Australian Regulatory Compliance Review

APRA releases discussion paper on new rules for foreign insurers in Australia

APRA has issued a discussion paper on proposed refinements to the general insurance prudential framework which will affect not only direct offshore foreign insurers (DOFIs) (previously discussed here) that wish to become APRA-authorised but also all APRA-authorised general insurers.

The proposed refinements to the prudential framework are intended to apply from 1 July 2008.

The proposals recognise five different categories of insurer, based on their risk profiles, while maintaining adequate protection for policyholders.

The five categories of insurer are locally incorporated insurers, wholly owned subsidiaries of local or foreign insurers, foreign insurers operating as foreign branches, association captives, and sole parent captives.

The Government intends that offshore foreign reinsurers will not be required to be authorised in Australia.

APRA's discussion paper does not address the proposed exemptions from prudential regulation foreshadowed in the Government's announcement on foreign insurers. The Treasury is developing options for such exemptions and intends to issue a separate consultation paper on this topic.

APRA invites written submissions  by 11 September 2007.

APRA issues final responses to Basel II capital adequacy regime

The Australian Prudential Regulation Authority (APRA) has released a paper (pdf) that sets out its responses to submissions on its proposals to implement the standardised approaches under the new Basel II capital adequacy regime as well as two final draft prudential standards that incorporate a number of amendments suggested in the consultation process.

The final draft prudential standards cover:

• the standardised approach to credit risk [APS 112, first released in April 2005]; and
• the standardised approach to operational risk [APS 114, first released in July 2005].

The responses include:

• APRA will retain its proposed riskweighting scheme for residential mortgage loans (ie four different risk-weights based on the loan-to-valuation ratio (LVR) of a loan, whether the loan has acceptable lenders mortgage insurance and whether the loan is a ‘standard’ or ‘non-standard’ housing loan.
• In the final draft APS 112, the risk-weighting treatment of past due or impaired residential mortgage loans differs depending on whether or not the loans are covered by acceptable lenders mortgage insurance.

The proposals form part of the Basel II capital adequacy regime for ADIs that will come into force on 1 January 2008. The full suite of Basel II prudential standards is expected to be finalised in late 2007.

Comments on the response paper and the final draft prudential standards APS 112 Capital Adequacy:Standardised Approach to Credit Risk and APS 114 Capital Adequacy: Standardised Approach to Operational Risk are invited by 3 September 2007

ATO offers Div 7A amnesty

The ATO has issued practice statement PSLA 2007/20 setting out how taxpayers can take corrective action to fix mistakes made between 2001-02 and 2006-07 regarding payments and loans from their private companies and avoid penalties under Division 7A. The Commissioner has a discretion to enable him to provide relief for deemed dividends that have arisen under Division 7A because of an honest mistake or inadvertent omission.

The Practice Statement gives examples of omissions and corrective action where the exercise of the Commissioner's discretion is not required.

If a taxpayer takes corrective action by 30 June 2008 they will not have to pay interest and penalties. However, even if they don't have to pay a penalty or interest, taxpayers will have to pay the correct amount of tax provided the time limits under the law allow it.

From 1 July 2008, the Tax Office will resume audit work to ensure payments made by private companies are correctly accounted for and company loans are not used to distribute tax free profits.

ACCC obtains penalties in bid-rigging and price fixing cartel action

In Australian Competition and Consumer Commission v Admiral Mechanical Services Pty Ltd [2007] FCA 1085 penalties of more than $9.1 million have been imposed on 11 companies and 18 individuals for a series of bid-rigging and price fixing cartels in commercial air conditioning after Australian Competition and Consumer Commission Federal Court action.

Justice Nicholson, in the Federal Court, Perth declared that a number of companies in the commercial air conditioning and mechanical services industry had engaged in illegal bid-rigging and price-fixing cartels in breach of the Trade Practices Act 1974.

The cartels existed between 1991 and June 2003. It involved companies tendering for commercial air conditioning and mechanical services projects in Western Australia agreeing on which would submit the lowest price for particular jobs and therefore be likely to win the tender.

ACCC's media release

AML/CTF Rules amended

On 28 June 2007 the Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2007 (No. 1) was registered, adding an eleventh chapter setting out the reporting and lodgment periods for compliance reports.

