Treasury has released the independent Statutory Review of the Consumer Data Right Report. The Review found that the CDR’s statutory framework has so far been broadly effective in supporting the CDR’s rollout and that now that the foundation has been laid within the banking sector, there is scope to move to the opportunities that the CDR can provide.

The reviewer noted the lessons to be drawn from implementation to date:

• It is vital that the CDR is consumer‐centred and use case driven to deliver value to consumers and to shape its development in terms of data covered by the system and the products and services powered by that data. That will require a stronger consumer voice in the CDR ecosystem. In addition to individual consumers, the role of small and medium business as a consumer of CDR products and services should be given greater prominence in policy design and implementation to ensure the CDR is accessible to their operating models.
• There are potential anti‐competitive effects. The size, complexity and technical depth
  required to participate in the CDR does, of necessity, create a disproportionate burden for smaller, less sophisticated entities. The requirement to comply with rules and data standards should not be implemented in a way that stifles product innovation
• Data quality must improve for the CDR to realise its potential and provide a viable alternative to less secure practices such as screen scraping.
• The implementation architecture of the CDR is complex with multiple regulators. Significant improvements are possible within the current architecture if all commit to greater coordination, so that roles are more clearly delineated.

CDR and Non-Bank Lending
The Consumer Data Right – Sectoral Assessment for Non-Bank Lending – Final Report has concluded that the scope of the Consumer Data Right (CDR) should expand to non-bank lending with merchant acquiring services, general insurance and superannuation sectors to be progressively phased in. The data to be shared will exclude materially enhanced data.

Consumer Data Right – Exposure draft legislation to enable action initiation
Treasury is seeking comments on exposure draft legislation to enable action initiation in the Consumer Data Right (CDR), which would create a new channel for consumers to instruct a business to initiate actions on their behalf and with their consent.

Actions could include making a payment, opening and closing an account, switching providers, and updating personal details (such as addresses) across providers.

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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.