Generated on: 2024-12-09 11:44:25
CONFIRMED MINUTES
REA BOARD MEETING - OCTOBER 2024
At the
REA Board Meeting - December 2024 on
4 Dec 2024 these minutes were
confirmed
as presented.
Name:
Real Estate Authority
Date:
Thursday, 24 October 2024
Time:
9:00 am to 2:41 pm (NZDT)
Location:
REA Office , REA Office (Teams option)
Board Members: Denese Bates KC (Chair), Brooke Loader, Latham Lockwood, Liz Nidd, Mele
Wendt, Tony Stack, Vern Walsh, Shirley McLeod
Attendees:
Belinda Moffat, Victor Eng, Andrew Bulled, Josh Doherty, Katie Solomon,
Marie Snell, Andrew Tringham, Saara Fourie
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
The Board confirmed the CE’s performance grade for 2023/24.
The Board requested that a meeting be arranged with the Associate Minister, and if appropriate
the Minister of Housing, to discuss property management and AML in the real estate sector.
The Board also noted that the move to SharePoint will be a substantial change for staff and needs
to be well managed.
25) Arrange a meeting with Ministers on AML and Housing
Arrange a meeting with Ministers on AML and Housing
Due Date:
28 Feb 2025
Owner:
Belinda Moffat
1.3
Karakia
The Senior Leadership Team (SLT) joined at 10.13am and the meeting was opened with a
Karakia.
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Minutes : REA Board Meeting - October 2024 - 24 Oct 2024
was introduced to the Board and welcomed as the new General Counsel joining
the Senior Leadership Team.
1.4
Confirmation of Agenda
The agenda was confirmed.
1.5
Interests Register
No new interests or conflicts were declared.
1.6
Confirm Minutes
REA Board Meeting - September 2024 19 Sept 2024, the minutes were confirmed with the
following changes:
Confirmed subject to one typographical amendment.
Minutes from the 19 September 2024 Board Meeting were approved, subject to one
correction.
Minutes from the 19 September 2024 Board Meeting were approved as a true
and correct record, subject to one correction.
Decision Date:
24 Oct 2024
Outcome:
Approved
2.
Actions from Previous Meetings
2.1
Action Item List
Due Date
Action Title
Owner(s)
21 Aug 2024
2) Code of Conduct
Belinda Moffat
Status: Completed on 17 Oct 2024
30 Sept 2024 Submit Board Governance Report to the Minister
Denese Bates KC
Status: Completed on 17 Oct 2024
24 Oct 2024
12) Implement the recommendations made in
Belinda Moffat
complaints management advice.
Status: Completed on 16 Oct 2024
24 Oct 2024
13) Protected Disclosures Policy to be reviewed following the
recommendations from
Status: Completed on 17 Oct 2024
24 Oct 2024
14) Engage
to conduct protected disclosures
training with the Board in October
Status: Completed on 17 Oct 2024
24 Oct 2024
15) Regulatory Tools and Responses Framework
Status: Completed on 17 Oct 2024
24 Oct 2024
16) Add the draft style guide to the supplemental papers folder for
the Board’s optional review.
Status: Completed on 17 Oct 2024
24 Oct 2024
Regulatory Tools & Responses Framework
Belinda Moffat
Status: Completed on 17 Oct 2024
31 Oct 2024
20) AI Guidance Summary Document
Status: Completed on 17 Oct 2024
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Due Date
Action Title
Owner(s)
20 Nov 2024
4) Annual Research Results: Improvements to the Complaints
Survey
Status: Completed on 20 Nov 2024
3 Dec 2024
5) Strategy Session Content
Belinda Moffat
Status: Completed on 28 Nov 2024
4 Dec 2024
6) Review of Offshore Regulatory Settings
Status: On Hold
4 Dec 2024
25) Add CIP improvements to the PMO Schedule.
Status: Completed on 17 Oct 2024
20 Dec 2024
14) Present updated 2025 dates and workplan in October and
Belinda Moffat
December
Status: In Progress
23 Dec 2024
15) Consider inviting a housing specialist
to
Belinda Moffat
speak to the Board.
