Policy Update - April #2

FinTech Australia participates in Senate hearing on CDR Bill

On Tuesday we gave feedback to the Senate Legislation Committee as part of its inquiry into legislation currently before Parliament to enact a framework to enable 'action initiation' under the Consumer Data Right.

Our Policy Lead, Nick Kavass, was joined by representatives from members Adatree, Zepto and Basiq to assist the Committee with its inquiry and discuss the potential benefits action initiation functionality will bring to the CDR.

The Committee will report by 3 May before the Bill is considered by the Senate.

APRA update on new operational risk standard

APRA has released an updated timeline for the implementation of the new cross-industry Prudential Standard CPS 230 Operational Risk Management.

In response to feedback from industry, APRA now intends to:

• move the effective date for the new standard to 1 July 2025; and

• provide transitional arrangements for pre-existing contractual arrangements with service providers, with the requirements in the standard applying from the earlier of the next contract renewal date or 1 July 2026.

APRA will release the final version of the CPS 230 in mid-2023.

FinTech Australia previously made a submission on the draft CPS 230 during the consultation period.

National Reconstruction Fund legislation passes

Legislation for the Government's $15 Billion National Reconstruction fund has now passed the Senate. The NRF Corporation will provide finance for projects in priority areas to diversify and transform Australia’s industry and economy.

FinTech Australia recently made a submission on the priorities and investment mandate for the Fund. Our submission urged a greater focus on artificial intelligence (AI), cyber security and fintech as 'enabling capabilities' the Fund should prioritise and invest in.

Our full submission can be found on our website.