Financial Services Privacy the interaction of the privacy and financial services regulatory systems

1
Financial Services Privacy - the interaction of
the privacy and financial services regulatory
systems

• Chris Connolly
• Financial Services Consumer Policy Centre

2
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

3
Financial Services Regulation

• Common Law
• General duty of confidentiality
• Bankers duty
• Tourniers Case

• Law and Self Regulation
• FSR legislation
• Codes of Conduct
• New privacy legislation

4
Forces of Change

• Convergence
• Customer Relationship Management
• Electronic Commerce

5
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

6
Australian Codes of Conduct

• EFT Code
• Banking Code
• Credit Union Code
• Insurance Codes (x3)
• Internet Industry Association Code
• Direct Marketing Code
• New Model Code

7
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

8
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

9
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)

10
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

11
International Regimes

• EU Directive
• US Safe Harbour arrangements
• EU Guideline on electronic payments
• ISO Standards
• OECD Electronic Commerce Consumer Protection
  Principles

12
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

13
The Centre

• Financial Services
• Consumer Policy Centre.
• Law Faculty
• University of New South
• Wales NSW 2052
• t. [phone]
• f. [phone]
• director_at_fscpc.org.au