ABACUS - Australian Mutuals

Credit unions move to protect member information

Wednesday, 21^st December, 2005

Credit unions are seeking recognition from policymakers in ASIC and Federal Treasury of the value of a financial institution’s customer list.

A background paper commissioned by Credit Union Industry Association (CUIA), will help inform policy debate about the value of customer lists and the risks associated with disclosure of customer lists.

“Credit unions and other mutual financial institutions, such as building societies and friendly societies, are currently engaged in critically important policy discussions with ASIC and Treasury about access to mutuals’ member registers,” says CUIA’s Head of Public Affairs, Louise Petschler.

“Unlike an ordinary company’s share register, a mutual’s register is also the mutual’s customer list. Mutual financial institutions in Australia have around 6 million members. The entire sector is deeply concerned that ASIC and Federal Treasury do not fully appreciate the risks posed to mutuals and their members of access to member registers.

“This is the information age. The capacity to gather, manipulate and transfer personal information, such as the names and addresses of a mutual financial institution’s members, is growing exponentially.

“We propose that where access to a mutual’s member register is justified on legitimate corporate governance grounds, contact should be made via a trusted third party such as a mailing house. The names and addresses of members would not be disclosed,” Ms Petschler said.

“ASIC also needs to deliver a fair policy on access to registers and takeover attempts.  ASIC has so far failed to provide a fair playing field for mutuals and the more than six million Australians who choose to get financial services from mutual institutions.”

The background paper Customer Lists was commissioned by CUIA from Information Integrity Solutions Pty Ltd. Information Integrity Solutions’ managing director is former Federal Privacy Commission Malcolm Crompton. The paper discusses why customer lists are valuable, how they are protected, and risks posed to a business that loses control of its customer list. The paper also discusses the privacy, fraud and identity theft risks to customers that arise if customer lists are not adequately protected.

For further information:

Luke Lawler
Senior Adviser, Public Affairs
0418 213 025
02 6232 6666

• Background Paper (313.3 KB)