AGENT June/July 2019 | Volume 52 Issue 3 - E st. 1961 - Institute of Mercantile Agents
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AGENT
June/July 2019 | Volume 52 Issue 3
Est. 1961
Essential reading for those involved with
Collections, Investigations, Process Serving and Repossessions in Australia www.imal.com.au
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AGENT
June/July 2019 | Volume 52 Issue 3
CONTENTS
ON THE COVER
2019 Pickles IMA National Conference 13
MEDIA & NEWS 4
8
FORUM
Australia - the small business nation 10
Close call 12
MEMBER INFO
2019 Pickles IMA National Conference 13
PROFESSIONAL DEVELOPMENT
Executing affidavits
Lessons
7
18
12
Being fair to customers 20
REGULATORY AFFAIRS
Valid licence 8
New standards for complaint handling 9
INSTITUTE
From the President: David Combrink 22
From the CEO: Alan Harries 23
13
AGENT Editor General, Membership and No part of this journal may be reproduced
or transmitted in any form or by any
June/July 2019 Volume 52 Issue 3 Contributions, articles, letters and comments Service Directory Enquiries
means, electronic or mechanical, including
from readers should be directed to: Institute of Mercantile Agents Ltd. photocopying and recording, or by any
AGENT is the official bi-monthly journal of
the Institute of Mercantile Agents Ltd. Institute of Mercantile Agents Office hours: 8.30am-5.00pm EST information storage or retrieval system without
17B Denney Street admin@imal.com.au the prior written permission of the publisher.
17B Denney St Broadmeadow, NSW 2292 The views contained in articles by contributing
admin@imal.com.au Broadmeadow, NSW 2292 Phone (02) 4927 0477 Fax (02) 4927 0677
authors are not necessarily those of the
www.imal.com.au Phone (02) 4927 0477 Fax (02) 4927 0677 PO Box 233, Waratah NSW 2298 publisher, editor or directors of the Institute of
ABN: 94 000 514 483 editor@imal.com.au Advertising Enquiries Mercantile Agents Limited. Articles and content
The material deadline is the 1st of the Phone (02) 4927 0477 Fax (02) 4927 0677 may have been edited, but remain the copyright
ISSN: 1443-3443 of the author. It should be noted that articles
ISSN: 2208-3189 (Online) month preceding publication. admin@imal.com.au are of a general nature and are not a substitute
Editorial Director Design and Production for appropriate professional advice. Although
Alan Harries Abigail Thompson all reasonable attempts have been made as to
Phone (02) 4927 0477 Fax (02) 4927 0677 Phone (02) 4927 0477 accuracy of submitted advertisements and their
bona fides, no warranty is given to any party.
akh@imal.com.au design@imal.com.au The right is reserved to accept or reject any
www.imal.com.au articles or advertisements.
www.imal.com.au | Jun/Jul 2019 | AGENT | 3
MEDIA & NEWS
SCAMS hit hard
A ustralian businesses reported more than 5,800 scams with
losses exceeding $7.2 million in 2018, a 53 per cent increase
compared to 2017, according to the ACCC’s Targeting Scams
that transfers money via bank accounts is a potential target.
Scamwatch has even received reports of the hackers intercepting
house deposits that have been sent to conveyancers, real estate
report. agents or law firms.
Much of this increase is due to the $3.8 million reported lost Small businesses with fewer than 20 staff were most likely to
to sophisticated ‘business email compromise’ scams. When be targeted by scammers and accounted for more than 75 per
combined with losses reported to the Australian Cybercrime cent of reports to the ACCC. Businesses were most likely to be
Online Reporting Network, these scams cost Australian targeted with false billing scams (1819 reports) but investment,
businesses over $60 million. hacking and phishing scams also caused significant losses.
“Scammers are hacking business email systems and “Australian businesses must protect themselves by ensuring
impersonating the intended payment recipient. The scammers their staff are aware of these scams so they can identify and
request changes to bank account details so that the business avoid them. Every business should have clear processes for
makes the payment to the scammer instead of the legitimate transferring money and a procedure for verifying requests
business,” ACCC Deputy Chair Mick Keogh said. to change bank account details that uses multiple modes of
“Depending on how long the scammers get away with this communication,” Mr Keogh said.
and how large the transfers are, this scam can be devastating Australian businesses are encouraged to visit www.scamwatch.
to a business’s bottom line - to the extent of forcing small and gov.au to learn more about scams targeting them and how to
medium businesses into closure.” protect themselves.
This scam targets businesses of all sizes and even small
local sporting clubs and community groups. Any organisation [Source: ACCC Media Release - 1 May 2019]
www.imal.com.au
4 | AGENT | Jun/Jul 2019 | www.imal.com.au
MEDIA & NEWS
PAYROLL reporting
S ingle Touch Payroll (STP) is the new way of reporting tax
and superannuation information to the ATO.
Using a solution that offers STP reporting, such as payroll
a payment summary for the information reported and finalised
through STP. Once the employer has finalised its data, its
employees or their registered agent will be able to lodge their
or accounting software, means an employer will send its income tax return using the STP information available in ATO
employees’ tax and super information to the ATO each time online services.
the employer runs its payroll and pay its employees. Such
information is sent to the ATO either directly from the Want to know more?
employer’s software, or through a third party such as a sending If as an employer, you are unsure whether STP is available
service provider. through your payroll or accounting software, the ATO has
Employers will be reporting super liability information through available online a list of the approved solutions offered by
STP for the first time. Super funds will also be reporting to software providers – visit https://api.gov.au/productregister.
the ATO advising when the employer makes the payment to Most major accounting software packages efficiently handle the
its employees’ chosen or default fund. This is regarded as an setup for STP.
important step toward making sure employees are paid their A range of no-cost and low-cost STP solutions has also been
correct entitlements. developed for micro employers (those with 1-4 employees) who
ATO systems will match the STP information to its employer need to report through STP but do not currently have STP
and employee records. ready software - the no-cost or low-cost solutions may include
Employees will be able to see their year-to-date tax and super mobile apps, simple reporting solutions and portals and were
information in ATO online services, which can only be accessed required to be affordable (costing < $10 per month), take
through myGov. Their data is updated every time the employer only minutes to complete each pay period and not require the
reports (each pay day for most employers). employer to maintain the software.
