Mackay , Townsville & Cairns - PowerPoint Presentation

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Mackay

,

Townsville & Cairns

28th – 30th of August 2018

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Chief Practitioner Services Officer, PEXA

PEXA Update

Ian Hendey

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How is PEXA’s platform transforming the industry

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PEXA’s platform is transforming the industry

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PEXA Snapshot as of

August 2018

Over

$175 billion

worth of property value settled

Over 1,300,000

Property transactions

completed

~

7,032

Practitioner

Firms Registered

Australia-wide

~150

Financial Institutions Australia-wide

50

%+

of all

lodgements

are digital via PEXA nationally

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PEXA’s

operational infrastructure to Support the Network

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PEXA Direct Specialists/Virtual Specialists:

Morvanna Jones depending on region

Phone: 0499 555 439

Email:

Morvanna.jones@pexa.com.au

Community:

Sign up at

community.pexa.com.au

PEXA Support Centre:

1300 084 515

Support available in your area

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Market Specialist (QLD) , PEXA

Jess Caire

Purposeful Planning

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BUILDING ORGANISATION READINESS

CHANGE PLANNING CONSIDERATIONS

REVIEW OFTEN

For effectiveness

For required changes to processes further

For quality checks and adherence to new system

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ARNECC – the e-Conveyancing bible

Put Your Text Here

Put Your Text Here

REFER TO ARNECC GUIDANCE NOTES

To implement process changes and ensure risk mitigation

Refer

:

https://www.arnecc.gov.au/publications/mpr_guidance_notes

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Your people and the MPR requirements

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MPR - THINGS TO CONSIDER

MPR REFERENCES

ACTIONS TO TAKE TO ENSURE YOU COMPLY QUESTIONS TO ASKYou must ensure user compliance

Users have read and are aware of the MPR Appropriate time has been invested in training Training has been undertaken by all involvedWhat training have you arranged? How will it be recorded? Who will do the training?

How will you ensure the MPR has been read?

Details of the ELNO are always complete and up to date

Implement a system to ensure that all details are correct at all times

Onboarding and offboarding system for new & exiting staff

How often will we check details are correct?

Is there a system for the Subscriber Administrator to flag a change in your business?

Must comply with the Client Authorisation and act within its terms

You must ensure the authority of each person entering into a Client Authorisation – this is your client’s instructions to you so that you can sign an instrument on their behalf and you can transact electronically

You must consider their right to deal – take extra steps – collect copies of rates notices

You must verify the client is who they say they are – ID is required

How will this impact the way in which you engage your clients?

What is your process if CAF isn’t signed in front of you?

How will you capture additional data – right to deal & ID?

What internal process will you implement to ensure reasonable steps?

Must take reasonable steps to ensure that all of the information provided to the Subscriber by any other Subscriber, any Client, the Registrar or by the ELNO is protected from unauthorised use, reproduction or disclosure

Ensure that IT security policies that protect access to the ELNO are implemented – password security, network access, laptop security etc

What IT security is implemented?

How are you collecting and storing data (VOI)

How is your system protected? (email / server etc)

Have you had an independent audit?

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Your responsibility as the Subscriber Administrator under the MPR requirements

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1

Ensure that all user details are up to date in the system

2

Ensure all of staff members authorised to use PEXA are compliant and have the right authority

3

First contact point for issues detected by the ELNO and/or the Registrar

4

Notification of any unauthorised use to the ELNO and/or the Registrar

5

Maintenance of the Digital Certificates Issued

– renewal of expired/replacement/lost or stolen

Your Responsibility under the MPR

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Signing on the digital line

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Who can sign?

Qualifications required to digitally sign on the platform are determined by

Queensland Law Society/Legal Services Commission

Qualifications required to digitally sign financial settlement statements are dictated by rules around trust account management (must also be an employee with signing right on the trust account with the bank)

Qualifications required to digitally sign documents for lodgement are

Australian Legal Practitioner (includes Locums, Contractors & Interstate Lawyers)

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General users – support staff, conveyancers, paralegals

• Staff will be required to access the platform – to maintain and manage day to day contact with other parties and the clients in a transaction

• They access the ELNO to enter data, invite participants, enter and update financials as well as manage the workspace

• Refer to MPR requirements – are they sufficiently trained and aware of the obligations?

• Consider the processes around reporting issues and/or misuse?

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What am I certifying?

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IDENTITY

The Certifier has taken reasonable steps to verify the identity of the Transferor/Transferee

EVIDENCE

The Certifier has retained the evidence supporting this Instrument or Document

AUTHORITY

The Certifier holds a properly completed CAF for the transaction

CORRECTNESS

The Certifier has taken reasonable steps to ensure that this dealing is correct and compliant with the relevant legislation

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Your client’s identity (VOI)

The Certifier has taken reasonable steps to verify the identity of the Transferor/Transferee

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Subscriber Compliance – Identity

Verification of Identity

Evidence that the VOI Standard in Sch 8 of the Participation Rules was carried out or evidence of reasonable steps

No formal VOI requirements in QLD –

(excluding Section 11A of the Land Title Act 1994 and s. 288A of the Land Act 1994 place an onus on ALL mortgagees)

Significant fraud mitigation and consumer protection measure

Consistent national requirements

ARNECC MPR Guidance Note 2

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QLS – Guidelines for E-Conveyancing

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2.5.5 Managing transactional risks

Electronic settlement using PEXA requires changes to current conveyancing practice. In particular solicitors will be required to take reasonable steps to verify the identity of their client and will be authorised to sign transfer documents and direct the payment of purchase money at settlement.

