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The Australian Registrars' National Electronic Conveyancing Council (ARNECC) is the body established to facilitate the implementation and ongoing management of the regulatory framework for electronic conveyancing of real property in Australia.   Operating Requirement 14.7 of the ARNECC’s Model Operating Requirements (MOR) requires PEXA to establish, implement, review and keep current a Subscriber Review Process (SRP) to ensure Subscribers are complying with the Participation Rules.   Accordingly, Primary Subscriber Managers from all eligible Subscribers will be selected to participate in the SRP periodically. When your organisation is selected, you will have 30 days to complete the review. Completion of the SRP is a requirement of your organisation’s Participation Agreement with PEXA. The process for selecting recipients of the SRP is random and based upon criteria previously agreed with ARNECC. Recipients include, but are not limited to Financial Institutions, Legal Practitioners and Conveyancers.   Primary Subscriber Managers will be notified via email if their organisation has been selected to complete the SRP questionnaire. The email will not include a link to the Subscriber review portal as PEXA will never send a link to a login page in an email to its Subscribers. Instructions for accessing the portal are included in the notification email and outlined on the page 4 of these Guidance Notes.   If you have any questions please contact Member Support on 1300 084 515 or please send an email to subscriberreviewprocess@pexa.com.au   Subscriber Review Process Structure The SRP focuses on the following categories of the Participation Rules/Participation Agreement: Eligibility Criteria; General Obligations; System Security and Integrity; and Privacy. These Guidance Notes are designed to assist PEXA Subscribers with answering the SRP questions. For each SRP question, you will see the following guidance structure: Question The question as it appears in the SRP questionnaire. Requirement Your obligation under the Participation Rules/Participation Agreement. Compliance demonstration How you can demonstrate your compliance in response to the question. Whilst completing the SRP questionnaire, it is recommended that you have these Guidance Notes readily available in addition to the following documentation: Participation Rules Version 5; and PEXA Subscriber Security Policy Your organisation’s PEXA Participation Agreement. Further questions regarding the questionnaire or the Subscriber Review Process can be directed to: SubscriberReviewProcess@pexa.com.au Accessing the Questionnaire To access the Subscriber review portal, Primary Subscriber Managers will need to log into the PEXA Exchange and click on the ‘Subscriber Review’ button located on the right-hand side of their Dashboard as per the following screenshot: Alternatively, Primary Subscriber Managers can access the portal by navigating to www.pexa.com.au/srp , scrolling down to the Subscriber review portal section and clicking on the link included on the page. Upon clicking the ‘Subscriber Review’ button or the link from PEXA’s website, Primary Subscriber Managers will be directed to the Subscriber review portal where the questionnaire link will appear as highlighted by the light purple oval object as per Diagram 2. Primary Subscriber Managers will need to click on the “SRP ” link to access the SRP questionnaire. Note: If additional information is required after the review is initially submitted, this can be provided by clicking on ‘Tasks’ (located next to ‘Assessment’ in the portal)   Question 1 Question Are all your organisation’s principals, directors, partners, officers and Subscriber Administrators deemed to comply with the good character and reputation matters listed in Participation Rule 4.3.1(b)?   Requirement Many Individuals are deemed to comply with this rule, including Australian Legal Practitioners, Licensed Conveyancers and officers or employees of Authorised Deposit-Taking Institutions. For a full list of those deemed to comply, please refer to Participation Rule 4.3.3. Your organisation has an obligation to ensure its principals, directors, partners, officers and Subscriber Administrators are of good character and reputation, where they are not deemed to comply. (Participation Rules: Section 4.3.1(b))   Compliance demonstration If all relevant Individuals within your organisation are deemed to comply with this rule, select Yes, and move on to Question 2. Where one or more of the relevant Individuals within your organisation are not deemed to comply, select No. If you select No, you will be prompted with a supplementary question: Supplementary question only applicable if you selected No   What steps has your organisation taken to ensure all principals, directors, partners, officers and Subscriber Administrators are not and have not been subject to any of the good character and reputation matters as listed in Participation Rule 4.3.1(b)? Compliance demonstration To demonstrate your organisation’s compliance with this requirement, you must specify the steps taken to provide this assurance.   The following options will then be available for you to select: (select if applicable) Background checks are conducted prior to onboarding and on a regular basis covering the matters as listed in Participation Rules 4.3.1(b) Other steps are taken to provide this assurance No steps are taken to provide this assurance Where the steps taken by your organisation are not included in the options listed, select Other steps are taken to provide this assurance. A text box will appear for you to specify these steps. Where your organisation does not take any relevant steps, select No steps are taken to provide this assurance. A text box will appear for you to outline the steps you will take to provide the necessary assurance, as required under the Participation Rules. (Refer to the Declaration and Submission section for further information on cases where your organisation is in breach of the Participation Rules.) Question 2 Question How do you ensure all persons who use the PEXA Exchange in your organisation are aware of the terms of the Participation Rules as appropriate to their use of the PEXA Exchange?   Requirement Your organisation has an obligation to ensure that each User is aware of the terms of the Participation Rules as appropriate to their use of the PEXA Exchange. (Participation Rules: Section 6.1.1) Compliance demonstration To demonstrate your organisation’s compliance with this requirement, you must specify the steps taken to ensure User awareness of the Participation Rules as appropriate to their use of the PEXA Exchange. The following options are available for you to select from: (select all that apply) An induction process for new starters that covers the Participation Rules Regular review of the Participation Rules and any updates on the ARNECC website Nominated internal ‘expert’ provides others guidance on Participation Rules as required Other steps are taken to ensure User awareness of the Participation Rules as appropriate to their use of the PEXA Exchange No steps are taken to ensure User awareness of the Participation Rules as appropriate to their use of the PEXA Exchange Where the steps taken by your organisation are not included in the options listed, select Other steps are taken to ensure User awareness of the Participation Rules as appropriate to their use of the PEXA Exchange. A text box will appear for you to specify these steps. Where your organisation does not take any relevant steps, select No steps are taken to ensure User awareness of the Participation Rules as appropriate to their use of the PEXA Exchange. A text box will appear for you to outline the steps you will take to ensure the necessary awareness, as required under the Participation Rules. (Refer to the Declaration and Submission section for further information on cases where your organisation is in breach of the Participation Rules.) Question 3 Question How do you ensure yourself and any other Users in your organisation receive appropriate training in the use of the PEXA Exchange?   Requirement Your organisation has an obligation to ensure that each User has received training appropriate to their use of the PEXA Exchange. (Participation Rules: Section 7.2.1(b))   Compliance demonstration To demonstrate your organisation’s compliance with this requirement, you must specify the steps taken to ensure appropriate training is received. The following options are available for you to select from: (select all that apply) Regular training received from an external provider (e.g. from a registered training organisation or industry body) Regular contact with PEXA representatives and Member Support personnel Nominated internal ‘expert’ provides others guidance on use of the PEXA Exchange as required Utilise PEXA training resources such as the Help menu Users have been trained by PEXA personnel Training manuals cover the use of PEXA Exchange Induction / buddy programs cover the use of the PEXA Exchange Completion of the PEXA Certified program Other steps are taken to ensure appropriate training is received No steps are taken to ensure appropriate training is received Where the steps taken by your organisation are not included in the options listed, select Other steps are taken to ensure appropriate training is received. A text box will appear for you to specify these steps. Where your organisation does not take any relevant steps, select No steps are taken to ensure appropriate training is received. A text box will appear for you to outline the steps you will take to ensure the appropriate training is received, as required under the Participation Rules. (Refer to the Declaration and Submission section for further information on cases where your organisation is in breach of the Participation Rules.) Question 4 Question How does your organisation protect physical and electronic information provided by other Subscribers, the Registrar or by the PEXA Exchange from unauthorised use, reproduction or disclosure?   