At the end of the financial year, each employer will need to Large employers with 20 or more employees are required to be
finalise its STP data - this is a declaration to state the employer now reporting through STP or have applied for a later start date,
has completed its reporting for the financial year. An employer whilst small employers with 19 or less employees will need to
will not need to provide to the ATO a payment summary annual report through STP from 1 July 2019.
report (PSAR) at the end of the financial year for the payments Visit www.ato.gov.au/Business/Single-Touch-Payroll for more
reported through STP. information.
Importantly, employers will no longer have to give employees [Source: www.ato.gov.au]
CREDIT reporting
P art IIIA of the Privacy Act 1988 (Privacy Act) regulates consumer credit reporting in Australia. Part IIIA is supported by the
Privacy Regulation 2013 and the Privacy (Credit Reporting) Code 2014 (CR Code).
One of the objects of the Privacy Act is to facilitate an efficient credit reporting system while ensuring that the privacy of
individuals is respected. In recognition of that objective, the laws about credit reporting are intended to balance individuals’
interest in protecting their personal information with the need to ensure that credit providers have sufficient information available
to assist them to decide whether to provide an individual with credit. The Australian credit reporting system also helps ensure that
credit providers are able to comply with their responsible lending obligations under the National Consumer Credit Protection Act
2009 administered by the Australian Securities and Investment Commission (ASIC).
To achieve this intention, Part IIIA of the Privacy Act regulates the handling of personal information about individuals’ activities in
relation to consumer credit. In particular, Part IIIA outlines:
• the types of personal information that credit providers can disclose to a credit reporting body (CRB), for the purpose of that
information being included in an individual’s credit report;
• what entities can handle that information; and
• the purposes for which that information may be handled.
The registered CR Code
The Privacy (Credit Reporting) Code 2014 (CR Code) is a mandatory code that binds credit providers and CRBs. The CR Code
supplements the provisions contained in Part IIIA of the Privacy Act and the Privacy Regulation 2013. Importantly, a breach of the
CR Code is a breach of the Privacy Act.
CR Code variation approval
On 29 May 2018, the Acting Australian Information Commissioner approved a variation to the CR Code. This follows an
application by the Australian Retail Credit Association on 26 April 2018 (and an amendment to the application dated 28 May 2018),
for variation of the registered CR Code in accordance with section 26T of the Privacy Act 1988.
More information is available at www.oaic.gov.au/privacy-law/privacy-act/credit-reporting. ■
[Source: www.oaic.gov.au]
6 | AGENT | Jun/Jul 2019 | www.imal.com.au
PROFESSIONAL DEVELOPMENT
EXECUTING affidavits
Members involved in process serving and in debt collection litigation will be quite
familiar with the use of affidavits as evidence in court proceedings. The AGENT
revisits some general principles around the execution of affidavits.
T he person who makes an affidavit is called the deponent.
When witnessing an affidavit, an authorised witness such
as a Justice of the Peace must hear the deponent swear an oath
the best of your knowledge and belief?’
The deponent must give an affirmative response such as
‘I do’, ‘Yes’ or (if unable to speak) a physical sign such as
or make an affirmation. nodding.
An oath is a binding promise, based on the deponent’s or:
religious or spiritual beliefs, to tell the truth. Deponent (before the JP): ‘I solemnly, sincerely and truly
An affirmation is a binding and solemn promise to tell the declare and affirm that the contents of this my affidavit are
truth. It has the same legal effect as an oath, but does not refer true and correct to the best of my knowledge and belief’.
to God or another sacred being or object.
After the deponent swears an oath or makes an affirmation, the Witnessing
deponent and the authorised witness complete the section at A JP is required to witness the deponent signing the jurat in
the end of the affidavit. This section is called the jurat. front of him/her - the deponent and the JP must be at the same
Various parties may witness an affidavit including Justices of place at the time of executing the affidavit. If the affidavit has
the Peace (JPs) who are appointed pursuant to state or territory already been signed before the deponent presents the document
legislation. to be witnessed, the JP cannot witness that signature but can
As an example, a person appointed a Justice of the Peace in NSW watch the deponent putting a fresh signature on the affidavit after
is entitled to witness an affidavit required for the purpose of: first ruling a line through the unwitnessed signature with the JP
• any Australian court or tribunal, or and deponent each initialling alongside the ruled out signature.
• the registration of any instrument in Australia, or What is required of JPs is dependent upon the jurisdiction
• any arbitration in Australia where appointed – as an example JPs in NSW are able to
provided that the affidavit is signed and witnessed in NSW. download a comprehensive JP Handbook from www.jp.nsw.gov.
It is an offence, and penalties apply, for: au which helpfully provides step by step instructions as to their
• a deponent who makes a false affidavit duties and responsibilities. ■
• an authorised witness in NSW who witnesses an affidavit [Source: Justice of the Peace Handbook
and fails to follow the required steps for identifying the published by the NSW Department of Justice]
deponent namely to:
i. See the deponent’s face
ii. Confirm the deponent’s identity (either having known
AAC PROCESS SERVERS
the deponent for at least 12 months or having sighted AND INVESTIGATIONS
an approved identification document or a certified copy
of such a document)
iii. Certify having seen the deponent’s face and confirmed
his or her identity (as detailed in i and ii above)
Oath or affirmation Our reputation is built on over 27 years
If a deponent chooses to take an oath, it may but does not of excellent service and reliability
have to refer to the person’s religious or sacred belief (eg ‘God’,
‘Buddha’ etc). It is not necessary for the deponent to hold Process Serving Providing mercantile services
a holy book when swearing their oath, but the deponent may for the whole of Western
Repossessions
choose to do so. Australia has its challenges
Acceptable forms of words for an oath include: Field Calls
due to the size of the state
JP: ‘Do you swear that the contents of this your affidavit are Skip Tracing and the remoteness of its
true and correct to the best of your knowledge and belief?’
