August 21, 2018

August 21, 2018

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August 20, 2018

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Federal Government to Implement Open Banking Regime in Australia

On 9 May 2018, the Australian Government confirmed their decision to establish an Australian Open Banking regime and implement the recommendations set out in the Farrell Report titled “Review into Open Banking in Australia”. This follows the Government’s report into Open Banking released in February 2018 which broadly supported the creation of a new data-sharing regime in the financial services industry. The Australian Government has set aside roughly $45 million over four years to develop the creation of a Consumer Data Right which includes the establishment of the Open Banking framework.

Under the regime, Authorised Deposit-taking Institutions (ADIs) will be required (on request) to provide its individual and small business customers and other third parties (with the consent of the customer) with access to their data.

The Open Banking regime will be implemented in three stages over the next 2 years. Under the Government’s projected timeline, all major banks must make the following available to its customers:

  • data on credit and debit card, deposit and transaction accounts by 1 July 2019;
  • data on mortgages by 1 February 2020; and
  • data on personal loans and all other products by 1 July 2020.

All remaining (non-major) banks will have an additional 12 month extension on the above timelines to comply with the Open Banking regime. Further, the Government has given the Australian Competition and Consumer Commission (ACCC) the power to adjust the timeframes as they see fit.

Following this announcement, the ACCC in consultation with the OAIC will develop draft rules for Open Banking while the creation of data and security standards will be developed by CSIRO’s Data61. Fintech bodies, including Fintech Australia have pushed for these developments and will continue to push for its implementation.

Copyright 2018 K & L Gates

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About this Author

Jim Bulling, KL Gates, financial services lawyer, funds management attorney
Partner

Mr. Bulling's practise focuses on banking and financial services and he acts for a range of entities in the financial services and funds management industry. His clients include Australian and international investment managers, banks, trustees of superannuation funds, wholesale and retail investment trusts, funds management companies and financial planning groups.

His main areas of focus include banking and financial product disclosure issues, financial services compliance issues, financial product distribution issues and superannuation and...

61-3-9640-4338
Daniel Knight, KL Gates, financial services industry lawyer, retail fund managers attorney
Senior Associate

Mr. Knight is a commercial and regulatory lawyer with a focus on the financial services industry. He advises a range of wholesale and retail fund managers, banks, financial advisers, superannuation fund trustees and other financial services firms.

Mr. Knight concentrates on commercial transactions in the industry and on advising clients about Australian licensing, disclosure, and compliance obligations. He regularly advises international fund managers about offering their products in Australia.

Mr. Knight also has extensive experience advising multinational organisations about bribery, corruption, and anti-money laundering (AML) issues and the governance and compliance measures necessary to prevent these issues from arising.

61-3-9640-4324
Felix Charlesworth, KLGates, Financial attorney
Attorney

Mr. Charlesworth is a commercial and regulatory lawyer with a focus on the financial services industry.

 Mr. Charlesworth advises on a range of regulatory and compliance issues relevant to wholesale and retail fund managers, financial advisers, superannuation fund trustees and other financial services entities. He also has experience in advising multinational corporations about compliance measures targeted at the prevention of bribery and corruption. 

61.3.9205.2128