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Australia: CDR to extend to non-bank lending

Tuesday 23 August 2022 14:52 CET | News

The Australian Government has announced the release of Treasury’s final sectoral assessment report which recommends the designation of the non bank lending sector for the CDR. 

 

The Australian Government has announced the release of Treasury’s final sectoral assessment report which recommends the designation of the non bank lending sector for the CDR.

 

The Consumer Data Right (CDR) currently applies to the banking, energy, and telecommunication sectors. On 24 January 2022, Treasury released its Strategic Assessment Outcomes report identifying the non bank lending sector, merchant acquiring services, and key datasets in the general insurance and superannuation sectors as the next priority areas to expand the CDR – collectively known as ‘Open Finance’. Treasury is progressively assessing each sub sector for inclusion within the CDR starting with the non bank lending sector.

Part IVD of the Competition and Consumer Act 2010 requires the Secretary of the Treasury Department to prepare a report and for the Minister to consider a range of factors before making a designation instrument for the sector.

It is recommended to designate generic and publicly available information about non bank lending products, information about a CDR customer (such as contact information), and information about the use of a non bank lending product. The Government also released a draft designation instrument covering the scope of datasets and data holders proposed to be designated in the sector, and is now consulting on the instrument, before a final designation instrument is made.

CDR sectoral assessment for non-bank lending

On 24 January 2022, the Government announced that the Consumer Data Right (CDR) would expand to ‘Open Finance’ as the next sector to be assessed. As announced, Open Finance includes the assessment of the non bank lending sector, merchant acquiring services, and key data sets in the general insurance and superannuation sectors.

Public consultation to inform the sectoral assessment for applying the Consumer Data Right to non bank lending closed on 15 April 2022. Sectoral assessments are conducted with reference to the criteria set out in section 56AD of the Competition and Consumer Act 2010.

Responses to this consultation informed Treasury’s final report, which the Minister will consider when deciding whether to designate non bank lending services. Consultation on the remaining sectors in Open Finance will occur later in 2022 and in early 2023.

Consultation launched for CDR extension to non-bank lending 

The sectoral assessment concluded on 19 August 2022, with the Government announcing the release of Treasury’s final sectoral assessment report recommending the non‑bank lending sector be designated for the CDR.

The Government is seeking feedback on the draft designation instrument, which sets out the scope of datasets and data holders proposed to be designated in the non‑bank lending sector, before the Minister makes a final decision. Participants can submit responses to this consultation up until 16 September 2022.


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Keywords: Open Finance, Open Banking, regulation, data privacy, data sharing
Categories: Banking & Fintech
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Countries: Australia
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Banking & Fintech