I have reviewed the “year ahead” video I recorded at the end of 2021.
I didn’t forecast the Russian invasion of Ukraine or the increases in interest rates and inflation.
But the issues I identified have been important this year: cybersecurity, climate change, privacy, payment method changes and consumer protection.
The severity of flooding throughout Australia, particularly in south-east Queensland and Northern Rivers NSW in February and later in the year in NSW and along the Murray River, and its consequent human, property and economic impact has highlighted the consequences of climate change and will result in the rewriting of flood risk management programs and planning for buildings in flood plains. Lenders must review climate-related lending risks.
The cyberattacks on Optus and Medibank Private in October and November have highlighted the importance of cybersecurity and information protection for both businesses and their customers. The Privacy Act has been amended to increase the penalties for data breaches of personal information substantially.
Cryptocurrency exchange scams and crashes are prompting calls for regulation of that sector to protect consumers and investors.
The Albanese Labor Federal Government’s election in May has increased legislative activity and changed policy priorities.
For example, responsible lending will remain a Credit Act obligation for banks.
And increased regulation of small amount credit contracts and consumer leases has been passed.
The first 6 months of 2022 for the Australian financial services sector were a period of bedding down changes that were made in 2021, including:
• implementing new company virtual general meeting rules;
• registering director identification numbers;
• implementing the revised ePayments Code;
• upgrading AML compliance;
• preparing for credit reporting of financial hardship;
• breach reporting;
• design and distribution obligations;
• Target Market Determinations.
Increased ASIC and Austrac enforcement activity has put increased pressure on the monitoring of compliance programs.
The Australian Law Reform Commission program for the potential simplification of the financial services laws in Australia is well underway and could see some “low-hanging fruit” changes in 2023.
Finally, while the Financial Accountability Regime and the Financial Services Compensation Scheme of Last Resort were expected to be legislated by now, they have been delayed to 2023.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