Requirement Your organisation has an obligation to ensure all information provided by another Subscriber, any Client, the Registrar or PEXA is protected from unauthorised use, reproduction or disclosure. (Participation Rules: Section 6.10)   Compliance demonstration To demonstrate your organisation’s compliance with this requirement, you must specify the steps taken to ensure information is protected from unauthorised use, reproduction or disclosure. The following options are available for you to select from: (select all that apply) Documents are shredded when no longer needed Documents are archived when appropriate An induction process for new starters that covers privacy obligations relating to information provided by other Subscribers, the Registrar or by the PEXA Exchange Periodic refresher training process that covers privacy obligations relating to information provided by other Subscribers, the Registrar or by the PEXA Exchange Work files and personal documents are locked away in a secure place Computer screens are locked Computers are securely stored (e.g. locked away in a drawer) A formal policy is in place to ensure desks are regularly cleared of sensitive information (e.g. a Clean Desk Policy) Secure printing practices are in place Other steps are taken to ensure information is protected from unauthorised use, reproduction or disclosure No steps are taken to ensure information is protected from unauthorised use, reproduction or disclosure Where the steps taken by your organisation are not included in the options listed, select Other steps are taken to ensure information is protected from unauthorised use, reproduction or disclosure. A text box will appear for you to specify these steps. Where your organisation does not take any relevant steps, select No steps are taken to ensure information is protected from unauthorised use, reproduction or disclosure. A text box will appear for you to outline the steps you will take to ensure information is appropriately protected, as required under the Participation Rules. (Refer to the Declaration and Submission section for further information on cases where your organisation is in breach of the Participation Rules.) Further guidance Additional information on what may constitute reasonable steps to protect information is available through the Office of the Australian Information Commissioner (OAIC) website: https://www.oaic.gov.au/agencies-and-organisations/guides/guide-to-securing-personal-information Question 5 Question Did your organisation enter into a Participation Agreement directly with PEXA (and it was not otherwise assigned, Novated, transferred or dealt to you from another entity)?   Requirement Your organisation has an obligation to maintain its own subscription to the PEXA Exchange, and a subscription cannot be assigned, Novated, transferred or otherwise dealt with. (Participation Rules: Section 6.12)   Compliance demonstration If your organisation has entered into a Participation Agreement directly with PEXA (and it was not otherwise assigned, Novated, transferred or dealt to you from another entity), select Yes.   If your organisation has not entered into a Participation Agreement directly with PEXA (or it was otherwise assigned, Novated, transferred or dealt to you from another entity), select No.   If you select No, a text box will appear for you to outline the steps you are taking to appropriately register your organisation to operate on the PEXA Exchange, as required under the Participation Rules. (Refer to the Declaration and Submission section for further information on cases where your organisation is in breach of the Participation Rules.) Question 6 Question Does your organisation comply with state- and territory-based practitioner regulatory requirements regarding who is entitled to electronically sign Registry Instruments, for all Signers?   Requirement This is only applicable to practitioners, such as Australian Legal Practitioners or Law Practices and Licensed Conveyancers including Conveyancing Practices. For all other Subscribers, this requirement is not applicable. There is an obligation for applicable organisations to ensure that each Signer complies with the laws of the Jurisdiction regarding who can Digitally Sign Registry Instruments within the relevant states and territories. (Participation Rules: Section 6.15(b))   Compliance demonstration Please refer to the below link for current guidance on who is eligible to sign: https://www.arnecc.gov.au/resources/guidance-practitioner-regulators If this requirement is not applicable to your organisation, select N/A – This requirement is not applicable to my organisation. If your organisation does comply with these state- and territory-based practitioner regulatory requirements, select Yes. If your organisation does not comply with these state-and territory-based practitioner regulatory requirements, select No. If you select No, a text box will appear for you to outline the steps you are taking to ensure compliance with these requirements, as required under the Participation Rules. (Refer to the Declaration and Submission section for further information on cases where your organisation is in breach of the Participation Rules.) Question 7 Question How do you ensure yourself and any other Users of the PEXA Exchange in your organisation are aware of and understand the terms of PEXA’s Subscriber Security Policy?   Requirement Your organisation has an obligation to provide a copy of the PEXA Subscriber Security Policy to Users, as well as to take reasonable steps to ensure they understand this Policy prior to allowing them access to the PEXA Exchange. (Subscriber Security Policy: Sections 4.4.1 & 4.4.4)   Compliance demonstration To demonstrate your organisation’s compliance with this requirement, you must specify the steps taken to ensure awareness and understanding of the Subscriber Security Policy. The following options are available for you to select from: (select all that apply) All Users (whether one User or many Users) are provided a copy of the Subscriber Security Policy and are required to read the document and acknowledge they understand and will comply with the Subscriber Security Policy prior to accessing the PEXA Exchange Updates to Subscriber Security Policy are regularly reviewed Nominated internal ‘expert’ provides others guidance on Subscriber Security Policy as required Other steps are taken to ensure awareness and understanding of the Subscriber Security Policy No steps are taken to ensure awareness and understanding of the Subscriber Security Policy Where the steps taken by your organisation are not included in the options listed, select Other steps are taken to ensure awareness and understanding of the Subscriber Security Policy. A text box will appear for you to specify these steps. Where your organisation does not take any relevant steps, select No steps are taken to ensure awareness and understanding of the Subscriber Security Policy. A text box will appear for you to outline the steps you will take to ensure the necessary awareness, as required in the Subscriber Security Policy. (Refer to the Declaration and Submission section for further information on cases where your organisation is in breach of the Subscriber Security Policy.) Question 8 Question Does each Signer in your organisation have their own Digital Certificate and only sign documents using their allocated Digital Certificate?   Requirement Your organisation has an obligation to ensure each Signer has their own Digital Certificate and only sign documents using their allocated Digital Certificate. (Subscriber Security Policy: Section 4.2.1)   Compliance demonstration If your organisation does comply with this requirement, select Yes. If your organisation does not comply with this requirement for each Signer to have their own Digital Certificate and only sign documents using their allocated Digital Certificate, select No. If you select No, a text box will appear for you to outline the steps you are taking to ensure compliance with the requirements regarding Digital Certificate use, as required in the Subscriber Security Policy. (Refer to the Declaration and Submission section for further information on cases where your organisation is in breach of the Subscriber Security Policy.) Question 9 Question What measures does your organisation take to ensure PEXA Access Credentials, User profiles and Digital Certificates for the PEXA Exchange are not 1) used by more than one Individual or 2) subject to unauthorised access and use?   Requirement Your organisation has an obligation to have measures in place to protect Access Credentials, User profiles and Digital Certificates from 1) use by more than one Individual or 2) unauthorised access and use.  (Subscriber Security Policy: Sections 4.3.1, 4.3.2, 4.5.1 & 4.7)   Compliance demonstration To demonstrate your organisation’s compliance with this requirement, you must specify the steps taken to ensure PEXA Access Credentials, User profiles and Digital Certificates for the PEXA Exchange are not used by more than one Individual or subject to unauthorised access and use. The following options are available for you to select from: (select all that apply) Use and disclosure of the same PEXA Access Credentials, User profiles and Digital Certificates by more than one individual, including colleagues, family or friends is explicitly prohibited in your organisation (i.e. as outlined by a policy or guidance). Any device used to receive verification codes that enable a User to login to the PEXA Exchange is not accessible by more than one Individual PEXA Access Credentials are immediately changed if they are suspected of being Compromised PEXA Access Credentials include a strong password that could not be easily guessed by others (i.e. passwords do not include a User’s date of birth, name, phone number or similar) Digital Certificates are stored in a safe location and removed from a User’s computer when no longer accessing the PEXA Exchange PEXA is immediately notified of any instance of theft, unauthorised disclosure or improper use of PEXA Access Credentials, User profiles or Digital Certificates Other steps are taken to ensure PEXA Access Credentials, User profiles and Digital Certificates for the PEXA Exchange are not used by more than one Individual or subject to unauthorised access and use No steps are taken to ensure PEXA Access Credentials, User profiles and Digital Certificates for the PEXA Exchange are not used by more than one Individual or subject to unauthorised access and use Where the steps taken by your organisation are not included in the options listed, select Other steps are taken to ensure PEXA Access Credentials, User profiles and Digital Certificates for the PEXA Exchange are not used by more than one Individual or subject to unauthorised access and use. A text box will appear for you to specify these steps. Where your organisation does not take any relevant steps, select No steps are taken to ensure PEXA Access Credentials, User profiles and Digital Certificates for the PEXA Exchange are not used by more than one Individual or subject to unauthorised access and use. A text box will appear for you to outline the steps you will take to remedy the situation, as required in the Subscriber Security Policy. (Refer to the Declaration and Submission section for further information on cases where your organisation is in breach of the Subscriber Security Policy.) Question 10 Question Has your organisation created a User account within PEXA that can be accessed by more than one Individual, such as a shared account for the office?   Requirement Your organisation has an obligation to take reasonable steps to ensure that only Users (natural persons) access the PEXA Exchange. In the Participation Rules, a User means “an Individual authorised by a Subscriber to access and use the ELN on behalf of the Subscriber.” An Individual means “a natural person” according to the Electronic Conveyancing National Law (ECNL). (Participation Rules: Section 7.2.1(a))   Compliance demonstration If your organisation has not created a User account within PEXA that can be accessed by more than one Individual, select No. If your organisation hascreated a User account within PEXA that can be accessed by more than one Individual, select Yes. If you select Yes, a text box will appear for you to outline the steps you are taking to remove this User account, as required under the Participation Rules. (Refer to the Declaration and Submission section for further information on cases where your organisation is in breach of the Participation Rules.) Question 11 Question Does your organisation have Anti-Virus Software installed on all computers that meets the following requirements? The ability to identify and remove viruses The ability to identify and remove other types of harmful computer software, generally referred to as Malware (or malicious software) The ability to automatically receive anti-virus updates from the relevant Anti-Virus Software vendors The ability to automatically scan for viruses and Malware in documents, on servers and workstations   Requirement Viruses and Malware are forms of malicious software introduced into an electronic device such as your computer or mobile device with the intent of causing harm to compromise the confidentiality, integrity or availability of your systems and computer networks or data held on these systems. Your organisation has an obligation to provide anti-virus protection against any unauthorised or uncontrolled access to IT systems and access points that are used by you to access the PEXA Exchange. This anti-virus protection must meet the criteria outlined in the review question and the Subscriber Security Policy. (Subscriber Security Policy: Section 4.2.3)   Compliance demonstration If your organisation outsources the management of your IT environment, you may need to engage your service provider to confirm that Anti-Virus Software in place is compliant with these obligations. If your organisation does have Anti-Virus Software installed on all computers that meets the requirements outlined, select Yes. If your organisation does not have Anti-Virus Software installed on all computers that meets the requirements outlined, select No. If you select No, a text box will appear for you to outline the steps you will take to implement compliant Anti-Virus Software, as required in the Subscriber Security Policy. (Refer to the Declaration and Submission section for further information on cases where your organisation is in breach of the Subscriber Security Policy.) Question 12 Question What steps does your organisation take to ensure security vulnerabilities in IT operating systems and applications are Patched and updated as necessary?   Requirement Your organisation has an obligation to keep your IT operating systems and applications up to date by taking reasonable steps to install Patches and updates (including security specific updates). The purpose of Patching and operating system updates is to address vulnerabilities discovered after the release of software. Patches apply to many different parts of an information system including operating systems, servers, routers, desktops, email clients, office suites, mobile devices, firewalls, and other components which exist within a computer network. Your organisation is required to have a software Patching schedule or procedure which is run frequently. This must include IT infrastructure such as operating systems, web browsers, endpoint devices that support your ability to access the PEXA Exchange. To ensure Patches and updates are correctly installed, please ensure you restart all computers on a regular basis. (Subscriber Security Policy: Sections 4.2.3, 4.2.4 & 4.2.5)   Compliance demonstration To demonstrate your organisation’s compliance with this requirement, you must specify the steps taken to ensure security vulnerabilities in IT operating systems and applications are Patched and updated as necessary. If your organisation outsources the management of your IT environment, you may need to engage your service provider to confirm the frequency of Patch and update installation. The following options are available for you to select from: (select all that apply) Patches and updates are installed automatically, and all computers are restarted following the installation Patches and updates are installed on at least a quarterly basis, and all computers are restarted following the installation Patches and updates are installed less frequently than once a quarter Other steps are taken to ensure security vulnerabilities in IT operating systems and applications are Patched and updated as necessary Patches and updates are not regularly installed Where the steps taken by your organisation are not included in the options listed, select Other steps are taken to ensure security vulnerabilities in IT operating systems and applications are Patched and updated as necessary. A text box will appear for you to specify these steps. Where your organisation installs Patches and updates less frequently than once a quarter, select Patches and updates are installed less frequently than once a quarter. A text box will appear for you to outline the steps you will take to ensure Patches and updates are installed more frequently. Where your organisation does not take any relevant steps, select Patches and updates are not regularly installed. A text box will appear for you to outline the steps you will take to remedy the situation, as required in the Subscriber Security Policy. (Refer to the Declaration and Submission section for further information on cases where your organisation is in breach of the Subscriber Security Policy.)   Further guidance It is considered good practice to align your organisation’s Patching processes to those recommended by the Australian Signals Directorate’s ‘Essential Eight’. This guidance recommends ‘extreme risk’ vulnerabilities be Patched within 48 hours. Further information on the ‘Essential Eight’ can be found at https://www.cyber.gov.au/publications/essential-eight-explained. To determine the severity of a vulnerability in need of Patching, the Common Vulnerability Scoring System (CVSS) is an accepted industry standard. Further information on CVSS can be found at https://www.first.org/cvss/. Question 13 Question How does your organisation detect and prevent any unusual or suspicious activities within the PEXA Exchange?   Requirement Your organisation has an obligation to take reasonable steps to monitor the usage of systems and activities of Users who are accessing the PEXA Exchange to identify unusual or suspicious activities. (Subscriber Security Policy: Section 4.4.3)   Compliance demonstration To demonstrate your organisation’s compliance with this requirement, you must specify the steps taken to detect and prevent any unusual or suspicious activities within the PEXA Exchange. The following options are available for you to select from: (select all that apply) Confirm open and completed Workspaces are valid on a regular basis Undertake an additional check of financial line items prior to Workspace signing Review of information entered into Workspace prior to settlement Monitor the signing of documents and financial line items outside of normal hours Regular review of “Manage Users” in PEXA Exchange to confirm legitimacy of User access privileges Other detection / prevention measures are currently in place No detection / prevention measures are currently in place Where the steps taken by your organisation are not included in the options listed, select Other detection / prevention measures are currently in place. A text box will appear for you to specify these measures. Where your organisation does not take any relevant steps, select No detection / prevention measures are currently in place. A text box will appear for you to outline the steps you will take to implement appropriate detection / prevention measures, as required in the Subscriber Security Policy. (Refer to the Declaration and Submission section for further information on cases where your organisation is in breach of the Subscriber Security Policy.) Question 14 Question How does your organisation take reasonable steps to verify the accuracy of account details provided by or to clients?   