The first reporting period begins on 13 December 2006 and ends on 31 December 2007. The report must be lodged within 3 months of the end of the reporting period.

Privacy of health information examined: HCF cleared

The Privacy Commissioner, Karen Curtis, has found that private health insurance company HCF did not breach the Privacy Act when it disclosed the personal and sensitive information of its clients to McKesson Asia Pacific as part of its 'Helping Hands' program.

It had been alleged in media reports that HCF had given McKesson the contact details, gender, age, the broad type of mental illness, and the number of hospital admissions for 370 of its members without their consent.

The OFPC investigation established that HCF wrote to members inviting them to participate in the 'Helping Hands' program based on their claims history. The letters described the program's purpose and background, setting out McKesson's role in administering the program and the contact process. Participation in the 'Helping Hands' program was entirely voluntary and involved telephone-based case management and support.

In addition, the HCF Privacy Policy advises members that it may use the personal information it collects to provide further health services where the member has consented or would reasonably expect HCF to do so.

ACCC speeches

The ACCC website has copies of speeches over the last 6 months relevant to a range of industries including transport, energy, horticulture, aviation, telecommunications and media.

Senate Inquiry into the Private Equity Investment and its Effects on Capital markets and The Australian Economy

The Senate Inquiry into the Private Equity Investment and its Effects on Capital markets and The Australian Economy is currently conducting public hearings.

It is due to report on 16 August 2007.

Access to member register of building societies, credit unions and friendly societies clarified

Corporations Amendment Regulations 2007 (No. 9) modifies section 173 of the Corporations Act 2001  dealing with the right of access to a member register of building societies, credit unions and friendly societies by inserting new subsections (1AA), (1AB), (3A) and (3B) and insertlng a new Part 3 of Chapter 2C Corporations Act dealing with use of information on a register of members.

Under section 173, companies are required to provide a copy of their register of members within seven days to a person requesting access to the register and paying the required fee. But section 173 was modified in the case of building societies and credit unions.

When corporate regulation of building societies, credit unions and friendly societies was transferred to ASIC in 2001, the Corporations Act had to be modified to deal with, for example, the concept of member shares, demutualisation and the right of access to the member register.

Part of the concern of mutuals was that, unlike other public companies, as customers needed to be members, disclosure of the member register also provided personal information about members in their capacity as customers. Security concerns were also raised for companies whose membership is concentrated in the defence or police sectors.

Subsection 173(3B) was inserted by reg 12.8.06 of the Corporations Regulations 2001 (Cth).The modification was recently considered in Capricornia Credit Union Ltd v Australian Securities and Investment Commission [2007] FCAFC 79 .

The Government has addressed the concerns by requiring that where an applicant wishes to contact members and where a copy of the register has not been provided within 28 days of a person’s request for a copy, the company may (unless it reasonably believes the contact or material to be sent is not lawful) satisfy its obligations by providing the member register details to a secure third party provider such as a mailing house rather than the applicant directly.

The Regulation does not change the need for the applicant to have a lawful purpose for access but does provide a clearer process and member privacy safeguards. The Regulation also inserts a new ground on which a company can refuse access, namely the body is not satisfied that allowing the person to inspect or copy the register is in the interests of the members as a whole.

DISCLOSURE: I advised Capricornia Credit Union in its action.

AUSTRAC releases further AML definitions

Anti-Money Laundering And Counter-Terrorism Financing Rules Amendment Instrument 2007 (No. 2) provides definitions of 'approved third-party bill payment system' and identifies the transfer instructions under subparagraph 70(a)(i) of the AML/CTF Act to which the tracing information requirement applies.

ASIC consults on administering the new AFS licence compensation and professional indemnity insurance requirements.

ASIC has released a consultation paper (pdf) inviting comment on its proposals for administering the new compensation and professional indemnity insurance requirements. These requirements apply to Australian financial services licensees who provide financial services to retail clients.

Licensees with an AFS licence that commenced before 1 January 2008 must have insurance in place by 1 July 2008. Those with a new AFS licence commencing on or after 1 January 2008 need to meet the compensation requirements from the date their licence commences.

