A Senate committee inquiring into financial technology has recommended the Morrison Government reform and extend the framework for regulating the use of customer data in the financial services industry.
The committee, chaired by NSW Liberal senator Andrew Bragg, called on the government to ditch the ACCC as the main regulator of the Consumer Data Right and replace it with a new, dedicated watchdog.
The recommendation is one of 32 included in the committee’s interim report that was tabled in the Senate on Wednesday.
Government senators want to see oversight of the CDR regime, which is currently shared between the ACCC and other federal agencies, consolidated into a new regulator.
“The committee notes concern that oversight of the CDR is unnecessarily fragmented and regulatory arrangements need to be consolidated,” the committee states in the majority report.
“More broadly, the committee heard that great benefits could be achieved by consolidating national data policy under a single agency.”
In a dissenting report, Labor members of the committee – Senators Marielle Smith and Jess Walsh - panned the proposal to sideline the ACCC.
“Labor senators are aware of the benefits that could be achieved by consolidating national data policy under a single agency,” the dissenting committee members said in their report.
“However, it is the view of Labor senators that immediate concerns relating to the rollout-out of Open Banking necessitate that in the immediate term the ACCC should remain the primary regulatory body in this area as it operates with clear and concise competition and consumer protection mandates.”
The committee was also divided on a majority recommendation to extend the CDR regime to other parts of the financial services industry.
Government senators want to see the CDR framework introduced in the superannuation sector as a matter of urgency.
“The ACCC told the committee that it is willing to start research work on the rollout of the CDR into the superannuation sector,” Senators said in the report.
“The committee considers that this work should commence immediately, with a view to expanding the CDR into superannuation as quickly as possible.
“The committee will monitor progress on this issue in the coming months and provide further comment on the implementation of Open Super in its final report.”
Dissenting Labor senators argued against the recommendation, citing evidence presented to the committee by the Financial Services Council.
“Far greater immediate consumer benefits would be realised by expanding the Consumer Data Right to other sectors such as the telecommunications and energy sectors,” the Labor senators stated.