Lesley Thorne

Advisers have until 12 March 2014 to ensure their privacy compliance measures meet new privacy principles.

“The new Australian Privacy Principles require personal information to be handled in an open and transparent way,” says Lesley Thorne, senior lawyer from The Fold Legal. “This means financial advisers must be revisiting and updating their privacy compliance measures over the next three weeks.”

In particular, Ms Thorne says the information given to clients about how their information is to be used should be reviewed and the extra information required for data collection statements should be added when collecting information, be it face-to-face or by telephone.

“Privacy policies should also be updated and placed on advisers’ websites,” she says. “Care needs to taken with direct marketing and advisers must make sure they have a really simple way for people to unsubscribe or opt out of any communications.”

If any personal information is disclosed overseas, the recipient must be required to protect that information in a similar way to the Australian requirements. “If not, advisers should stop sending information overseas until they can put controls in place over how their client data is used, disclosed and stored,” she says.

Ms Thorne has the following tips for advisers in the lead up to the 12 March deadline.

Tips for advisers:

• Implement new procedures to ensure you handle personal information correctly and give access when required by law.
• Correct personal information which is inaccurate, out of date, incomplete, misleading or irrelevant when requested.
• Check that security and storage processes for personal information are sufficient.
• Expand internal complaints resolution arrangements to include complaints about privacy.

“Advisers need to thoroughly train their staff on their obligations and also the privacy policy and procedures they have put in place to manage the obligations. They need to monitor and record any mishaps and ensure adjustments can be made quickly where necessary.”

The Fold has new privacy policies, privacy scripts and documented policies and procedures advisers need as a starting point in The Fold’s manuals. For more information, click here.

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