Policy Update - November #2
Consumer Data Right Rule changes take effect
Changes to the CDR Rules to improve consent and operational processes took effect last week. As supported in our submission, they allow for multiple consumer consents to be bundled and simplify the information given during the consent process. While we supported broadening the circumstances in which banks who are accredited data recipients (ADRs) can hold CDR data so as to help boost bank participation, we were disappointed to see this concession wasn't extended to non-bank ADRs to help even the playing field. The changes proposed in consultation to require data holders to provide an online service for appointing an account administrator as a nominated representative did also not proceed.
Scams Prevention Framework legislation introduced
The Scams Prevention Framework Bill 2024 has been introduced into Parliament, with further House debate on the Bill this week. The Bill responds to some of our member feedback on the potential large compliance burden on smaller entities by providing some flexibility to tailor obligations proportionate to entities' size and capabilities. If passed, we expect further opportunities to consult when the initial sectors (currently banks, telecommunications and social media providers) are designated as part of the SPF, as well as on the design and implementation of the external dispute resolution scheme.
Other news
ASIC has released its 2025 enforcement priorities, with a focus on inadequate cyber security protections, business models designed to avoid consumer credit protections and greenwashing, among other things.
The Federal Government has moved to mandate that businesses must accept cash when selling essential items, with consultation set to begin before end of year.
At the recent Senate estimates hearings, Treasury confirmed it is preparing exposure draft legislation for a payment service provider licensing framework, expected to be released in the first half of 2025.
Earlier this week, the Government released its Cheques Transition Plan, with a 2‑step timeline for ceasing issuing cheques by 30 June 2028 and ceasing accepting cheques on 30 September 2029.
ASIC has taken aim at Australia's 'legislative porridge' in a speech by its Chair at its annual forum, and announced a Simplification Consultative Group to address regulatory complexity.
The Government has opened consultation on amending the Australian Consumer Law toaddress unfair trading practices. We do not intend to make a submission on this consultation, but please let us know if it's of interest.
We are working on these submissions:
Surcharging and Merchant Card Payment Costs Consultation
As mentioned in our recent policy communications, the Federal Government has announced plans to ban debit card surcharges starting in 2026. The RBA has released an Issues Paper as part of its Review into Merchant Card Payment Costs and Surcharging. We are finalising the first draft of the submission, and will share this, and a follow-up call invite, with Policy Working Group members in the coming days.
Project Acacia consultation
The RBA and the Digital Finance Cooperative Research Centre (DFCRC) have published a consultation paper which seeks industry feedback on a new research initiative, Project Acacia. This project will explore how different forms of digital money and associated infrastructure could support the development of wholesale tokenised asset markets in Australia. We expect to make a submission and will reach out to seek views via our policy working groups. Please let us know if this is of interest.
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.