Status: In Progress
23 Dec 2024
16) Review NZ Information Security Manual to ensure ICT
Acceptable Use Policy compliance
Status: In Progress
31 Dec 2024
17) Engagement with Māori Housing entity
Belinda Moffat
Status: In Progress
28 Feb 2025
24) Māori Engagement Framework - Board Marae Visit
Belinda Moffat
Status: In Progress
20 Mar 2025
27) Progress engagement with Lawyers, Banks and Mortgage
Advisors to raise awareness of REA
Status: Completed on 13 Nov 2024
The actions were taken as read and management highlighted the following actions:
• Action 21: Changes to the Complaints Survey are underway.
• Action 22: Speakers to be proposed within the Board Workplan in December.
• Action 26: Head of EIE is progressing stakeholder relationships with meetings arranged.
• December Board strategy session to include a discussion on stakeholder approach,
including Board member stakeholder contact.
3.
Chief Executive's Report
3.1
CE Report
The report was taken as read and the following matters were discussed:
· Key risks, issues and mitigations in paragraphs 4-5: The Board was asked if there are any
additional risks and/or mitigations to include. The Board requested the following addition:
o Monitoring of licensee numbers: consider actions to be taken if licensee numbers
were to reduce significantly e.g. changes to levies, staffing and service provision
prioritisation.
• OIA request from
for correspondence with REINZ and MoJ on proposed
changes to REAA was noted.
•
letter to the Minister regarding Bill to protect against Compelled Speech was
noted. REA will acknowledge receipt of the letter and MoJ and the Minister will prepare a
response, with REA providing advice as needed.
·
trial has once again highlighted importance of personal safety for lone
workers.
· Three very good audit grades and publication of the Blind Low Vision resources were
noted as achievements.
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· Decision: The Board agreed with the recommendation not to undertake a full review of the
Code of Conduct and noted opportunities to improve licensee understanding and
awareness.
· There were no health and safety matters raised.
· Draft Select Committee responses will be circulated to the Board out of cycle for feedback
in mid-November ahead of the 28 November submission deadline.
· The Board noted the Free and Frank Guidance from PSC.
· Decision: Publication of Barriers to Participation Research (either in full or abridged) was
endorsed.
· Paragraph 49 on page 43 a correction was noted (positive variance should read $183k
instead of $183m).
· The Board was briefed on correspondence received by the Minister and REA relating to
the Te Kākano CPD topic (paragraph 20).
· The Board was advised that only a small number of number of licensees that have
completed Te Kākano as an optional CPD topic this year.
· The Board noted the update on the
Cho compensation High Court decision, and the
potential for an increase in compensation referrals to the tribunal: REA is working on
communication to the sector on what this case may mean for licensees and consumers.
Recommendations
It was recommended that the Board:
•
Note the contents of this report.
•
Provide guidance as to any other mitigations REA ought to adopt to manage the internal
and external risks identified at paragraphs 4-5.
•
Consider any questions members may have regarding the
letter (paragraph
17).
•
Provide guidance on whether it endorses the Chief Executive’s intention not to pursue a
formal review of the Code of Conduct or would prefer the recommendation to be the
subject of a deep dive by the Board in December (paragraph 28).
•
Discuss the health and safety update and provide feedback on any issues arising.
•
Endorse the recommendation to publish the Barriers to Participation Research (paragraph
63).
Outcome: Noted, guidance was provided where requested, the Board endorsed the CE’s
recommendation not to do a formal review of the Code of Conduct, and the Board endorsed
publication of the Barriers to Participation Research.
26) REA to provide a case update to the sector on the Cho decision on
compensation referrals
REA to provide a case update to the sector on the Cho decision on
compensation referrals.
Due Date:
28 Feb 2025
Owner:
3.2
Performance Dashboard
The paper was taken as read and the following matters were discussed:
• The dashboard was overall widely supported with some refinements suggested by the
Board.
