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Consumer Data Rules Framework

2019 is the year that consume data rights (CDR) will become a tangible reality for the banking industry, with the open banking regime set to kick in on 1 July.

Leading up to the summer holidays, the Australian Competition and Consumer Commission (ASIC) released the rules’ outline for the CDR.

ACCC Commissioner, Sarah Court, called it an important step to making the CDR a reality.

Last year, Court said, “The rules outline will offer certainty to data holders and potential data recipients, so they can continue to develop the reliable and secure systems and new product offerings ahead of the start of the CDR regime.”

Around the same time, Treasury released a statement saying the Government is committed to the security and privacy of consumer data, a position it will continue to take throughout the implementation of the CDR.

The rules framework has been designed under the assumption the Bill will be passed in the first quarter of 2019.

The rules framework highlights the changed position of the ACCC regarding the way consumers receive their information. The regulator now believes that data being shared through Application Platform Interfaces (APIs) would be impractical for consumers and might pose ‘added security risks’.

The ACCC is still considering the process for ‘complex accounts’ or multiparty accounts; however, it has decided not to include minors in version one of the rules.

The regulator also acknowledges challenges when it comes to direct debit information, and this remains and issue under consideration. There will be more information on this in subsequent versions of the rules.

Also being questioned is the issue of transaction metadata and whether it should be included in the scope of transactions. This is something that should be defined more in subsequent versions of the rules.

For more information about the rules framework, go to the ACCC website.

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