Requirement The use of email to exchange financial information can be insecure, with the potential for interception by a third party without the knowledge of the sender or receiver. This can result in fraudulent payments and the loss of funds. It is recommended that organisations involved in exchanging bank account details with clients take reasonable steps to verify the accuracy of account details provided by or to clients. (Subscriber Security Policy: Section 4.2.6) This requirement is only applicable to organisations that exchange account details with clients.   Compliance demonstration You must specify the steps taken to verify the accuracy of account details provided by or to clients. The following options are available for you to select from: (select all that apply) Bank account details are sent and received via PEXA Key Bank account details are verified in person or over the phone if sent or received via any other means My organisation does not exchange account details with clients Other steps are taken to verify the accuracy of account details No steps are taken to verify the accuracy of account details Where the steps taken by your organisation are not included in the options listed, select Other steps are taken to verify the accuracy of account details. A text box will appear for you to specify these steps. Where your organisation does not take any relevant steps, select No steps are taken to verify the accuracy of account details. A text box will appear for you to outline the steps you will take in future to verify the accuracy of account details to reduce the risk of a fraudulent payment or the loss of funds. If your organisation does not exchange bank account details with clients, select My organisation does not exchange account details with clients. Question 15 Question How does your organisation manage PEXA Exchange User access?   Requirement Your organisation has an obligation to perform User access reviews on at least an annual basis. Your organisation also has an obligation to promptly modify User access privileges when you no longer want a User to access the PEXA Exchange at all, or in a particular capacity (such as removal of privileges to act as a Signer or Subscriber Administrator). Reviewing the list of Users and Signers within the PEXA Exchange includes performing actions such as: Confirming only authorised Users continue to retain access to the PEXA Exchange Confirming only authorised Signers continue to hold a valid Digital Certificate Confirming PEXA Exchange permissions are still appropriate for each User For large organisations, it is good practice to embed changes to PEXA Exchange access privileges in your human resource offboarding processes. If a User’s Digital Certificate is no longer required, you are required to advise PEXA. To do this, please email registration@pexa.com.au advising the Digital Certificate that is to be cancelled. (Subscriber Security Policy: Sections 4.5.2 & 4.6.1)   Compliance demonstration To demonstrate your organisation’s compliance with this requirement, you must specify the steps taken to monitor and manage PEXA Exchange User access. The following options are available for you to select from: (select all that apply) Regular review of the list of Users (whether one User or many Users) and Signers within the PEXA Exchange (at least annually) Modify User access privileges promptly when circumstances change (i.e. a staff member leaves the organisation, a staff member no longer requires access to PEXA or a staff member is away on extended leave) Disabling of Digital Certificates when no longer required Other steps are taken to monitor and manage PEXA Exchange User access No steps are taken to monitor and manage PEXA Exchange User access Where the steps taken by your organisation are not included in the options listed, select Other steps are taken to monitor and manage PEXA Exchange User access. A text box will appear for you to specify these steps. Where your organisation does not take any relevant steps, select No steps are taken to monitor and manage PEXA Exchange User access. A text box will appear for you to outline the steps you will take in future to monitor and manage PEXA Exchange User access, as required in the Subscriber Security Policy. (Refer to the Declaration and Submission section for further information on cases where your organisation is in breach of the Subscriber Security Policy.) Question 16 Question Does your organisation immediately notify PEXA if yourself or any other User becomes aware of a suspected or actual breach of the PEXA Subscriber Security Policy?   Requirement Your organisation has an obligation to immediately, upon becoming aware, notify PEXA of any breach of the PEXA Subscriber Security Policy that may affect the PEXA Exchange or the integrity or security of the Electronic Lodgement Network (ELN). (Subscriber Security Policy: Section 6)   Compliance demonstration If your organisation immediately notifies PEXA when yourself or any other User becomes aware of a suspected or actual breach of the PEXA Subscriber Security Policy, select Yes. If your organisation is aware of the obligation to immediately notify PEXA but has not had to provide such a notification, select Organisation is aware of the obligation but has not had to provide such notification. If your organisation does not immediately notify PEXA if yourself or any other User becomes aware of a suspected or actual breach of the PEXA Subscriber Security Policy, select No. If you select No, a text box will appear for you to outline the steps you will take in future to notify PEXA of suspected or actual breaches, as required in the Subscriber Security Policy. (Refer to the Declaration and Submission section for further information on cases where your organisation is in breach of the Subscriber Security Policy.) Question 17 Question Are your organisation’s PEXA Signers deemed to comply with the good character and reputation matters listed in Participation Rule 7.4.1(b)?   Requirement Your organisation has an obligation to ensure its Signers are of good character and reputation, where they are not deemed to comply. Many Signers are deemed to comply with this rule, including Australian Legal Practitioners, Licensed Conveyancers and Public Servants acting on behalf of the Crown in right of the Commonwealth, a State or a Territory. For a full list of those deemed to comply, please refer to Participation Rule 7.4.2. (Participation Rules: Section 7.4.1)   Compliance demonstration If all Signers within your organisation are deemed to comply with this rule, select Yes, and move on to Question 18. Where one or more of the Signers within your organisation are not deemed to comply, select No. If you select No, you will be prompted with a supplementary question:   Supplementary question only applicable if you selected No What steps has your organisation taken to ensure Signers are not and have not been subject to any of the good character and reputation matters as listed in Participation Rule 7.4.1(b)?   Compliance demonstration To demonstrate your organisation’s compliance with this requirement, you must specify the steps taken to provide this assurance. The following options will then be available for you to select from: (select all that apply) Background checks are conducted prior to onboarding and on an ongoing basis, covering matters as listed in Participation Rule 7.4.1(b) Other steps are taken to provide this assurance No steps are taken to provide this assurance Where the steps taken by your organisation are not included in the options listed, select Other steps are taken to provide this assurance. A text box will appear for you to specify these steps. Where your organisation does not take any relevant steps, select No steps are taken to provide this assurance. A text box will appear for you to outline the steps you will take to provide the necessary assurance, as required under the Participation Rules. (Refer to the Declaration and Submission section for further information on cases where your organisation is in breach of the Participation Rules.) Question 18 Question Have there been any instances where a Conveyancing Transaction involving your organisation has been Jeopardised?   Requirement Where a Conveyancing Transaction has been Jeopardised to your knowledge, information or belief, you must: Unsign any electronic Registry Instruments and other Documents relating to the Conveyancing Transaction immediately, where possible. Immediately notify PEXA and the Registrar of the situation. Immediately notify the other Participating Subscribers of any information about the Conveyancing Transaction that it believes to be incorrect, omitted, false or misleading or that the Conveyancing Transaction has been Jeopardised. In the Participation Rules, Jeopardised means "put at risk the integrity of the Titles Register by fraud or other means" (e.g. any activity that has resulted in a fraudulent change to Documents electronically lodged to the Titles Register). (Participation Rules: Section 7.7.1)   Compliance demonstration If there have been no instances where a Conveyancing Transaction involving your organisation has been Jeopardised, select No, there have been no such instances involving my organisation, and move on to Question 19. If there have been any instances where a Conveyancing Transaction involving your organisation has been Jeopardised, select Yes. If you select Yes, you will be prompted with a supplementary question:   Supplementary question only applicable if you selected Yes Did you undertake the required actions upon discovery of the situation?   