The new requirements were introduced by regulation 7.6.02AAA of the Corporations Regulations 2001 on 28 June 2007 and s912B of the Corporations Act 2001. They make professional indemnity insurance the main way licensees are to meet their compensation arrangement obligations. Licensees are responsible for assessing their business and ensuring they have adequate insurance cover.

The consultation paper seeks feedback on:

• ASIC’s proposed policy on what is adequate professional indemnity insurance cover;
• some challenges to the regime and some practical options responding to these challenges;
• ASIC’s proposed guidance on how licensees should approach the new requirements; and
• ASIC’s policy for approving alternative arrangements to professional indemnity insurance.

ASIC invites comments on the proposals set out in the consultation paper by 14 September 2007. ASIC plans to issue a regulatory guide on the issue by November 2007. 

ACMA penalises "missed call" marketing

The Australian Communications and Media Authority (ACMA) has issued DC Marketing Europe Limited with an Infringement Notice, carrying a penalty of $149,600, for extensive breaches of the Spam Act 2003.

ACMA penalised DC Marketing for 102 contraventions relating to missed call marketing activities in July and August 2006.

Missed call marketing involves the sending of short duration calls to mobile phones, thereby leaving a ‘missed call’ message on the phone.

Under this practice, when the mobile phone owner returned the missed call, they received marketing information from DC Marketing. Consumers had no way of knowing who the missed call was from before calling DC Marketing and so effectively paid to receive DC Marketing’s marketing messages. The missed call marketing messages sent out by DC Marketing were unsolicited, did not identify the sender and did not contain an unsubscribe facility, each of which is a breach of the Spam Act.

Access Card registration process

The Consumer and Privacy Taskforce's fifth report to government relates to Registration (pdf).

The Taskforce has identified the registration process, whereby in excess of 16.5 million Australians are registered and enrolled in the Access Card scheme as critical to the card's success.

The Report discusses:
• Preparing the system to undertake registration
• Personal registration activities
• Procedures at registration
• Production of, and Post-Production issues for, the Access Card.

Australian Government issues Foreign Bribery Information and Awareness Pack

The Minister for Justice and Customs has issued a Foreign Bribery Information and Awareness Pack to assist Australians who encounter foreign public officials, whether it is in the course of business or simply as a result of travelling overseas.

The pack contains information about the criminal offence, how to report suspected foreign bribery, taxation implications of foreign briber and identification of suspicious transactions and notification requirements.

The ATO has also issued Bribes and facilitation payments: A guide to managing your tax obligations.

Tax Commissioner identifies business tax risks

In a recent Speech by Michael D’Ascenzo, Commissioner of Taxation, he identified tax risks for businesses and discussed:

• the new ATO Guide Bribes and facilitation payments: A guide to managing your tax obligations;
• The role of directors and board members in tax governance (including their own personal tax responsibilities);
• rights and options received under share schemes for both executives and general employees;
• ATO's compliance program for large business;
  
• an initiative encouraging people to come forward and make disclosures of undisclosed income from offshore activities.

Inquiry into home loan lending practices

The House of Representatives Economics Committee has commenced a short term inquiry into home loan lending practices and the processes used to deal with people in financial difficulty.

As part of the inquiry the committee will host a roundtable public hearing on 10 August 2007 with a range of key government and industry stakeholders.

Among the issues to be discussed at the roundtable are:
• Housing lending credit standards in Australia;
• The current level of mortgage defaults and foreclosures;
• The treatment of borrowers in financial difficulty; and
• The potential implications of declining credit standards for the Australian financial system.

The committee expects to report on or before 17 September 2007.

Public companies' top 20 shareholders

From 1 July 2007 public companies no longer need to notify ASIC of their top 20 shareholders or interest holders as part of their annual review.

This change is implemented by Corporations Amendment Regulations 2007 (No. 5).

ASIC v Citigroup: ASIC will not appeal

ASIC has announced that it will not lodge an appeal in ASIC v Citigroup Global Markets Australia Pty Limited.

It is considering its position on costs.

