2023 Industry Advisory Groups TOR Final.pdf

Industry Advisory Groups
(IAGs)
Terms of Reference

Date
04 October 2023

Introduction

1.  The Real Estate Authority (REA) was established under the Real Estate Agents Act 2008
(the Act) and became operational in November 2009.
2.  REA’s  purpose  is  to  promote  and  protect  the  interests  of  consumers  in  respect  of
transactions that relate to real estate and to promote public confidence in the performance
of real estate agency work. REA is responsible for regulating agents, branch managers
and salespersons and does this through licensing, developing rules and regulations with
respect to industry standards, and providing accountability through a complaints process
that is independent, transparent and effective.
3.  REA’s  strategic  priorities  are  set  out  in  its  Statement  of  Intent  and  Statement  of
Performance expectations.
4.  REA actively engages with the real estate sector and other stakeholders to support the
delivery of our strategic priorities, functions and intended impacts. We specifically seek to
engage with our diverse licensee population and to use sector engagement to strengthen
regulatory  settings  to  support  high  standards  of  conduct,  protect  against  harm  to
consumers and support an effective and responsive regulatory system.
5.  The Board and Chief Executive of REA consider that engagement with the sector on issues
of regulatory importance is critical to delivering effective regulation. Since 2012, REA has
provided a framework for this engagement through the Industry Advisory Groups (IAGs).
6.  The IAGs are being refreshed in 2023 to ensure greater alignment with delivering against
REA’s six strategic priorities. The four new groups are:
a.  New licensees (less than 3 years’ experience in the sector)
b.  Supervisors and/or compliance officers
c.  Rural, commercial and business broking
d.  Residential
Purpose of the Terms of Reference
7.  These Terms of Reference set out the purpose, attendance criteria and operations of the
Real Estate Authority’s (REA) Industry Advisory Groups (IAGs).
8.  These  terms  of  reference  replace  all  previous  terms  of reference  adopted  by  REA. The
terms of reference may be reviewed and amended from time to time by the REA Board.
Appointment and participation
9.  Members of the REA Senior Leadership Team will be appointed by the REA Chief Executive
to Chair each of the IAGs.
10. The IAGs will be attended by a member of REA’s Regulatory Policy team. Other REA Senior
Leaders and staff may join as required depending on agenda items.
11. Other attendees may be invited to join as required for agenda items.
12. IAG members will be appointed by REA following a nomination and selection process. REA
will advertise through its sector Pānui newsletter  the nomination process. Members will
be  selected  by  REA  from  the  nominations  received.  REA  reserves  the  right  to  directly
approach and appoint members outside of the nomination process.

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13. Ensuring representation of diverse perspectives of the real estate sector within the IAGs
is paramount. The following criteria will be considered when selecting members for each
of the four IAGs:
a.  Demonstrated  knowledge  and  experience  in  real  estate  agency  work  and/or
management;
b.  Representation from across New Zealand;
c.  Representation  of  different  ability,  ethnicity,  age,  gender  and  other  relevant
factors;
d.  Representation from one of the four sub-sectors: residential, rural, commercial
and industrial, and business broking; and
e.  Representation from across different agency models and sizes in the sector.
14. Members are appointed for a 2-year period.  REA reserves the right to ask a member to
stay on for a longer period of time. IAG members may resign at any time by giving written
notice to REA.
15. REA will maintain a list of current IAG participants on its website. The member consents
to the publishing of their name on the REA website.
16. Each group will have a minimum of six and maximum of ten members.
17. Where members are unable to attend a meeting, the member is encouraged to send a
suitable delegate.
18. Members are expected to come prepared and to actively engage in discussion by asking
questions and providing feedback and insights on agenda items.
19. All members are expected to engage in the IAGs in good faith, respectfully, actively and
constructively  and  contribute  effectively  through  regular  attendance.    REA  may  revoke
the right to participate in the IAG at any time.
20. As individuals within the real estate sector, members may express personal views about
matters related to the real estate sector. IAG members do not represent REA and do not
speak on REA’s behalf.
21. Any views expressed will be taken as those of the individual only. Members do not through
the IAGs represent the views of their agency, but they must:
a.  Be willing to provide impartial advice
b.  Have high integrity and a sense of public duty
c.  Have a high level of credibility within the real estate sector.
22. IAG  members  are  encouraged  to  talk  about  the  matters  discussed  in  meetings  with
colleagues  and  peers  before  and  afterwards  and  to  share  information  that  has  been
provided by REA, unless expressly instructed otherwise.

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Function, Purpose and Operation

23. The IAGs are a real estate sector engagement forum.
24. The purpose of the IAGs is to:
a.  Enable  the  regular  sharing  and  discussion  of  information  about  significant
issues and risks in the real estate sector that may impact licensed real estate
professionals’ ability to meet their regulatory obligations
b.  Provide  insights  and  advice  to  REA,  representing  key  views  of  the  sector  on
important regulatory and sector risks and issues,
c.  Provide practical knowledge and insights to REA to support the development of
relevant and timely guidance, information and resources
d.  To support a constructive relationship between REA and the real estate sector.
e.  Provide  an  avenue  for  consultation  by  REA  with  sector  representatives  on
regulatory matters.
25. The Forum will meet a minimum of twice per calendar year, in person or online with at
least one meeting held in person, where possible. From time to time, REA may request
additional meetings or seek member feedback via email to discuss specific initiatives.
26. The agenda for a meeting of the IAG members will be set by REA and will reflect regulatory
issues and priorities impacting the sector and REA’s scope of work.  Members may propose
agenda items for discussion. Where time in the agenda allows, members will be invited to
share their views on their local market and the risks and issues they are observing.
27. Key  discussion  themes  from  the  IAGs  will  be  communicated  to  the  real  estate  sector
through REA’s Sector Pānui newsletter and other communication channels. No comments
or themes will be publicly attributed to individual members.
28. Meetings  will  take  place  with  online  or  in-person  in  Auckland  or  Wellington,  but  on
occasion may be held in other locations. REA will determine the location and dates for
meetings.
29. IAG members recognise that REA may take other, separate, consultation processes and
final decisions are REA’s to make. The IAGs are not a decision-making body.
Costs

30. REA will provide administrative support to enable the IAGs to carry out their functions.
31. Members  are  not  remunerated  for  their  time.  REA  will  cover  any  reasonable  expenses
incurred by a member to participate in an IAG meeting. Any travel requirements will be
arranged by REA unless otherwise agreed with the member.

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Approval of Terms of Reference
32. The Board at its meeting of 23 August 2023 approved a delegation to the Chief Executive
to approve the IAGs Terms of Reference.

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