Compliance demonstration To demonstrate your organisation’s compliance with this requirement, you must confirm if you undertook the required actions upon discovery of the situation. If your organisation did undertake the required actions, select Yes, these actions were taken. If your organisation did not undertake the required actions, select No, these actions were not taken. If you select No these actions were not taken, a text box will appear for you to outline the steps taken in response to the Jeopardised transaction(s) and how your organisation will ensure appropriate steps are always taken in future, as required under the Participation Rules. (Refer to the Declaration and Submission section for further information on cases where your organisation is in breach of the Participation Rules.) Question 19 Question Have there been any instances where your organisation’s Security Items have been or likely to have been Compromised?   Requirement Where a User's Security Items have been or are likely to be Compromised, you must: Immediately revoke the User’s authority to access and use PEXA and prevent the User from accessing and using PEXA. For a Digital Certificate: Immediately check all Workspaces where the Digital Certificate has been used. Where possible, unsign any Registry Instruments and other Documents you are aware or suspect have been signed without appropriate authorisation. Where it is not possible to unsign the Registry Instruments and other Documents, you must immediately notify PEXA of the situation. Promptly notify the Certification Authority (provider of the Digital Certificate) and revoke or cancel the Digital Certificate (including doing everything reasonably necessary to cause the Certification Authority to revoke or cancel it). Promptly notify PEXA. In the Participation Rules, Compromised means "lost or stolen, or reproduced, modified, disclosed or used without proper authority", such as historic credential sharing Subscriber Security Policy breaches. Security Item means "User Access Credentials, passphrases, Private Keys, Digital Certificates, Electronic Workspace identifiers and other items as specified from time to time." (Participation Rules: Section 7.9.1)   Compliance demonstration If there have been no instances where your organisation’s Security Items have been or likely to have been Compromised, select No, there have been no such instances involving my organisation, and move on to Question 20. If there have been any instances where your organisation’s Security Items have been or likely to have been Compromised, select Yes. If you select Yes, you will be prompted with a supplementary question:   Supplementary question only applicable if you selected Yes Did you undertake the required actions upon discovery of the situation?   Compliance demonstration To demonstrate your organisation’s compliance with this requirement, you must confirm if you undertook the required actions upon discovery of the situation. If your organisation did undertake the required actions, select Yes, these actions were taken. If your organisation did not undertake the required actions, select No, these actions were not taken. If you select No these actions were not taken, a text box will appear for you to outline the steps taken to address the Compromised Security Items and how your organisation will ensure appropriate steps are always taken in future, as required under the Participation Rules. (Refer to the Declaration and Submission section for further information on cases where your organisation is in breach of the Participation Rules.) Question 20 Question Does your organisation seek consent from the relevant individual(s) to the matters listed in clause 11.2 of the Participation Agreement before providing any Personal Information to PEXA or within an Electronic Workspace?   Requirement Where a relevant individual’s Personal Information is provided to PEXA or within an Electronic Workspace, you must have first obtained the consent of the relevant individual to whom the Personal Information relates, as per the below matters: The disclosure of that Personal Information to PEXA and for use in connection with an Electronic Workspace. The disclosure of that Personal Information to other participants in the ELN (including through mobile applications provided by PEXA), an Electronic Workspace or in a Conveyancing Transaction the subject of an Electronic Workspace. The use and disclosure of that Personal Information by PEXA and the other participants in an Electronic Workspace or in a Conveyancing Transaction the subject of an Electronic Workspace. To the collection, use, handling and disclosure of their Personal Information, at least to the extent necessary to enable PEXA to provide the Services in accordance with the requirements of this Participation Agreement. To the disclosure of their Personal Information to a Registrar or Duty Authority. This requirement does not apply to Financial Institutions and/or Australian Credit License holders. Please refer to your organisation's Participation Agreement with PEXA for additional information and to confirm if this requirement applies in your circumstances. (Participation Agreement: Section 11.2) Compliance demonstration To demonstrate your organisation’s compliance with this requirement, you must confirm that consent is received from the relevant individual before providing any Personal Information to PEXA or within an Electronic Workspace. If your organisation does comply with this requirement, select Yes. If your organisation does not comply with this requirement for consent to be received from the relevant individual before providing any Personal Information to PEXA or within an Electronic Workspace, select No. If you select No, a text box will appear for you to outline the steps you will take to ensure compliance regarding the requirement to seek consent from relevant individuals. (Refer to the Declaration and Submission section for further information on cases where your organisation is in breach of the Participation Agreement.) If your organisation is a Financial Institution and/or Australian Credit License holder, select N/A – This requirement is not applicable to my organisation and move to the Declaration. Question 21 Question Does your organisation refer the relevant individual(s) to PEXA’s privacy policy before providing any Personal Information to PEXA or within an Electronic Workspace?   Requirement Where a relevant individual’s Personal Information is provided to PEXA or within an Electronic Workspace, you must refer the individual to PEXA’s privacy policy (currently available at http://www.pexa.com.au/privacy) before providing any Personal Information to PEXA or within an Electronic Workspace. This requirement does not apply to Financial Institutions and/or Australian Credit License holders. Please refer to your organisation's Participation Agreement with PEXA for additional information and to confirm if this requirement applies in your circumstances. (Participation Agreement: Section 11.2) Compliance demonstration To demonstrate your organisation’s compliance with this requirement, you must confirm that relevant individuals are referred to the PEXA privacy policy before providing any Personal Information to PEXA or within an Electronic Workspace. If your organisation does comply with this requirement, select Yes and move to the Declaration If your organisation does not comply with this requirement for the PEXA privacy policy to be referred to the relevant individual(s) before providing any Personal Information to PEXA or within an Electronic Workspace, select No. If you select No, a text box will appear for you to outline the steps you will take to ensure compliance regarding the requirement to refer relevant individuals to PEXA privacy policy. (Refer to the Declaration and Submission section for further information on cases where your organisation is in breach of the Participation Agreement.) Declaration and Submission Following completion of responses to the questionnaire, you will be presented with the following statement: Failure to accurately complete PEXA’s Subscriber Review Process is a breach of my obligations under Schedule 7 of the Model Participation Rules. Knowingly providing false or inaccurate responses may result in the suspension of my Subscriber account. To submit your responses, you are required to confirm that I acknowledge the above statement and confirm all responses provided are accurate. If you wish to change any of your responses prior to submission, click on the Previous button to return to the questionnaire. Once you are ready to submit your responses, navigate back to the declaration.   Cases where a breach is identified Throughout the questionnaire, you are provided an opportunity to outline what steps you will take to address any breaches of the Participation Rules, Subscriber Security Policy or Participation Agreement that are immediately apparent from your responses. PEXA’s Subscriber Review Team will review the responses provided in these cases and work with you to ensure you are in a position to action these steps and demonstrate your compliance.    Glossary Capitalised terms used in these guidance notes have the meanings referenced or set out here or the meanings given to them in the Participation Rules, ECNL or by the industry regulator ARNECC.   Term Definition Anti-Virus Software Software utility that detects, prevents, and removes viruses, and other Malware from a computer. Most anti-virus programs include an auto-update feature that permits the program to download profiles if new viruses, enabling the system to check for new threats. Malware Also known as malicious software, is any program or file that is harmful to a computer user. Types of Malware can include computer viruses, worms, Trojan horses and spyware. Novated Substitution of an original party to a contract with a new party, or substitution of an original contract with a new contract Participation Agreement The Participation Agreement (PA) is the overarching agreement between PEXA and each Subscriber. The PA includes: Obligations of both parties including privacy, confidentiality, liability, suspension, termination, insurance, disputes and change management. The PEXA Service Charter, PEXA Pricing Policy and PEXA Security Policy. The terms and conditions governing Financial Settlement in PEXA. A commitment by each Subscriber to comply with the Model Participation Rules, as outlined by ARNECC. Patch A set of changes to a computer program or its supporting data designed to update, fix, or improve it. This includes fixing security vulnerabilities and other bugs, and improving the usability or performance. Primary Subscriber Manager The nominated PEXA contact of the Subscriber. The Primary Subscriber Manager holds the highest level of access to the PEXA Exchange. They have the ability to: Create and edit Subscriber details Setup and verify Financial Account information Create and edit Users Create and edit Workgroups Subscriber Administrator Does not have access to Subscriber details or financial account information. They do have the ability to: Create and edit Users Create and edit Workgroups Subscriber Security Policy Sets out the security requirements that Subscribers must ensure that they and their Users adhere to when using the PEXA Exchange in order to maintain the overall security of the PEXA Exchange. Workspace A shared area in PEXA where Subscribers prepare property instruments and settlement documents for a property exchange transaction to effect lodgement and or settlement.     ... View more

