1. Financial Services Privacy - the interaction of the privacy and financial services regulatory systems Chris Connolly Financial Services Consumer Policy Centre

2. 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 Consumer Policy Centre3 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

4. Financial Services Consumer Policy Centre4 Forces of Change  Convergence  Customer Relationship Management  Electronic Commerce

5. Financial Services Consumer Policy Centre5 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. Financial Services Consumer Policy Centre6 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. Financial Services Consumer Policy Centre7 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. Financial Services Consumer Policy Centre8 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. Financial Services Consumer Policy Centre9 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. Financial Services Consumer Policy Centre10 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. Financial Services Consumer Policy Centre11 International Regimes  EU Directive  US Safe Harbour arrangements  EU Guideline on electronic payments  ISO Standards  OECD Electronic Commerce Consumer Protection Principles

12. Financial Services Consumer Policy Centre12 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. Financial Services Consumer Policy Centre13 The Centre Financial Services Consumer Policy Centre. Law Faculty University of New South Wales NSW 2052 t. (02) 9385 1208 f. (02) 9385 1778 director@fscpc.org.au