1. Mackay, Townsville & Cairns
28th – 30th of August 2018

2. Ian Hendey
Chief Practitioner Services Officer, PEXA
PEXA Update

3. How is PEXA’s platform transforming the industry

4. PEXA’s platform is transforming the industry

5. PEXA Snapshot as of August 2018
Over $175 billion worth of property value settled
~7,032 Practitioner Firms Registered Australia-wide
Over 1,300,000 Property transactions completed
50%+ of all lodgements are digital via PEXA nationally
~150 Financial Institutions Australia-wide

6. PEXA’s operational infrastructure to Support the Network

7. Support available in your area
PEXA Direct Specialists/Virtual Specialists:
Morvanna Jones depending on region
Phone:
Community: Sign up at community.pexa.com.au
PEXA Support Centre:

8. Jess Caire
Purposeful Planning
Market Specialist (QLD) , PEXA

9. Identify – who and what? Assess – the three P’s Implement REVIEW OFTEN
BUILDING ORGANISATION READINESS
CHANGE PLANNING CONSIDERATIONS
The processes that will need modifying
And people who will be completing the processes
Identify – who and what?
Impact Assessments on existing policies, procedures and people
Risk assessment
Assess – the three P’s
Implement the changes from top down – communicate the WHY behind the change
Understand and empathise with change behaviour
Complete all appropriate training
Change SOP’s and policies in house
Implement
REVIEW OFTEN
For effectiveness
For required changes to processes further
For quality checks and adherence to new system

10. ARNECC – the e-Conveyancing bible
REFER TO ARNECC GUIDANCE NOTES
To implement process changes and ensure risk mitigation
Refer:
Put Your Text Here
Put Your Text Here
If you are not familiar with ARNECC – you need to read the MPR & and you can read the MOR – these give guidelines in which you must operate and also guidelines in which PEXA must operate
Registrars' National Electronic Conveyancing Council (ARNECC) was formed for the purposes of co-ordinating a national approach among the States and Territories to the regulation of an electronic environment for completing conveyancing transactions.   ARNECC was created to ensure a consistent national approach in the regulation of National E-Conveyancing.    

11. Your people and the MPR requirements

12. MPR - THINGS TO CONSIDER
MPR REFERENCES
ACTIONS TO TAKE TO ENSURE YOU COMPLY
QUESTIONS TO ASK
You must ensure user compliance
Users have read and are aware of the MPR
Appropriate time has been invested in training
Training has been undertaken by all involved
What training have you arranged?
How will it be recorded?
Who will do the training?
How will you ensure the MPR has been read?
Details of the ELNO are always complete and up to date
Implement a system to ensure that all details are correct at all times
Onboarding and offboarding system for new & exiting staff
How often will we check details are correct?
Is there a system for the Subscriber Administrator to flag a change in your business?
Must comply with the Client Authorisation and act within its terms
You must ensure the authority of each person entering into a Client Authorisation – this is your client’s instructions to you so that you can sign an instrument on their behalf and you can transact electronically
You must consider their right to deal – take extra steps – collect copies of rates notices
You must verify the client is who they say they are – ID is required
How will this impact the way in which you engage your clients?
What is your process if CAF isn’t signed in front of you?
How will you capture additional data – right to deal & ID?
What internal process will you implement to ensure reasonable steps?
Must take reasonable steps to ensure that all of the information provided to the Subscriber by any other Subscriber, any Client, the Registrar or by the ELNO is protected from unauthorised use, reproduction or disclosure
Ensure that IT security policies that protect access to the ELNO are implemented – password security, network access, laptop security etc
What IT security is implemented?
How are you collecting and storing data (VOI)
How is your system protected? ( / server etc)
Have you had an independent audit?

