Here is the converted article in markdown format:

Australian Competition, Fair Trading and Consumer Protection Laws: Government Deposit Insurance

In a move to boost consumer confidence in the banking sector, the Australian government has guaranteed deposits up to A$250,000 held with Authorised Deposit-Taking Institutions (ADIs) since October 12, 2008. This guarantee covers all ADIs incorporated in Australia, including banks, building societies, and credit unions.

Government Ownership Interest

The Australian government’s ownership interest in the banking sector ceased with the full privatization of the Commonwealth Bank of Australia between 1991 and 1996. Currently, the government does not intend to own any interest in private banks, except for minor interests held by public sector superannuation schemes and the Future Fund.

Transactions Between Affiliates

Banks are subject to the same rules governing related-party transactions as public companies. These rules require member approval for giving financial benefits to related parties, unless an exception applies. A related party is defined as any entity that controls the company, a director of the company or an entity that controls the company, and spouses, parents, and children of directors.

Regulatory Challenges

The banking industry faces significant regulatory challenges, including:

• Increased scrutiny following the Banking Royal Commission’s final report in 2019
• Reforms aimed at removing conflicts of interest and improving consumer protections
• The rise of open banking and consumer data rights, posing challenges for banks to provide greater transparency and control over customer financial data

Consumer Protection

Banks are subject to various consumer protection rules, including:

• National Consumer Credit Protection Act 2009 (Cth)
• Corporations Act
• Prohibiting unconscionable conduct
• Requiring financial services providers to hold an Australian Financial Services Licence (AFSL)

The Australian Securities and Investments Commission (ASIC) is responsible for enforcing these obligations.

Future Changes

In the next few years, we anticipate greater legal and regulatory policies aimed at safeguarding consumers and preventing financial misconduct. The implementation of Banking Royal Commission recommendations will likely lead to more stringent regulations on the banking industry. ASIC and the Australian Prudential Regulation Authority (APRA) may introduce new legislative and regulatory changes in response to their Corporate Plans for 2021-25.

Law Stated Date

The information above is accurate as of January 25, 2022.