The government body charged with forging ahead and making interoperability between eConveyancing platforms a reality by the end of 2025 has paused critical work, at least at its end.
The Australian Registrars’ National Electronic Conveyancing Council has even stood down its project team, or so PEXA – the monopoly supplier – disclosed in a statement yesterday.
Blame for this baffling state of affairs is being cast widely.
In an industry briefing on Wednesday, “ARNECC advised that the Interoperability Program will be paused until these perceived issues can be resolved”, or at least that’s how Sympli, one of two challengers to PEXA, summed up the state of play to Banking Day.
PEXA pointed to Wednesday’s official statement by the ministerial forum on National eConveyancing that “financial services aspects of the Interoperability Program are beyond the remit of state and territories to resolve” – in other words, blame is somehow sheeted to the banks.
Suspicion inevitably falls, though, on PEXA as somehow being the primary obstacle, with so much at stake to protect its position (which arises from being the first mover, with a head start of several years).
PEXA told Banking Day it “has continued to support efforts that drive reform in digital settlements. Throughout the interoperability program, we consistently and constructively worked to fulfil our obligations.
“However, we consistently raised concerns with the industry regulator ARNECC and governments regarding the unintended consequences of the proposed approach to introducing interoperability.
“You will see in ARNECC's statement yesterday; the pause relates to issues raised by the banking industry and financial aspects of the interoperability program, and that the proposed way forward to address these concerns is beyond the remit of states and territories to address effectively.”
In an email yesterday, Sympli hectored PEXA once more.
“This pause in the program will only benefit the incumbent monopoly provider.
“Sympli confirms that we are, and have always been, committed to ensuring our bank processes are supported in interoperability, but we remain extremely disappointed that this same commitment does not appear to be shared by the industry incumbent.
“Unfounded claims of intellectual property rights over what have been decades-established industry practices are blocking the finalisation of data standards required to deliver the reform – this must be stopped.”
Sympli’s CEO Philip Joyce said its “firm position is that ARNECC is ultimately the body to lead the reform needed to deliver interoperability but we support its request for urgent federal government or regulatory intervention from bodies such as the ACCC.
“I would encourage governments at all levels to do what is needed to provide the right settings for competition and this should include enforcement action to ensure interoperability can be delivered" Joyce said.