Common errors (Subscriber compliance) as at 20 March 2019
The subscriber compliance examination process has identified the failure to properly complete a Client Authorisation form as the most common cause of non-compliance with the Participation Rules. A properly completed Client Authorisation form is one that is filled in, dated, and signed by the Client and the Representative or the Client and the Representative Agent.
|Verification of Identity||1||0||10||6||21.8%|
|Verification of Right to Deal||1||0||10||11||28.2%|
1. The authority type is either not selected, or incorrectly selected.
It is important that the correct authority type in the ‘Transaction Details’ panel is selected. Failure to select the authority type results in a finding of non-compliance.
Specific Authority should be selected where the Client authorises the Subscriber to act on a specific transaction. The Property Address and Land Title fields must also be completed, together with ticking the categories of Conveyancing Transactions.
Standing Authority should be selected where the Client authorises the Subscriber to act for the period set out in the Client Authorisation, either until a specified date, or if no date is specified, until it is revoked by the Client. The categories of Conveyancing Transactions must be ticked.
Batch Authority should be selected where the Client authorises the Subscriber to act in a batch of Conveyancing Transactions, such as in a strata development. Details of the transactions the batch authority is intended to cover should be attached.
2. The form not signed and dated by the client or client agent.
If the Client Authorisation is signed by a client agent, the capacity of the agent, for example an attorney or a director of a company, must be shown.
If the Client Authorisation is signed overseas at an Australian Consular Office, the Australian Consular Office Witness signs and dates the Client Authorisation.
3. The form not signed and dated by the Representative or Representative Agent
The details of the Representative, and the Representative agent, if using, must be completed. The Representative, or their agent, also needs to sign and date the form in order to certify that reasonable steps were taken to ensure the form was signed by the client or by the client’s agent.
If the Client Authorisation is signed by the Representative’s agent, the Representative does not also need to sign the Client Authorisation.