024
