Report of operations

The ARBV compliance function exercises the regulatory powers of the Architects Act 1991 (Vic) (the Act) to protect the public interest. The Act enables the ARBV to investigate matters on its own initiative or on the complaint of any person.

The ARBV continues to increase its ability to generate and process information to develop actionable intelligence which informs its proactive activities to enable greater focus on higher risk matters and initiate early and timely regulatory responses. Sharing of information and insights with related co-regulatory bodies, in accordance with privacy principles and information sharing requirements, remains a key part of the regulatory strategy.

Central to the ARBV’s data and intelligence capabilities is the newly introduced CRM that enables more enduring and accessible data and record management, as well as the ability to identify trends and emerging issues with significantly greater efficiency.

Professional conduct of architects

Architects must demonstrate conduct that is professional. This includes but is not limited to fulfilling the obligations detailed in the ‘Victorian Architects Code of Professional Conduct’ (contained within the Architects Regulations 2015).

The Code sets out requirements architects must comply with relating to:

• standards of conduct
• skills and knowledge
• approval of documents
• contracts and agreements with clients
• administering a building contract for a client
• professional fees and costs
• provision of information to clients
• retaining documents and record keeping
• maintaining confidentiality of client information
• disclosing conflicts of interest, referrals, and endorsements
• engendering confidence in and respect for the profession
• maintaining standards and integrity of the profession.

Following investigation, the ARBV may determine that an Architects Tribunal inquiry should be held into an architect’s professional conduct and/or fitness to practise. If the Tribunal finds allegations against an architect proven, it may make determinations against the architect that include cautions, reprimands, mandatory further education, registration conditions, and suspension or cancellation of registration. The ARBV is required to enforce any determinations made by the Tribunal.

The Act provides that:

• a person whose interests are affected by an ARBV determination not to refer an architect’s conduct or fitness to practise for inquiry may apply to the Victorian Civil and Administrative Tribunal for a review of that determination
• an architect may apply to the Victorian Civil and Administrative Tribunal for a review of an Architects Tribunal determination concerning them.

Prohibited conduct

To be an architect, a person must be registered with the ARBV. The education and experience required for registration, coupled with the professional conduct obligations and the need to have compliant professional indemnity insurance cover, contribute towards the public being protected and being able to have confidence in the profession.

If a person or body is not registered with the ARBV, they are not an architect in Victoria. If a person or body represents themselves or allows themselves to be represented as an architect, they are in breach of the Act’s prohibited conduct provisions.

Breaches of the Act’s prohibited conduct provisions may be prosecuted in the Magistrates Court of Victoria by the ARBV.

Compliance activity statistics

Notes:

1. Where no values are shown this indicates the category was not previously reported.
2. Numbers of proactive (initiated by ARBV) professional conduct matters in 2020-21 were expected to be low as ARBV was still developing a proactive strategic plan that is consistent with the statutory framework

Notes:

1. For the 2016/17 to 2017/18 reporting periods, outcomes reported reflect only matters referred to the Tribunal in response to complaints (reactive).
2. 2018-19 and 2019-20 reporting reflects matters referred to the Tribunal in response to complaints (reactive) and investigations of a reactive (complaints) and proactive nature (ARBV initiated).

Prohibited conduct

The Act prohibits representations as an architect by people or bodies who are not architects and enables the ARBV to investigate potential offences and to initiate proceedings in the Magistrates Court of Victoria.

As a consumer protection mechanism, the Act’s prohibited conduct provisions ensure the public can have confidence in an architect’s:

• qualifications, skills, and experience
• regulatory requirements
• professional indemnity insurance cover.

During the 2020-21 reporting period 64 potential breaches were investigated.

Notes:

1. Prosecutions initiated were first reported on in 2018-19.
2. Where no values are shown this indicates the category was not previously reported.
3. 61 investigations were completed, though some were initiated prior to 2020-21. Some cases initiated in 2020- 21 remained open at the end of 2020-21

Tribunal

Professional conduct and/or fitness to practise inquiries are conducted by the Architects Tribunal which is independent of the Board. A Tribunal is constituted as required, from a panel of suitably qualified people appointed by the Minister and approved by the Governor in Council.

An Architects Tribunal is constituted as follows:

• one panel member who is a practising architect
• one panel member who is not an architect
• one panel member who is a representative of consumer interests.

At least one member of a Tribunal is to be a person with legal experience and knowledge.

