No images? Click here Welcome to Australian Banking Daily’s Czar Report for June — a high-level policy outlook for the month ahead, exclusive for subscribers.---- JobMaking a futureBy Alex Sampson Prime Minister Scott Morrison must show his government can deal with the economic effects of the pandemic shutdown. After announcing the National Cabinet's three-stage plan for easing Covid-19 restrictions on May 8, he followed up with his JobMaker plan, which is still a work in progress. The long-term plan doesn’t exist yet. Treasurer Josh Frydenberg will deliver the biggest “please explain” in fiscal history when politicians return to Canberra on June 10. Frydenberg, who declined the Senate Covid-19 committee’s request to appear, must explain to the House why he misled parliament over the scale of the JobKeeper program and why he won’t plug the A$60 billion, or 3% of GDP, gap in the much-hyped Covid-19 economic response. The Select Committee on Covid-19 will conduct public hearings on June 2 and 4 to work out what measures are needed. The banks have so far deferred A$250 billion worth of loans for people and businesses struggling with the coronavirus shutdown but the Bank for International Settlements warned banks now faced the "daunting task" of balancing near-term economic relief benefits with longer-term financial stability considerations. Ongoing hearings of the Royal Commission into National Natural Disaster Arrangements will help shape the future of insurance in Australia and hopefully determine a way to manage ballooning insurance risk caused by increasing fire, drought and storm conditions. Treasury’s inquiry into future directions for the Consumer Data Right (CDR) is ongoing, led by King & Wood Mallesons (KWM) partner Scott Farrell, as Covid-19 can’t stop virtual lobbying. New tyrannies of distance mean the development of the digital economy is even more crucial. The CDR would allow customers to direct businesses to share their data securely with third parties, opening up the market to new data-driven products and new entrants, but presumably not at the expense of the user. The ACCC launched the CDR Register and Accreditation Application Platform (RAAP) and the Consumer Data Right Participant Portal to allow fintechs and banks to apply to become "Accredited Data Recipients". The ACCC is also seeking industry volunteers to help with testing the design and maintenance of the CDR Conformance Test Suite to ensure it is fit for purpose. An initial round of engagement for data holders will run from June 10 to June 26. Meanwhile, three-month exemptions have been granted to non-major financial services providers required to share product reference data under open banking by July 1, due to the impact of the Covid-19 pandemic. They now have until October 1. The ACCC is not alone in its deferral of reform, with most of what the regulators had planned for 2020, especially in relation to royal commission promises, put on hold until later in the year and 2021. Frydenberg gave Treasury an extension on post-Hayne legislation, so everything that was meant to land in parliament by the end of June will now be introduced by December. That also means consultation on almost 20 exposure drafts can bend to Covid-19 needs. All eyes on economic recovery The Reserve Bank of Australia will deliver its latest interest rate decision on June 2. ANZ Bank's chief economist Richard Yetsenga will discuss the paths to economic recovery across the globe at a CEDA webinar on June 11. CEDA’s online 2020 State of the Nation forum on June 15-16 will hear from Prime Minister Scott Morrison, Labor Leader Anthony Albanese and self-styled IR guru Attorney-General Christian Porter, as well as Victoria, NSW and ACT treasurers. Panellists range from AGL CEO Brett Redman to Australasian Supply Chain Institute chair Alexandra Riha. Moody's Analytics senior director of economic research Ruth Stroppiana and economist Shahana Mukherjee will provide an overview and forecast for Australia's economy with a focus on the impact of the Covid-19 pandemic at a Finance & Treasury Association webinar on June 17. Westpac chief economist Bill Evans and CEDA CEO Melinda Cilento will provide analysis and forecasts for the national economy on June 23. Deadlines Submissions to the Parliamentary Joint Committee on Corporations and Financial Services on litigation funding and the regulation of the class action industry are due on June 11. Virtual events the new norm Anna Maj, PwC fintech leader and expert for the EU's European Innovation Council, will discuss a range of open banking issues at a webinar presented by the Centre for Finance, Technology & Entrepreneurship on June 3. University of Oxford professor of justice systems Christopher Hodges will discuss regulating financial services through culture rather than deterrence at an FINSIA webinar on June 4. The RegTech Association will host an online panel and Q&A session with Data Standards Body chair Andrew Stevens, Deloitte partner Deen Sanders and Verifier CEO Lisa Schutz on June 4. Financial Planning Association of Australia head of policy Ben Marshan and government relations manager Nick Hannan will discuss the FPA’s new policy platform during a webinar on June 10. Ruth Steinholtz will discuss measuring and improving culture at a FINSIA webinar on the future of regulation on June 18. The Economic Society of Australia will host an online talk and Q&A with RBA deputy governor Guy Debelle on the economy and monetary policy on June 30. Banking on Justice: 'Driven by a singular agenda' Signature outcomes of the Covid-19 response include the short-sighted raid on superannuation and the JobKeeper snafu but bankers are out of the naughty corner. ‘Team Territory’ gunning for NT The Green Paper on Operation Rebound maps an NT reboot, backed by a squad of bankers, policymakers, community leaders, retired politicians, and oil and gas executives. Millions of Australians face a September cliff edge where current government and bank support cuts out but the Morrison government has a plan for a plan. Morrison 'fairy dust' won't fix JobKeeper blunder The "substantial" Covid-19 stimulus package is now a shadow of its former self, challenging the policy foundation for borrowings and recovery. |