Policy

Treasury consulted on the draft amendment legislation aimed at preventing scams by implementing strong obligations, including tough penalties for non-compliance and dispute resolution pathways for consumers seeking redress, among other measures.

Our submission advocates for a principles-based approach to sector designations and codes, ensuring obligations are proportionate to consumer risk and placed on those best positioned to manage it. We also call for a clearer definition of scams, clarification on the extraterritorial application, improvements to safe harbour provisions, and ongoing support for consumer education.

The Australian Government released a proposals paper on Introducing Mandatory Guardrails for AI in High-risk Settings and sought industry input.

In our submission, we call for targeted and proportionate guardrails that address gaps in existing laws without duplicating them, emphasised the need for a technology-neutral approach, the importance of proportionate classification of high-risk AI use cases and advocated for clear definitions of roles within the AI supply chain and avoid unnecessary regulatory burden.

FinTech Australia worked with our members to make a submission to the Senate Economics References Committee inquiry into Australia's Financial Regulatory Framework and Home Ownership.

Our submission noted more can be done to enable a competitive and equitable home lending sector, including by allowing for more innovative models of home co-ownership, building sufficient flexibility into serviceability assessments for home loans and prioritising the expansion and promotion of the Consumer Data Right to non-bank lending.

FinTech Australia worked closely with our Open Data Policy Working Group members to prepare a submission to Treasury on the latest draft changes to the Consumer Data Right rules, which incorporated feedback from the Consent Review and Operational Enhancement design papers released in 2023.

Our submission proposed improvements to simplify the consumer consent process, changes to the treatment of redundant CDR data and derived data, online processes to appoint nominated representatives, and more.

The Attorney-General’s Department consulted on the review of the effectiveness and efficiency of the credit reporting provisions in the Privacy Act 1988 and National Consumer Credit Protection Act 2009

Our submission supports the overall effectiveness to date in ensuring a balance between the protection of privacy and the promotion of responsible lending decisions by credit providers, but there is much room for improvement and innovation whilst retaining the quality of data provided by credit reporting agencies aligns best with stakeholders.

OAIC consulted on ARCA’s application (the application) to vary the Privacy (Credit Reporting) Code 2014 (the CR code).

Our submission raises concerns about Proposal 43 to amend the CR code to introduce a soft enquiries framework. Our members have raised concerns that key feedback concerns around the soft enquiries framework have not been addressed, with further concerns about limitations of cases; limitations of types of information available; and timing.

Treasury consulted on draft legislation to bring BNPL into the existing regulatory framework for credit products.

Our submission seeks greater clarity and certainty around the application of a modified Responsible Lending Obligations framework and emphasises the importance of maintaining an innovation enabling environment for novel fintech products which can offer consumers greater choice, flexibility and a better deal when managing their finances.

Treasury consulted on a new designated complaints function which would allow consumer and small business advocates to make ‘super’ complaints to the ACCC about significant or systemic market issues.

Our submission raises concerns about how the proposal limits the availability of the complaints function by restricting the initial cohort of designated complainants to only three organisations and that this will likely result in few high-quality complaints being actioned by the ACCC each year.

Investment NSW consulted on a discussion paper to inform a new Innovation Blueprint.

We supported this process by making a submission recommending a focus on prioritising fintech as a priority area for NSW led initiatives; increasing the amount and diversity of funding available to startups and scaleups; supporting innovation industry events; continuing support for innovation networks and spaces; and expanding trade, investment and internationalisation support.

The Senate inquired into an omnibus bill which included amendments to the Payment Systems (Regulation ) Act 1998 to allow the RBA and Treasurer to regulate a broader range of payment systems.

Our submission supports the amendments in principle and reemphasises the importance of payments reform for Australia’s fintech sector, as well as the need for oversight and adequate consultation by the RBA when exercising these new powers and the related national interest test.

Treasury consulted on proposals to implement a new licensing framework for payment service providers.

Our submission supports the overall direction of the proposals but details concerns about a number of definitional and practical implementation issues which could inhibit the framework’s effectiveness in delivering the long-awaited goal of a more modern, fit-for-purpose payments system which supports fintech PSPs to compete and innovate.

