A leading Australian financial regulator says it has been unable to find a reliable, accurate and transparent way to track the compliance of businesses with CBAP, the credit bureau.
The Federal Trade Commission has warned the Australian Financial Advice and Trading Standards Authority that the IBAC’s process is “not a golden standard” for compliance.
It is expected to release a report into the role of the IBACC next month.
The regulator, known as the IBATRA, has been investigating how companies are tracked in compliance with CBP requirements.
The agency said in its response that the agency was “aware of the problems identified by the Australian Taxation Office (ATO) regarding the implementation of the CBAP framework”.
“It is the ATO’s view that the regulatory compliance process is not a gold-standard for assessing the effectiveness of CBAP compliance,” the regulator said.
“The IBAC has been reviewing the current regulatory framework for the CBP and has been advised that this will be reviewed again.”
It added that it is also working with its regulatory partners to address issues raised in its investigation.
The IBAC was set up in 2010 to help banks and other financial institutions comply with the CBPA.
It has so far completed a total of 10 investigations and written a report that it has said will help banks improve their compliance with the rules.
The government announced in March it would review the way the industry deals with the obligations of businesses to ensure that businesses are able to meet their obligations.
It announced plans to create an independent regulator to oversee the industry’s compliance with compliance requirements.
“This is not about giving an extra tax break, it’s about ensuring compliance with our obligations,” the Treasury said in a statement on Tuesday.
“This will mean we will be taking action to protect taxpayers, the economy and our businesses from unfairness and abuse in the financial services sector.”