Licensed Conveyancers are subject to Compliance Examinations as subscribers to an ELNO.

 

In Customer Information Bulletin No 191, Land Use Victoria outlined the process as follows:

“In a compliance examination a Subscriber is asked to provide documents and information evidencing that instruments digitally signed and lodged using an ELN comply with the Participation Rules.  A Compliance Examination Notice to a Subscriber specifies the documents and information relating to Registry Instruments lodged by that Subscriber listed in the notice and includes:

• Copies of the Client Authorisation for the Conveyancing Transaction and any evidence supporting the Client Authorisation
• Written details of the steps taken to verify the identity of the Client and/or the mortgagor and any evidence supporting that verification of identity
• Written details of the steps taken to verify that the Client and/or the mortgagor is a legal person and has the right to enter into the Registry Instrument or other Document (Right to Deal)
• Copies of all supporting evidence for the Registry Instrument or other Document

 

One of our members has recently been subject to a compliance examination and has outlined her experience.

She was required to provide the following information for the audited files:

• signed client authorisation form
• identification documents including a photo taken at the face to face interview
• date and time of the verification
• notes made at the face to face meeting relating to the verification
• any other relevant information collected at the face to face meeting relating to the verification

ARNECC has produced guidance notes on Client Authorisation, Verification of Identity and Compliance Examinations (among other topics) and they can be found here. 

 

You should note that:

• VOI is meant to be a face-to-face process.
• A subscriber MUST identify each Client for whom it has authority to act. This includes verification of friends and family.
• Client authorisation is meant to take place at the time of undertaking the VOI of your client.
• If Client authorisation and VOI are not undertaken at the same time then you will need to provide written details including timing and supporting evidence of the steps taken to ensure the Client Authorisation form was signed by the client who had been identified.
• The client authorisation must include the capacity of the representative.

 

The Australian Registrars’ National Electronic Conveyancing Council (ARNECC) publishes a Model Participation Rules guidance note that contains a checklist of what is covered in a compliance examination: MPR Guidance Note #6 – Compliance Examinations (available at www.arnecc.gov.au/publications>Model Participation Rules Guidance Notes).

A Common Errors Report has also recently been published by ARNECC which covers the most common errors all jurisdictions are encountering and provides an explanation of ARNECC’s expectations in relation to compliance of Subscribers.

https://www.arnecc.gov.au/__data/assets/pdf_file/0017/1448000/subscriber-compliance-common-errors.pdf

AIC Vic has developed a Risk Management program around the types of claims that arise in the professional indemnity area. The aim of this program is to reduce the claims on the PI policy. This benefits all conveyancers.

This program consists of seminars, webinars and videos with points allocated to each event.

The PII underwriter has agreed to provide a 10% discount on their premium to Licensed Conveyancers who complete 10 points of risk management in the 12 months preceding their insurance renewal date.

It is open to all Licensed Conveyancers.

It has always been important to know who your client is. Now, with the mandating of econveyancing, it is critical that practitioners take care to identify their clients and to ensure that their clients have the right to deal with the property.

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