Record of Meeting

National Electronic Conveyancing System (NECS) WA Advisory Group Meeting (Meeting No: 3)

Date: 27 June 2006 Venue: 1st Floor Meeting Room, VGO Building 18 Mount Street Perth WA 6000

Attendees: David Clark, Geoff Couper, David Elson, Steve Fathers, Andrew Hamilton, Valerie Haskins, Craig James, Stephen Johnson, Gavan Kelly, Peter Lakos, Craig Mariano, Mark McLinden, David Parry, Judith Pinczuk, Bruce Roberts (Chair) and Sue Taylor.

Apologies: Troy Dennis, Gary Gregory, Chris Martin, Amy Sullivan, John Syminton, Jane Toomer and Peter Weymouth.

1. Housekeeping Matters

1.1 Review of the meeting hand-outs was undertaken by the Chair. The documents include: i. Timetable of sessions. ii. Draft National Operations Description (NOD) report. iii. Overview of NECS web presence. iv. Organisation chart for the NECS project. 1.2 Minutes of the previous meeting were accepted without change as being an accurate record. 1.3 It was pointed out that the issues raised in earlier meetings will be inputted to the national on-line forums which are due to come live this week. DLI will be undertaking this exercise. 1.4 Discussion was held in regard to last week’s presentation on Gatekeeper PKI framework and ABN-DSC digital signatures.

2. Review of N BM Authentication

2.1 Use of Digital Signatures.  There was a review of messages coming from the presentation.  The role of the regulatory bodies was emphasised with the need for the development of best practices and code of conduct guidelines (ie. for the use of digital signatures).  It was noted that there is a legal responsibility associated with the use of digital signatures.  In the case of fraud, there was discussion on the ownership of the liability. In the current manual system, DLI underwrites the liability where it is proven that the correct procedures were followed. It was noted that the current system relies upon trust and honesty of the involved parties. With the increase of fraud in the eastern states, some actions may need to be taken for WA to tighten up security. DLI are about to release a Customer Information Bulletin on this matter.  The meeting discussed the need for the introduction of the 100 point check on sellers prior to the implementation of NECS.  DLI has been requested to develop terms of use for the NECS system which can act as a basis for material that is produced by the regulatory bodies.

Issue: Concern was raised on who can make lodgements and if NECS could incorporate an automated check to ensure that the individual is a licensed and current practitioner.

 Significant discussion was held in regard to the legal requirements of retention of documents supporting the identification of Clients. Also discussed was the burden and cost associated with the retention of documents. Currently paperwork is retained for only 7 years and there was uncertainty on whether this should be for 30 years.

Issue: Check with National Office on the period of retention that is being recommended for the authority to act paperwork.

 If digital signature requests can be initiated with Australia Post, there need to be a checking mechanism early in the process to ensure that the applicant is an authorised practitioner with a regulatory body.  There was discussion on the level of take-up that is required in order to make electronic conveyancing viable. It was indicated that National Office is intending to undertake some of these studies during the evaluation process.  The meeting discussed the difference between being authorised to use NECS and the need to be accredited to execute instruments within a Jurisdiction. Associated with this discussion, a question was raised on who will be responsible for providing the necessary training.

Issue: Clarify the types of training that will be available to support NECS.

 The meeting also discussed the need for a common level of digital signatures for all parties involved in electronic conveyancing (ie. Gold level).

These minutes have been reviewed by the committee and it has been agreed that they reflect a true record of the meeting of the NECS Steering Committee.

______Bruce Roberts Chair – NECS Steering Committee

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