Weekly Update: 30.09.22 – Optus wrap-up

“The banks and other financial institutions have done a mountain of work, to protect their customers, from hacking and from other cybersecurity threats. And that work is ongoing, and they need to be vigilant in an ongoing way.” 

– Treasurer Chalmers, Canberra press conference, 28 Sep 2022.

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Optus Update:

• ABA teams continue to work with members, federal agencies and government to support the response to the Optus data breach.
• The ABA has co-ordinated an industry-wide position to the ongoing Optus incident. Media coverage has noted how banks are working collaboratively with Government. The Treasurer has praised banks’ role to date.
• The AFP and state and territory police have set up Operation Guardian to supercharge the protection of 10,000 customers whose identification credentials have been released online. 

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Parliamentary Update:

• The Financial Accountability Regime (FAR) and Compensation Scheme of Last Resort (CSLR) Bills passed the House of Representatives on 28 September 2022.
• The Senate referred the FAR and CSLR Bills to the Economics Legislation Committee for inquiry and report by 20 October 2022. The closing date for submissions is 7 October 2022.
• Unfair contract terms legislation was introduced into the Parliament, and a related media release was issued by Small Business Minister Julie Collins and Assistant Minister Andrew Leigh.
• Treasurer Jim Chalmers made announcements on:
  • The Terms of Reference for the Employment White Paper, which follows the Jobs & Skills Summit.
  • The Final Budget Outcome for 2021-22, with a cash deficit of $32 billion (1.4% GDP) after a $27.7 billion boost in receipts from higher company taxes and commodity prices.
  • A key media interview on ABC 730 regarding a more downcast global economic outlook.
• The ABA welcomes the Regional Banking Taskforce Final Report and will work constructively to implement its recommendations.

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Policy Update:

• The ABA attended the UN’s Forum on Finance for Nature-based Solutions (Part II) in Cairns. The objective of Forum Part II is to further explore climate mitigation issues, share developed and developing countries’ experience in designing and accessing finance, close the finance gap, and find ways to mobilize and scale financial solutions. A summary report will be released this year.

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Economic Update:

• Inflation rose 7% in the year to July and 6.8% to August. Largest contributors were new dwelling construction, up 20.7%, and automotive fuel, up 15%. Food and non-alcoholic beverages rose 9.3%.
• Retail sales rose again, up 0.6% in August, the eighth consecutive rise.
• Engineering construction was down 1.7% for the June 2022 quarter. Value of work commenced fell 31.2%.
• The UK’s economy is experiencing headwinds. The pound hit its lowest level since 1985, and the UK bond market had the biggest one-day fall since 1991. The BoE plans a £65 billion bond acquisition into October to help stabilize the economy.
• The Russian economy is set to slow further, due to escalating international responses to the Ukraine conflict and a worker shortage due to military mobilization.
• The cost of global shipping has fallen to its lowest point in two years: the 40-foot container price fell under $4,000 for first time since 2020, indicating supply chain issues are being resolved, and slowing global demand.

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Regulatory Update:

• ASIC has published updated and expanded remediation guidance. ASIC claims to have overseen $5.6 billion in remediation for seven million consumers over the past 6 years, with a further $1.6 billion to be paid to 2.7 million more.
• The Council of Financial Regulators released its quarterly statement for September 2022. Progress with cyber resilience initiatives, including the ongoing development of a cyber-attack protocol with New Zealand regulators and work on initiating further exercises under the Cyber Operational Resilience Intelligence-led Exercises (CORIE) continues.
• The RBA released its 2022 Payments Systems Board Annual Report:
  • The year has seen a further shift to electronic payments.
  • Strong growth in new payment types, such as ‘buy now, pay later’.
  • Use of the New Payments Platform has continued to grow.
  • The use of cash has been declining for many years (accelerated by the pandemic), though cash still remains important for some.
  • The Bank is considering the implications of these changes for payments policy and regulation.

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30.09.22Optus Data BreachWeekly Update