One of the most critical steps in the settlement process is ensuring the Financial Settlement Schedule (FSS) is balanced and correct, ahead of time. This is one of the biggest contributing factors to a successful on-time settlement.   Leading up to settlement, late adjustments, unbalanced figures and last-minute Workspace conversations can all impact member experience – on both sides of the transaction.   In response to member feedback, we have developed an Enhanced Settlement Summary (ESS) that will provide a more intuitive experience for practitioners and financial institutions. The Financial Settlement Summary will still exist, but a new Summary will assist with the calculations to populate it.   To facilitate a smooth transition, this will be rolled out in stages nationally, across three phases, with the first of these set for a business go-live of Monday 12 October 2020 in South Australia.   Part 1 (South Australia: 12 October 2020 and National: February 2021 – TBC): Launching a new transfer indicator panel, providing improved transparency of key responsibilities in the Workspace for all parties. In addition, the enhancements will deliver a streamlined approach to calculating both Vendor Surplus and Shortfall for the Total Funds Required to settle. Part 2 (National: February 2021 – TBC): Delivering functionality enabling the Proprietor on Title representative to finalise their entries in the FSS, including the Vendor Surplus, without waiting for the Mortgagee on Title to finalise their loan payout figure. Part 3 (TBC): Providing more clarity regarding purchaser shortfall required for settlement – in matters where the financial institution is responsible. Below you'll find an overview of the new functionality. Financial institutions, we've curated a support page for you here: https://community.pexa.com.au/t5/Help-Centre/Enhanced-Settlement-Summary-Support-for-banks/ba-p/21168   Functionality overview Introducing the Enhanced Settlement Summary The Enhanced Settlement Summary tab has been redesigned to reduce friction so that you can experience a simpler, more streamlined way to completing the financial settlement schedule. As part of the redesign, you’ll notice a revamped interface that includes new features and panels. We have also introduced some calculations enabling practitioners and financial institutions to easily enter funds and complete the financial settlement schedule with more accuracy and less dependency. Key summary of changes A complete view of settlement funds New Transfer Indicators panel Balance due to Vendor System calculations Other improvements A complete view of settlement funds One of the notable improvements in the Enhanced Settlement Summary tab is the way the funds are displayed and laid out. There is a clear, side-by-side categorisation and itemised view of funds for both the incoming and outgoing parties, which replicates a balance sheet. The Enhanced Settlement Summary gives you a complete picture of the purchaser’s and vendor’s funds, all on a single screen. The specific breakdown of funds in each category for each party gives everyone in the Workspace greater transparency on the settlement funds. Information that is specific to your role will be automatically expanded, whilst items that belong to the other party will be automatically collapsed. To view or hide the itemised funds, you can expand or collapse the panels.     New Transfer Indicators panel A new Transfer Indicators panel provides a summary view of all key tasks that relate to the financial settlement in the Workspace, giving you greater transparency over key responsibilities for Workspace parties. The two new features in this panel include the ability to: View who will be directing the vendor’s surplus funds. Either the Proprietor on Title or Mortgagee on Title can assign responsibility for this task to themselves. View if the Balance due to Vendor* amount has been agreed by participants in the role of Incoming Proprietor and Proprietor on Title.   * Note: In this release notes, we’re referencing this amount as the ‘Balance due to Vendor’; however, the terminology differs in each jurisdiction: NSW—Amount due on Settlement VIC—Balance due to Vendor QLD—Balance due to Vendor SA—Balance due to Vendor by Purchaser WA—Balance due to effect Settlement ACT—Amount due to Seller     Balance due to Vendor New to the Enhanced Settlement Summary tab is the mandatory Balance due to Vendor* amount. This is calculated by the purchase price, minus deposit paid, plus/minus net adjustments. This figure is agreed by both the Proprietor on Title and Incoming Proprietor outside of the PEXA Workspace. Either participant will have the ability to enter this amount into the PEXA Workspace. Providing the Balance due to Vendor into the Workspace provides PEXA the ability to: Clearly indicate to all participants the amount of funds available for the Vendor to disburse, and Use this figure to drive the Purchaser Funds Required to Settlement calculation (previously the Total Funds Required to Settle).   * Note: In this release notes, we’re referencing this amount as the ‘Balance due to Vendor’; however, the terminology differs in each jurisdiction: NSW—Amount due on Settlement ACT—Amount due to Seller VIC—Balance due to Vendor QLD—Balance due to Vendor SA—Balance due to Vendor by Purchaser WA—Balance due to effect Settlement System calculations As part of the Enhanced Settlement Summary, PEXA will calculate the vendor’s surplus, purchaser’s shortfall, and purchaser funds required to settle based on the line items entered by all participants and the Balance due to Vendor. These calculated figures result in a more streamlined experience by providing a consistent way of calculating the vendor’s surplus funds and the funds required to settle by the purchaser. Vendor’s funds: Previously, the  Mortgagee on Title  and  Proprietor on Title  would initiate a Workspace Conversation where the outgoing Financial Institution was to collect all funds from settlement to confirm the amount to be disbursed. In the Enhanced Settlement Summary, the surplus amount is calculated by the system and agreed by the Practitioner, and the  Mortgagee on Title  is prompted to add the surplus amount into the Financial Settlement Schedule. . With the Enhanced Settlement Summary, the Unallocated Funds amount represents the remaining funds available to be disbursed to the Vendor. When the Proprietor on Title has completed entry of the Vendor’s line items, the Unallocated Funds calculation provides the Mortgagee on Title a clear indication of the remaining funds available. Once the Mortgagee on Title creates the loan payout(s) required, then the Unallocated Funds will be the amount required to be disbursed to the Vendor’s nominated account. Purchaser funds required to settle: Previously, the Incoming Proprietor had to manually calculate the Total Funds Required to Settle and enter this value into the PEXA Workspace. With the Enhanced Settlement Summary, the Purchaser Funds Required to Settle (previously Total Funds Required to Settle) amount is now calculated by the system as the sum of the Balance Due to Vendor amount + Purchaser Payment Directions amount. When the Incoming Proprietor has completed entry of the Purchaser’s line items, the Purchaser funds required to settle will be the amount required by the Incoming Mortgagee. Note: The system calculations are only available where there is a single Transfer, no more than one Discharge, and/or no more than one Mortgage in the Lodgement Case. In scenarios where there is more than one Transfer, Discharge, or Mortgage document within the same Workspace, PEXA is unable to determine the nature of the transaction. Therefore, the Incoming Proprietor is required to manually calculate and enter the Total Funds Required to Settlement amount into the Workspace.   Other improvements Signing Status The improved Settlement Signing Status panel now clearly shows the signing status of each participant in the Workspace.​ Adding the signing status provides more meaningful context where dual signatures are required (visible only to the Subscriber who has dual signing enabled). ​ Completing line items Participants in the role of Incoming Proprietor are required to click the Ready for shortfall button (where the Incoming Mortgagee is handling shortfall) after they have completed entering their line items. This notifies the Incoming Mortgagee via a task and an on-screen button that they may now enter or update the shortfall amount. Participants in the role of Proprietor on Title are required to click the Ready for surplus button (where the Mortgagee on Title is handling surplus) after they have completed entering their line items. This notifies the Mortgagee on Title via a task and an on-screen button that they may now enter or update the surplus amount.   