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• Phone calls have reduced in part due to the additional renewal reminders meaning less
calls are required to be made to licensees by the REA team.
• Clarification is needed in the dashboard around the number of outbound calls (i.e. the
figure accounts for licensing and enquiry team calls but not complaints as these are not
made in the call centre environment).
• Data could be spread over two pages to assist with visibility.
• Reasons for the variance in CPD started YTD compared with last year, likely due to Te
Kākano last year provided by separate provider
• It was noted the CPD annual timeline is based on calendar year not financial year.
• Consider adding a CPD not started data line. It was noted we may not be able to provide
accurate data but consider a proportionate way of displaying this information. It was noted
there are a number of licensees that do not need to complete CPD e.g. newly licensed,
exemptions.
• Consider ways in which we can encourage earlier CPD completion e.g. incentivising
through discounted registration before March.
• Complaints: include an explanation of E&J and CARR acronyms (Enquiries and
Jurisdiction and Complaints Assessment, Referral and Resolution teams).
• Adding Health & Safety to the dashboard: the Board agreed Health & Safety is to remain in
CE report.
• Where amber and red items are highlighted, where are actions/mitigations recorded? The
CE confirmed these will be addressed within the cover paper or more in depth in specific
papers where required.
Recommendations
It was recommended that the Board:
a. Note and provide feedback on the content and format of the dashboard and raise any
questions for discussion.
b. Note that the dashboard is not to be read in isolation but is provided in the context of
the Chief Executive Report and other Board papers.
Outcome: Noted and feedback provided.
7) Performance Dashboard
• Make the requested adjustments to the performance dashboard.
• Performance dashboard to be produced monthly and uploaded to
BoardPro whenever there is not a Board meeting scheduled.
Due Date:
4 Dec 2024
Owner:
3.3
Changes to Strategic Environment
The following matters were discussed:
• Licensee numbers continued to grow in October. It would be useful to contact certificate 4
education providers to get some data on volumes of new licensees entering the industry.
• Concerns around early release of deposits contrary to s123 of the Act through an additional
clause in Sale and Purchase Agreement.
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Minutes : REA Board Meeting - October 2024 - 24 Oct 2024
19) EIE to approach certificate 4 providers to analyse volumes of new licensees.
EIE to approach certificate 4 providers to analyse volumes of new licensees.
Due Date:
19 Feb 2025
Owner:
20) Consider REA’s regulatory position on early release of deposits.
Consider REA’s regulatory position on early release of deposits.
Due Date:
19 Feb 2025
Owner:
Belinda Moffat
3.4
Committee Updates from 23 October People & Capability Committee
Meeting
People & Capability Committee Chair provided an update on the 23 October 2024 People &
Capability Committee meeting and highlighted the following focus areas for the Board:
o lower attrition and REA’s retention focus
o decreasing pay gaps
o the T3 leadership programme
o staff wellbeing and equipping managers to support staff with mental health and
wellbeing challenges
o flexible working arrangements
o Policies were reviewed and endorsed to come to the Board in December
o Agreement on the CE’s KPIs
The CE acknowledged the Committee’s recognition of the work and leadership by
to continue to grow REA’s P+C capability.
4.
Board Papers for Approval or Discussion
4.1
Accountability Reporting
This paper was taken as read and the Head of Corporate Services highlighted the following:
• A correction to recommendation 5 on the cover paper which should ask the Board to
approve rather than note the audit fee increase by $4,000.
• A correction to the annual report due dates.
• The Board acknowledged the three ‘very good’ audit grades and the efforts by
management to work with the auditors and achieve these grades.
The Board discussed the following:
Annual Report
• The Board agreed the Annual Report was well-balanced across all sectors.
• The updated narrative for SPE measure 3.2 was noted.
• The Board supported the Board and Audit & Risk Chairs signing the representation letter.
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Audit Completion Report
• The Board queried the auditor’s comments on pg. 102 around consistency of dates. The
Head of Regulatory Services advised that these discrepancies were due to human data
entry in which a date correspondence was received was recorded as the day it was
processed. The systems enhancement project work should mitigate the risk of these
discrepancies.
