Annual audit of water brokers’ use of the Broker Portal
4 April 2018
Victorian Government, DELWP
4 April 2018
The Government, through Water for Victoria has committed to actively monitoring water markets to ensure that they continue to operate effectively.
A key task in this is an annual audit of the water brokers who use the Water Register’s Broker Portal/API (“the portal”). The audit helps to ensure that brokers meet their obligations to provide transparency of water trades and accurate price disclosure to all parties.
The portal allows brokers to lodge allocation trades on behalf of their customers online at a reduced cost. In most cases the portal processes trades instantly. In 2016-17 this service facilitated 8,810 allocation trades, or 69 percent of all trades.
In 2016-17, there were twenty-three brokers who had entered into an agreement with the Department of Environment, Land, Water and Planning (DELWP) to use the portal. Under the Agreement, brokers must comply with specific requirements when they use the portal.
DELWP engaged RSM to audit all 19 brokers who submitted trades during 2016-17 to make sure they complied with the Agreement.
RSM visited the sites of all 19 brokers being audited in Victoria, New South Wales and South Australia. The audit tested a representative sample of more than 2,086 transactions, evaluated the security of sensitive information and investigated the brokers’ knowledge of their responsibilities to their clients and DELWP.
Read the full report.