{"id":3090,"date":"2016-06-16T06:51:11","date_gmt":"2016-06-16T06:51:11","guid":{"rendered":"https:\/\/raizinvest.com.au\/investors\/asic-responds-to-the-important-issue-of-providing\/"},"modified":"2019-02-01T03:40:20","modified_gmt":"2019-02-01T03:40:20","slug":"asic-responds-to-the-important-issue-of-providing","status":"publish","type":"post","link":"https:\/\/raizinvest.com.au\/investors\/blog\/asic-responds-to-the-important-issue-of-providing\/","title":{"rendered":"ASIC responds to the important issue of providing internet banking credentials to Acorns"},"content":{"rendered":"

As
\nyou may be aware,\u00a0I wrote to the Prime Minister, Malcolm Turnbull, (4 March 2016)
\nabout the ePayments Code,<\/a>\u00a0and how the banks were playing fast
\nand loose with the truth when telling consumers that their internet banking
\nlogin details should not be disclosed to third parties, such as Raiz.<\/p>\n

This
\nis an important issue as most of our users provide their internet banking
\ndetails.<\/p>\n

It
\nwas Raiz\u2019 opinion that the banks were overstepping the mark and now
\ncorrespondence I have received from ASIC would suggest the regulator, at the
\nvery least, has sympathy with our point of view.<\/p>\n

Without
\ngoing into all the details, this was positive news because of the following
\npoints ASIC made.<\/p>\n

1.
\nASIC acknowledges that the messaging from banks about not sharing your login
\ndetails with third parties is from the early 1980s, when ATMs were introduced,
\nand is out of date in the new world of apps such as Raiz.<\/p>\n

2.
\nASIC acknowledged the potential value of third party services, such as Raiz,
\nhaving interaction with a consumer\u2019s bank accounts.<\/p>\n

3.
\nASIC notes that the Government has accepted the recommendation of the Financial
\nSystem Inquiry to make the ePayments Code mandatory. \u00a0If this mandatory
\nadoption of the Code were implemented, ASIC would ensure that the Code, which
\nprotects the consumer when providing internet login details, is \u201coperated
\nappropriately\u201d by banks. Although ASIC did not spell it out, we understand that
\nwhat ASIC is saying is that the banks are currently not \u201coperating
\nappropriately\u201d under the Code. But until the Code is mandatory they will not
\nact unilaterally while other areas of government, such as the Productivity
\nCommission, are reviewing related issues.<\/p>\n

This
\ncorrespondence from ASIC indicates that the regulator understands the position
\nof Raiz and has expressed a degree of solidarity with that position in regards
\nto the misleading information being provided by some banks. We\u2019re looking
\nforward to seeing how this develops and reaching a point where Australians are
\nfree to engage with services such as Raiz without concerns that they are
\nbreaching conditions set by their banks.<\/p>\n

George
\nLucas,\u00a0Raiz CEO<\/i><\/p>\n

 <\/p>\n

Important Information<\/strong><\/span><\/p>\n

The information on this website is general advice only. This means it does not consider any person\u2019s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product.<\/p>\n

The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information.<\/p>\n

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.<\/p>\n

Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.<\/p>\n","protected":false},"excerpt":{"rendered":"

As you may be aware,\u00a0I wrote to the Prime Minister, Malcolm Turnbull, (4 March 2016) about the ePayments Code,\u00a0and how the banks were playing fast and loose with the truth when telling consumers that their internet banking login details should not be disclosed to third parties, such as Raiz. This is an important issue as […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[1],"tags":[],"yst_prominent_words":[1335,626,1337,1235,1344,1348,1342,1240,151,1339,1336,1340,1341,1343,745,117,150,1345,621,1338]}