Page 128 - Week 01 - Thursday, 9 April 1992
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within the industry and government. The Bill amends the Agents Act 1968, which provides for the licensing and registration of real estate, business, stock and station, and travel agents.
The present law does not provide protection to persons who suffer a pecuniary loss as the result of the failure of a licensed real estate, business or stock and station agent to account for trust moneys or property received. This Bill will provide protection in respect of licensed agents through the creation of a fidelity guarantee fund. It will not apply to travel agents, who are already protected by a national compensation scheme. The fidelity guarantee fund will meet claims for actual loss suffered by a client, less any amount recovered or recoverable from a source other than the fund. There will be no statutory limit on the amount payable in respect of any one incident of a failure to account. This will ensure that all clients will be treated equitably.
At present all licensed real estate, business and stock and station agents are required to hold clients' moneys in a trust account at a bank operating in the ACT. These trust accounts do not earn interest. Subject to this new legislation, the banks have agreed to pay interest on these trust accounts which, together with agents' licence, registration and administration fees, excluding those relating to travel agents, will form the income base for the fidelity guarantee fund. The fidelity guarantee fund will be administered by the Agents Board of the ACT, which is responsible for the administration of the Agents Act 1968. The fund will meet the costs of administering the Agents Act as it applies to the operation and the licensing and registration of real estate, business and stock and station agents.
Sufficient moneys will be allowed to accumulate to a level that will enable the fund's compensation obligations under the Act to be met. Any remaining funds will, subject to ministerial approval of the amount, be made available for educational programs relating to real estate matters for agents and members of the public and to enable or assist persons to acquire or rent residential premises.
The Agents Board's investment and financial reporting activities will be undertaken in accordance with the Audit Act 1989. Appeals from decisions of the Agents Board in respect of pecuniary loss or unclaimed trust moneys will reside with the ACT Administrative Appeals Tribunal. The legislation will give ACT residents immediate financial protection and provide the real estate, business and stock and station agents industries with greater scope for development and a more stable environment.
The opportunity has also been taken to incorporate in this latest Bill two additional changes. First, the Bill will remove the requirement that the chairperson of the Agents Board be a public servant. This will provide for a greater degree of flexibility in the selection of a chairperson to reflect the Agents Board's wider role in administering the fidelity guarantee fund. Secondly, the Bill will introduce a common anniversary date for the payment of agents' licence and registration fees, which will streamline the payment and processing of such fees. Madam Speaker, I now present the explanatory memorandum for the Bill.
Debate (on motion by Mr De Domenico) adjourned.
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