Entering shortfall amount If the Incoming Proprietor is responsible for providing shortfall funds, a button will appear on the Purchaser Funds panel, enabling them to either: Add as shortfall where the Purchaser’s Equity line item has not been created, or Update shortfall where an existing Purchaser’s Equity line item already exists. When they click this button, they’ll be directed to the Add/Edit source line item entry screen with the shortfall amount pre-populated based on the new calculations built by PEXA. Similarly, if the Incoming Mortgagee is handling shortfall, they will be presented with a task and either button above, after the Incoming Proprietor has clicked Ready for shortfall.   Entering surplus amount If the Proprietor on Title is responsible for directing the vendor surplus funds, a button will appear on the Vendor Funds panel, enabling them to either: Add as vendor surplus where the Vendor’s Funds line item has not been created, or Update vendor surplus where an existing Vendor’s Funds line item already exists. When they click this button, they’ll be directed to the Add/Edit Destination line item entry screen with the surplus amount pre-populated based on the new calculations built by PEXA. Similarly, if the Mortgagee on Title is handling surplus funds, they will be presented with a task and either button above, after the Proprietor on Title has clicked Ready for surplus.   More details   will   come over the coming   days , but in the meantime , please   visit   the  E nhanced Settlement Summary   site   to learn more   about this feature   or join the pilot group .   Navigating the Enhanced Settlement Summary tab The Enhanced Settlement Summary tab has been redesigned to reduce friction so that you can experience a simpler, more streamlined way to completing the financial settlement schedule. As part of the redesign, you’ll notice a revamped interface that includes new features and panels. We have also introduced some calculations enabling practitioners and financial institutions to easily enter funds and complete the financial settlement schedule with more accuracy and less dependency.   Here's a closer look: New icons have been added  to make it easier for you to  visually  ascertain the status of the financial settlement schedule.    Information that is specific to your role is automatically expanded, whilst items that belong to the other party are automatically collapsed so you can focus on your tasks.   Tasks that are applicable to your role are highlighted in yellow to draw attention to what's relevant to you.           1. Funds balance bar A new bar with a visual indicator enabling you to quickly see if the purchaser’s and vendor’s funds are balanced. 2. Transfer Indicators panel A new panel showing a summary of key indicators that relate to the financial settlement in the Workspace, giving you greater transparency over key responsibilities for Workspace participants. 3. Purchaser summary column A new column showing the amounts payable by the purchaser. It shows all purchaser related line items on one screen and comprises of two panels: 3a—Purchaser Funds : Shows a high-level breakdown of funds required from the purchaser to settle the transaction. 3b—Purchaser Line Items : Shows a detailed breakdown of the purchaser’s funds.   4. Vendor summary column A new column showing the amounts payable by the vendor. It shows all vendor related line items on one screen and comprises of two panels: 4a—Vendor Funds : Shows a high-level breakdown of funds required from the vendor to settle the transaction. 4b—Vendor Line Items : Shows a detailed breakdown of the vendor’s funds.   5. Stamp Duty panel The Stamp Duty panel (or Transfer Duty panel in QLD and WA) shows the stamp duty status within the Workspace. Note: This panel does not display in an ACT Workspace as Stamp Duty is not applicable in ACT. 6. Settlement Signing Status An improved settlement signing panel that incorporates new icons to show the signing status of each participant in the Workspace. FUNDS BALANCE bar A new bar giving you a quick visual indicator of the purchaser’s and vendor’s balance of funds.     Funds balance bar These figures in this bar represent the sum of the Sources and the Payment Directions, based on the line items entered for Sources and Destinations/Adjustments and Payments. When the funds are balanced, the bar will turn green.   Print function (NEW) A new function enabling you to conveniently print the settlement summary so you can share it with your client as a document. Details such as key Workspace data and an outline of the purchaser and vendor funds are included in the document; whilst the Stamp Duty and Settlement Signing Status panels are excluded from the printed document.   TRANSFER INDICATORS PANEL This new panel shows key indicators that relate to the financial settlement in the Workspace, giving you greater transparency over key responsibilities for Workspace participants.     a. Indicates if loan documents have been received The Incoming Mortgagee indicates if they have received the loan documents. b. Identifies who is providing the shortfall The Incoming Mortgagee selects who will be responsible for providing the shortfall amount. c. Displays the last four digits of the purchaser's account As an identifier, the last four digits of the purchaser’s account is displayed. Entering the last four digits is optional and the FSS can be saved without this information. d. Indicates if discharge authority has been received The Mortgagee on Title indicates if they have received the discharge authority. e. Identifies who is directing the vendor surplus (NEW) The Mortgagee on Title or Proprietor on Title assigns responsibility for who will be directing the vendor surplus. Either participant can assign responsibility of this task to themselves. f. Displays the Balance due to Vendor status (NEW) Shows the status of the Balance due to Vendor* amount. Pending – No amount has been entered (default status). Pending Others – An amount has been entered by the Incoming Proprietors or Proprietors on Title in the Workspace but has not been confirmed by all Incoming Proprietors and Proprietors on Title. Note: This status is displayed to participants in the role of Incoming Mortgagee or Mortgagee on Title as they are not required to action this task. Agreed – The amount entered has been confirmed by all Incoming Proprietor and Proprietor on Title participants either via a confirmation dialog in the Workspace or by signing the financial settlement schedule.   *This terminology differs based on your jurisdiction: NSW—Amount due on Settlement VIC—Balance due to Vendor QLD—Balance due to Vendor SA—Balance due to Vendor by Purchaser WA—Balance due to effect Settlement ACT—Amount due to Seller PURCHASER summary column The Purchaser Summary column is new to the Enhanced Settlement Summary and shows the amounts payable by the purchaser; as line items are added or edited and saved, this panel is updated upon refreshing the page. This column consists of two panels: Purchaser Funds and Purchaser Line Items, and will auto-expand for participants in the role of Incoming Proprietor or Incoming Mortgagee.   Purchaser Summary column Purchaser Funds Displays a high-level breakdown of funds required from the purchaser to settle the transaction. These amounts are calculated based on the line items and the Balance due to vendor entered. Balance due to Vendor An agreed amount (between the Proprietor on Title and Incoming Proprietor) that the vendor will receive from the purchaser. This is calculated by purchase price, minus deposit paid, plus/minus net adjustments. This amount is entered by either the Proprietor on Title or Incoming Proprietor. Purchaser Payment Directions This amount represents the sum of destinations/disbursements. Purchaser funds required to settle The amount required by the Incoming Mortgagee for settlement. Previously known as the ‘Total funds required to settle’, this amount is now calculated by the system as a sum of the Balance due to Vendor amount + Purchaser Payment Directions amount. Incoming Mortgagee Sources The funds disbursed by the Incoming Mortgagee, such as a loan proceeds. Purchaser Line Items Displays a detailed breakdown of the purchaser’s funds, as per line items entered in the Sources and Destinations/Payments and Adjustments tabs.     Buttons on the purchaser's panels Depending on who is assigned responsibility for providing the shortfall funds, the buttons available on these panels will vary according to your role.   Incoming Proprietor is responsible for providing shortfall This view displays to participants in the role of Incoming Proprietor if they are responsible for providing the shortfall. In this scenario, the Incoming Proprietor: Clicks on Add as shortfall (1) and they will be directed to the Add/Edit Source line item entry screen with the shortfall amount pre-populated based on the new calculations built by PEXA. Note: I f the  Incoming Proprietor   has previously entered a shortfall amount and source amounts changes, they will see an  Update shortfall  button here instead. Clicks Mark as Complete (2) after they have completed entering all their line items.       Incoming Mortgagee is responsible for providing shortfall This view displays to participants in the role of Incoming Proprietor if the Incoming Mortgagee is responsible for providing the shortfall. In this scenario, the Incoming Proprietor clicks the Ready for shortfall button  to finalise entering their line items. This notifies the  Incoming Mortgagee  that they may now enter or update the shortfall amount.           Incoming Mortgagee is responsible for providing shortfall This view displays to participants in the role of Incoming Mortgagee if they are responsible for providing the shortfall. In this scenario, the Add as shortfall button displays to the Incoming Mortgagee after the Incoming Proprietor finalises their line items and has clicked Ready for Shortfall. The Incoming Mortgagee clicks the Add as shortfall button to enter or update the shortfall amount.         