CAMAC issues discussion paper on company liabilities for future personal injury claims

The Corporations and Markets Advisory Committee (CAMAC) has released a discussion paper Long–tail liabilities: The treatment of unascertained future personal injury claims

The paper responds to a request from the Parliamentary Secretary to the Treasurer, the Hon. Chris Pearce, MP, following the Special Commission of Inquiry into Medical research and Compensation Foundation (the James Hardie Inquiry) for the Committee to consider the adequacy of arrangements under the law for the protection of individuals who in the future may have personal injury claims against companies that have been involved in the manufacture and distribution of products that give rise to health problems or diseases after the lapse of a significant period of time (such as asbestos).

ASIC financial reporting relief for small foreign owned companies

ASIC has announced additional relief from the requirement to prepare and lodge financial reports for certain small proprietary companies controlled by foreign companies and registered foreign companies.

ASIC Class Order [CO 07/505] Variation and revocation of financial reporting instruments amends existing ASIC relief to reflect recent changes in the ‘large/small test’ made by the Corporations Legislation Amendment (Simpler Regulatory System) Act .

Are your online documents readily accessible?

With the commencement of the Simpler Regulatory System company reporting changes, many companies can be expected to save printing and mailing costs by making annual reports available online.

A typical condition imposed by laws when permitting documents to be given to your shareholders or customers by making them available online for reading or downloading (rather than requiring the mailing of a hard (printed) copy or the emailing or faxing of an electronic copy) is that they be "readily accessible". (See section 314(1AA)(b) Corporations Act).

"Readily accessible" means more than being available for reading or download by anyone who has internet access. The expression has its source in Section 9(1)(a) of the Electronic Transactions Act 1999 (Cth) where it is part of the phrase "readily accessible so as to be useable for subsequent reference".

The readily accessible requirement appears to have been included to allow for changes in technology which can mean that over time different standards of communication can be become incompatible with later systems. Provided that the system used to transfer the information is relatively standard at the time of publication and is not difficult to use, then it should satisfy this test. For example, the PDF file format is now standard and the Adobe Acrobat Reader required to read it is freely available (and free). Use of a file format that was difficult to open would mean that the document is not "readily accessible".

As the legality of the giving of the document should not be questioned through lack of access, the direct address on the web site where the documents may be accessed should remain static for as long as they are relevant.

But accessibility may also be argued in the future to include whether:
•    the writing in the document is legible when viewed;
•    the document incorporates any image, message, advertisement or other feature that distracts the reader or reduces the reader's ability to understand the document;
•    if an image, message, advertisement or other feature accompanies or is associated with the document, the reader is readily able to distinguish the image, message, advertisement or other feature from the document;
•    the reader can readily scroll through the whole of the document.

As more businesses make documents available on their website, consideration should be given as to whether they are readily accessible by looking at the following factors:

• the ability of readers to find the document (is there a direct link, adequate navigation, reference on a site map or index?)
• the file format of the document (HTML, PDF, Word, RTF or all?)
• the ability of onscreen readers to increase the font size
• for longer documents, the availablity of a summary or a tool such as a drop down list to find relevant parts of the document.

For example, the Alinta Scheme Booklet  as presented online seems to offer readers a range of features which may make it easier to read a complex legal document on their computer screen if they do not want to print or save it.

ACCC alleges Google adwords misleading

The Australian Competition and Consumer Commission (ACCC) has announced it has instituted legal proceedings in the Federal Court, Sydney, against Trading Post Australia Pty Ltd, Google Inc, Google Ireland Limited and Google Australia Pty Ltd alleging misleading and deceptive conduct in relation to sponsored links that appeared on the Google website.

The ACCC is alleging that Trading Post contravened sections 52 and 53(d) of the Trade Practices Act 1974 in 2005 when the business names "Kloster Ford" and "Charlestown Toyota" appeared in the title of Google sponsored links to Trading Post's website. Kloster Ford and Charlestown Toyota are Newcastle car dealerships who compete against Trading Post in automotive sales.

In other words, the ACCC says that Trading Post bought those names for use to link to its site when certain automotive sales searches were performed on Google even though Trading Post had no association with those names.

The ACCC is also alleging that Google, by causing the Kloster Ford and Charlestown Toyota links to be published on its website, engaged in misleading and deceptive conduct in breach of section 52 of the Act.