If the Architects Tribunal finds allegations against an architect proven, it makes determinations regarding penalty and costs.

The ARBV is required to enforce the determinations made by the Tribunal.

Number of new cases referred to the Tribunal for inquiry in 2020-21 – 2

Number of inquiries finalised in 2020-21 – 1

Compliance with professional indemnity insurance requirements

Section 8B and 8C of the Act require practising architects to be covered by professional indemnity insurance that complies with requirements set out in the Architects Insurance Ministerial Order of February 2020. The Board audits compliance with this requirement and suspends the registration of architects who fail to comply. The newly introduced CRM will enable more efficient auditing of compliance with insurance obligations.

Registration is an important regulatory requirement that controls entry to the profession and provides assurance to consumers that architects possess a high standard of education and experience, adhere to prescribed standards of professional practice and hold professional indemnity insurance.

Qualifications for registration

The fit and proper person (FPP) requirements for registration (first introduced in July 2020) have been integrated into the registration process. Registrants are now required to answer questions related to their fitness to practice. ARBV has also introduced an enduring declaration at renewal for registrants to provide details of changes in their registration related to the FPP requirements contained in section 10A of the Architects Act 1991 (Vic) (the Act).

FPP is determined during the granting of registration process and can help to provide initial insights into the risk profiling of a regulated entity. This initial understanding of risk profiles provides useful information to inform education and monitoring of newly regulated entities.

To be eligible for registration as an architect, a person must have been engaged for not less than two years in practical architectural work and attained a standard of professional practice satisfactory to the ARBV. The legislation makes provision for the Architectural Practice Examination (APE) for this purpose, being the APE administered by the architect registration boards in collaboration with the AACA. The APE has been adopted by all Australian state and territory architect registration boards, providing for national consistency in pre-registration examination.

The APE is the most common pathway to registration and is held twice in each calendar year. The other pathways to registration are administered by the AACA and include the Experienced Practitioner Assessment (EPA) – for both overseas experienced and locally experienced individuals and overseas mutual recognition (APEC and US architects).

While continuing to deliver registration business as usual services as described above, the emphasis in 2020-21, consistent with the overall organisational strategy, has been to deliver enhancements to the registration function. This has included:

• Assist in the implementation of a Customer Relationship Management system (CRM) and a new website sharing the Victorian Government Single Digital Presence platform.
• Reviewing and developing policies and procedures as part of the implementation of the regulatory strategy and to ensure they meet legislative requirements.
• Collaborating with the AACA and other architect registration boards to implement improvements to relevant registration and examination procedures and processes.
• Working to ensure that registration pathways remain nationally consistent.
• Reviewing and improving record management for registrant records.
• Managing the Continuing Professional Development (CPD) process, including the implementation of the mandatory CPD declaration.
• Improving communications regarding the registration renewal process and the overall regulatory framework.
• Contributing to content for the revised ARBV Update provided periodically through the year to registrants.
• Assist with the accreditation processes administered by the AACA.

APE held remotely

Due to coronavirus (COVID-19) impacts, the ARBV worked to assist the AACA to move the APE examinations to online platforms. In October and November, the ARBV held over 300 Part 3 interviews online. This involved creating new procedures and processes for the interviews, and ensuring the interviews were conducted in a timely manner.

APE Examiner Panel

The recruitment process for the APE examiner panel, was finalised in mid-2020. The panel consists of 74 Architects with a range of experience. Training for the examiners took place in September 2020 remotely. Examiners were provided with information and guidance about conducting the examination, including how to conduct an examination in an online setting.

ARBV Conferring Ceremony

The ARBV Certificate Conferring Ceremony (CCC) is typically held as an annual event to acknowledge newly registered architects in Victoria. Due to coronavirus (COVID-19) the 2020 CCC was postponed and resumption of CCC’s remain uncertain in the current environment.

Payment of annual fees

The ARBV has continued to improve communications about the renewal process to promote compliance by registrants with the 1 July date for payment of prescribed annual fees. The introduction of the CRM and the timing of the release by Government of the increase in fee units for 2021 delayed the commencement of the registration renewal period. With a shorter renewal period and the ongoing impacts of coronavirus (COVID-19), ARBV observed an increase in non-payment of annual fees compared to 2019-20, with 266 registrants not having paid by the due date.

Where the prescribed fee is not paid by the due date (which may be extended in agreed circumstances, e.g. through the Financial Hardship Policy) ARBV may initiate steps to suspend the registration of the regulated entity. If a regulated entity continues to fail to pay without a reasonable excuse, a recommendation may be made to the Board to suspend their registration.