13. Your responsibility as the Subscriber Administrator under the MPR requirements

14. Your Responsibility under the MPR
First contact point for issues detected by the ELNO and/or the Registrar
Ensure that all user details are up to date in the system 1 3 2
Ensure all of staff members authorised to use PEXA are compliant and have the right authority
Notification of any unauthorised use to the ELNO and/or the Registrar 4
Maintenance of the Digital Certificates Issued
– renewal of expired/replacement/lost or stolen 5
Consider here what type of policies you will implement when a staff member leaves – when a staff member is hired.
Consider having your SOP’s as a fluid working document that is always updating

15. Signing on the digital line

16. Who can sign?
Qualifications required to digitally sign on the platform are determined by Queensland Law Society/Legal Services Commission
Qualifications required to digitally sign financial settlement statements are dictated by rules around trust account management (must also be an employee with signing right on the trust account with the bank)
Qualifications required to digitally sign documents for lodgement are
Australian Legal Practitioner (includes Locums, Contractors & Interstate Lawyers)

17. General users – support staff, conveyancers, paralegals
• Staff will be required to access the platform – to maintain and manage day to day contact with other parties and the clients in a transaction
• They access the ELNO to enter data, invite participants, enter and update financials as well as manage the workspace
• Refer to MPR requirements – are they sufficiently trained and aware of the obligations?
• Consider the processes around reporting issues and/or misuse?

18. What am I certifying?

19. IDENTITY EVIDENCE AUTHORITY CORRECTNESS
The Certifier has taken reasonable steps to verify the identity of the Transferor/Transferee
EVIDENCE
The Certifier has retained the evidence supporting this Instrument or Document
AUTHORITY
The Certifier holds a properly completed CAF for the transaction
CORRECTNESS
The Certifier has taken reasonable steps to ensure that this dealing is correct and compliant with the relevant legislation

20. Your client’s identity (VOI)
The Certifier has taken reasonable steps to verify the identity of the Transferor/Transferee

21. Subscriber Compliance – Identity
Verification of Identity
Evidence that the VOI Standard in Sch 8 of the Participation Rules was carried out or evidence of reasonable steps
No formal VOI requirements in QLD – (excluding Section 11A of the Land Title Act 1994 and s. 288A of the Land Act 1994 place an onus on ALL mortgagees)
Significant fraud mitigation and consumer protection measure
Consistent national requirements
ARNECC MPR Guidance Note 2
Add discussion points here around storage of ID - what are you doing internally are you using the APP from an ID provider? Are you storing on a secure vault? Refer to story of screen saver

22. QLS – Guidelines for E-Conveyancing

23. e-Conveyancing Guidelines – CAF & VOI REFERENCE
2.5.5 Managing transactional risks
Electronic settlement using PEXA requires changes to current conveyancing practice. In particular solicitors will be required to take reasonable steps to verify the identity of their client and will be authorised to sign transfer documents and direct the payment of purchase money at settlement.
Solicitors should consider how the necessary changes in conveyancing practice will be managed, including
verification of identity of clients, notifications within the PEXA system or a workspace related to a transaction, new time limits for undertaking tasks, liability for stamp duty, checking for data entry mistakes, confirming accuracy of certifications at the time of signing instruments and ensuring compliance with time limits for exercising client rights prior to settlement.
A summary of issues a law practice should give consideration to appear below and are expanded further where
relevant in the Transaction Guidelines.
a. Client authorisations and Verification of Identity
A solicitor must obtain a Client Authorisation (see [3.1]) prior to signing a document (except for
a settlement notice and caveat) in PEXA. Prior to or at the time of obtaining a Client Authorisation,
the solicitor must take reasonable steps to verify the identity of their client (QPR, clause 6.5.1).
The Verification of Identity (VOI) Standard published by ARNECC Schedule 7 requires a face to
face verification of identity and the production of certain original identity documents. A solicitor who
complies with the VOI standard will be deemed to have taken reasonable steps in accordance with the
QPR, clause Compliance with the VOI Standard is not compulsory and solicitors will need to
assess the risk of non-compliance in each case where the client is unable to provide appropriate identity
documents or a face to face meeting is not possible. It may still be possible to take reasonable steps to
identify the client even though the VOI Standard is not satisfied. (QPR, clause 6.5.2). Refer also to [3.2].
A solicitor should note the obligation to undertake further investigation beyond the VOI Standard if an
identity document is not genuine or a photograph is not a reasonable likeness or the person does not
appear to be the person in the identity documents. (QPR, clause 6.5.3).
QLS
e-Conveyancing Guidelines – CAF & VOI REFERENCE
Refer Page 10 of guide
Refer to Electronic Conveyancing National Law(Queensland) 2013