Further, the ACCC is alleging that Google, by failing to adequately distinguish sponsored links from "organic" search results, has engaged and continues to engage in misleading and deceptive conduct in breach of section 52 of the Act.

The ACCC is seeking:

• declarations that Trading Post contravened sections 52 and 53(d) of the Act
• declarations that Google contravened section 52 of the Act
• injunctions restraining Trading Post from representing through sponsored links an association, sponsorship or affiliation with another business where one does not exist
• injunctions restraining Google from publishing sponsored links of advertisers representing an association, sponsorship or affiliation where one does not exist
• injunctions restraining Google from publishing search results that do not expressly distinguish advertisements from organic search results
• orders that Trading Post and Google implement trade practices compliance programs
• an order that Google publish a notice on its website outlining the above, and
• costs.

The matter has been listed for a directions hearing in the Federal Court, Sydney, on 21 August 2007.

UPDATE: Google rejects claims (ZDNet). Previous story about Trading Post and Stickybeek.

AUSTRAC issues draft identification threshold rules

Table 1 of Section 6 of the AML/CTF Act lists the designated services regulated by the Act.

AUSTRAC has issued draft AML/CTF Rules relating to certain threshold amounts in respect of items 17, 25, 26 and 50 of table 1 in section 6.

It is proposed that, unless an entity's own procedures require otherwise,the identification procedures in Division 4 of Part 2 of the Act will not apply to certain cheques less than $5000, travellers cheques less than $1000 and certain currency exchanges of less than $1000.

A public consultation period is open until 26 July 2007.

APRA releases revised Basel II securitisation standard

The Australian Prudential Regulation Authority (APRA) has released a paper that sets out its response to submissions on its proposals to update APRA’s existing prudential framework for securitisation to incorporate the new Basel capital adequacy regime (the Basel II Framework) as well as market developments.

APRA’s response paper is accompanied by a final draft Prudential Standard APS 120 Securitisation that sets out the general requirements applying to the involvement of an authorised deposit-taking institution (ADI) in securitisation activities, as well as the methodology for the calculation of an ADI’s credit risk regulatory capital requirement for securitisation exposures.

In developing the final draft APS 120, APRA has been guided by the general principle that a securitisation stands clearly separate from an ADI and is not implicitly or explicitly reliant on an ADI for funding, operations or to maintain its market standing, while at the same time not unduly disrupting existing arrangements and market practices.

The proposals form part of the Basel II capital adequacy regime for ADIs that will come into force on 1 January 2008. The full suite of Basel II prudential standards is expected to be finalised in late 2007.

Comments on the response paper and the final draft Prudential Standard APS 120 Securitisation are invited by 10 August 2007.

AUSTRAC releases draft customer due diligence rules

AUSTRAC has released amended draft ongoing customer due diligence rules (pdf).

A public consultation period is open until 19 July 2007.

ASIC consults on managed investment schemes

ASIC has released a consultation paper on managed investment scheme withdrawal rights and the management of related liquidity risks.

The paper outlines ASIC’s proposed guidance and seeks feedback from industry about:

• what disclosures responsible entities of registered managed investment schemes should make to members about their withdrawal rights; and
• how responsible entities of registered schemes should monitor and manage liquidity risks.

ASIC consults on share and unit sale facilities.

ASIC has released a consultation paper outlining a proposal for class order relief to facilitate the provision of certain share and unit sale facilities.

Workplace Authority issues Workplace Relations Fact Sheet

The Workplace Authority has issued the Workplace Relations Fact Sheet.

The Workplace Relations Fact Sheet must be provided by employers to employees.

The fact sheet contains information on employee entitlements, including the Australian Fair Pay and Conditions Standard, support services and basic protections for working Australians.

It also provides an overview of the fairness test and the role of the Workplace Authority and the Workplace Ombudsman.

Tax agent regulation

The Minister for Revenue and Assistant Treasurer, the Hon Peter Dutton MP has released the draft Tax Laws Amendment (Tax Agent Services) Bill 2007 and associated draft Regulations and draft explanatory materials for public exposure.

Pharmaceutical manufacturers to disclose hospitality

Medicines Australia (formerly the Australian Pharmaceutical Manufacturers’ Association Inc) has a Code of Conduct which sets the standards for the ethical marketing and promotion of prescription pharmaceutical products in Australia.

