The board of SCA (NSW), which has many NSW strata managing agents as members, has resolved to get rid of insurance commissions for SCA member strata managing agents.
This is an important first step – but only a first step.
Much as we at OCN welcome this news, we are aware that insurance commissions are just one of the sources of conflicted remuneration for agents.
So OCN has joined with the Australian Consumers Insurance Lobby (ACIL) in writing to Minister Chanthivong and Commissioner Mann to ask that they continue to hold strata managing agents to their obligations and stamp out the deceptive and corrupt practices that have poisoned the industry.
We also support the NSW Government’s appointing the Productivity and Competition Commissions to thoroughly investigate conflicted strata remuneration. This review is underway and will be seeking public submissions later this year. We encourage all our members to participate. Here is the link.
Since the ABC’s Strata Trap exposé last year, SCA (NSW) have had a substantial change at board level. And we hear regularly from ethical agents who have ended their SCA membership in frustration.
So we hope this is the beginning of a sea change, at least in NSW, that will help the professional, ethical agents.
Commissions are about one thing: concealing income to mislead you, the clients – who are paying these commissions. And when an agent’s income can be affected by the recommendations they make, they’re no longer acting in your interests, but in their own.
To our members: check your management contracts and talk to your manager about commissions.
If they insist on retaining them, start looking for someone else who’s prepared to be open and honest about all their remuneration.
Links:
Joint letter from OCN and ACIL to Minister Chanthivong and Commissioner Mann