Born out of our law firm, McCormacks Solicitors, we have adopted a professional, advisory approach to strata management.

As such, my father’s roots in law and the fundamental, fiduciary responsibility of strata managers to their clients – is the cornerstone of McCormacks Strata Management – and it has been for 30 years.

The rapid growth of strata properties in Australia, along with cost-of-living pressures, have shone a spotlight on the professionalism of the industry of late.

At McCormacks, we welcome this scrutiny, as it provides a platform for our position, which is to provide full transparency and integrity in our approach to strata management for our clients.

Below, we outline our position and our clear commitment to clients.

The Strata Community Association (SCA) Peak Body Enshrines The Code Of Ethics Into The Constitution (Rule 40)

The Code Of Ethics established the principles that govern the conduct of Members of SCA NSW in the context of the strata living environment.

The Code outlines specific obligations, which include:

  1. Professional strata managers owe a duty to the owners corporation with which they manage. Their relationship is fiduciary in nature.
  2. Act ethically, honestly and be and appear to be free of any interest which might be regarded as incompatible with integrity and objectivity.
  3. Not provide false, misleading, or deceptive information to anyone.
  4. Disclose and deal with Conflict of Interest issues in an open and fair manner, and not pay or accept secret commissions, either directly or indirectly.
  5. Not engage in any conduct that wrongfully brings disrepute to the SCA (NSW), its Members or the consumers of their services.

Strata Managers Have A Fiduciary Responsibility To Their Clients

The first point – where strata managers have a fiduciary relationship with their clients (the owners corporation) – is important to unpack here.

Several months ago, Michael Kleinschmidt of Bugden Allen Lawyers was interviewed on the topic ‘Strata Managers as Fiduciaries’.

Kleinschmidt described the fiduciary relationship as one of trust and confidence, typically between parties with asymmetric power, analogous to the doctor to patient / solicitor to client relationship.

Kleinschmidt proposes that in the strata industry, there are significant issues around disclosures, insurance commissions and others that need to be addressed.

He goes on to say that the strata industry must ‘get serious about disclosure’, by providing clients with enough information to be properly informed, so as to make informed consent.

“Any other way, just contributes to a poor result for everyone, and damages relationships,” he says.

McCormacks Commitment

McCormacks’ philosophy is to deliver professional strata management by serving the best interest of our clients. This is with a view to long term relationships, which we have built together successfully with our clients over 30 years.

Full disclosure, transparency and open and honest communication with our clients form our governance policies, ensuring the highest level of ethics and integrity.

We do not own, engage or otherwise participate in any business structures that would give rise to undisclosed or conflicted income, as these do not support the best interest of our clients.

We will always work to provide our clients with the highest levels of service and charge an appropriate, transparent fee for doing so.

Kleinschmidt summarises our position best:

“True professionals act professionally. They keep themselves up to date. They avoid breaches of fiduciaries, and even the perception of a conflict of interest. Because then, you protect and enhance the reputation of your profession.”

Hugh McCormack, Managing Director – McCormacks Strata Management

Contact the team at McCormacks for professional and trusted advisory.