• The Board approved the increase in the Audit Fee.
Business Plan:
The following changes were requested:
• Business Plan pg. 193: Under Key Issues, highlight Te Kākano and complaints timeliness
as possible drivers of ‘reduced buy-in/trust from the sector’.
• Consider adding in AI as an opportunity and/or risk (e.g. responsiveness to AI).
Minister’s report:
The following changes were requested:
• Add in RAG colours in the YTD column on pg. 220-221
• On pg. 205, add “Timeliness of complaints continues to be a challenge”.
• Pg. 206 Governance and Operations: check the Future Director appointment date and take
out if not in this quarter.
• Risk heat map needs to be corrected from the March to the September version.
Recommendations
It was recommended that the Board:
a. Note the
Chief Executive and head of Corporate Services’ Representation Letter
b. Approve the Board Chair and the Audit & Risk Committee Chair signing the
Representation Letter
c. Approve the 2023/24 Annual Report
d. Note the Audit Completion Report
e. Approve an increase in the Audit fee by $4,000
f. Approve a delegation to Denese Bates KC and Vern Walsh to sign the Annual Report
g. Approve a delegation from Denese Bates KC and Vern Walsh to apply their signatures
to the Annual Report
h. Approve a delegation to the Chief Executive to finalise the Annual Report.
i. Approve the 2024/25 Business Plan
j. Approve the Quarterly Report to the Minister
Outcome: All approved subject to discussed amendments to the Business Plan and Minister’s
Report.
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Minutes : REA Board Meeting - October 2024 - 24 Oct 2024
13) Data Accuracy
Send a message reminding RST of the importance of data accuracy and taking
care with recording dates.
Due Date:
5 Dec 2024
Owner:
2) Update and finalise the 2024/25 Business Plan
Update and finalise the 2024/25 Business Plan
Due Date:
31 Oct 2024
Owner:
Belinda Moffat
3) Update and finalise the Quarterly Report to the Minister
Update and finalise the Quarterly Report to the Minister
Due Date:
31 Oct 2024
Owner:
Belinda Moffat
4.2
Risk Six-monthly Review
This paper was taken as read and the Board noted the risk report has been to the Audit and Risk
Committee.
The Board had no additional questions.
Recommendations
It was recommended that the Board:
a. Note the Risk Report and Register.
b. Note the new risk approach will be presented to the Board in December
Outcome: Noted.
4.3
CIP Implementation Paper
This paper was taken as read and management highlighted the following:
• We are progressing the actions to address high complaint volumes, with new facilitators
being recruited.
• REA is tracking towards a record number of case closures in October although the number
of new cases remains high.
The Board discussed the following:
• Complaint themes, noting focus on vendor expectations and disclosure, apartment sales
and licensee knowledge around unit title pre-contract disclosures. There was discussion at
the CPD train-the-trainer about whether it is a licensee’s role to get involved in the
provision of pre-contract disclosures or should that responsibility lie with the solicitor.
Licensees need to be aware of these requirements and REA will consider including a
segment on this in next industry pānui, including highlighting the MBIE information and
CPD topic
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• CIP report to also cover timeliness and improvements made
• Two additional fixed-term facilitators are being recruited to support higher complaints
volumes.
• Realistic measures and timelines need to be set for the team to track improvement with
complaint timeliness.
• Quality of decisions also needs to be monitored and sustained, and it was noted that
quality remains robust.
• There is not yet any obvious lift in complaints from the demographics for whom guides
have been translated. This will be monitored.
Recommendations
It was recommended that the Board:
a.
Note the contents of this paper and provide feedback on any matters raised.
Outcome: Noted and feedback was provided.
The Board held a working lunch at 12.15pm.
21) Apartments and high-density living
Apartments and high-density living: Look at this further and what guidance we
could be putting out to the sector.
Due Date:
19 Feb 2025
Owner:
8) CIP Update: additional information
Include more detail around timeliness, staff targets and a timeline to see an
improvement in the next update.