Registration and Architectural Practice Examination Statistics

Notes:

1. Partnerships were previously combined with companies for reporting purposes.
2. Changing of Registration Class was first reported on in 2018-19.

Notes:

1. Increase in non-practising between 2017-18 and 2018-19 results from the inclusion of previously non-reported architects e.g. retired. The Act does not provide for resignation or removal from the register other than through suspension or cancellation.
2. Total numbers do not include cancelled or suspended registrations at 30 June.
3. The increase in non-practising registrations for 2020-21 is due to the implementation of the CRM data migration, as historically some registrants had been placed in an inactive status not the non-practising class.

Notes:

1. Partnerships were previously combined with companies for reporting purposes.

Notes:

1. Due to coronavirus (COVID-19) only one APE session was completed in the financial year 2019-20 which has impacted outcomes.

Notes:

1. Suspensions were not previously reported prior to 2018-19.

Finance and Corporate Services

The ARBV launched its new website and implemented a new fit for purpose Customer Relationship Management system (CRM) which provides significant improvements in delivering the ARBV’s core regulatory functions, service delivery, data analysis and sovereignty of data held onshore. The managed information technology (IT) provider has delivered improved service, better value for money and provided employment for persons in Australia.

In addition to the above initiatives, the Finance and Corporate Services function continued to provide service delivery for a range of internal and external stakeholders. In 2020-21, ARBV continued to improve core operational policies and procedures. It also worked to achieve financial procurement efficiencies as well as improving risk management and heightening risk awareness more broadly. Information security and document management have also been areas of focus.

The ARBV continued to strengthen its governance and risk oversight by conducting an internal audit program to identify improvements and promote best practice.

Further improvements are being delivered in the following areas:

Customer Relationship Management system (CRM)

The CRM system has been implemented and moved into a warranty period and business as usual phase after year end. The CRM provides considerable improvements in self-service, workflow management, reporting, auditability and data sovereignty.

New website

The ARBV launched a new more user-friendly website which is integrated with the new CRM. This simplifies navigating and using our services, makes it easier for regulated entities to complete transactions, and provides consumers and architects with guidance and educational materials that drive improved regulatory outcomes. The website shares the Victorian Government Single Digital Presence platform, increasing ARBV’s profile and visibility to consumers and architects as a statutory authority regulator.

Human resources

A new Australian owned and operated payroll and HR Management System, which provides significantly improved functionality has been purchased and implemented. In addition to a payroll function, the new system includes modules for management of learning and development, annual performance planning and review and the capacity to capture other core human resources processes on a single system.

In April 2021, a Human Resources professional was engaged on a part-time basis by the ARBV, and Human Resources became a discrete function separate from Finance and Corporate Services.

The ARBV concluded a new Enterprise Agreement which aligns to the Victorian Public Service Agreement’s terms and conditions. This agreement was approved by the Fair Work Commission in May 2021 and will be in place for three years.

Finance system

More thorough and timely reconciliations and reviews have been a focus in 2020-21. This included enhanced vendor master file security reviews as well as integration of customer integration between the new CRM and the finance system.

Risk

Further improvements to risk management based on the Board approved revised Risk Management Policy and Framework, included updating risk registers, controls and treatments. The ARBV developed a Protective Data Security Plan aligned to the Victorian Protective Data Security Framework.

Governance

Improving Board systems and processes were a focus in 2020-21 as well as continued enhancement of ARBV’s governance frameworks to better meet whole of government accountabilities including compliance and reporting obligations.

The Board election pursuant to section 47(2)(c) of the Architects Act 1991 (Vic) for architect nominated candidates was concluded in April 2021. The results of the election for the nominated architects were published in the Victorian Government Gazette (G18 6 May 2021) and provided to the Minister for Planning and the Minister’s portfolio agency DELWP. The process for appointment of Board members, including architects nominated for appointment by election, is managed by DELWP which is responsible for undertaking requisite probity and suitability checks and making a recommendation to the Minister.

The appointment of Board members had not been finalised at the end of the reporting period.

