Financial Services Privacy - the interaction of the privacy and financial

services regulatory systems

Chris Connolly

Financial Services Consumer Policy Centre

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Overview

Overview of financial services regulation Common law privacy duties Codes of Conduct Update on the Revised EFT Code How the Codes affect next generation financial

services technologies

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Financial Services Regulation

Common Law:

– General duty of confidentiality

– Bankers’ duty

– Tournier’s Case

Law and Self Regulation:

– FSR legislation

– Codes of Conduct

– New privacy legislation

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Forces of Change Convergence

Customer Relationship Management

Electronic Commerce

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The Post Wallis Regime General coverage of financial services now

via ASIC FSR Legislation strengthens ASIC role,

licensing, disclosure requirements etc. However, ACCC and state Fair Trading

Agencies maintain a role in credit Privacy Commissioner maintains role in

Credit Reporting

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Australian Codes of Conduct EFT Code Banking Code Credit Union Code Insurance Codes (x3) Internet Industry

Association Code Direct Marketing

Code New Model Code

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Online Financial Services National policy framework based on:

– Contracts - Electronic Transactions Act– Payments - EFT Code review– Conduct – Specific Codes (eg Banking),

Model Code and complementary codes (eg IIA Code)

New privacy protection regime

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The Revised EFT Code

Second discussion paper at:http://www.asic.gov.au

Progress of the working group New Code from April 2? Implementation issues Issues set aside

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What will the Code cover?

Business to consumer and business to small business transfers

What is an “electronic transfer of value”?

Coverage of credit cards in some circumstances

Stored value products)

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What must you do to comply? A voluntary code - or is it? Terms and conditions Records of transactions Audit trails Privacy protections as per Privacy Act Specific privacy ‘guidelines’

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International Regimes EU Directive US Safe Harbour

arrangements EU Guideline on

electronic payments ISO Standards OECD Electronic

Commerce Consumer Protection Principles

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Conclusion Most privacy protection in financial

services will now be through Codes New EFT Code will have far reaching

consequences - virtually all online financial services will be covered

Next big issue:– Compliance with international regimes

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The Centre

Financial ServicesConsumer Policy Centre.Law FacultyUniversity of New SouthWales NSW 2052t. (02) 9385 1208f. (02) 9385 1778director@fscpc.org.au