Gavin McCoskerChief Operating OfficerAustralian Financial Security Authority

Corporate Social Responsibility – the interaction with registry operations

• A holistic approach

• Public good

• Equity of access

• Ethical supply chains

• Transparent environmental standards

Corporate social responsibility

• Familiar with values of corporate social responsibility

• Influence behaviour of corporations

• Work in partnership

What role can government play?

• Significant micro-economic reform

• Replaced:

- around 70 pieces of federal, state and territory legislation

- and about 30-40 national, state and territory registers.

Personal Property Securities reform

• Support economic growth

• Reduce cost of doing business

- one national register

- single low fee

• Reduce complexity• Increase consistency

Intention of PPSR

Different channels – same functionality- Credit Bureau- Banks- Non-bank finance companies- Information brokers

- Small/medium business- Non-bank finance companies- Individuals

- Small/medium business- Individuals

Co

nsi

sten

t fu

nct

ion

alit

y

• Online register - available 24 / 7

• Supported by national service centre

• Direct registrations and searches by anyone – individuals or corporations

• Private companies can use register to offer value-added services

• Significant reform – supports private sector risk management and access to capital

Personal Property Securities Register

• Current - authentication of users via email

• Future

• Standard Business Reporting (xBRL)

• Proof of identity for individuals (secure online automated system)

• Proof of identity for business through

AUSkey (business to government

online system)

• Consistent with online insolvency system

Data integrity is critical – start from the front door

•Secure interaction with other registers

• Validation at the point of entry (registration and

search)

• Companies register (ASIC)

• Australian Business Register (Tax office)

• Vehicle information (VIN, stolen, written off –

amalgamation of state based databases)

• