Generated on: 2023-10-25 12:59:01
CONFIRMED MINUTES
REA BOARD MEETING 19 SEPTEMBER 2023
At the
REA Board Meeting 17 October 2023 on
17 Oct 2023 these minutes were
confirmed
as presented.
Name:
Real Estate Authority
Date:
Tuesday, 19 September 2023
Time:
9:00 am to 12:33 pm (NZST)
Location:
REA Offices, Level 4, Todd Building, 95 Customhouse Quay, Wellington
Board Members: Denese Bates KC (Chair), Latham Lockwood, Liz Nidd, Mele Wendt, Tony
Stack, Vern Walsh
Attendees:
Belinda Moffat, Victor Eng, Andrew Bulled, Josh Doherty, Herman Visagie,
Nadine Thomas, Saara Fourie
1.
Opening Meeting
1.1
Board in Committee
Issues for discussion with the Chief Executive were agreed. The Board conducted their
governance self-assessment.
7) Prepare the Governance Self-Assessment letter for approval by the Board
Prepare the Governance Self-Assessment letter for approval by the Board and
submission to the Minister by 30 September 2023.
Due Date:
30 Sept 2023
Owner:
Belinda Moffat
1.2
Board and CE alone time
Papers and issues identified by Board were discussed with the Chief Executive, including:
• Consensus that the strategy day had been useful
•
to meet to confirm the outcome of the discussion on
Governance improvements and actions arising
• CE and SLT to give effect to feedback to support effective, concise and strategic board
reporting, to enable greater time for strategic discussion
• CE proposal for management of EIE following departure o
supported
1.3
Karakia
The Senior Leadership Team (SLT) joined and the meeting was opened with a Karakia at
10.17am.
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Minutes : REA Board Meeting 19 September 2023 - 19 Sept 2023
1.4
Interests Register
· No new interests were declared for the register.
· The Board noted the previous disclosures relating to item 4.3 CAC panel member
appointments:
o
was an acquaintance of
through professional channels. It
was agreed that it did not present a conflict requiring recusal of
from
decision making on CAC appointments.
o
was also an acquaintance of
.
would be
excluded from discussions on
proposed appointment.
o
declared that
was a previous colleague. It was agreed
that
be excluded from discussions on
proposed
appointment.
1.5
Confirm Minutes
REA Board Meeting 23 August 2023 23 Aug 2023, the minutes were confirmed as
presented.
1.6
Confirmation of Agenda
The agenda was confirmed.
2.
Actions from Previous Meetings
2.1
Action Item List
Due Date
Action Title
Owner
23 Aug 2023
1) Conduct further analysis on increase in CAC referrals
Status: Completed on 8 Sept 2023
18 Sept 2023
2) Draft an agenda for the September Board Strategic Review
Belinda Moffat
Status: Completed on 8 Sept 2023
18 Sept 2023
3) Seek written response to REINZ Letter on 2024 Mandatory CPD Belinda Moffat
Topic
Status: Completed on 8 Sept 2023
18 Sept 2023
4) Annual Report - Addition of
with note of leave of
Belinda Moffat
absence from May
Status: Completed on 8 Sept 2023
18 Sept 2023
5) CPD Topic - Meeting Obligations
Status: Completed on 8 Sept 2023
18 Sept 2023
1) Promotion of translated guides
Status: Completed on 6 Oct 2023
18 Sept 2023
2) Follow up on the REINZ online magazine
Status: Completed on 6 Oct 2023
19 Sept 2023
3) Use of consumer protection principle statement in our regulatory
work
Status: Completed on 11 Oct 2023
20 Sept 2023
4) Discuss approval protocols (moving and seconding) at the next
Board meeting.
Status: Completed on 11 Oct 2023
30 Sept 2023
13) Separation of aged cases
Status: Completed on 8 Sept 2023
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Minutes : REA Board Meeting 19 September 2023 - 19 Sept 2023
Due Date
Action Title
Owner
30 Sept 2023
5) Develop a leadership programme for SLT and Tier 3 Leaders
Status: Completed on 11 Oct 2023
30 Sept 2023
6) Board Members to declare personal engagements with Real
Estate Agents in the last 12 months
Status: Completed on 10 Oct 2023
30 Sept 2023
8) Invite the REINZ Board Chair to a future REA Board meeting.
Belinda Moffat
Status: Completed on 10 Oct 2023
17 Oct 2023
9) Legal Report Appendix A - Include case summaries for context
Status: Completed on 11 Oct 2023
17 Oct 2023
13) Terms of Reference for the refreshed IAGs
Status: Completed on 6 Oct 2023
18 Oct 2023
15) CACs
Status: Completed on 10 Oct 2023
31 Oct 2023
16) Flexi by Default review
Status: Completed on 10 Oct 2023
31 Oct 2023
17) Māori Engagement Framework - Board Marae Visit
Belinda Moffat
Status: In Progress
31 Oct 2023
18) Finalise a plan for rolling out project management training to all Belinda Moffat
staff and Board.
Status: In Progress
31 Oct 2023
19) Bring policy for dealing with difficult people to Board
Belinda Moffat
Status: In Progress
31 Oct 2023
20) REA presence at REINZ Awards
Belinda Moffat
Status: Completed on 10 Oct 2023
30 Nov 2023
21) Transaction Reports
Status: On Hold
30 Nov 2023
23) REA Emails for Board
Status: Completed on 11 Oct 2023
15 Dec 2023
25) Opportunities for Board workshops (discuss in Board strategy
Belinda Moffat
session)
Status: In Progress
31 Dec 2023
26) Conduct data analysis on the increase in complaints to look for
trends/drivers
Status: In Progress
The actions were taken as read with the following actions raised for discussion:
• Flexible by default policy review: an audit of current flexible working arrangements has
been completed and the policy review is pending. It was noted that swipe card access
aligned with 20% of staff on flexible WFH arrangements. The reviewed policy will be
presented to P+C Committee this year. It was agreed the action could be closed.
• REINZ Awards: REINZ advised omission to acknowledge REA attendance was an
oversight and will be addressed next year. Potential sponsorship of an REA award was
also raised as a future possibility.
• A number of actions were noted as now closed.
•
ill discuss the actions relating to Board workshops and
the marae visit.
3.
Chief Executive's Report
3.1
CE Report
The report was taken as read and the Chief Executive highlighted the following:
· REA’s lead Crown entity monitor from MoJ has changed from
to
continues to have senior oversight.
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Minutes : REA Board Meeting 19 September 2023 - 19 Sept 2023
· A Property Management Regulation Committee meeting will be scheduled in the first week
of October to review the Bill.
· Proposed Board and Committee dates included in appendix G will be adjusted further to
reflect back-to-back Committee and Board meetings in March and September, noting the
benefits of holding Committee meetings in-person where practical to do so. These dates
will be changed to 20-21 March, and 18-19 September 2024 (subject to Board
availability).
· An alternative November strategy meeting date is required due to unavailability - 6 or 20
November are potential alternatives.
· Timing for the strategy session was discussed, and it was noted that August is too early as
it is only 2 months into the financial year. November enables discussion ahead of the
following year SOI and SPE preparation.
· CE and EA to finalise the Board Workplan and issue placeholder dates.
The Board discussed the following matters:
· Further guidance on efficiency expectations will be sought from MoJ.
· Health and Safety matters were noted.
· The Cabinet office circular relating to Constitutional Procedures after the Election was
noted
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.
14) Finalise Board workplan and send out placeholders for 2024 Meetings.
Finalise Board workplan and send out placeholders for 2024 Meetings.
October: Updated meeting dates provided in October Board pack. Placeholders
will be issued on 18 October
Due Date:
18 Oct 2023
Owner:
3.2
Break
The Board took a 10-minute break at 11am and recommenced at 11.10am.
were excused from the meeting at 11.10am, for a board alone
discussion, with the CE and General Counsel present.
Disclosure of Interest –
declared her intention to accept a nomination for a REINZ Area 5 Regional Board
Directorship. The Board discussed the declaration and agreed that:
• this presented a conflict of interest, and
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Minutes : REA Board Meeting 19 September 2023 - 19 Sept 2023
•
would be recused from decision making on CAC appointments, and discussion on
funding for regulation of property managers regime at this meeting. It was confirmed that
there was a quorum without
for decisions;
• pending the outcome of the election
should stand down from the Board effective
20 September; and
• in the event
is elected to the Board she would resign from the REA board;
• if unsuccessful,
would resume her REA duties;
•
would include in her nomination bio that she has stood down from the REA board
and would resign from the REA board if elected.
It was noted that nominations close Wednesday 27th September and will be publicly notified on 18
October. Ballots open on 2nd November and close on 13th November at 5pm.
10) Conflict of Interest:
1)
to provide a formal letter to
as the Board Chair
explaining the circumstances of her standing down from the REA Board
2) Notification to be given to the Minister/MoJ of
intention to step
down from the REA Board pending the outcome of the election
(
).
3) Record the disclosure and actions taken by the Board in the REA
disclosures of interests register and BoardPro (
).
October: All complete.
Due Date:
17 Oct 2023
Owner:
Belinda Moffat
4.
Board Papers for Approval or Discussion
4.1
Policies Review
The following policy was presented to the Board for discussion and approval, noting this had not
previously been considered by the People & Capability Committee. The key change was to include
CAC and Board members in the scope of this policy.
Anti-Bullying, Harassment and Discrimination Policy
• The Board had no additional questions or changes.
Recommendations
It was recommended that the Board:
a. Approve the updated Anti-Bullying, Harassment and Discrimination Policy.
Outcome: Approved unanimously
4.2
Accountability Documents: 2021-22 Annual Report Update
The paper was taken as read and the Chief Executive highlighted the following:
Draft 2022-2023 Annual Report
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Minutes : REA Board Meeting 19 September 2023 - 19 Sept 2023
• This is the second draft and the Board Chair and CE introductory statements have been
included.
• ARC members identified some minor typographical errors at their meeting yesterday which
have been noted and will be corrected.
• The next steps are to provide the Board with the final design copy of the annual report and
the letter of representation in October.
The Board discussed the following:
• The Board Chair confirmed the introductory statement was satisfactory and did not request
any changes.
Audit Completion Report
• The Audit and Risk Committee Chair advised the Board that the Committee met with the
Auditors yesterday and REA has achieved three very good results. There were no
concerns raised by the Auditors and the Committee was introduced to
successor,
Recommendations
It was recommended that the Board:
a. Note the annual report 2022/23 update and timetable and provide any final feedback on
the draft annual report.
Outcome: Noted.
recused herself from the meeting at 11.35am.
4.3
CAC Panel Appointments
The paper was taken as read and
highlighted the following:
• The recommended CAC panel candidates were presented to the Board for approval to
appoint.
The Board discussed the following:
• Terms of appointment clarified expectations for service, quality and time management and
availability and the need to correct the reference to the Anti-Bullying, Harassment and
Discrimination Policy in paragraph 11 of this document.
• Whether fees for CAC members was adequate and the need for a further review of fees
payable
Recommendations
It was recommended that the Board:
a. Approve the candidates identified in this paper for appointment to the CAC panel.
b. Approve the terms and conditions for appointment.
c. Approve the use of the Board Chair’s e-signature for appointment letters.
Outcome: Recommendations were approved, subject to the minor amendment to the terms of
appointment regarding the reference to the Anti-Bullying, Harassment and Discrimination Policy.
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Minutes : REA Board Meeting 19 September 2023 - 19 Sept 2023
11) Conduct analysis on CAC remuneration against the 2021 Cabinet Fees
Framework
Conduct analysis on CAC remuneration against the 2021 Cabinet Fees
Framework
Due Date:
17 Oct 2023
Owner:
27) Update the Board Handbook to define requirements for a quorum
Update the Board Handbook to define requirements for a quorum to mirror
Schedule 5 of the Crown Entities Act in the 2024 review.
Due Date:
21 Feb 2024
Owner:
4.4
Property Management Regulation & REAA Amendments Update
The paper was taken as read and the Chief Executive highlighted the following:
· REA and HUD are working on a MOU to address the sharing of information.
· With
standing down it was recommended that
be
appointed to the RPM Committee.
Recommendations
It was recommended that the Board:
a. Note this report
b. Approve the draft funding agreement in principle and delegate to the Chief Executive
authority to finalise and execute the funding agreement
c. Approve in principle the draft Terms of Reference for the Reference Group, and
delegate to the Chief Executive authority to finalise and execute the final Terms of
Reference.
Outcome: Recommendations were noted, approved and approved in principle subject to the
caveats discussed.
Two additional oral recommendations were put forward by the CE:
a. Approve the Chief Executive finalising and executing a Memorandum of Understanding
with HUD
b. Approve the addition of
to the Property Management Regulation
Committee in the place of
Outcome: Recommendations were approved.
24) Provide final versions of the funding agreement, TOR & MOU to the Board once
finalised
Provide final versions of the funding agreement, Terms of Reference and
Memorandum of Understanding to the Board via BoardPro once finalised.
October: A new BoardPro Committee for Property Management Advisory
Committee has been established. The TOR, Funding Agreement and MOU will
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Minutes : REA Board Meeting 19 September 2023 - 19 Sept 2023
be uploaded to the Governance Folder for that Committee once signed. Likely
to be late October. Then this action will be closed.
Due Date:
5 Dec 2023
Owner:
Belinda Moffat
returned to the meeting at 12.02pm
5.
Board Papers for noting
5.1
Regulatory Services Team Paper
The paper was taken as read and
invited questions from the Board.
The Board discussed the following:
· Increase in complaints and license reduction is flattening out.
· There are 54 cases yet to be assigned to a facilitator
· Noted the reappointment of a previous staff member into a new RST manager role
bringing good knowledge and expertise along with investigative background.
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 Team Paper
Outcome: Noted
5.2 Legal Team Update
The paper was taken as read and
, General Counsel, highlighted the following:
· Resourcing continues to be a focus area. The legal services team is please to confirm
a new Legal Services Manager who will join the team next month.
· Unlicensed trading is unplanned work that has impacted the team’s capacity.
· Paragraph 6 highlights the intention to publish exceptional circumstances guidelines to
assist the sector to understand how we apply the requirement of exceptional
circumstances. The board has seen the provisional guidelines and there are no
material changes.
· Case reports will be provided to the Board on a quarterly basis.
The Board discussed the following:
· The Board did not need to see the exceptional circumstances paper before it is issued
by the Registrar.
· It is important for sector reminders about the CPD requirements. EIE to ascertain why
there are delays by training providers confirming completion of CPD.
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Minutes : REA Board Meeting 19 September 2023 - 19 Sept 2023
· Retirement village models and a number of operators now changing their models in
light of focus on the Act.
· The reduced legal report was supported by the Board, with the more comprehensive
report with schedules to come to the Board every three months in the future rather than
to every meeting.
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
PMO Report on Projects and Key Initiatives
The paper was taken as read and the Chief Executive invited questions or comments from the
Board.
The Board discussed the following:
• Whether good progress was being made on SEP and whether vendors were providing
suitable support
• Management confirmed
have been contracted to support us with identifying a long term
solution and they are an existing vendor.
• The Board reiterated the importance of being clear on what REA is wanting to achieve to
ensure the SEP project stays focused and on track.
• REA is aiming to get a draft business case to the next Board meeting before the RFP goes
out to potential vendors. An indication of anticipated cost will be provided with the draft
business case.
• Implementation of a new system would ideally be by June 2024.
• Succession planning for the Board: Legal, IT and Finance are key capabilities needed for
future board members.
Recommendations
It was recommended that the Board:
a. Note the contents of this paper and the attached PMO report.
Outcome: Noted.
12) Invite
to present the draft business case at the next Board meeting
Invite
to present the draft business case at the next Board meeting
October:
and
attending.
Due Date:
17 Oct 2023
Owner:
5.4
Complaints Improvement Project Update
The paper was taken as read and
, Head of Regulatory Services, highlighted the
following:
· A high level of project activity is underway with website development, handbook
development and training.
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Minutes : REA Board Meeting 19 September 2023 - 19 Sept 2023
· An information pack will go to the sector end of September outlining benefits we are
hoping to achieve and what the sector needs to do to prepare and align with the new
process.
· The next Steering Group 20 September and then a go/no go meeting on 22
September.
· The project is likely to remain in Amber as staff and new joiners are trained up over the
coming months.
The Board made the following comments:
· The Board was encouraged by the progress made on the project to date and
acknowledged this is at a very significant and positive phase.
· The Board noted CIP seems to be on the agenda at the end of sector meetings like
RELF. Given its significance, is there something more in depth to assist compliance
managers that they could roll out to their leadership teams? The CE suggested looking
at arranging a Teams webinar. She also highlighted that we will be putting out a brief
informational video.
Recommendations
It was recommended that the Board:
a. Note the update on the Complaints Improvement Project
Outcome: Noted.
22) Explore the feasibility of hosting a CIP webinar for compliance managers on
Teams in November.
Explore the feasibility of hosting a CIP webinar for compliance managers on
Teams in November.
October: This is in the CIP project workplan.
Due Date:
30 Nov 2023
Owner:
Belinda Moffat
6.
Other Business
6.1
General Business
·
was congratulated on her new role and the Board will formally
acknowledge
contribution to REA at the October Board meeting.
Board resolution for decision-making process
· The Board approved a motion to move to consensus decision-
making approach and they will no longer move and second motions
to approve resolutions. The Chair will state the motion and call for
support, if a dissent is expressed this will be recorded and if there is
no consensus, the Chair may elect to call a vote on the resolutions
proposed.
Decision Date:
19 Sept 2023
Mover:
Seconder:
Outcome:
Approved
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