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NSW Trust Accounting Compliance & Licensing Reforms
By Jennie Claringbold

  2/03/2020 10:18am

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The deadline for implementing the new reforms is 23rd March,2020. Make sure you are ready.

What are the Changes?

  1. Money received from Property Sales and Rentals must have separate trust accounts. They can no longer be held in a single trust.
  2. You must nominate one person to be the licensee in charge.
  3. Only the licensee in change can authorise funds withdrawn from the trust account.
  4. The licensing system has been restructured, functions have been restricted for different licences and qualification requirements have increased.
  5. To withhold funds at the End of Month (EOM), an Agent must have the owners approval.
  6. CPD requirements have also changed significantly. Compliance with the CPD requirements will continue to be a condition of holding your licence. Read more…

What Do You Need to Do to be ready for the changes?

  1. Appoint a nominated licensee by 1st March, 2020.
  2. (If you need a new trust) Open a trust account with the bank and register the new trust with OneGov
  3. Document and put policies and procedures for managing your trust accounts in place before the 23rd March.

It is important to take note of these changes as Fair Trading can, ask you to provide a documented workflow for your trust account payment approvals and / or reports to see if you have implemented the changes. Auditors will also have an obligation to report agents that have not met these new regulations.

Still have questions? Contact Fair Trading NSW today 133220.