24. Subscriber Compliance
Right to deal
Entitlement of a person to be a party to a conveyancing transaction
Possession of CT, rates notice, contract
Ensure client is a legal person or entity (not, for example, a superannuation fund)
ARNECC MPR Guidance Note 4

25. What if you can’t meet the VOI Standard?
Take ‘reasonable steps’:
You have to judge what is reasonable in the particular circumstances
If your client doesn’t have full documents consider an Identifier declaration, essentially a referee
Do what you are able to do – if you have done all you can and you are satisfied, in the circumstances, you are likely to be acting reasonably.
Options for conducting VOI:
Do it yourself
Use an Identity Agent
IDSecure
Australia Post
Zip ID

26. 2. That you hold the appropriate authority
The Certifier holds a completed Client Authorisation for the conveyancing transaction including this Registry Instrument or Document.

27. Subscriber Compliance
Client Authorisations
Ensure all fields are completed
Attach terms and conditions
ARNECC MPR Guidance Note 1

29. 3. That you hold the appropriate evidence
The Certifier has retained the evidence supporting this Registry Instrument or Document.

30. This is dependent on what the nature of the transaction is.
Question
Answer
Supporting Evidence
Do you have all of the appropriate documents supporting stamp duty concessions or other items certified in the conveyancing transaction?
Yes/No
This is dependent on what the nature of the transaction is.
Are they in order and retained for future examination in need?

31. 4. The correctness of what you have prepared
The Certifier has taken reasonable steps to ensure that this Registry Instrument or Document is correct and compliant with relevant legislation and any Prescribed Requirement

32. Process Changes – Lexon first point of call
Examples – refer to hand book

33. PAPER VS PEXA – WHAT CHANGES IN THE PROCESS?
Meet Jenny – Property Lawyer Meet Bob – her Conveyancing Assistant
ACTION
PAPER
PEXA
PEXA ROLE
OPEN FILE
BOB
NOT IN PEXA
REVIEW CONTRACT
JENNY
ADVICE ON CONTRACT
CONTRACT CONDITIONS
DRAFT TRANSFERS
USER
DRAFT PRIORITY NOTICE
REVIEW, SEND & SIGN TRANSFERS
SIGNER
REVIEW, SEND & LODGE PRIORITY NOTICE
BOOKING SETTLEMENT
CHECK TITLE SEARCH
SIGN OFF ON SETTLEMENT STATEMENT & CHEQUES
SIGN OFF ON SETTLEMENT INSTRUCTIONS

34. File opening checklist to create workflow
Outlines step by step process to follow, captures data at a high level view
File opening checklist to create workflow
PROCESS
Checklist to be integrated with OS so and updated by all staff who work on file
Hard copy files to have hard copy checklist
Digi files to have digi copies saved in system
Risk Management
POLICY
Refer to hand out – example only – will work depending your firm whether you are all digital – but it gives the firm a snapshot of what is occurng

35. Initial Engagement letter
Now refers to the CAF, PEXA & ID
Initial Engagement letter
PROCESS
All client to be ID’d in house using ID App and Right to deal docs saved to electronic file –CAF to be signed in house at same time as ID gathered
All clients out of office must use ID Agent and have CAF signed by ID Agent
Risk Management
POLICY
Refer to hand out – example only- consider how you will send to client – / post / pick up
Refer to Lexon Offering for further samples

