SCA Australasia Initiatives: Six Steps to Ensure Confidence

A little over a month ago, the ABC aired a story with allegations of excessive charging and conflicts of interest against a strata management firm, Netstrata.

SCA has taken these allegations against Netstrata incredibly seriously, and we have listened to voices from within and outside of the strata sector in relation to the story.

As a result, we have put in an intense effort over the last month to implement a set of appropriate initiatives and responses to ensure confidence in SCA, its members and the industry, and to move forward proactively.

Our actions seek to build on and enhance established SCA mechanisms, including our complaints process, our member Code of Conduct and our training and certification courses and modules, including the Strata Management Practice Standard (SMPS).

We will be regularly updating members, industry and consumer stakeholders and the public on the initiatives we have put in place over the last month.

To underline our commitment to reinforcing confidence in the strata management sector, last month SCA Australasia resolved, with the endorsement of the full SCA National Council, to initiate a six-point plan.

Please find below those six steps in bold, and the actions that have been undertaken since the plan’s commencement on 23 March 2024:

Fast-tracking the date for the mandatory requirement for SCA members to implement SCA’s Best Practice Insurance Disclosure Guide to 30 June 2024, with full enforceability under the SCA complaints and conduct panel.

SCA has mapped out an implementation plan to support members through the fast-tracked timeline, and engaged with insurers, brokers and software providers.

Appointing an independent Chair for the SCA Australasia complaints and conduct panel.

SCA has advertised and received applications for the newly created role of Independent Chair of Complaints and Conduct and expects to announce the position by June 2024.

Allocating additional resources and improved accessibility to the SCA Australasia complaints process.

SCA has removed any fee associated with making a complaint to SCA, has made the process more user-friendly and has dedicated additional resources to managing incoming complaints.

Commencing the production of a rigorous best practice guideline that clearly addresses conflicts of interest in the strata sector and other disclosures, outside of insurance.

SCA Australasia has drafted a Request for Proposal (RFP) and is working through the SCA National Council to finalise its content.

The RFP will include research, education and best practice focused components.

Offering additional support for SCA member businesses to have access to appropriate resources, advice and training to improve practice where identified.

Webinars and materials are being planned for each SCA jurisdiction to support members and members with extensive industry experience will be making themselves more available to assist members with enquiries.

Supporting the independent review SCA (NSW) will be conducting.

SCA Australasia is supporting SCA (NSW) with their initiatives (included above).

SCA (NSW) Netstrata Independent Investigation

SCA (NSW) has commissioned a full investigation into the allegations made against Netstrata by the ABC in accordance with the requirements of the Professional Standards Scheme (PSS).

An independent investigator has been appointed with a background in professional audits and will conclude their report by 31 May 2024.

Focused Additional Audits on Conflict of Interest and Disclosure Audits

The SCA (NSW) Compliance Manager will be undertaking additional sample member audits that will focus specifically on conflicts of interest and disclosure.

SCA NSW Ongoing Audit Process Updates

SCA (NSW) has made amendments to include a more detailed analysis of conflicts of interest and disclosure to its ongoing audit processes.

Professional Standards Scheme (PSS)

SCA (NSW) has had regular dialogue with Professional Standards Australia (PSA) which administers the Professional Standards Scheme and is fulfilling requests in a timely fashion.

To execute this work and carry it forward proactively and collaboratively, SCA has engaged with the following stakeholders to date:
o Australian College of Strata Lawyers (ACSL)
o Owners Corporation Network (OCN)
o Financial Counselling Australia (FCA)
o National Insurance Broking Association (NIBA)
o Insurance Council of Australia (ICA)
o Australian Consumers Insurance Lobby (ACIL)

We are working hard for SCA members and the sector more broadly on this critical issue, and we look forward to providing additional updates as we progress each step of our plan.

If you have any questions or enquiries, please direct them to

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