Lockouts country communities.
The deponent must give an affirmative response such
Court Filing AAC however has the ability
as ‘So help me God’, ‘I do’, ‘Yes’ or (if unable to speak) a
physical sign such as nodding. to service the entire state in
Investigations providing field services for its
or:
Deponent (before the JP): ‘I swear that the contents of Occupancy Reports customers.
this my affidavit are true and correct to the best of my
knowledge and belief’ Level 3, 231 Adelaide Terrace, Perth WA 6000
If the deponent chooses to make an affirmation, two acceptable Phone: (08) 9325 3855 Fax: (08) 9325 3835
forms of words are: Mail: PO Box 6157, East Perth WA 6892
JP: ‘Do you solemnly, sincerely and truly declare and affirm Web: www.aacprocess.com.au
that the contents of this your affidavit are true and correct to Email: admin@aacprocess.com.au
www.imal.com.au | Jun/Jul 2019 | AGENT | 7
REGULATORY AFFAIRS
VALID licence
K eeping track of the licensing status
of employee and contractor agents
can be a tedious task at times - not
and process serving. Brendan introduced
Xavier to other commercial agencies in
NSW and interstate for whom Brendan
By this point, Xavier had been working
for quite a time having handled some
700 process serving assignments and
only to have an up to date record for did work and they too commenced to use approaching 600 field calls.
the purposes of the commercial agency Xavier on their matters from time to time. Xavier through his solicitor initially
firm but also to keep clients informed in Several of those other commercial defended the charges but when the
accordance with obligations to do so for agencies asked for and received a copy matter came before the Local Court at
various service level agreements. of what Xavier believed to be his CAPI Downing Centre in May 2019, Xavier
In recent times, several NSW agencies licence, while others just accepted entered into a plea agreement admitting
believing they were aware of the licensing Brendan’s word that Xavier held a licence. he had recklessly failed to make proper
status of each of their agents discovered None of them made any enquiries of enquiries as to his CAPI licence status.
they were caught up in a nightmare SLED to confirm Xavier’s licence status. He was convicted and placed on a 1-year
involving the licence of an individual Those who received the copy licence good behaviour bond. Xavier will not be
contract agent. either did not inspect it or else failed to entitled to now apply for a CAPI licence.
Their experience offers a valuable realise it was a forgery. The Police who dealt with Xavier
lesson for all agencies. Over time, the other agencies increased explained that the other commercial
The licensing nightmare involved a their work assignments to Xavier, agents who had engaged him were also
contract agent, let’s call him Xavier. preferring him due to his attitude and prima facie guilty of offences relating to
Xavier was middle aged but new performance over Brendan. Brendan using unlicensed persons to do their work
to the industry and introduced by apparently in retribution decided to and that consideration will be given to
an experienced long-term industry complain to SLED that Xavier was charging those parties.
contractor, whom we’ll refer to as working as a commercial agent whilst Additionally, SLED and the Police have
Brendan. not holding a CAPI licence. Yes, that’s turned their attention to Brendan’s part
Brendan operated a commercial agency right the party who created the forged in this sorry mess. It appears he was the
with a master CAPI licence issued by the licence and duped Xavier to believe he fraudster and that Xavier and the other
NSW Security Licensing Enforcement was licensed was the one who reported agencies are the victims of his fraudulent
Directorate (SLED). He recruited Xavier him to SLED. activities.
and explained he would employ him and Subsequently, Police acting under The lesson from those who have been
seek a probationary licence as an operator SLED’s instructions interviewed Xavier caught up in this mess is to pay proper
for him through SLED. to determine his activities – he was regard to verifying the continuing licence
It was later discovered Brendan had charged with offences relating to working status for each of your employee and
submitted three applications for Xavier as a commercial agent whilst unlicensed. contract agents. ■
to obtain a probationary licence but
each was rejected by SLED as being
incomplete. Some defects related to
whether Xavier was employed by Brendan
and in another application, there was a
failure to declare any past convictions.
It seems Xavier was unaware of all these
applications as the correspondence was
being directed to Brendan’s address,
who was opening and responding to the
letters. Eventually, Brendan presented
to Xavier what Brendan claimed to be
his CAPI Probationary Licence but later
on closer examination was found to be
an NSW driver’s licence fraudulently
amended to purport to be a CAPI licence
in Xavier’s name.
Xavier had never been issued a CAPI
licence before and had never seen one
previously - he accepted it from Brendan
believing it to be the genuine licence.
Xavier made no enquiries of CAPI to
confirm the issue of a licence to him nor
was he provided by Brendan with any of WHAT’S THAT? YOU DON’T
the SLED correspondence.
Brendan commenced to use Xavier to HAVE A VALID LICENCE?
do field agency work including field calls
8 | AGENT | Jun/Jul 2019 | www.imal.com.au
REGULATORY AFFAIRS
NEW standards for complaint handling
A SIC has initiated public consultation
on new standards about how financial
firms handle consumer and small
explanation from the financial firm
of the decision made against them.