36. Collection of ID Risk Management ID / Right to deal checklist
You will now record the Client ID Interview
Collection of ID
PROCESS
All inhouse ID is gathered and stored on APP and the checklist is completed by the staff member who captured ID and any additional notes made.
Right to deal is collected at same time
Risk Management
POLICY
Refer to hand out – example only – again will depend on your firm and what you have decided.
Will you use an AP will you store copies on encrypted vault – what is the security around that
Who will you manage this data
This is an example of a checklist that you could utilise – you could build it to auto pop from your operating system to get it to generate some data,
Consider the process around this – and how you will store the ID

37. Identify who will work in the workspace
Opening and using the workspace
Workspace to be opened and invitations sent open file receipt
Refer to Community to create SOP
When will you sign off
Who will double check figures
Who will sign off and when
Identify who will work in the workspace
PROCESS
Identify which roles are allocated to which staff and ensure stop checks in place
Consider policy when a staff member leaves – removal and change of passwords
Risk Management
POLICY

38. Bank Account Collection and Sharing
Sharing of Bank Account Info
You will no longer your Trust Account or ask for clients to their bank account to you
All clients are called to double check account details
Bank Account details are asked for at time of engagement and checked closer to settlement
Bank Account Collection and Sharing
PROCESS
footers are updated with warning and you notify clients in correspondence you will not send /request bank info via
Phone call prior to any funds moving to confirm
Where possible bank advance full proceeds /collect full proceeds
Risk Management
POLICY
Refer to hand out – example only – again will depend on your firm and what you have decided.
Will you use an AP will you store copies on encrypted vault – what is the security around that
Who will you manage this data
This is an example of a checklist that you could utilise – you could build it to auto pop from your operating system to get it to generate some data,
Consider the process around this – and how you will store the ID

39. OSR Stamping will change for eConveyancing
OSR Connect Stamping Process
Refer to hand out to see process in PEXA
OSR Stamping will change for eConveyancing
PROCESS
Identify the staff that are to stamp and the guidelines they are to follow
Risk Management
POLICY

40. Bill Hourigan Your trust account and PEXA - Video
Queensland Law Society
Your trust account and PEXA - Video

41. Marijana Markovic Matt Kerr Financial Institution Update
Executive Manager – Financial Institutions, PEXA
Lead - Digital Settlements, National Australia Bank
Financial Institution Update
Matt Kerr

42. Financial Institutions Summary
150 Financial Institutions Australia-wide registered with PEXA
Financial Institutions are Integrated; Workflow and Payment Integration
The industry working together to ensure an efficient digital process
Familiarise yourselves with the Industry Guidelines
Item 3: Colloboration
PROACTIVES
Banks are actively driving the market to 100 % - proactive , developments,
1# - projects, proactives, education and awareness across business and front line – internal and external contacts – monthly, predicimentonly in the mandates states (VIC, NSW) Working groups - commerical branches, commercial workspe, esa / SETTLING ACCOUNT
#2: reference to the guildiness, working groups, escalation contacts, relationships, community page, settling accont –MAKE REFERENCE TO INDUSTYR STUFF!
Banks handling escalations directly
NAB:     
Looking at a soft launch for their retail brand early March
End of March for full launch
ANZ:
Already able to answer prac calls re PEXA via normal settlement phone lines
WBC:
IVR updated to include option for retail digital settlements went live 29 January (not communicated anywhere)
Looking to extend to business banking “soon”
STG:
New IVR for digital setts to go live 1 Feb
CBA:
Potentially looking at options for opening escalation lines to pracs

43. PEXA Process Overview
Fast access to cleared funds with electronic settlement
Safe encrypted signing and funds exchanged via the RBA
Efficient settlement with real-time lodgement of documents

44. Collaboration within the workspace

45. Thank you for attending