DELIVERING GOVERNANCE THROUGH BUSINESS POLICY DOCUMENTS & STRUCTURE

EXAMPLE ONLY - Policy - Supervision Guidelines

Policy Commitment Statement

A policy commitment statement should express the real estate business’s dedication to compliance and maintaining high professional standards, in accordance with NSW Fair Trading's Supervision Guidelines.

Example:

“Our organisation is committed to maintaining full compliance with the supervision and operational requirements as outlined by NSW Fair Trading. We are dedicated to providing a professional, ethical, and legally compliant work environment, ensuring all agents and employees operate under proper supervision. We strive to enhance transparency, integrity, and the safety of our clients, agents, and other stakeholders by adhering strictly to all regulatory obligations.”

This statement reflects the core values of compliance, ethics, and transparency, which are emphasised in the guidelines​

Policy Scope

The scope outlines who the policy applies to and the areas it will govern.

Example:

“This policy applies to all licensed agents, assistant agents, and other personnel engaged in the operations of [Real Estate Business]. It covers the supervision of employees, compliance with NSW Fair Trading regulations, and adherence to all legal, operational, and ethical standards in the real estate industry. The policy governs all business activities related to property transactions, trust account management, disclosure obligations, and ongoing training and development across the organisation.”

This scope makes it clear that all relevant parties involved in the real estate operations are subject to the policy​

Policy Purpose

The purpose section explains why the policy exists and its intended outcomes.

Example:

“The purpose of this policy is to establish clear guidelines for the supervision and compliance of all agents and personnel within [Real Estate Business], in line with the Supervision Guidelines set by NSW Fair Trading. This policy ensures that all agents perform their duties ethically and legally, including proper management of client relationships, trust accounts, and disclosure of material facts. By defining supervision procedures and compliance frameworks, we aim to mitigate risks, uphold professional standards, and ensure the business meets all regulatory obligations.”

The purpose aligns with NSW Fair Trading’s focus on ethical conduct, legal compliance, and professional supervision

Policy Roles and Responsibilities

Define the responsibilities of different roles within the business to ensure accountability in following the policy.

Example:

• Principal Licensee / Licensee-in-Charge:

  • Ensure the business complies with the Property and Stock Agents Act 2002.

  • Oversee the supervision of all agents, ensuring they meet licensing and training requirements.

  • Establish, review, and update operational procedures, including supervision logs, risk management, and trust account management.

  • Report non-compliance to regulatory bodies and take corrective action where necessary​

• Class 1 and Class 2 Agents:

  • Maintain up-to-date licences and complete required CPD annually.

  • Ensure compliance with all legal obligations, including accurate price representations and disclosure of material facts.

  • Adhere to the business’s internal supervision guidelines and operational procedures​

• Assistant Agents:

  • Work under the direct supervision of a Class 1 or 2 Agent or Licensee-in-Charge.

  • Maintain a logbook of completed tasks, verified by their supervisor​

• Compliance Manager / Compliance Officer:

  • Monitor compliance with internal policies and NSW Fair Trading regulations.

  • Conduct regular audits of supervision logs, trust accounts, and agent performance.

  • Coordinate ongoing training and professional development programs

By clearly defining roles and responsibilities, you create a structured framework that promotes accountability and ensures everyone within the business understands their role in maintaining compliance.

Supervision Guidelines - Governance Ecosystem (example)

1. Policy

A policy sets the overarching rules and objectives for ensuring compliance with legal standards. In the context of the Supervision Guidelines:

• The policy should state the business's commitment to adhering to NSW Fair Trading’s regulations.

• Key focus areas include compliance with the Property and Stock Agents Act 2002, ethical conduct, managing conflicts of interest, and proper financial practices (e.g., trust account management).

• It should outline the expectations for supervising agents at different levels (assistant agents, Class 1 and Class 2 agents), ensuring they are appropriately trained and certified​

2. Procedure

Procedures outline the step-by-step processes for implementing the policy.

• Include processes for verifying that all agents are licensed and trained as per regulatory requirements, with a focus on real-time supervision.

• Outline steps for recording and maintaining transaction logs (e.g., for client dealings, trust account transactions, etc.).

• Develop procedures for regularly reviewing price representations and ensuring compliance with underquoting laws​(

• Procedures must also ensure that trust accounts are handled correctly, including daily reconciliations and checks for discrepancies.

3. Forms/Templates

Forms and templates standardize documentation across the business to maintain consistency and compliance.

• Create templates for supervision logs (e.g., verifying agent work experience and completion of tasks).

• Develop conflict of interest disclosure forms, trust account management templates, and underquoting declaration forms.

• Forms should also include compliance checklists for ensuring that agents meet CPD (Continuing Professional Development) requirements

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4. Education/Training

Ongoing education and training are essential to ensure agents understand and comply with the latest legal requirements.

• Include a mandatory CPD training program aligned with NSW Fair Trading’s guidelines. Each Class 1 or 2 agent must complete a minimum of five hours of CPD annually, focusing on core topics such as work health and safety, underquoting laws, and price misrepresentations​

• Training should be delivered via approved providers, either in-person or through online interactive webinars, and tracked using training logs.

• Licensees in charge should receive additional training on operational procedures and legal compliance monitoring

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5. Audit/Assessment

Regular audits and assessments are critical to ensure adherence to policies and procedures.

• Develop an audit framework that covers key areas like agent supervision, trust account management, and compliance with disclosure requirements.

• Licensees must record instances of non-compliance and corrective actions taken. Implement quarterly audits to ensure operational procedures are followed, and take corrective action where necessary​

• External audits should be conducted annually by certified auditors to verify trust account accuracy and overall compliance.

6. Planning/Reporting

Planning and reporting mechanisms allow for continuous improvement and accountability.

• Establish a compliance calendar to track important deadlines, such as CPD training, internal audits, and regulatory reporting.

• Require quarterly reports on compliance activities, identifying any areas of concern or potential risks.

• Plan regular reviews of operational procedures to ensure they are aligned with any updates to NSW Fair Trading regulations. Include these updates in the business’s training plan​