The consultation covers:
business complaints. The proposed • proposed updates to ASIC’s IDR
standards, which include new mandatory standards (currently set out in
data reporting, are intended to improve Regulatory Guide 165 Licensing:
the way that consumer complaints are
Firm performance in how Internal and external dispute
dealt with across the financial system they handle customer resolution); and
and make firms’ complaints handling complaints, and their • the proposed framework for
performance transparent. mandatory IDR data reporting by
Financial firms will be required by ASIC
interaction with AFCA, financial firms to ASIC.
to meet the new standards when they will increasingly be in The proposed new standards and data
deal with consumer complaints through plain sight. reporting requirements are intended
their Internal Dispute Resolution (IDR) to continue to forge the effective
arrangements. This greater transparency relationship between IDR and the work
IDR is the first step in the complaints will inform consumer of AFCA, the independent external
handling process – an opportunity for complaints scheme.
the financial firm to investigate, resolve and broader public Ms Chester said, “Firm performance
or redress a problem before a consumer understanding of how in how they handle customer
or small business can escalate their well firms treat their complaints, and their interaction with
complaint to the Australian Financial AFCA, will increasingly be in plain
Complaints Authority (AFCA). All customers. sight. This greater transparency will
financial firms (including banks, insurers, inform consumer and broader public
credit providers, advisors and most by ASIC and findings from aspects of understanding of how well firms treat
superannuation funds) are required by ASIC’s new onsite supervisory program their customers. For a regulator, it also
legislation to have an IDR system that - Close and Continuous Monitoring - provides an invaluable insight into how
meets ASIC’s standards. which is currently reviewing IDR policies, non-financial risks are being managed by
Announcing the consultation, ASIC practices and procedures in Australia’s the firm and ultimately the Board. ASIC
Deputy Chair Karen Chester said, “It is five largest and most complex financial expects greater investment and attention
widely acknowledged there is room for services institutions. by Boards to their own internal customer
much improvement when it comes to ASIC’s consumer research – The complaints data and complaints handling
handling consumer complaints in our consumer journey through the IDR performance.”
financial system. The Ramsay Panel process of financial service providers Some key elements of the new standards
Review, recent ASIC research, case – published in December 2018, found that ASIC is seeking feedback on include:
studies before the Financial Services evidence of ‘consumer fatigue’ and IDR • reducing maximum time frames for
Royal Commission (FSRC) and our shortcomings, including: IDR responses;
own supervisory work have all identified • while 17% of Australians surveyed • what constitutes a complaint,
shortcomings in consumer complaints considered making a complaint to including if received by way of a
handling.” a financial firm in the preceding 12 firm’s social media
“Consumers expect and need a fair, months, only 8% went on to lodge a • setting clear standards about what
timely and effective way to have their complaint; should be in written reasons for
complaints dealt with, and to be provided • 18% of surveyed complainants decisions;
redress where appropriate. The absence dropped out or withdrew their • strengthening the requirement
of such effective redress, and the failure complaint before it was concluded; that firms take a systemic focus to
of firms to identify and look into systemic • the length of time taken by a complaints handling; and
complaints, were key findings of the financial firm to conclude a • the details of the new framework for
FSRC and the Prudential Inquiry into the complaint significantly affected recurrent complaints data reporting
CBA.” consumer satisfaction; to ASIC.
“With the benefit of broad consultation, • one in seven complainants found it ASIC is seeking public input on the
ASIC’s new standards will lift complaints difficult to find the financial firm’s consultation documents available at www.
handling performance of firms and details to make a complaint; asic.gov.au by 9 August 2019 and aims
ultimately consumer outcomes and • almost a quarter of complainants did to release new IDR standards (in a new
fairness of the financial system. And not have the IDR process explained Regulatory Guide 165) by the end of
transparently so. These standards will well at first contact and 27% were 2019. A further, separate consultation
also apply in their entirety to all APRA unsure how long they would have to on the publication of IDR data will
regulated superannuation funds”, Ms wait for a decision; and commence in early 2020. ■
Chester said. • critically, only 45% of complainants
The proposed new standards have been who received an unfavourable [Source: ASIC Media Release
informed by recent consumer research outcome reported receiving an - 15 May 2019]
www.imal.com.au | Jun/Jul 2019 | AGENT | 9
FORUM
AUSTRALIA - the small business nation
Australia has always been an entrepreneurial nation, with small business the
backbone of the economy and the labour force. Rebecca Hall of McCrindle
Research reports the Australian spirit of independence, a DIY attitude and the
courage to give things a go are strongly demonstrated in these latest business
statistics.
O f all Australian businesses, 88%
employ 4 people or less.
The tough economic times and the
• Rental, Hiring and Real Estate
Services (252,249 businesses).
Of the 2.3 million plus businesses, 93%
3. Digital presence - Businesses must
have a digital presence. Especially
for Gen Y (1980 – 1994) and Gen Z
terrain in which small businesses operate have an annual turnover of less than $2 (1995 – 2009), if businesses are not
is having an impact, however, with only million. online, they don’t exist, as much of
half (54%) of new businesses surviving 4 their world is online.
years in operation. For many Australians, State V State Having a website that is easy
the entrepreneurial dream is still alive but The number of businesses has to navigate, up to date and well
as demonstrated by the survival rates of increased in all States and Territories, but presented along with a social media
new businesses, without better support, NSW and VIC lead the way with almost platform is vital for reaching and
only a minority will achieve success. two-thirds (783,050) of all businesses. connecting with potential customers.