Legal services

The focus for legal services in 2020-21 included:

• development and implementation of significant legislative and regulatory changes
• revisions to the Professional Indemnity Insurance framework applied to the architectural profession in response to the cladding issues and the insurance markets response
• introduction of new guidance material for panel members of the Architects Tribunal, providing them with information on the administrative framework and operation of the Tribunal
• revision of the Regulatory Strategy including the reformulation of the regulatory objectives underpinning the strategy and the development of the proactive strategic plan and performance monitoring framework
• assistance to Architects Tribunal on inquiries and oversight of prosecutions
• oversight of application for review in the Victorian Civil and Administrative Tribunal
• review of processes in place between ARBV and the Architects Tribunal
• development of a revised privacy policy and collection statement.

Corporate Plan

The ARBV’s 3-year Corporate Plan 2019–22 endorsed by the Board in May 2019, provided the guidance for the resulting Business Plan for 2019-20 approved by the Board in June 2019. The ARBV continued working in 2020-21 to achieve the key initiatives and projects identified in the Business Plan for 2019-20.

The Corporate Plan established a roadmap for the future in providing a clear guide for its activities and continually building on its work during the duration of the Plan.

The Plan is built on the ARBV’s:

Long term outcomes

• A capable, compliant and informed profession.
• A community that understands the role of architects and the ARBV.
• A modern, trusted and connected regulator.
• A regulatory framework that drives strong outcomes.

Key strategies

• Build a high performing, focused and sustainable organisation.
• Implement effective systems and processes.
• Undertake effective communications and stakeholder engagement.
• Deliver and implement an effective regulatory strategy.
• Drive improvements to the regulatory framework while optimising use of the existing framework.

As part of the Corporate Planning process, indicators of success to achieving the long-term outcomes have been developed and incorporated in the published plan. Those outcomes will be delivered and measured through the identified strategies and actions over the 3-year life of the Plan.

Statement of Expectations

The revised Statement of Expectations (SOE) framework, issued by the Minister for Planning in August 2019 for the period to June 2021, included the following performance improvements and targeted outcomes.

SOE framework

Victorian building system review

Following work undertaken by the Victorian Cladding Taskforce highlighting a need for reforms in the building sector, the Victorian Government announced in December 2019 the establishment of an independent expert panel to conduct a comprehensive review of Victoria’s building regulatory system. The expert panel’s work has been conducted in parallel with work being undertaken by the Australian Building Codes Board to develop a framework for implementation of the findings of the Building Confidence Report (2018).

On 7 April 2021, the expert panel released for consultation its discussion paper containing a Framework for Reform for modernising Victoria’s building system. As the expert panel proposed several significant reforms, including changes to the regulatory regime that governs architects, the ARBV thoroughly considered the panel’s proposals and provided a written submission in response. At the same time ARBV communicated its interest in participating in the reform process as it evolves. The written response was supplemented by ARBV’s responses to relevant questions posed by the expert panel. The ARBV also participated in 2 workshops with building sector regulators and the expert panel in May 2021.

Automatic Mutual Recognition

In August 2020, the Australian Government announced that the commonwealth, and state and territory governments had agreed to introduce a uniform scheme for the Automatic Mutual Recognition (AMR) of occupational registrations. On July 2021, commonwealth, state and territory governments introduced AMR to streamline long-standing mutual recognition arrangements and improve occupational mobility by removing additional fees and paperwork and making it easier and less expensive for registered professionals to operate in multiple jurisdictions. While AMR commenced in Victoria on 1 July 2021, the Victorian Government decided to delay several occupations from the start of AMR, including architects.

The ARBV has worked with DELWP in relation to legislative amendments to the Architects Act 1991 (Vic) to facilitate AMR and ensure intended safeguards operate. The ARBV has also met regularly with the Architects Accreditation Council of Australia (AACA) and interstate architect registration boards to discuss the introduction of AMR and how information can best be shared in a timely manner between jurisdictions.

To promote its readiness for AMR for architects and mitigate against risks, the ARBV has sought to engage with other regulators to share insights and resources.

Amendments to the Architects Act 1991

Proclamation of the Building and Environment Protection Legislation Amendment Act 2020 (Vic) took effect on 28 July 2020, bringing into operation changes to the Architects Act 1991 (Vic) designed to improve the regulatory regime in the building and construction sector and modernise and strengthen the Architects Registration Board of Victoria.

These changes were implemented to ensure the ARBV could effectively carry out its regulatory strategy, build a stronger profession and meet community expectations.

Key amendments to the Act included:

• substituting a ‘fit and proper person’ (FPP) test for the ‘good character’ test
• introducing a power to require the production of information or documents
• introducing a power of immediate suspension of registration
• introducing a head of power to mandate continuing professional development (CPD) for architects.

