10-year ban for strata manager for statutory breaches

10-year ban for strata manager for statutory breaches – Are we in new disciplinary territory for strata management agencies? 

In another sign that the winds of change are upon us in strata management, the strata management license of well-known NSW manager, Whitney Wang (former principal of strata management company, PSMG) has been cancelled and he has been banned from holding a strata management license or being involved in the running of a strata management company for 10 years. 

The reasons for the cancellation are not yet clear. The Department of Fair-Trading website so far is scant on details and notes that due to privacy reasons details of the compliance breaches leading to the cancellation of the license cannot be made public. The ABC reports the only comment so from the authorities is that - 

The disciplinary actions were taken due to PSMG's numerous breaches of statutory duties in its role as strata manager for the affected schemes.

Wang has told the ABC he will appeal the decisions in the fullness of time we might learn more about what OCN’s Karen Styles has described as a four-and-a-half-year complaint process. 

According to media reports, in previous NCAT proceedings there have been allegations against Wang of breach of statutory duties as a strata manager including improperly signing a strata management agents agreement, expending funds without a budget and more than statutory limits, and advising owners to ignore capital works fund budgets to keep levies low. 

There are three significant things about this decision that should be considered carefully by strata professionals – 

1. Cancellation of a license and a 10-year ban is a big whack if there has not been fraud or misappropriation of funds. We don’t know the basis of the decision and I’m not suggesting there has been fraud or misappropriation, but you would think if there has been, this would have been announced by now. If the action relates to ‘statutory breaches’, rather than ‘fraud or theft’, we are in new disciplinary territory. 
2. This high-profile disciplinary action will increase the number of complaints to the Department of Fair Trading by strata owners claiming breach of statutory duties. Coupled with the ABCs ongoing media investigations into strata management practices, and amid rumours of a forthcoming Four Corners story, more strata managers with skeletons in their closet will be exposed in coming weeks and months. 
3. The Wang case will renew calls from other states and territories without licensing regimes for strata management to introduce this form of regulation. Only NSW, ACT and NT have licensing system for strata managers and Victoria has a registration system (which merely identifies agencies and their professional indemnity insurance cover). WA requires the managers to give warranties about licensure issues but in the other states, notably Queensland, there is nothing. 

It seems the winds of change for strata management will continue to blow for a while yet, but better days are ahead for the profession if we learn from the mistakes, and misdeeds of others. Let’s hope we learn soon what is deserving of a 10-year ban and take steps to improve as a profession.