Medicines Australia has failed in its challenge to the condition imposed by the ACCC in its authorisation in respect of the Code's 15th edition requiring each member to report twice yearly to Medicines Australia on events sponsored by the member for healthcare professionals. The condition required Medicines Australia to make such reports publicly available in tabular form on its website and to review them through its Monitoring Committee. Authorisation was for a period of three years.

The Australian Competition Tribunal decided in Application by Medicines Australia Inc [2007] ACompT 4 that each member company must report to Medicines Australia all educational meetings and symposia held or sponsored by that company in the required form for each month of the financial year and provide a copy of the completed table for two six month periods every year (July to December; January to June) to Medicines Australia within 14 days of the end of each six month period. Medicines Australia will make publicly available on its website the completed table provided by each member company within three months of the end of each six month period. The table must show the venue, a description of the function (including educational content), professional status of attendees, the hospitality provided, the total cost of hospitality, number of attendees and the total cost of the function.

The authorisations shall be in force for a period of five years.

The Tribunal was satisfied that "the public benefit derived from the Code allowing for its identified deficiencies and weaknesses, outweighs the low level of anti-competitive detriment, if any, flowing from the Code."

Banking and financial services: privacy case studies

The Banking and Financial Services Ombudsman's Bulletin 54 (pdf) discusses the application of the National Privacy Principles to a range of banking procedures:

Identification to cash cheques: the BFSO’s view is that the taking of identification from a person presenting a cheque for cash payment is necessary for one or more of the functions and activities of the drawer’s bank.

Names and contact details of third parties required on credit applications: The BFSO suggests that the applicants who provide third party information advise the third parties of that fact.

Collection of sensitive information (eg health) without consent and without adequate notice of collection: the BFSO cites a case where a bank wrongly copied qnd retaiuned a document that contained both financial and health information.

Use and disclosure: According to the BFSO Claims made to BFSO range from cases in which correspondence is sent to wrong addresses to serious breaches in which individuals say their personal safety is put at risk.

Many cases investigated by BFSO where a breach is found, appear to have resulted from failure to use up-to-date information, carelessness and, in some cases, misplaced attempts by staff to assist family members or friends of the customer.

BFSO has also considered cases where wrongly addressed mail has led to serious repercussions for the customer (eg acrimonious family law property proceedings). These quite serious cases are relatively uncommon. However, where a financial services provider is on notice of potential danger or conflict where information about a customer is revealed to a third party, then compensation may be substantial where such information is disclosed in breach of the NPPs.

Access to information: it is the view of BFSO that, where a financial services provider asserts that an individual is its customer, the individual is entitled to access information that the provider holds or purports to hold about him or her.

Credit reporting: BFSO receives and investigates a number of disputes about credit reporting. The most common cause for complaint is default or serious credit infringement listings.

BFSO’s view is that, where a credit provider intends to list a default the intention to list should be brought to the attention of the individual at the time that the demand for payment is made. BFSO also takes the view that the amount listed should be limited to the amount which can be demonstrated to have been overdue for 60 days.

Where a credit provider relies on an acceleration clause in a contract to demand that the remaining loan balance be repaid by a customer, BFSO is of the view that the full amount must have been demanded by the credit provider and remain unpaid for 60 days from the date of expiry of the demand before a listing may be made and that this should be made clear and unambiguous in the demand.

In respect of serious credit infringement listings (which last for 7 years) it is the view of BFSO that simply being unable to locate an individual cannot form the basis of a “reasonable opinion” that the individual has indicated an intention to no longer comply with the credit contract.

BFSO also expressed the view that it is not appropriate for any listing to be made claiming fraud unless the individual has been found guilty of a fraud offence by a court.

APRA releases draft capital adequacy changes for ADI's and general insurers

The Australian Prudential Regulation Authority (APRA) has released details of proposed changes to capital requirements for authorised deposit-taking institutions (ADIs) (draft Prudential Standards APS 110 Capital Adequacy and APS 111 Capital Adequacy: Measurement of Capital) and general insurers (GIs) and a discussion paper.

The proposed changes arise from the adoption of the Basel II Capital Framework in Australia, finalising APRA’s treatment of conglomerate groups containing one or more locally incorporated ADIs and responses to accounting and market developments since the standards were last updated.