Solicitors should consider how the necessary changes in conveyancing practice will be managed, including

verification of identity of clients, notifications within the PEXA system or a workspace related to a transaction, new time limits for undertaking tasks, liability for stamp duty, checking for data entry mistakes, confirming accuracy of certifications at the time of signing instruments and ensuring compliance with time limits for exercising client rights prior to settlement.

A summary of issues a law practice should give consideration to appear below and are expanded further where

relevant in the Transaction Guidelines.

a. Client authorisations and Verification of Identity

A solicitor must obtain a Client Authorisation (see [3.1]) prior to signing a document (except for

a settlement notice and caveat) in PEXA. Prior to or at the time of obtaining a Client Authorisation,

the solicitor must take reasonable steps to verify the identity of their client (QPR, clause 6.5.1).

The Verification of Identity (VOI) Standard published by ARNECC Schedule 7 requires a face to

face verification of identity and the production of certain original identity documents. A solicitor who

complies with the VOI standard will be deemed to have taken reasonable steps in accordance with the

QPR, clause 6.5.1. Compliance with the VOI Standard is not compulsory and solicitors will need to

assess the risk of non-compliance in each case where the client is unable to provide appropriate identity

documents or a face to face meeting is not possible. It may still be possible to take reasonable steps to

identify the client even though the VOI Standard is not satisfied. (QPR, clause 6.5.2). Refer also to [3.2].

A solicitor should note the obligation to undertake further investigation beyond the VOI Standard if an

identity document is not genuine or a photograph is not a reasonable likeness or the person does not

appear to be the person in the identity documents. (QPR, clause 6.5.3).

QLS

e-Conveyancing Guidelines – CAF & VOI REFERENCE

Refer Page 10 of guide

Refer to

Electronic Conveyancing National Law(Queensland) 2013

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Subscriber Compliance

Right to deal

Entitlement of a person to be a party to a conveyancing transaction

Possession of CT, rates notice, contract

Ensure client is a legal person or entity (not, for example, a superannuation fund)

ARNECC MPR Guidance Note 4

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What if you can’t meet the VOI Standard?

Take ‘reasonable steps’:

You have to judge what is reasonable in the particular circumstancesIf your client doesn’t have full documents consider an

Identifier declaration, essentially a refereeDo what you are able to do – if you have done all you can and you are satisfied, in the circumstances, you are likely to be acting reasonably.Options for conducting VOI:Do it yourself

Use an Identity Agent

IDSecure

Australia Post

Zip ID

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2. That you hold the appropriate authority

T

he Certifier holds a completed Client Authorisation for the conveyancing transaction including this Registry Instrument or Document.

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Subscriber Compliance

Client Authorisations

Ensure all fields are completed

Attach terms and conditions

ARNECC MPR Guidance Note 1

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3. That you hold the appropriate evidence

The Certifier has retained the evidence supporting this Registry Instrument or Document.

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Question

Answer Supporting Evidence

Do you have all of the appropriate documents supporting stamp duty concessions or other items certified in the conveyancing transaction? Yes/No This is dependent on what the nature of the transaction is.

Are they in order and retained for future examination in need? Yes/No

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4. The correctness of what you have prepared

T

he Certifier has taken reasonable steps to ensure that this Registry Instrument or Document is correct and compliant with relevant legislation and any Prescribed Requirement

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Process Changes –

Lexon

first point of call

Examples – refer to hand book

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PAPER  VS PEXA – WHAT CHANGES IN THE PROCESS?

ACTION

PAPER

PEXA

PEXA ROLE

OPEN FILE

BOB

BOB

NOT IN PEXA

REVIEW CONTRACT

JENNY

JENNY

NOT IN PEXA

ADVICE ON CONTRACT

JENNY

JENNY

NOT IN PEXA

CONTRACT CONDITIONS

JENNY

JENNY

NOT IN PEXA

DRAFT TRANSFERS

BOB

BOB

USER

DRAFT PRIORITY NOTICE

BOB

BOB

USERREVIEW, SEND & SIGN TRANSFERSJENNYJENNYSIGNERREVIEW, SEND & LODGE PRIORITY NOTICE JENNY JENNY

SIGNER

BOOKING SETTLEMENT

BOB

BOB

USER

CHECK TITLE SEARCH

BOB

PEXA

PEXA

SIGN OFF ON SETTLEMENT STATEMENT & CHEQUES

JENNY

JENNY

SIGNER

SIGN OFF ON SETTLEMENT INSTRUCTIONS

BOB

JENNY

SIGNER

Meet Jenny – Property Lawy

er

Meet Bob – her Conveyancing Assistant

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File Opening Check List

PROCESS

POLICY

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Initial Engagement Letter

PROCESS

POLICY

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ID / Right to deal checklist

PROCESS

POLICY

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Opening and using the workspace

PROCESS

POLICY

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Sharing of Bank Account Info

PROCESS

POLICY

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OSR Connect Stamping Process

PROCESS

POLICY

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Queensland Law Society

Your trust account and PEXA - Video

Bill Hourigan

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Lead - Digital Settlements, National Australia Bank

Financial Institution Update

Matt Kerr

Marijana Markovic

Executive Manager – Financial Institutions, PEXA

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Financial Institutions Summary

150 Financial Institutions Australia-wide registered with PEXAFinancial Institutions are Integrated; Workflow and Payment IntegrationThe industry working together to ensure an efficient digital processFamiliarise yourselves with the Industry Guidelines

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PEXA Process Overview

Fast access to cleared funds with electronic settlement

Safe encrypted signing and funds exchanged via the RBAEfficient settlement with real-time lodgement of documents

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Collaboration within the workspace

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Thank you for attending