REINZ Welcomes Lifting of the Bar but Government’s Reforms do not go far enough

“The Minister’s announcements are in line with what REINZ expected,” National President Murray Cleland said today.

“We are pleased that many of REINZ’s submissions to the Ministry of Justice have been adopted, including:
• An independent disciplinary and complaints body;
• Increased fines;
• Consumer compensation;
• Compulsory continuing professional development;
• Ensuring the Trans-Tasman Mutual Recognition Act does not lower the standard of entry to the profession;
• Improvement in disclosure rules;
• The retention of salespersons’ ability to operate as independent contractors.

“However REINZ is very disappointed that the reforms do not go far enough in terms of coverage. If protection of the public is the objective, the new regulatory regime must cover everybody engaged in the industry, including companies that charge marketing fees instead of commission, property managers and letting and leasing agents. Failure to do so will significantly weaken consumer protection,” Mr Cleland said.

“Property managers in particular, but also letting and leasing agents, handle significant sums of consumer money. They also must be held accountable, given their significant positions of trust.

“REINZ is also concerned that the Government’s announcements will create an expensive new bureaucracy, as opposed to fixing the current structure.

Mr Cleland said, “REINZ believes that compulsory membership is critical to achieving the Government’s objective of protecting consumers, and that there is still an important statutory role for it to play, particularly in working with the REINZ Industry Training Organisation, setting Code of Ethics and Codes of Practice.”

ENDS

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