FINANCIAL RIGHTS has serious concerns that sweeping changes to the Consumer Data Right will allow highly sensitive consumer data to be accessed by unauthorised third parties.

Financial Rights director of casework, Alexandra Kelly said the new rules could enable companies which are not required to meet the regime’s higher security and safety standards for privacy, to access private and sensitive consumer data.

These concerns have been outlined in a submission to the Australian Competition and Consumer Commission (ACCC) as part of consultation concerning proposed changes to the Consumer Data Right Rules.

“The entire point of the Consumer Data Right (CDR)  is to build a secure data environment in which consumers feel confident and safe using and sharing their data,” Ms Kelly said. “This proposal will fundamentally undermine consumer trust and confidence in the CDR. 

“It is also likely to open the floodgates to non-accredited companies to obtain sensitive data without having to meet higher privacy standards. In some cases they won’t have to meet any privacy standards at all.”

According to Office of the Information Commissioner’s 2020 Community Attitudes to Privacy survey, 83 percent of Australians want the government to do more to protect the privacy of their data.

“There is scant evidence of any consumer demand for open banking services but there is real evidence of high levels of consumer demand for increased privacy protections,” Ms Kelly said.

“It is disappointing that the ACCC’s proposal places the finance sector’s interest in obtaining consumer data ahead of the consumer interest in a stronger privacy regime."

The ACCC also proposes to introduce new rules that allow more direct marketing to take place, and the sale of consumer data.

Other proposals include a raft of complexities to the regime including multiple tiers of accreditation, self-regulation with minimal oversight and a new set of confusing and contradictory consents that undermine the voluntary and informed nature of consent in the digital age.

“These proposals could result in financially vulnerable people being targeted by new open banking players and sold expensive credit and inappropriate debt and credit solutions they can’t afford,” Ms Kelly said.

“We urge the ACCC to reconsider these erroneous recommendations and instead put consumer interests at the heart of the new data regime.”

Background

Open banking is the ability for consumers to access and control their financial data and share it with other banks or third party financial services who may provide a range of services using the data – from account and credit card switching to budgeting and tax advice. 

The Consumer Data Right (CDR) is the broader right the government is introducing to enable people to access their data and provide it to an accredited business (an accredited CDR provider). 

The banking sector – via open banking – is the first sector to provide this access. It is expected to roll out to other sectors include telecommunication, energy, superannuation, insurance and others.

About Financial Rights

The Financial Rights Legal Centre is a community legal centre that specialises in helping consumers understand and enforce their financial rights, especially low income and otherwise marginalised or vulnerable consumers. It provides free and independent financial counselling, legal advice and representation to individuals about a broad range of financial issues. The Financial Rights Legal Centre operates the Insurance Law Service which provides advice nationally to consumers about insurance claims and debts to insurance companies. Financial Rights also operates the National Debt Helpline in NSW, assisting consumers experiencing financial difficulties. Financial Rights took over 25,000 calls for advice or assistance during the 2017/2018 financial year. 

• National Debt Helpline 1800 007 007
• Insurance Law Service 1300 663 464
• Mob Strong Debt Help 1800 808 488

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AFTER A COVID-19 delay, the inquiry into the destruction of Indigenous heritage sites at Juukan Gorge will finally travel to Western Australia next week to see the damage first hand.

Northern Australia Committee Chair Warren Entsch said the visit to Western Australia would be an opportunity for the Committee to experience the fallout from the destruction from the perspective of those affected most directly, the Puutu Kunti Kurrama and the Pinikura peoples (PKKP).

"This will be the defining moment of this inquiry," Mr Entsch said.

"We need to see the scale of the devastation and feel the loss of the people to fully understand the significance of what has happened.

"The Committee will have a long yarn session with the PKKP in Karratha on Monday morning before flying to Juukan Gorge on Tuesday to see the sites for ourselves.’

The Committee will also hold a public hearing on Monday afternoon with the owner of Cheela Plains Station (Juukan Gorge was formerly located on the pastoral lease), and representatives of the Murujuga Aboriginal Corporation and the Robe River Kuruma Aboriginal Corporation.

In its submission, the Murujuga Aboriginal Corporation highlighted its positive engagement with a range of stakeholders, but also emphasised the constant struggle to protect heritage and the need for ongoing engagement by industry with Traditional Owners. It noted that Western Australia’s Aboriginal Heritage Act had "not prevented damage to, or the destruction or removal of, sites or cultural objects". 

For instance, during the construction of Woodside’s NW Shelf facilities during the 1980s, 1,828 pieces of rock art were removed from their cultural context and stored in a fenced compound for some 30 years – these were only returned to places agreed by Traditional Owners in 2014. The operation of the 1972 AHA did not prevent the removal of these objects from their cultural sites, nor the damage that occurred to some during their collection and storage.

Programs for the public hearing are available on the Committee’s website.