Victoria experienced the largest annual 4. Local infrastructure - One of the
Small businesses still dominate growth with 27,353 new businesses. top demands of small business is
Small businesses continue to dominate Businesses in the ACT are experiencing local infrastructure provision (strong
the Australian economy, with 99.8% of all the revolving door effect as the Territory public transport links, availability
Australian businesses considered a small has the highest entry rates (18%) but of public parking, connections to
to medium enterprises. Three in five also the highest exit rates (13%). Even uncongested roads and high-speed
businesses (62%) are non- employing, so, the ACT has the second highest internet).
with 98% of all Australian businesses growth rate after Victoria. On the other Business owners list infrastructure
employing less than 20 people. end of the scale is Tasmania, with the investment which responds to the
The most common size for an lowest entry (12%) and exit rates (10%). changing needs of a local area as a
employing business is to employ between key factor in their survival.
1-4 employees which makes up 71% of Emerging trends to expect in the 5. Staff - Attract and retain top talent
employing businesses. 2020s by understanding what the younger
There is a movement of businesses Employing around half the work force, generations look for in the work life.
away from all employing size categories the Australian small business sector Gen Y and Gen Z have different
(1-4, 5-19, 20-199 and 200+) towards is critical to the economy, adding $380 priorities and are attracted by more
the non-employing category, the only billion annually to GDP. than just the pay.
category to experience an increase in Some of the most desired attributes
2017-18 (up 5%). The Top 5 Survival Challenges of a workplace are bosses that
1. Red tape - One of the difficulties for provide are:
Tough conditions and almost half of small businesses is the time and cost • flexible working hours
new businesses don’t survive requirements related to compliance, • a sense of purpose
Highlighting the tough business legislation and regulations. What’s • competitive wages
environment, of all the new businesses more, it is on the rise and negatively • collaborative leadership style
started 4 years ago, almost half (46%) are impacting on small businesses. • variety of work
no longer operating. Of the more than 2 Two in five business owners and • realistic workloads. ■
million businesses operating in Australia managers (41%) say red tape and
4 years ago, one in three no longer exist compliance costs have an extreme or This article reproduced with the kind
(36%), with established businesses significant impact on their business permission of McCrindle Research Pty
being more likely to survive than new performance. Limited. McCrindle is an Australian
businesses. The longer a business is 2. Access to finance - The Royal based social research, demographics and
in operation the higher its chances of Commission’s recommendations for data analytics agency. Their research
survival. the big four banks will result in the methodologies include national surveys,
tighter lending criteria. As we know, population modelling, and qualitative
Top 3 industries with the highest cash is king so small businesses may research including in-depth interviews
number of businesses struggle as a result of these tougher and discussion groups. McCrindle’s
• Construction (383,326 businesses) requirements. Communications & Research Executive
• Professional, Scientific and Increasing expenses, both general Rebecca Hall can be contacted by phoning
Technical Services (280,425 operating costs and wages are also a 02 8824 3422 or by emailing rebecca@
businesses) challenge for small businesses. mccrindle.com.au.
10| AGENT | Jun/Jul 2019 | www.imal.com.auFORUM www.imal.com.au | Jun/Jul 2019 | AGENT |11
FORUM
CLOSE call
Sal Roppolo of IMA member POLO CPI shares with the AGENT a recent
experience of one of the firm’s field agents when taking possession of a house for
a mortgagor in the suburbs.
BANG! The front door slammed shut. “Where’s Jacob?” asked 002 002 and the locksmith approach the house
Loud footsteps clapped from the house. The couple shrugged their shoulders. and enter through the broken garage door.
The clear, unmistakable sound of cutlery Nearing 80 and frail, it was highly unlikely They walk into the garage and open the
rustling rang out. they had broken in by themselves. Perhaps internal door into the house just enough to
The next thing the POLO CPI field agent Jacob had been let go by police? Or flash a torch and make sure it is safe.
(let’s call him 002) heard was “Drop the something else was up? The sharp glint of a knife catches on the
knife! Drop it!” Due to the couple’s age and the layout of light. Then a thin, shadowy figure. Jacob.
A tense few minutes of silence followed. the three-storey home it took hours for 002 slams the door shut and thinks “we
It was a sunny autumn day when 002, the family to pack some of their things and could see him. He didn’t have enough time
ventured south of the city to take leave. By the time they were done, it was to see us. How do we get out of this?”
possession of a house with Sheriff’s nearing dark and the locksmith was not 002 shouts out. His gravitas is no less now
Officers in accordance with a Supreme available to change the locks (again) until than it was during his days as a cop.
Court Order. It is not uncommon, in our later that evening.
“Put the knife down in the corner and lay
line of work, to meet some resistance to So, 002 stayed to secure the premises. on the ground.”
this unpleasant task but scarcely are threats And waited. And waited.
Jacob scampers as he lies in the centre of
of violence any more than threats. Not A figure scurried towards the house from a the room.
today though. nearby fence - it was Jacob.
Silence.
As is common practice, 002 and our “Oi.”
locksmith waited by their cars outside the 002 steps away from the door as the
“I just want to get my passport and birth locksmith holds it shut. 002 calls the
property, while the Sheriff moved inside to
certificate. They’re on the kitchen bench.” police, thinking if Jacob hears this, he’ll
evict the occupants.
“In and out.” know it’s just two unarmed men he’s up
The men knew something was up as they
002 recalls seeing those documents, face against.
saw part of the family who lived at the
premises making a quick getaway. The up on the counter inside the house. He It takes 8 minutes for the police to arrive
aggressor, let’s call him Jacob, lived with his follows Jacob inside as he collects the and arrest Jacob. The house is secured and
elderly parents and an autistic brother in his documents and follows him back out. the locks are successfully changed - again.
