Policy Update - October #1
Office of the Australian Information Commissioner (OAIC) approves updates to the Privacy (Credit Reporting) Code
On 1 October 2024, the OAIC approved updates to the Privacy (Credit Reporting) Code (CR Code). These updates aim to strengthen privacy protections for Australians and ensure greater consistency across the credit industry. Key updates include:
Enhanced support for fraud victims
Expanded circumstances in which information can be corrected
New transparency and audit measures
As recommended by FinTech Australia in our recent submission, introduction of a soft enquiries framework has been excluded from these changes so that it can be considered in light of the independent Review of the Credit Reporting Framework (due to be completed by 1 October and tabled in the coming weeks). We expect the soft enquiries framework to be revisited in Q1 2025 and will continue to engage closely with OAIC on the issue.
AUSTRAC's Consultation on Alternative Identification Processes
AUSTRAC has opened a consultation on its draft updated guidance aimed at helping financial institutions help customers who may have difficulty providing standard forms of identification. This update supports financial inclusion by encouraging flexible, risk-based approaches to customer identification, allowing those from diverse backgrounds or facing challenging circumstances to access essential financial services.
FinTech Australia does not propose making a submission but feel free to contact our policy team if this consultation is of interest.
ACCC Releases Compliance Review of Product Reference Data (PRD)
The ACCC recently published the Consumer Data Right (CDR) Compliance Review of Product Reference Data (PRD) highlighting the importance of data quality as a priority under the ACCC/OAIC Compliance and Enforcement Policy for the CDR. The review found that there is a need for data holders to enhance their processes to ensure their PRD remains accurate and up to date. All members who are data holders under the CDR regime are encouraged to review the ACCC report to help ensure compliance and improve the overall quality of PRD within the ecosystem.
ASIC Releases Updated Regulatory Guidance for Carbon Market Participants
ASIC has released updated regulatory guidance for participants in carbon markets through Regulatory Guide 236 (RG 236) - Do I need an AFS licence to participate in carbon markets? The updated guidance provides important information for carbon market participants, including those involved in the Australian Carbon Credit Unit (ACCU) scheme, responsible emitters under the Safeguard Mechanism, as well as market intermediaries and advisers. It aims to help participants determine whether they require an Australian Financial Services licence for activities associated with carbon markets.
Reserve Bank of Australia (RBA) releases Financial Stability Review – October 2024
The RBA has published its Financial Stability Review for October 2024, which assesses the resilience of the financial system and outlines key risks that could impact financial stability. It highlights:
Global Financial Stability Risks: Elevated due to challenging macroeconomic conditions, but Australia’s financial system remains robust.
Households: Australian households have shown resilience to high inflation and rising interest rates, though some remain vulnerable to future shocks.
Businesses: Supported by a strong recovery post-pandemic, but cost pressures and slowing demand are affecting some sectors.
Banks: Australian banks are well-positioned to continue supplying credit even if economic conditions worsen.
Non-Banks: Systemic risks from non-bank financial institutions remain low in Australia, unlike in some other countries.
Operational Resilience: The growing threat of cyber-attacks and technology-related risks highlights the need to further strengthen the resilience of Australia’s financial system.
We recently made submissions on:
Introducing Mandatory Guardrails for AI in High-risk Settings
CDR Rules: Consent and Operational Enhancement Amendments Consultation
See our recent submissions on our website.
FinTech Australia regularly makes submissions to consultations across a wide range of policy and regulatory issues. Communications about how to get involved in these processes are distributed to our Policy Working Group membership.
