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Consumer Data Right legislation subject of new review

By Grace Ormsby · January 24 2020
Reading:
egg
egg

Borrow

Consumer Data Right legislation subject of new review

By Grace Ormsby
January 24 2020
Reading:
egg
egg
Parliament house

Consumer Data Right legislation subject of new review

author image
By Grace Ormsby · January 24 2020
Reading:
egg
egg
Parliament house

Just weeks after pushing back the launch of open banking, the government has announced a new inquiry into the Consumer Data Right it legislated for last year – reportedly to further examine how it can be used to further support innovation and competition.

The Consumer Data Right Bill was passed through Parliament in August of last year, which marked a “critical step” in reform, according to the Morrison government at the time.

The announcement of the inquiry comes after the deadline for the launch of open banking was pushed back earlier this month. 

The Consumer Data Right (CDR) provides consumers with greater access to personal information and gives them the power to instruct businesses to provide safe and secure data access to trusted third parties – allowing for comparison in the market.

It also is expected to allow new competitors to more easily enter the market and challenge existing providers.

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Treasurer Josh Frydenberg has said the inquiry and review will be undertaken by Scott Farrell, who previously undertook the formative review that gave rise to the original CDR legislation.

The inquiry is expected to review how the CDR regime can be expanded beyond its current “read” access to include “write” access to enable customers to apply for and manage products and how it can be leveraged with other frameworks to enhance security, efficiency and the consumer experience.

It will also look to “further” overcome behavioural and regulatory barriers for the convenient and efficient changing over between product and providers for consumers, and how this can be enhanced through global developments in the field with respect to similar reforms.

The terms of reference for the inquiry indicated that the review will have regard to the RBA’s New Payments Platform: Conclusions Paper, the ACCC’s home loan price inquiry, the government’s response to the ACCC Digital Platforms inquiry, best practice developments internationally and across other sectors, and competition, fairness, innovation, efficiency, regulatory compliance costs and consumer protection.

The review is expected to report by September 2020.

Consumer Data Right legislation subject of new review
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About the author

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

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About the author

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

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