Privacy Research and Finance Industry

Federal Privacy Commissioner, Karen Curtis, has released the findings of research into the privacy attitudes of Australians. The focus of the research was to examine people's attitudes to privacy in a number of areas including: health, the Internet, dealing with businesses and government organisations, and privacy in the workplace.

"The research results show that respondents rate health service providers as the most trustworthy organisations, followed by financial organisations and government organisations and they considered the least trustworthy organisations to be internet sales companies, and mail order companies," Ms Curtis said.

90-95% of respondents to the research consider the following hypothetical situations to be an invasion of privacy:
a business that you don't know gets hold of your personal information (94% consider this a privacy invasion);
a business monitors your activities on the internet, recording information on the sites you visit without your knowledge (93% consider this a privacy invasion);
you supply your information to a business for a specific purpose and the business uses it for another purpose (93% consider this a privacy invasion);
a business asks you for personal information that doesn't seem relevant to the purpose of the transaction (94% consider this a privacy invasion).

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Banking and Financial Services Complaints

The Banking and Financial Services Ombudsman has released his office's 2003-2004 Annual Report.

For the second consecutive year there has been a decline in the number of new cases (15.5 per cent) to 5,859 and an increase in the number of cases resolved prior to an investigation (90.1 per cent from 87.0 per cent in 2003).

As a consequence of the early resolution of many cases, disputes that do require investigation are now more complex.

As at 30 June 2004 the Scheme had 30 bank members and 17 non-bank members. To reflect increases in housing prices, borrowing levels and the size of investments, the Board has approved an increase in the jurisdictional limit from $150,000 to $250,000, to take effect in December 2004.

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Daylight saving

Daylight saving has already begun in Tasmania for the summer of 2004/2005.

Daylight saving in ACT, New South Wales, Victoria and South Australia will commence on Sunday 31 October 2004. It will conclude in all states on Sunday 27 March 2005.

Queensland, Western Australia and the Northern Territory do not have daylight saving.

From 31 October, when it is 9am in ACT, NSW, Victoria and Tasmania it will be
8.30am in SA
8am in Qld
6am in WA
7.30am in NT

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ASIC targets unlicensed financial services operators

ASIC has announced that it is into the second stage of its compliance campaign to remove unlicensed operators from the financial services industry.

Over the next six months it will be doing compliance checks on anyone that appears to be conducting a financial services business without an Australian financial services (AFS) licence. The penalty for doing business without a licence is a $22,000 fine or two years jail or both.

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Soft Dollar Disclosure

Mortgage brokers who are members of MIAA will soon be obliged to disclose to borrowers non-cash benefits valued at more than $300.

The new code requires disclosure of benefits of more than $300 such as:

• sponsorship of seminars, conferences and functions;
• gifts;
• payment of office rent;
• accommodation and entertainment;
• travel;
• cash payments and/or goods;
• computer hardware and software costs; and
• competitions in which a broker or loan writer might be eligible to win a prize, subject to achieving volume-related targets.

Unlike financial planners, mortgage brokers will not be banned from accepting such "soft dollar" payments. Mortgage brokers who arrange credit only are not covered by the stricter Financial Services Reform fee disclosure obligations.

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