VENDOR summary column The Vendor Summary column is new to the Enhanced Settlement Summary and shows the amounts payable by the vendor; as line items are added or edited and saved, this panel is updated upon refreshing the page. This column consists of two panels: Vendor Funds and Vendor Line Items and will auto-expand for participants in the role of Proprietor on Title or Mortgagee on Title. Vendor Summary column Vendor Funds Displays a high-level breakdown of funds required from the vendor to settle the transaction. Balance due to Vendor An agreed amount (between the Proprietor on Title and Incoming Proprietor) that the vendor will receive from the purchaser. This is calculated by purchase price, minus deposit paid, plus/minus net adjustments. This amount is entered by either the Proprietor on Title or Incoming Proprietor. Proprietor on Title Destinations This amount represents the sum of destinations/disbursements. Mortgagee on Title Destinations This amount represents the funds disbursed by the Mortgagee on Title, such as a loan payout. Vendor Line Items Displays a detailed breakdown of the vendor's funds, as per line items entered in the Sources and Destinations/Adjustments tabs. The destination amounts here are used to calculate the Unallocated Funds on the Vendor Funds panel.     Buttons on the vendor's panels Depending on who is directing the vendor surplus, the available buttons available on these panels will vary according to your role.   Proprietor on Title is responsible for directing vendor surplus This view displays to participants in the role of  Proprietor on Title  if they are responsible for directing the vendor surplus. In this scenario, the Proprietor on Title clicks on Add as vendor surplus and they will be directed to the Add/Edit Destination line item entry screen with the surplus amount pre-populated based on the new calculations built by PEXA. NOTE: If the line items are updated and the surplus amount changes, this button changes to 'Update vendor surplus'.       Mortgagee on Title is responsible for directing vendor surplus This view displays to participants in the role of  Proprietor on Title  if the Mortgagee on Title is responsible for directing the vendor surplus. In this scenario, the Proprietor on Title clicks on Ready for surplus to finalise entering their line items. This notifies the Mortgagee on Title (via a task and an on-screen button) that they may now enter or update the surplus amount.     Mortgagee on Title is responsible for directing vendor surplus This view displays to participants in the role of  Mortgagee on Title  if they are responsible for directing the vendor surplus. In this scenario, the Add as vendor surplus button displays to the Mortgagee on Title after the Proprietor on Title has finalised their line items and clicked Ready for surplus. The Mortgagee on Title clicks the Add as vendor surplus button to enter or update the surplus amount. Note: If a surplus amount has already been entered, the Mortgagee on Title will see an Update vendor surplus button here instead.   STAMP DUTY PANEL The Stamp Duty panel (or Transfer Duty panel in QLD and WA) shows the stamp duty verification and assessment status.       The Stamp Duty panel remains unchanged and displays the following information:   Document ID A unique ID generated by PEXA for the Transfer document in the Workspace. Verification Status The duty amount payable has been verified to be correct via a stamp duty verification process in PEXA. The possible statuses are Successful or Unsuccessful. OSR status advice T he status of the Stamp Duty case in the Revenue Office system.   Duty amount payable The amount of duty payable for the property. SETTLEMENT SIGNING STATUS The Settlement Statement Signing panel has been improved to include new icons to visually indicate the signing status of each participant in the Workspace. This provides more meaningful context where dual signatures are required (visible only to the Subscriber who has dual signing enabled).   New icons New icons have been added allowing you to visually ascertain a participant's signing status. When a participant successfully signs the financial settlement schedule, the icons for that participant turns green and a time stamp of when they signed will be recorded in the Date and time column.   FAQs   Why is PEXA revamping the Financial Settlement Schedule (FSS)? PEXA is committed to continuously enhancing member experience – with your feedback playing a key role in driving our technical prioritisation. Member feedback has indicated that the FSS is an area the network has wanted to see us innovate and streamline for some time now. Ultimately, by delivering an Enhanced Settlement Summary to the network, our aim is to enable you to complete your required tasks on the day of settlement, without relying on other Workspace parties to first complete theirs – eliminating interdependencies and encouraging timely settlements. Which PEXA members will see the ESS from 12 October? The Enhanced Settlement Summary will be switched on for all South Australian members on 12 October, as part of a gradual, national roll-out plan over the coming months, to help ensure a smooth transition for industry. The ESS will apply to any Workspaces opened related to a South Australian property. We have been piloting Part 1 of the new Enhanced Settlement Summary with practitioners, panel law firms and financial institutions over the last six months and have refined the functionality in line with their feedback. Feedback has been positive, with peers noting the new view assists with getting the Workspace ‘Ready Ready’ more easily. Can other members opt in? Yes, members from other jurisdictions are able to opt in to have the new view activated. Please reach out to a member of the PEXA team should you wish to do so and we’ll kindly assist. What is PEXA doing to support members through this change? We recognise this is a significant change to your PEXA experience. As such, we’ve developed an extensive suite of learning resources to help you navigate this change.  Information on the rollout can be found here: https://www.pexa.com.au/sites/ess . Full Release Notes on Part 1 can be found here: https://community.pexa.com.au/t5/PEXA-Product-Releases/PEXA-Release-12-1-2-05-October-2020/ba-p/20967#ess . Further material (help cards etc) can be found here: https://community.pexa.com.au/t5/Help-Centre/PEXA-s-Enhanced-Settlement-Schedule/ba-p/20958 . From 23 September, our Training team will hold 7 South Australian webinars for practitioners and 2 individual webinars for financial institutions on the Enhanced Settlement Summary to ensure all members have an opportunity to see a live demonstration of the functionality and ask their questions to the experts.  Sessions will continue to be delivered by the team, as well as our PEXA Partners, in the months ahead. In addition, as always, our PEXA Partner team and Member Support Centre are here to support you. Sessions will be held in the different states as we roll out ESS nationally. What are the benefits of this for practitioners? As an Incoming Proprietor representative, practitioners will benefit from not having to calculate and enter the Total Funds Required to Settle (TFRS), have better co-ordination with the Incoming Mortgagee, see a reduction in keying of data and have less reliance on conversations to clarify responsibilities.  Where the Incoming Mortgagee is responsible for providing all funds, practitioners can generate a task to the bank to finalise their source funds required for settlement when they’ve completed entry of your line items. Similarly, when acting for the Proprietor on Title, practitioners will have more visibility over key responsibilities in the Workspace and will also benefit from the system calculations for the Vendor Surplus line items. This should reduce the number of conversations with the client’s bank in the Workspace.  Where the Mortgagee on Title is responsible for the Vendor’s surplus, practitioners can generate a task to the bank to finalise the Vendor’s funds when they’ve completed entry of your line items. What are the benefits of this for financial institutions? Financial institutions will see a reduction in errors and more Workspace clarity, in addition to greater certainty over the final settlement figures, reduced reliance on conversations and greater visibility of the status of the completion of the FSS. What changes are being made? Part 1 (South Australia: 12 October 2020 and National: February 2021 – TBC): Launching a new transfer indicator panel, providing improved transparency of key responsibilities in the Workspace for all parties. In addition, the enhancements will deliver a streamlined approach to calculating both Vendor Surplus and Shortfall for the Total Funds Required to settle. Part 2 (National: February 2021 – TBC): Delivering functionality enabling the Proprietor on Title representative to finalise their entries in the FSS, including the Vendor Surplus, without waiting for the Mortgagee on Title to finalise their loan payout figure. Part 3 (TBC): Providing more clarity regarding purchaser shortfall required for settlement – in matters where the financial institution is responsible. For more detailed information and screenshots of Part 1, refer to our Release 12.1.2 notes: https://community.pexa.com.au/t5/PEXA-Product-Releases/PEXA-Release-12-1-2-05-October-2020/ba-p/20967#ess. What happens if my Workspace is uploaded via PEXA Projects? The Proprietor on Title does not need to enter or sign off on the Balance Due to Vendor.  The Incoming Proprietor will be expected to enter this figure to drive the ‘Total Funds Required to Settle’ calculation, especially where the Incoming Mortgagee is handling shortfall funds.  The ‘Ready for Surplus’ button will still be available for the Proprietor on Title to click (on a per workspace basis), however as the POT is usually in control of directing their own funds, then this shouldn’t be an issue. Why is this being delivered in stages? As with any change, we want to ensure the process causes minimal disruption to your organisation’s day-to-day operations.  By rolling this out in stages, we hope this will make the changes as seamless as possible and enable us to quickly implement additional feedback from the network.   ... View more