A national reform to widen competition in the electronic conveyancing industry has been paused due to “issues raised by the banking industry”.
Known as the interoperability program, the reform is aimed at creating links between electronic lodgement network operators (ELNOs) and banks during property transactions.
The two ELNOs are Property Exchange Australia (PEXA) and challenger Sympli.
After three years of work, however, the interoperability program has hit a roadblock, according to a forum of state and territory digital leaders on June 11 [pdf], and now appears to have been suspended
In a vague statement, the Australian Registrars National Electronic Conveyancing Council (ARNECC), which is administering the program, said: “Financial services aspects of the interoperability program are beyond the remit of state and territories to resolve.”
ARNECC, a body made up of representatives from every state and territory, said it would now call on the federal government and regulators to resolve the issues.
According to PEXA, which has a 90 percent share [pdf] in the national property transfer processing market, ARNECC “are in the process of standing down their project team” [pdf] for the interoperability work.
Sympli put out a statement arguing the pause “will only benefit the incumbent monopoly provider [PEXA]”.
ITnews has contacted ARNECC for confirmation of these details.
PEXA told shareholders that it “continue[s] to participate constructively with our regulators and industry participants to support and evolve an ecosystem that operates in the best interests of Australian home and property owners.”
Although the interoperability program “faces significant challenges”, ARNECC said ministers “noted the benefits that competition could bring and the need for industry and consumer confidence in the system”.
In September, PEXA and Sympli conducted an interoperability trial involving two refinancing transactions relating to properties in Queensland alongside the participating banks Commonwealth Bank and NAB.