30s. An addiction meant the mortgage was “Won’t be seeing you again?” asked 002. The quick thinking and ingenuity of 002
no longer being paid. The family perhaps “Nah, mate. Nah.” says Jacob who then saw a potentially lethal situation diffused
foresaw the conflict that was to come. departs. and a violent confrontation avoided. ■
It was an immense relief to 002 and the
locksmith, not knowing if the Sheriffs
Re-securing the premises POLO CPI with offices in Sydney, Brisbane
had been injured or harmed, when they
returned into view unscathed. The police Night falls. It is dark. The locksmith finally & Adelaide provide services nationally –
were called - they arrested the aggressor arrives to change the locks and secure the for details visit www.polocpi.com.au. Sal
and the team moved in to change the rear window and door. The house casts
Roppolo can be contacted on 02 9223 3380
locks and secure the premises. 002, the an eerie shadow over the quiet suburban
or by emailing sal@polocpi.com.au.
Sheriffs and our locksmith then departed street.
the property.
Supervised access
Unfortunately, this eviction process meant
the previous occupants had to return to
the house at an arranged time to collect
their personal effects. Part of 002’s job
was to provide supervised access for
these previous occupants to collect any
remaining personal items.
This meeting was scheduled and upon
arrival, 002 was shocked to find the
previous occupants were already in the
house. The garage door had been forced
open and the elderly couple were already
inside packing their possessions. 002 “Put the knife down in the corner
inspected the house and observed a
window smashed at the rear of the house and lay on the ground”
and the rear door off its hinges.
12| AGENT | Jun/Jul 2019 | www.imal.com.auMEMBER INFO
2019 PICKLES
IMA NATIONAL CONFERENCE
Adelaide Convention Centre
13-14 June 2019
www.imal.com.au | Jun/Jul 2019 | AGENT |13MEMBER INFO
WHAT’S HAPPENING?
DAY ONE - TOURIST DAY
Thursday June 13, 2019
8.45 am Adelaide Hills Tour
Meet at the Adelaide Convention Centre at 8.45 am (departure is 9.00 am sharp).
Tour ends at 4.30 pm when the coach drops delegates back to the Adelaide Convention Centre.
6.30 pm Network Drinks
Sponsor: Access Mercantile
8.00 pm Delegate at leisure to make own arrangements
DAY TWO - CONFERENCE SESSIONS
Friday June 14, 2019
8.30 am Welcome Coffee
Sponsor: AusDetect
9.00 am Welcome & Opening Remarks
9.05 am Session 1a - Buying and Selling - Some Realities
Jody Wright, JB Financial Group
9.50 am Session 1b - Buying and Selling - Pitfalls and Opportunities
Panel session
10.20 am Morning Coffee
c tk
e or
Sponsor: Risk & Security Management
10.55 am Session 2 - Legal Developments
n n netwnities
o to tu
Chris Wellington, Wallmans Lawyers
cagues ppor
l l e ng o
y co goi
s tr on
i n du and
e et ew
m or n
f
14| AGENT | Jun/Jul 2019 | www.imal.com.auMEMBER INFO
2019 PICKLES
IMA NATIONAL CONFERENCE
11.40 am Session 3 - Outsourcing
Wayne Bucklar, Cloudstaff
12.10 pm Lunch Break
1.15 pm Session 4 - Cyber Awareness
Jo Stewart-Rattray, BRM Holdich
2.15 pm Session 5 - Unlocking the Value in Your Data
Stuart Edwards, Hut4 Data Science
3.00 pm Afternoon Coffee
Sponsor: Risk & Security Management
3.30 pm Session 6 - PPSR Awareness
Jane Nitschke, Australian Financial Security Authority
4.00 pm Session 7 - Field Agents Forum
Panel session
5.00 pm IMA Annual General Meeting
All members welcome
5.30 pm Close of sessions & break prior to Conference Dinner
7.00 pm Conference Dinner
lea
str
to ong
rn
bu pr
ild og
on ram
yo
ur of in
kn du
ow st
led ry s
ge pea
k ers
www.imal.com.au | Jun/Jul 2019 | AGENT |15MEMBER INFO
2019 PICKLES
IMA NATIONAL CONFERENCE
THANKS
to our sponsors & exhibitors
ACCESS MERCANTILE AGENCY
16| AGENT | Jun/Jul 2019 | www.imal.com.auwww.riskandsecurity.com.au
PROFESSIONAL DEVELOPMENT
LESSONS
Australia’s Notifiable Data Breaches scheme has now
been in operation for 12 months. Australian Information
Commissioner and Privacy Commissioner Angelene
Falk recently shared lessons learned through the
scheme.
D ata breaches involving personal
information may be prevented
through effective training and enhanced
Falk told the Privacy Awareness Week
Business Breakfast.
“Our report shows a clear trend towards
Angelene Falk
systems, analysis of the first 12 months of the human factor in data breaches - so “The requirement to notify individuals
mandatory notifications reveals. training and supporting your people and of eligible data breaches goes to the core
Releasing the Notifiable Data Breaches improving processes and technology are of what should underpin good privacy
12-month Insights Report at the start of critical to keeping customers’ personal practice for any entity - transparency and
Privacy Awareness Week in Sydney on 13 information safe.” accountability.”
May 2019, Ms Falk called on regulated “After more than 12 months in “It’s also an opportunity for
entities to heed its lessons. operation, entities should now be well organisations to earn back trust by
“By understanding the causes of equipped to meet their obligations supporting consumers effectively to
notifiable data breaches, business under the scheme, and take proactive prevent or manage any potential harm
and other regulated entities can take measures to prevent breaches of personal that may result from a breach.”
reasonable steps to prevent them,” Ms information.”
18| AGENT | Jun/Jul 2019 | www.imal.com.auPROFESSIONAL DEVELOPMENT
The Notifiable Data Breaches scheme requirements,” the Commissioner said.
was introduced in February 2018. The report shows a clear “Over the past year we have worked with
Insights Report examines the first four more than 1,000 organisations reporting
trend towards the human
quarters of statistics from the scheme, a breach, either voluntarily or under the
and shows that: factor in data breaches mandatory NDB scheme.”
