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National Licence for Conveyancers – COAG program

Apr 14, 2010

Background and progress –

Historically, differences in local laws and practice requirements have meant States and Territories have managed qualifications and licences for different trades.

As work became more regulated, licensed tradespersons moving into a new jurisdiction within Australia and New Zealand had increasing difficulty in getting their skills and training recognised.  Mutual recognition legislation has been around for a while but regulators still faced difficulties with consumer protection and the comparison of qualifications and licences.

COAG set up a Commonwealth Skills Recognition Steering Committee (CSRC) to improve mutual recognition arrangements with an Expert Working Group to implement the introduction of a national licensing system for several occupationally licensed groups including ‘property agent occupations’ which included real estate agents, licensed valuers and licensed/registered conveyancers.

Conveyancers are not property agents in the strict sense because they deliver legal services: however, property is generically the closest of the occupational licence categories when compared with maritime, plumbing, electrical, etc. Licensed/registered conveyancers have extraordinary attributes compared to other occupationally-licensed category – must hold compulsory professional indemnity insurance, can carry out their business from a physically remote location and are able to operate a trust account.

After consultations in 2008, AIC supported the “national single agency model” – a single national agency which exercises all of regulatory functions for licensing but delivers its services (including issuing of licences) through regional offices.

However in November 2009 the CSRSC circulated a consultation draft of the National Occupational Licensing Law.  Main features were:

• adoption of the “delegated agency model”   - a single ‘national’ licensing body which delegates all of regulatory functions for licensing to existing regulatory agencies (for example issuing of licences. (on the premise that this model could be started sooner because it would start without conduct provisions ie how a licensee must perform their work under a licence but with the intention that national conduct provisions would be introduced in the future).

• operation of the system to be introduced in 2 stages (1 July 2012 and 1 July 2013) with licensed/registered conveyancers included in the second stage.

Australia-wide stakeholder consultations were conducted. The AIC provided a submission including the following:

• The delegated agency model should only be adopted as a transitional mechanism to be replaced in 5 years (and not more than 10 years) by national single agency model.
• To avoid/overcome anti-competitive practices in some jurisdictions, an occupationally licensed person should be able to operate in each jurisdiction after a period of two years without limitation unless the participating jurisdiction has established –
  • reasonable competencies and related qualifications appropriate to the work to be carried out in the jurisdiction, and
  • a reasonable process for licensing of that occupation in the jurisdiction.
• Nationally consistent qualifications at the highest standard in relation to comparable work.
• To protect PII and indemnity/fidelity funds, measures need to be introduced to prevent ‘jurisdiction shopping’ by licensees seeking minimum costs.
• To avoid conflict of interest, financial institutions, real estate agents and mortgage brokers should be precluded from owning an incorporated licensed/registered conveyancer.   This group should probably be extended to Licensed Service Providers with the advent of electronic conveyancing.

Owing to recent changes in the WA regulatory model,  the WA Division also provided a written submission that endorsed the national single agency model.

Submissions -

April 2010 – Response to Public Register Consultation Paper (National Licence)

Dec 2009 – Response to Exposure Draft of National Occupational Licensing Bill

Dec 2008 –Further submission to Productivity Commission

July 2008 – Submission on AIC concerns

July 2008 - Submission to Productivity Commission on review of Mutual Recognition Act

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