Consumer groups are pushing for a national inquiry into the strata management sector and a lawyers’ group has called for tougher state-level regulation following last week’s Four Corners program. 

The Australian Consumers Insurance Lobby, Choice, Financial Rights Legal Centre and the Owners Corporation Network of Australia are among nine groups pressing Treasurer Jim Chalmers to launch a review led by the Australian Competition and Consumer Commission or Productivity Commission. 

Financial Rights Legal Centre acting CEO Alexandra Kelly says there are concerns about a range of strata issues, including insurance. 

“Quite simply, strata managers should not be getting paid by an insurer for recommending their products,” she said. “We want the ACCC to take a good look at this industry, and state governments to be vigilant in making sure consumer rights and interests are upheld and protected.” 

The Australian College of Strata Lawyers says independent enforcement agencies are needed to better protect property owners, laws should be strengthened and structural change is required on commissions. 

“All state and territory governments must take action to address the behaviour of the bad actors,” it said. 

“In essence, there is no ‘strata cop’ on the beat in any Australian jurisdiction. There needs to be.” 

The group has reiterated comments made in March, when it said strata managers should stop accepting commissions, payments or benefits and act strictly as fiduciaries of the owners’ corporations they manage. 

The National Insurance Brokers Association has acknowledged with concern the ABC program’s allegations of misconduct within the strata industry. 

It says its code of practice sets standards above the law to foster trust and integrity, and brokers are required to document services they will provide to clients through terms of engagement and to disclose commissions and fees on retail strata policies.  

“NIBA and its members are committed to working constructively with government, regulators and other key stakeholders to ensure the highest standards of practice and professionalism are maintained, reinforcing public confidence in insurance brokers serving the strata sector,” it said. 

Strata Community Association Australasia says it condemns the behaviour of rogue operators, adding the actions of a few are not reflective of the broader industry. 

See Analysis.