• 964 eligible data breaches were “Our priority has been to ensure the
notified to affected individuals and • The remaining 5 per cent of all breach was contained and rectified,
the OAIC from 1 April 2018 to 31 notifiable data breaches involved affected individuals were informed
March 2019: system faults so they could act swiftly, and that
• 60 per cent of breaches were traced • 168 voluntary notifications were also measures were put in place to prevent a
back to malicious or criminal attacks received by the OAIC, where the reoccurrence.”
• The leading cause of data breaches reporting threshold or ‘serious harm’ “This approach has been successful in
during the 12-month period was test was not met, or the entity was not elevating the security posture in those
phishing (people tricked into regulated under the Privacy Act. organisations and increasing transparent
revealing information such as Ms Falk said her Office would and accountable personal information
passwords) causing 153 breaches continue to take a proportionate and handling practices.”
• More than a third of all notifiable evidence‑based regulatory approach to The Notifiable Data Breaches 12-month
data breaches were directly due to data breaches, exercising enforcement Insights Report can be downloaded from
human error powers where necessary. the OAIC website, along with the latest
• That includes personal information “Our focus during the first year of the quarterly statistics report for January to
being emailed to the wrong scheme has been on raising awareness March 2019. ■
recipient, which caused 97 data of how to prevent and respond to a [Source: OAIC Notifiable Data Breaches
breaches, or one in ten data breach, and comply with the new Scheme 12‑month Insights Report]
www.imal.com.au | Jun/Jul 2019 | AGENT |19PROFESSIONAL DEVELOPMENT
BEING fair to customers
Being fair to customers is a positive legal obligation of Australian Financial Services
Licensees and Credit Licensees (together with being efficient and honest) with significant
penalties for a breach.
Fairness however is not defined. The Banking Code has standards and examples of fairness.
According to ASIC Chair James Shipton:
“Fairness means doing what’s right; it’s the quality of being reasonable and just…
From a legal perspective, existing case law suggests fairness is the ethical performance of
functions in accordance with professional standards. This would include observance of common
law, fiduciary and statutory duties…
Fairness also connotes a requirement of competence in providing advice…
The core statutory obligation on licensees to act ‘efficiently, honestly and fairly’ implies an David Jacobson
element - not just of even handedness in dealing with consumers - but also the concept of sound
ethical values and judgment in matters relevant to a consumer’s affairs.”
Royal Commissioner Hayne noted in his Final Report that acting fairly is also reflected in the provisions of the Australian Securities and
Investment Commission Act 2001 (Cth) (the ASIC Act) about misleading or deceptive conduct, false or misleading representations,
unconscionable conduct and unfair contract terms.
He observed:
“There remains unwillingness, in at least some entities, to recognise and give effect to the obligation to ensure that the relevant services
are provided efficiently, honestly and fairly, without first having the regulator agree with what the entity judges to be required in order to
meet that standard.
That is, there remains a reluctance in some entities to form and then to give practical effect to their understanding of what is ethical, of
what is efficient honest and fair, of what is the ‘right’ thing to do. Instead, the entity contents itself with statements of purpose, vision or
values, too often expressed in terms that say little or nothing about those basic standards that underpin both the concept of misconduct
and the community’s standards and expectations.”
The task for licensees is to ensure staff are trained adequately to understand the fairness obligation. ■
Source: www.brightlaw.com.au - 25 April 2019: David Jacobson of Bright Law is an Australian Commercial & Financial Services
Lawyer and can be contacted by phoning: 07 3878 5098 or emailing: djacobson@brightlaw.com.au.
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BUSINESS
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HERE
National President
David Combrink
Ph: (08) 9409 4088
nationalpresident@imal.com.au
Your Repossession and National VP Administration
Daniel Taylor
Field Services Specialists for Ph: (02) 8568 6500
Newcastle - Central Coast nationalvpadmin@imal.com.au
NSW Mid North Coast National VP Finance
North West NSW Damian Crowley
Ph: (07) 3264 3111
02 4955 1525 nationalvpfinance@imal.com.au
Your fast, reliable agency
admin@rapidcommercial.com
Servicing country Victoria Immediate Past National President
www.rapidcommercial.com and southern NSW Basil Faulkner
Ph: (08) 9325 3855
Lic No. 409785819 admin@centralvicmerc.com.au nationalpastpresident@imal.com.au
www.centralvicmerc.com.au
CEO
Alan Harries
Call 1800 270 642 Ph: (02) 4927 0477
akh@imal.com.au
or visit ajg.com.au/ima
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for all your insurance Additional contacts are available at
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www.imal.com.au | Jun/Jul 2019 | AGENT |21FROM THE PRESIDENT
COMPASSION
IMA President David Combrink looks at delivering
fairness in situations of hardship where sensitive
information is involved.
we should never be so result driven that we proceed
at the cost of what is humane and fair
David Combrink
I n our line of work, we are often faced
with a moral dilemma. Should we do
the job without thought of consequence
Although this was 3rd party information,
the customer’s father advised he agreed
that our agent pass this information onto
when their circumstances change
because of hardship factors.
Hoping to see seeing you at the National
or should we report our initial findings our client. In order to do so, we had to Conference in Adelaide on 13 & 14 June -
before we proceed with finalising the be extremely careful not to breach privacy it’s not too late to book your spot but you
client’s instructions? legislation. really need to act now.
