Policy Update - December #1
New consultation on regulating Payment Service Providers
Treasury commenced its latest consultation on a new licensing framework for payment service providers (PSPs). The paper is the second on the proposed framework, following the June consultation paper on payment functions.
The framework outlines how prudential regulation, financial services regulation, technical industry standards and other specific requirements will apply to various PSPs based on the function they undertake, including stored-value facilities, payment initiation and facilitation services, payment stablecoins, cross-border transfer and other services.
The paper also covers proposals in relation to:
APRA licensing for Major SVFs;
Common access requirements;
An industry standard-setting framework; and
Mandating a revised ePayments Code.
New CDR Rules take effect
On 1 December new Consumer Data Right rules came into effect which will make it easier for businesses to share their data. The changes include:
a ‘business consumer disclosure consent’ to enable business consumers to share their data with a broader range of advisors and service providers, including unaccredited third parties;
more flexible record-keeping requirements, and consent durations extended beyond 12 months.
Final Government Response to the Quality of Advice Review
The Australian Government has released its final response to the Quality of Advice Review. The response provides a roadmap for financial advice reforms, including:
modernising the best interests duty and removing the 'safe harbour' steps;
introducing a new class of financial advisors with less qualifications who will be able to provide simple personal advice; and
expanding superannuation advice to allow super funds to consider a broader range of members' personal and household circumstances.
FinTech Australia looks forward to engaging on future consultation to implement these proposed reforms.
Senate Inquiry into Australia's retirement system
The Senate has launched a new inquiry on improving the consumer experience, choice and outcomes in Australia's retirement system. The Terms of Reference specifically cover: 'the potential role of FinTech in supporting retirement outcomes.'
Winding down Australia's cheques system
The Government is seeking feedback on a plan to wind down the cheque system by 2030, with government use being phased out by the end of 2028.
