The Government is seeking feedback on a minor and technical amendment to the definition of ‘product’ in the Open Banking designation instrument.
The instrument formed the first stage of implementing the 2018 Review into Open Banking, which recommended a broad range of lending products provided by banks be in scope for the CDR, including lease products. The banking rules have been drafted on the basis that lease products are within scope of the banking designation – lease products, including consumer leases and asset finance, are on the prescribed list of banking products.
For the avoidance of doubt, the proposed amendment to the banking designation instrument will update the definition of ‘product’ to explicitly capture the full range of lease products offered by banks (irrespective of how these products are structured).
Prior to the Minister amending a designation instrument (including minor and technical amendments) there is the requirement to conduct a sectoral assessment which considers the effect of the proposed change (s56AE of the Competition and Consumer Act 2010) (the Act).
Feedback is sought from stakeholders regarding the proposed changed, to inform Treasury’s assessment as well as the final designation instrument.