It would be safe to say in most cases We managed to get the customer’s
we proceed with the task at hand, as it father approved as an Authorised Third Kind regards,
is our chosen profession. We carry out Party (ATP). The ATP obtained written
our instructions to the benefit of our and approval from the customer to disclose
our client’s brand, but then there are his medical condition to the financier.
exceptions: we should never be so result The hardship application was started and David Combrink
driven that we proceed at the cost of what eventually approved by our client.
is humane and fair. Basically, the financier froze the
There has been a shift in the financial customer’s account for 6 months to
services industry in respect to the criteria be reassessed then, with no further
of what is construed as fair. We should immediate action required.
be on the same page with our clients The agent was paid a full result fee and
with regards to identifying hardship the job was closed. A fair outcome. Fair
and always do right by them, and their to the customer and fair to the agent, who
customer. delivered a very considerable contribution
My office recently had a regional file in identifying the hardship situation and
where the agent could not establish finalising the hardship assessment.
contact with the customer even after Herein lies the catch. This client
numerous attendances. The security financier pays a fee for a full result for
vehicle was parked in the driveway, files that close because of Hardship
behind a locked gate. Neighbours Assistance approval and this is in very
reported that it is “very quiet next door” stark contrast to other financiers who
and specifically that the customer had not insist on paying a reduced fee for similar
been seen in 6 weeks. Given these ‘facts’ files or else simply place the agent on
all it would take for the agent to obtain hold for unreasonably long periods.
a result for the client would be to get a In the example detailed above, the
court order approval from our client and agent did an exceptional job and showed
repossess the vehicle with court orders great moral fibre by being fair, humane
in hand. and reasonable to a fellow human, whilst
Basic skip work showed the customer protecting the client’s brand.
was most likely still at the address and On any reasonable basis, this could only
that the security has not been abandoned. be rewarded by paying the agent a full
A return call to the agent from the result fee, not a reduced fee.
customer’s nearest living relative - his Currently there is a strong push by
father - provided some answers. The regulators including ASIC, ACCC and
father advised the customer has a serious AFCA to re-cast the definition of fairness
mental illness and is basically living as in financial services.
a recluse, only leaving the house for I don’t know what the regulators think,
much needed psychiatric appointments but personally, I respect financiers who
fortnightly or to get a refill of his compassionately stand by their customers
medication.
22| AGENT | Jun/Jul 2019 | www.imal.com.auFROM THE CEO
FAIRNESS
IMA CEO Alan Harries comments on the focus on
‘fairness’ and what members can expect at the 2019
Pickles IMA National Conference.
the ‘lens’ of fairness will increasingly be the performance
criteria through which services are assessed
Alan Harries
I f following the developments of the
financial services industry and the
activities of the regulators post the recent
AGM
The National AGM will be in Adelaide
on Friday 14 June 2019 at 5.00pm –
evening Again, in shaping the event, we
have aimed at providing opportunities for
delegates to meet, network and consider
Royal Commission, you will be aware nominations for all executive positions practical ideas to take back to their
the concept of ‘fairness’ is very much in will be called for at the AGM. businesses. The valued and continuing
focus. The outgoing executive members support of our sponsors, exhibitors and
ASIC’s Chairman James Shipton are thanked for their respective efforts speakers is acknowledged and very much
recently said: “fairness means doing over the past year and best wishes are appreciated.
what’s right, it’s the quality of being extended to those who take on the roles Delegates especially those attending a
reasonable and just…” for the year ahead. National Conference for the first time are
The clients of our industry as either encouraged to make the most of the total
Australian Credit Licensees or Australian Conference time! experience by using the opportunity to
Financial Services Licensees have an As detailed at pages15-18 arrangements get involved to meet and chat with your
obligation to ensure their services are for the 2019 Pickles IMA National industry colleagues - I know from my own
provided “efficiently, honestly and fairly”. Conference in Adelaide on 13 & 14 June experiences and also from what members
As service providers to those clients, 2019 are finalised. In the last few days repeatedly tell me, the relationships you
such obligations attach to the work of our before the event, the National Office form at IMA conferences will serve you
sector. team are tending to the remaining well in the years ahead.
As noted at p9, ASIC is introducing preparations before heading over to I look forward to catching up with
new standards in relation to complaint SA. I congratulate Abbie for her great members at the 2019 Pickles IMA
handling specifically for the Internal design work on the event brochure and National Conference.
Dispute Resolution (IDR) processes messages, about which many of you have
of our sector’s clients – in future they provided positive feedback. Cheers
will be expected to handle and resolve At the time of writing registrations
any identifiable adverse expression of have starting to slow down with most
dissatisfaction expressed on their social delegates having taken advantage of the
media as a complaint and all complaints preferential early bird pricing. The stage Alan Harries
through their IDR processes will be of a great venue, activities and sessions
reportable to ASIC twice per year, with all point to another successful conference
ASIC intending to publish those statistics for members. If you are still planning to
to improve transparency as to what attend, it is not too late but you need to
consumers can expect if dealing with act quickly.
individual financial firms. On the Thursday, some will head off
Principles underpinning the newly on the optional activity of the Adelaide
created Australian Financial Complaints Hills Tour capably led by Kevin ‘Alfie’
Authority (AFCA) require it to consider Matthews, a big personality who is very
complaints in a way that is independent, well known to many as a former IMA
impartial and fair. AFCA must provide member. Alfie will be showing us the
procedural fairness to the parties in a sights and encouraging the sampling of ANNUAL GENERAL
way which is efficient, effective, timely, some of the products South Australia
and cooperative, with the minimum of is so famous for, including wines, food,
MEETING
formality. beers, chocolates and cheeses. The IMA’s National
Our sector can expect the ‘lens’ Networking Drinks are on the Thursday AGM shall be held in the
of fairness will increasingly be the evening preceding the Conference Riverbank Rooms at the Adelaide
performance criteria through which Sessions Day on the Friday, with the Convention Centre in Adelaide at
services are assessed. AGM at the end of the day’s sessions 5.00pm on 14 June 2019.
and prior to the Conference Dinner that
www.imal.com.au | Jun/Jul 2019 | AGENT |232019 Pickles
IMA National Conference
Adelaide, 13-14 June 2019
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