Public hearing details

Date: Monday, 2 November 2020
Time: 1pm to 3pm AWST
Location: Leisureplex, Karratha

The hearings will be broadcast live at aph.gov.au/live.

Further details of the inquiry, including terms of reference, can be found on the Committee’s website.

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THE MINING and gas industry of Queensland today expressed its disappointment at Premier Annastacia Palaszczuk’s refusal to guarantee it will not increase royalty rates on coal, metals and gas over the next four years if Labor is re-elected to govern Queensland.

Queensland Resources Council chief executive Ian Macfarlane said while the QRC had welcomed Labor’s pledge not to increase taxes, fees and charges, the industry was very uneasy about the failure of the Premier to commit to not raising royalties in the next term of government if elected.

In contrast, the LNP has provided a guarantee for a 10-year hold at current levels on royalty rates on these commodities.

Mr Macfarlane said Queensland’s resources companies already pay Australia’s highest royalty rates and contributed $82.6 billion to the Queensland economy in the last financial year, an increase of $5 billion on the year before.

Labor has previously committed to a three-year freeze for coal and metals, and a five-year freeze for gas, but the QRC has repeatedly asked the Labor Government to extend this to make the Queensland resources industry more competitive globally.

“The amount of time it takes to approve new projects in Queensland - Adani’s Carmichael Project took nine years and New Hope’s New Acland mine still isn’t approved after 14 years – means a longer royalty timeframe is essential for Queensland companies to attract new investors,” Mr Macfarlane said.

“Existing resources companies also need royalty stability to keep their operations competitive and maintain the jobs of the 420,000-plus men and women who rely on the resources sector to support their families and businesses.”

Mr Macfarlane said the QRC had asked the Palaszczuk Government to offer the same commitment to resources provided by the LNP to stimulate a resources-led economic recovery for Queensland.

“It’s just bad economic policy to tax a wealth-creating industry out of existence, especially an industry like resources that has demonstrated its value and resilience to Queensland during COVID,” he said.

“Resources has kept the Queensland economy financially stable and continues to support the jobs of hundreds of thousands of people in spite of the enormous and costly challenge of maintaining our operations during this pandemic.”

Mr Macfarlane said Labor’s refusal to commit to keeping royalty rates at current levels until at least June 2025 shows a short-sighted approach to growing the state economy, and a lack of understanding about how to stimulate growth and jobs.

“This doesn’t bode well for the next four years in the event of a Palaszczuk Government because resources is one of the key industries right now that can help Queensland produce, work and earn its way out of COVID,” he said.

“It’s now up to voters to decide on Saturday which candidates from which parties provide the most certainty and support for jobs in the resources sector.

“This is particularly important for voters in regional areas, who understand the value of the resources industry to jobs and the economy.”

www.qrc.org.au

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THE Financial Services Council (FSC) has launched a research report by Rice Warner which offers some radical ideas for restructuring the model for financial advice which will start a policy debate on how to make advice more affordable and accessible.

Rice Warner proposes a future financial advice model which includes:

• All advice to be one of two categories – strategic advice and financial product advice;
• New definitions of financial advice – general information; and personal advice separated into simple personal advice, complex personal advice, and specialised advice;
• New principles to refocus the system – simplification, affordability, accessibility, consistency, and quality of advice;
• Less documentation – for example, allowing a Fact Find and a Record of Advice for the provision of Simple Personal Advice;
• Realistic and less costly levels of compliance; and
• Tax deductibility for financial advice.

FSC CEO Sally Loane said, “Quality financial advice is needed now more than ever as the economic impacts of the coronavirus pandemic are felt by individuals right across the nation. The Rice Warner Future of Advice report starts an important policy debate on how we can re-build a simpler and more affordable advice industry.

“Rice Warner’s research examines both the need for advice, and the value of advice. It shows evident benefits of financial advice to the health and wellbeing of individual consumers, as well broader economic benefits such as reduced long-term expenditure on the age pension,” Ms Loane said.

The FSC will consider Rice Warner’s research as well as engaging extensively with stakeholders, including Australia’s financial advisers, ahead of launching a policy document or Green Paper on Financial Advice next year, a critical step in policy development.

“The aim is to build a new model for financial advice which not only makes professional quality advice more affordable and accessible for consumers, but also removes the mass of costly compliance and regulatory burden on the sector," Ms Loane said.

“With advisers leaving the industry in record levels –  Rice Warner reports 15 percent last year and an anticipated fall of a further 36 percent over the next five years – we need to act now to change the system.”

A full copy of the report can be downloaded here.

About the Financial Services Council

The Financial Services Council (FSC) has more than 100 members representing Australia's retail and wholesale funds management businesses, superannuation funds, life insurers, financial advisory networks and licensed trustee companies. The industry is responsible for investing almost $3 trillion on behalf of more than 15.6 million Australians. The pool of funds under management is larger than Australia’s GDP and the capitalisation of the Australian Securities Exchange and is the fourth largest pool of managed funds in the world.

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