Due Date:
4 Dec 2024
Owner:
9) Analysis of translated guides impacts in relation to complaints
Conduct analysis to determine whether the translated guides has had an impact
on the increase in complaints.
Due Date:
4 Dec 2024
Owner:
4.4
CAC Appointment Recommendation
This paper was taken as read. The Board noted
had reviewed and
contributed to the updated appointment letter and terms of appointment documents.
All recommendations were approved
Recommendations
It was recommended that the Board:
a. Approve the appointment of
to the CAC panel.
b. Approve the appointment of
to the CAC panel.
c. Approve the updated appointment letter and terms of appointment
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Minutes : REA Board Meeting - October 2024 - 24 Oct 2024
d. Approve the use of the Board Chair’s e-signature for appointment letters.
Outcome: Approved.
Decision Date:
24 Oct 2024
Outcome:
Approved
4.5
Policies Review
The paper was taken as read and the Board discussed the following:
Information Management Policy
· Update paragraph 10 to be consistent with the Privacy Policy terminology around the
definition of all staff (remove CAC members and consultants). we may just have to carry
that language over to the Information Management Policy.
Privacy Policy
· Approved as written.
Regulatory Tools and Responses Framework
· Approved as written.
AI Guidance
· Updated guidance was tabled at the meeting factoring in minor feedback received from
REINZ after the Board pack was published.
· The updated guidance with the additional changes was approved.
Recommendations were noted and approved - see full outcome below
Recommendations
It was recommended that the Board:
a. Note the contents of this report.
b. Approve the new Information Management Policy
c. Approve the retirement of the Information and Records
Management Policy and the Information Handling Policy
d. Approve the updated Privacy Policy
e. Approve the Regulatory Tools and Responses Framework
f. Approve the AI Guidance for Licensees
g. Note the publication timeline for the Regulatory Tools and
Responses Framework and AI Guidance.
Outcome: Noted and approved, subject to the amendment to paragraph 10(a)
in the Information Management Policy. It is noted that the updated version of
the AI guidance that was tabled at the meeting was the version approved.
Decision Date:
24 Oct 2024
Outcome:
Approved
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Minutes : REA Board Meeting - October 2024 - 24 Oct 2024
4.6
Speak Up Safely Training for Governors
and
m
joined the meeting and
provided Speaking Up Safely Training the to the Board and SLT members.
In preparation for this session the Board was provided with a cover paper outlining the objectives
from the session.
Recommendations
It was recommended that the Board:
a.
Note the contents of this paper and attachments.
b.
Prepare any questions members may have as to their obligations arising under the
Protected Disclosure Policy.
Outcome: Noted and questions were addressed during the session.
1) Share the Speak Up Safely slides with the Board
Share the Speak Up Safely slides with the Board.
Due Date:
25 Oct 2024
Owner:
22) Landmark cases of note to be circulated to the Board.
Landmark cases of note to be circulated to the Board
Due Date:
19 Feb 2025
Owner:
Belinda Moffat
23) Deep-dive into Protected Disclosures/Internal Complaints Policies and other
related policies
Consider scheduling a deep-dive into Protected Disclosures/Internal Complaints
Policies and other related policies.
Due Date:
19 Feb 2025
Owner:
Belinda Moffat
5.
Board Papers for noting
5.1
PMO Report
The paper was taken as read. Management highlighted the withdrawal of the Prosecution
Guidelines after the pack was published.
Recommendations
It was recommended that the Board:
a.
Note the contents of this paper and the attached PMO report.
Outcome: Noted.
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Minutes : REA Board Meeting - October 2024 - 24 Oct 2024
5.2
Legal Update
The paper was taken as read.
Recommendations
It was recommended that the Board:
a.
Note that this paper is confidential and subject to legal professional privilege.
b.
Note the case updates on supervision and compensation and advise of any questions
arising from the cases.
c.
Provide advice as to whether the Board would like to receive case data and summaries on
the quarterly or 6 monthly basis or not at all.