APRA proposes to finalise and issue the ADI prudential standards in late 2007. They will have effect from 1 January 2008. Changes to capital requirements for GIs will be implemented in 2008.

Privacy case notes 8-20 (2007) released

The Privacy Commissioner, Karen Curtis, has released 13 new case notes covering a range of different privacy issues and topics:

F v Insurance Company [2007] PrivCmrA 8
relates to the collection and disclosure of personal information during an insurance claim. The Commissioner formed the view that the insurance company did not comply with the requirements in National Privacy Principle 1.3 when it provided the complainant with the claim form. 

G v Law Firm [2007] PrivCmrA 9
involves the improper use of personal information by a law firm. The law firm used information about a person obtained from acting for one insurer in defending the complainant's insurance claim against another client insurer. The Commissioner considered that the law firm acted contrary to National Privacy Principle 2.

H v Health Service Provider [2007] PrivCmrA 10
considers the improper disclosure of medical information. The medical centre had collected the complainant's personal information to provide a particular form of health care and used it for a different, unrelated purpose which was in no way within the complainant's reasonable expectations.

I v Insurance Company [2007] PrivCmrA 11
examines the responsibility of insurance companies to keep personal information secure and safe from unauthorised modification. An insurer allowed the complainant's former spouse access to information including the complainant's new home address followeing their divorce. 

J v Government Agency [2007] PrivCmrA 12
looks at the right of government agencies to collect personal information about individuals from third parties. In this particular case, the Commissioner decided that the information gathered was not an unreasonable intrusion into the complainant's privacy as the agency's concern was based on a reasonable (although incorrect) assumption that the individual was connected to a debtor, the complainant's personal information was collected from a publicly available source of information (a land ownership registry) and the enquiries ceased immediately when it became clear that the complainant was not financially connected to the payer.

K v Health Service Provider [2007] PrivCmrA 13
relates to the right of individuals to access personal information held in their medical record. The medical centre denied access, arguing that to provide the complainant with the first of the requested documents would pose a risk to the complainant's health, and to provide access to the second document would impact upon the privacy of another individual. The Commissioner rejected the first argument but accepted the second argument.

L v Contractor to Australian Government Agency [2007] PrivCmrA 14
considers the improper disclosure of personal information to a person's employer.

M v Health Service Provider [2007] PrivCmrA 15
looks at patient privacy regarding photographic images taken by their health service provider. The medical practitioner conceded that it was not necessary to record a digital photograph of the complainant to provide a health service.

N v Accountancy Firm [2007] PrivCmrA 16
looks at the meaning of consumer credit.  The Commissioner was of the opinion that the money owed was for the provision of an accounting service to the trust rather than for domestic or household purposes.  This meant that it could not be classed as credit under section 6 of the Privacy Act, and so the default could not be listed on a consumer credit information file by the accountants.

O v Insurance Company [2007] PrivCmrA 17
examines an allegation about the improper disclosure of personal information during an insurance claim investigation. THe Commissioner rejected the complaint. The Commissioner considered that the information about the sexual harassment claim had been gathered as part of a lawful investigation into the factors affecting the complainant's return to work. 

P v Tenancy Database [2007] PrivCmrA 18
involves the accuracy and currency of personal information. A tenancy database listing five years after the original event was removed.

Q v Australian Government Agency [2007] PrivCmrA 19
regards the security and accuracy of personal information held by a government agency.One agency gave another agency a person's residential address.

R v Retailer [2007] PrivCmrA 20
considers the right of an individual to access and have their data removed from a retailer's database. The complainant was charged by police with an offence against a retailer but was not convicted.  Subsequently, the complainant's name was placed on a database of individuals suspected of committing offences against the retailer. The name was removed as the incident took place more than 6 years ago.

AML/CTF compliance reports rules

The Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2007 (No. 1) were made on 22 June 2007 and registered on 28 June 2007.

They relate to AML/CTF compliance reports and specify the reporting and lodgment periods for such reports.

The first reports will be for the period beginning on 13 December 2006 and ending on 31 December 2007. The lodgment period is the period of 3 months beginning at the end of the reporting period.