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With its latest case, Consumer Affairs Victoria has sent a warning to the industry that audit reports can’t be ignored.
Melbourne agency Charter Lane and its director, Hayden Ali, have ended up in the watchdog’s crosshairs following five years of failing to lodge trust account audit reports.
The firm reportedly failed to submit annual audit reports between the 2017 and 2022 financial years, and furthermore ignored several reminders, a warning and infringement notices over the missing reports. Consumer Affairs Victoria investigators contacted the agency 12 times between July 2018 and September 2021.
While Ali continuously assured the consumer affairs department that he would provide the audits, the body eventually pursued further action after they did not materialise.
Following disciplinary proceedings, Ali has been ordered to undertake further study in managing a real estate agency business and working with trust accounts. He and the company must both each pay a $1,250 fine and accept a formal reprimand.
The firm must also engage an independent third party to maintain the agency’s trust accounting records until 2028, with Ali’s licence to be immediately suspended if the accounts are not audited each of these years.
Consumer Affairs Victoria executive director Nicole Rich said the outcome of this case showed that the agency would pursue action against all types of trust account failures.
“Managing trust accounts is a pivotal professional responsibility for agents. They must understand their legal obligations – ignorance is not an excuse for failing to meet them,” Rich said.
“Trust account irregularities can also be a signal of deeper failures within an estate agency, so those who fail to meet their trust account obligations can expect Consumer Affairs Victoria to apply a greater level of scrutiny to their business,” she added.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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