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Interoperability reforms to be mandated in key regulation
The Australian Registrars’ National Electronic Conveyancing Council (ARNECC) has resolved to have interoperability reforms live by no later than 2025 and is now moving to have this mandated in key regulation.
What is interoperability and what are the benefits?
Interoperability is the ability of Electronic Lodgment Network Operators (ELNOs) systems to “speak” with each other, allowing each party in the settlement process to use an ELNO of their choice. The eConveyancing market is currently dominated by the Property Exchange Australia (PEXA) with Sympli launching in 2018 to bring choice and value to the market.
Interoperability between networks has been endorsed by experts as the best way to bring competition to this market and face the challenges of having a monopoly. With competition comes choice, value and innovation for industry and consumers across Australia.
In September this year, the first interoperable ‘Day 1’ transactions were also successfully completed, a major milestone for the industry and proof point for the model.
What is the current state of interoperability reforms?
After more than half a decade, ARNECC has resolved to have full interoperability live in NSW and QLD by no later than the end of 2025, with other States and Territories to follow. This has been endorsed by Governments as well as other key industry stakeholders.
What are the Model Operating Requirements (MOR)?
Under the Electronic Conveyancing National Law (ECNL), ELNOs such as PEXA and Sympli, are required to comply with Operating Requirements made by the Registrar in each State and Territory called Model Operating Requirements (MOR).
ARNECC has recently released consultation with changes to the Model Operating Requirements including mandating full interoperability by no later than the end of 2025.
What changes are being made?
In the draft MOR, ARNECC has proposed amendments which would require ELNOs to have full interoperability built no later than the end of 2025.
This means that the requirement to build interoperability by these dates will be mandatory for ELNOs with NSW and QLD opting to go first with other States and Territories to follow.
Why it is important that interoperability dates are mandated?
It is critical that these dates are mandated in the MOR to ensure that both ELNOs are held accountable to achieving full interoperability by the December 2025 date.
Without these dates being inserted into regulation there is little certainty for industry as to when to be ready for interoperability and the monopoly will keep trying to delay the reforms.
In the past, deadlines and dates have shifted many times; regulation will mean that ELNOs will be required to design, build, and test for full interoperability, implementing these reforms after more than half a decade.
Without this regulatory certainty, the benefits of competition such as choice, value and innovation will never be realised for consumers and the industry.
To ensure momentum, it is also important that the MOR consultation ending in October is finalised and published before the end of the year. These reforms are already years behind schedule, and any further delays will further disadvantage the industry.
How can you provide feedback?
If you would like to have your say about the future of eConveyancing, we encourage you to send any feedback on MOR Consultation Draft 7.2 by 5pm AEST on Tuesday 31 October 2023 to