FinTech Australia made a pre-budget submission to inform the Government’s priorities for the 2024–25 Budget.

Our submission highlights six key priorities, including to:

• Address the challenging funding environment

• Continue fintech trade and investment support

• Provide targeted support for CDR initiatives

• Ensure ASIC is adequately resourced to deal with licensing influx

• Expand the NRF to capture fintech

Treasury consulted on a proposal to introduce new regulatory framework to regulate digital asset platforms within Australia’s existing financial services laws. The consultation will inform legislation, to be consulted on and introduced in 2024.

Our submission supports the proposal but further work should be undertaken in relation to the definitions, obligations and interaction between traditional and distributed ledger-based finance.

The Government consulted on amendments to the Payment Systems (Regulation) Act 1998 to ensure regulators and the government can address new risks in relation to payments and emerging technologies.

Our submission supports the amendments but expressed concerns with several aspects, including recommendations to amend certain definitions and concerns over competition and the impact on consumers.

Treasury sought public feedback on the current state of the Screen Scraping market and recommendation from the Statutory Review of the CDR that screen scraping be banned where CDR would be the viable alternative.

Our submission highlights five key issues that are important when considering the proposed banning of Screen Scraping.

Treasury released exposure draft rules for expanding CDR to the non-bank lending sector. The rules are the final stage in implementing this expansion and followed consultation in late 2022 on a Design Paper.

Our submission supported the rules but expressed concerns with several aspects, including implementation timeframes, the scope of the pilot product exemption and certain definitions.

Treasury alongside the Data Standards Body consulted on opportunities to simplify CDR Rules and standards to best support consumer experience while maintaining consumer protection.

Our submission supported most of the proposed operational enhancements and provided feedback on how to refine them during implementation.

Treasury alongside the Data Standards Body sought feedback on opportunities to simplify CDR Rules and Standards to improve consumer experience while maintaining consumer protection.

Our submission supported the proposed changes and emphasised the importance of improving and streamlining the consumer consent experience to the broader success of CDR.

The ACCC sought views on data brokers about data brokers services in Australia, as part of its 5-year digital platform services inquiry. The initiative aims to solicit perspectives and raise inquiries regarding the operational practices of data brokers, as well as the products and services they generate and distribute.

Fintech Australia's submission revolves around two key themes: Alignment with the Consumer Data Right framework and Data broker access to ATO information.

The Treasury sought public feedback on a list of proposed payment functions to underpin a new tiered, risk-based licensing framework for payment service providers.

FinTech Australia strongly supports the proposal to streamline licensing for payment service providers and provide a clear path forward for participants across the payments ecosystem.

The Australian Government sought public feedback on the Safe and Responsible AI in Australia: Discussion Paper to identify potential gaps in the existing governance and possible AI governance mechanisms to support the development of AI.

The Treasury sought views from interested parties on the proposed changes to the Payment Systems (Regulation) Act 1998 (PSRA). Specific consultation questions around updating certain definitions, ministerial powers and further reforms are outlined within the paper.

The Attorney-General’s Department consulted on proposals to simplify and modernise the operation of Australia’s AML/CTF regime in response to the 2016 Statutory Review of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.

Senator Bragg’s Digital Assets (Market Regulation) Bill 2023 was referred for inquiry to the Senate Economics Legislation Committee. It outlines a regulatory framework for digital asset exchanges, digital asset custody services, and the issuing of stablecoins.

Fintech Australia made a short submission providing feedback on the issues raised in the draft bill.

The Australian Financial Complaints Authority (AFCA) consulted on changes to its operational rules and guidelines. The changes are implemented in response to the 2021 Independent Review of the AFCA Scheme, which made 13 recommendations to improve AFCA's procedures.

FinTech Australia made a short submission, responding to AFCA’s proposals and recommendations.

The House of Representatives Standing Committee on Economics inquired into promoting economic dynamism, competition and business formation in Australia.

Our submissions highlight 4 key factors which are important for promoting economic dynamism, competition and business formation in the fintech sector.

The Attorney-General’s Department consulted on Privacy Act Review Report proposals to inform a Government response. The proposal contains 116 proposals to strengthen and modernise Australian Privacy law.