The Act also incorporated a number of other amendments including extending the term of Board members appointment from 2, to up to 3 years, repealing the provision that restricts replacement ARBV Board members from holding office only for the rest of the term of appointment of the member whose place he or she fills and changing suspensions of registration relating to Professional Indemnity Insurance (PII) by including PII grounds as a basis for immediate suspension, pending inquiry.

In 2020-21 the ARBV updated processes, procedures and forms to incorporate new requirements (e.g. FPP test and CPD) and monitor compliance, this encompassed incorporating those requirements in the CRM and on the new website. Embedding and monitoring such requirements builds a stronger profession, enhancing community confidence. The ARBV has also worked on gaining a clear understanding of the extent of its power to require production of information or documents to ensure the exercise of the power is consistent with the statutory framework. Consistent with the amendments, appointments to the ARBV Board will be made for 3 years increasing continuity and the capacity of Board members to make an effective contribution during their term of office.

In addition to sector and legislative reforms, ARBV has been involved in progressing several key regulatory and operational activities in 2020-21 as already referred to in this report. Key activities have included:

CRM and website

The ARBV embraced digital processes and improved data analytics by implementing a Customer Relationship Management system (CRM) that was operational for 2021-22 annual renewal of registration. Central to the ARBV’s data and intelligence capabilities the CRM enables more enduring and accessible data and record management, as well as the ability to identify trends and emerging issues with significantly greater efficiency. The CRM also provides considerable improvements in terms of user self-service, workflow management, reporting, auditability and data sovereignty.

ARBV also launched a new more user-friendly website integrated with the CRM. This new website simplifies navigating and using our services, makes it easier for regulated entities to complete transactions, and provides consumers and architects with guidance and educational materials which drives improved regulatory outcomes. The website shares the Victorian Government Single Digital Presence platform, increasing ARBV’s profile and visibility to consumers and architects as a statutory authority regulator.

Regulatory Strategy and development of proactive strategic plan, performance monitoring framework and risk profiling

Over recent years the ARBV has made significant changes to its regulatory strategy, policies and procedures to ensure it meets its obligations as a contemporary regulator. The Regulatory Strategy embeds a risk-based approach to regulation and enables the ARBV to target its resources at the compliance areas and issues that pose the greatest risk to the public, while minimising undue regulatory intrusion and burden. In 2020-21, the ARBV continued to build on and enhance its regulatory approach to keep pace with sectoral changes, including the emergence of systemic risks. Central to this development was the revision and refinement of the Regulatory Strategy, including the establishment of a proactive strategic plan, a performance monitoring framework and risk profiling criteria for regulated entities.

Guidelines for architects

In 2020-21, the ARBV continued to develop guidance material for use by architects which can also assist consumers. These Architect Guidelines are made available on the ARBV website. Guidance material has been developed in relation to the following:

• Classes of registration
• Client-architect agreements
• Conflicts of interest
• Informing and agreeing on client access to project material
• Obligations to inform client
• Professional fees and costs

National Registrars Forum

The National Registrars Forum was initiated in April 2019 and brought together cross-jurisdictional regulators to share best practice, better understand risk and to work towards a nationally consistent approach to the regulation and oversight of the architectural profession.

At meetings of the National Registrars Forum in 2020-21 matters discussed included:

• information sharing arrangements between architect registration boards
• APE review, including revising the pathways to registration
• the revision of the National Standard of Competency (NSCA)
• the continued transition for the APE to online platforms for the delivery of the program
• the automatic mutual recognition scheme.

Review of organisational structure

A dedicated human resources function was established by ARBV in 2020-21. An important task of the function was to assess staffing resources and undertake workforce planning to ensure the ARBV is effectively structured in 2021-22 to deliver its regulatory responsibilities and meets its obligations as a contemporary regulator. A realigned organisation structure was approved by the ARBV Board at its June 2021 meeting and will come into operation in 2021-2022.

Office relocation

Due to the redevelopment of the site where its previous office was located, ARBV had to search for and secure new premises in 2020-21, to ensure appropriate facilities for staff and for those attending for examinations, disciplinary hearings and other business. A lease commenced in April 2021 for new premises at Level 10, 533 Little Lonsdale Street, Melbourne and arrangements for fit out works to be completed were in progress at the end of the reporting period.

The ARBV anticipates that staff will be able to move in and commence working from the new premises in late 2021, but this will depend on the status of coronavirus (COVID-19) restrictions at that time.