The State Project Teams met in Sydney on 16 August and made good progress on several issues important for a consistent approach to the implementation of NECS in each jurisdiction. All jurisdictions were represented and the principal outcome was consensus on a number of significant matters.

The meeting agreed to review the principles essential for consistency in client authorisations and instrument certifications in each jurisdiction. Client authorisations are the means by which transacting parties give their industry practitioner authority to represent them in using NECS. Instrument certifications are the statements industry practitioners must certify as correct before signing instruments on behalf of transacting parties.

Jurisdictions agreed that the success of NECS depended upon robust supporting arrangements as well as consistency for ease of use by industry. Several jurisdictions had considered their requirements and as a result two sets of principles were available for review by all jurisdictions. Victoria agreed to contribute its experience in determining the equivalent arrangements for its ECV system.

All jurisdictions undertook to report on their review of the principles by early in October.

There was agreement on the need to develop principles essential for consistency in identity verifications in each jurisdiction. Identity verification is the process expected of industry practitioners to verify the identity of the person or organisation they intend to represent in using the NECS.

Jurisdictions agreed that when developing client authorisations and instrument certifications consideration also had to be given to the requirements for verifying the identity of transacting parties. A particular issue recognised was the adequacy of the new arrangements under Anti-Money Laundering & Counter-Terrorism Financing legislation for property transactions.

NSW and Victoria undertook to develop principles governing their requirements for identity verifications and all jurisdictions agreed to report on their review of the NSW and Victoria perspectives by early October.

The National Office outlined its process for gathering the requirements for NECS and reported on the feedback so far from jurisdictions on the first draft of the NECS Requirements Definition (NRD). Jurisdictions recognised the importance of an iterative approach and of involving industry stakeholders as soon as practicable.

An updated draft of the NRD is now in preparation for release to industry as soon as possible for review and comment on its suitability to the requirements of individual industry participants.

The meeting considered the process for using the Victoria’s ECV system in defining the NECS requirements. ECV is Victoria’s electronic conveyancing system due to be commissioned later this year.

Jurisdictions agreed on a process for using ECV in defining the requirements for NECS once it is made available to the National Office as agreed at the last National Steering Committee meeting in late June. The process involves using special resources to identify the contributions ECV can make to NECS as well as the gaps needing to be filled and the extensions necessary to ensure ECV can provision NECS.

Activation of the process is awaiting Victoria’s making ECV available for this purpose.

The meeting also agreed to discuss a consistent approach to legislation change in each jurisdiction when it next meets before the end of this year.