FinTech Australia made a submission in relation to this consultation.

Treasury sought feedback on ‘token mapping’ to explore how existing regulation applies to the crypto sector. This feedback will inform future policy choices on licensing and custody and potential amendments to the existing financial services framework.

FinTech Australia highlighted 8 key issues and 9 recommendations in its submission. A further consultation paper on custody and licensing will be released in mid-2023.

Treasury sought input on a new Strategic Plan for the Payments System. Several key questions were set out in the consultation paper, including principles, priorities and supporting reform initiatives and actions.

Our submission makes 17 key recommendations to support the finalisation of the Strategic Plan and the Government’s ongoing payments system reform agenda.

The Department of Industry, Science and Resources consulted on the implementation of the National Reconstruction Fund (NRF). The consultation paper outlines considerations implementation including priority areas and the investment mandate.

Our submission makes 11 key recommendations to support investment in fintech.

APRA sought feedback on the proposed revisions to the capital requirements for PPF providers.

Fintech Australia made a short submission supporting APRA’s interim proposals and calling for further steps to align Australian requirements with comparable overseas jurisdictions and prioritising forthcoming reforms to the regulatory framework for Stored Value Facilities.

Treasury consulted on the development of rules and data standards to implement the CDR in the non-bank lending sector.

Our submission supports the ongoing expansion of the CDR and encourages a tailored, proportionate and flexible approach.

AUSTRAC sought feedback on draft guidance to assist financial institutions to understand AUSTRAC’s expectations when providing perceived high-risk financial services.

FinTech Australia made a submission highlighting the challenges fintechs experience when de-banked.

Treasury sought feedback on options for a regulatory framework for Buy Now, Pay Later (BNPL).

Our submission proposed that any regulatory change must be targeted and proportionate to support innovation and continued competition with other credit products.

The Department of Education consulted on the design of the Startup Year initiative, a program to provide HECS-style loans to allow students to participate in university incubator or accelerator programs.

Our submission proposes broadening the initiative’s selection criteria to include Consumer Data Right innovation and introducing a principles-based public benefit and innovation test.

Senator Bragg released a draft private member’s bill for consultation on the regulation of digital assets.

FinTech Australia made a short submission providing feedback on the issues raised in the draft bill.

As part of its review of the ASIC Industry Funding Model (IFM), Treasury released a discussion paper to seek stakeholder views on options and examples of potential changes.

Our submission focused on proposals around extending the IFM to emerging industry sectors and providers and the impact of of significant increases in levy costs and volatility in recent years on small businesses and innovative fintechs.

The Government released exposure draft legislation to enable action initiation in the Consumer Data Right. Action initiation would empower consumers to authorise, manage and facilitate actions securely in the digital economy and could enable use cases like making a payment, opening and closing an account, switching providers, and updating personal details across service providers.

The Board of Taxation consulted with industry as part of their review of their review into the appropriate policy framework for the taxation of digital transactions and assets in Australia.

FinTech Australia participated in the Board’s targeted consultation process and hosted the Board and industry tax professionals for a roundtable with members at Intersekt 2022.

The Government released exposure draft amendments to the Consumer Data Right (CDR) Rules implement measures to support business participation in the CDR by providing more choice over who business consumers can share their data with and for how long, as well as other operational enhancements.

The Government sought feedback on proposals for reform to simplify the regulatory framework to better enable to provision of high quality, accessible and affordable financial advice for retail clients.

The Proposals Paper was part of the Government’s review into the quality of financial advice which was established in response to recommendations of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Royal Commission).

The Government sought feedback on a Consumer Data Right (CDR) draft designation instrument which set out the scope of datasets and data holders proposed to be designated in the non‑bank lending sector.

This followed the Government’s sectoral assessment of the non-bank lending sector which recommended it be designated for the CDR.

The Government sought feedback on options to support minimum standards of conduct by crypto asset secondary service providers and safeguards for consumers.

This process was part of the Government’s response to recommendations made by the Senate Select Committee on Australia as a Financial and Technology Centre in respect of consulting on a licensing and custody regime for crypto asset secondary service providers.