Outcome: Noted and the Board agreed to receiving quarterly case data. The Board does not need
to see the individual case summaries. The case summaries will be reported to the CE and SLT as
part of management reporting.
5.3
Regulatory Policy Update
REA Senior Solicitor
joined the meeting via Teams.
The paper was taken as read and the Board discussed the following:
· The key changes proposed under the Regulatory Systems Justice Amendment Bill and the
intention for the Bill to be introduced before the end of the year was noted.
· REA considered that 8 months was required to prepare for implementation of the changes
following Royal Assent, and the removal of the requirement for the Board Chair to be a
lawyer could come into effect upon Royal Assent.
· No additional Government funding is available to implement the changes as we are solely
levy-funded.
· The Board acknowledged
work on the proposed changes and the
consultation process.
Recommendations
It was recommended that the Board:
a.
Note the contents of this paper.
b.
Note the issue of the new Solicitor General Guidelines.
c.
Note the progress on the Statutes Amendment Bill and Regulatory Systems Justice
Amendment Bill
d.
Note the regulatory policy priority areas.
e.
Provide feedback on any of the matters raised in this paper.
Outcome: Noted and the Board acknowledged the withdrawal of the Solicitor-General’s
Prosecution Guidelines.
5.4
Systems Enhancement Project (SEP) Update
The paper was taken as read and management highlighted the following:
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Minutes : REA Board Meeting - October 2024 - 24 Oct 2024
·
5.5
Board Governance Assessment and 2025 Board Meeting Dates
The paper was taken as read and the Board was asked if there were any key points missed in the
Governance Assessment Summary:
· Accountability, strategic, regulatory and operational reporting headings will feature in the
Board workplan.
· The Board workplan will aim to highlight what we will report on at meetings and what items
will be approved out of cycle (e.g. policies).
· Consider earlier meeting starts (8.30am) and some of these could entail breakfasts rather
than dinners the night prior.
· Noting papers and the structure of agenda in BoardPro: include a cover paper highlighting
the noting papers that are in BoardPro out of cycle and these can be raised by Board
members for discussion if needed. Any papers that Board members feel merit discussion
can be raised in Board alone time to discuss at the meeting.
· Noting papers to now be called discussion papers (cf decision papers)
The Board provided the following feedback:
· Change ARC and P&C meetings in April to 16 April.
· June Board meeting to remain on 18 June.
· Add industry stakeholder events that Board attend into the meeting schedule and SLT
calendar, add the calendar into BoardPro and include the calendar in future Board packs.
· Add in an online Teams check-in meeting in May.
Recommendations
It was recommended that the Board:
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Minutes : REA Board Meeting - October 2024 - 24 Oct 2024
a.
Discuss and approve the proposed 2025 Board and Committee meeting dates.
b.
Note a detailed Board workplan will be provided and the December Board meeting for
approval.
Outcome: Feedback was noted. The dates were approved subject to the April Committee
changes and a full workplan will come back to the Board in December.
10) Send calendar invitations to the Board for the confirmed Board/Committee
meetings.
Send calendar invitations to the Board for the confirmed Board/Committee
meetings.
Due Date:
4 Dec 2024
Owner:
11) Board Attendance at 2025 Stakeholder Events
Update the SLT calendar to include stakeholder events and confirm Board
attendance at 2025 stakeholder events at the December Board meeting.
Due Date:
4 Dec 2024
Owner:
Belinda Moffat
18) Arrange Governance follow-up session for SLT with Richard Westlake
Arrange a Governance follow-up session for SLT with
Due Date:
28 Jan 2025
Owner:
Belinda Moffat
12) Include the 2025 Calendar in future Board packs.
Include the 2025 Calendar in future Board packs.
Due Date:
4 Dec 2024
Owner:
6.
Other Business
6.1
General Business
· No general business was discussed.
6.2
Closing Karakia
The meeting was closed with a Karakia at 2.41pm.
7.
Close Meeting
7.1
Close the meeting
Next meeting: REA Board Strategy Meeting December 2024 - 3 Dec 2024, 2:00 pm
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,
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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: 4 December 2024
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