Toolkit - New Standards for Conflict Disclosure

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Recent allegations of conflicts of interest involving strata managing agents has caused a crisis of confidence in strata management. 

Following sensational media reports and the ensuing public discourse about the widespread practice of strata managers taking commissions on insurance and entering other related party transactions for the supply of goods and services to strata schemes, various governments have responded in different ways. Laws about managing conflicts of interest have been changed, and more are being discussed. Attitudes to historical charging practices are shifting. Both providers and clients are re-evaluating the way strata management agencies price their services. 

The most dramatic reforms to date have been in NSW. Sweeping reforms have been introduced, effective 3 February 2025. These laws are about how conflicts of interest in strata management are managed. The reforms focus on complex laws about disclosing these conflicts rather than banning them. However, because the common law applies to conflicts of interest as well as laws made by state and territory governments, everyone is affected by the NSW changes. The new highwater mark for managing conflicts of interest becomes the standard by which we are all judged. 

This toolkit has been prepared to help strata management agencies navigate these changes. This publication is not about the rights and wrongs of the various practices. That is for another time and place.  This is about what to do now to comply with the laws and new standards.

The new laws and standards will change the way you manage your agency, whether you take commissions or not. Whether you are in NSW or not, at least for now, these are the new standards to which you will be held. 

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This toolkit contains:

• Guide to disclosing conflicts of interests including six occasions when strata management agencies must disclose conflicts of interest
• Staff training and induction module
• Conflicts of interest statutory disclosure table (NSW)
• Comparative schedule of conflict-of-interest laws in the eight Australian states and territories
• 15 template documents to help you manage conflicts of interest and make conflict disclosures
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‍‍These template documents include:

1. Operating Procedure - disclosing conflicts of interest
2. Staff training and induction module about managing conflicts of interest
3. Employment agreement insert about managing and reporting conflicts of interest
4. Conflicts of interest policy
5. Director, officer, and employee conflict of interest disclosure form
6. Conflict of interests register
7. Conflict of interest disclosure statement - pre-appointment
8. Motion - Annual General Meeting disclosure
9. Conflict of interest disclosure statement - Annual General Meeting
10. Notice before finalising purchase of goods or services with a connected party or a supplier of commission or training services
11. Motion - Disclosing new arrangements for commission or training services
12. Conflict of interest disclosure statement - new arrangements
13. Motion - Updating disclosure of commission and training services
14. Motions – Annual insurance renewal
15. Summary - Annual insurance renewal quotations

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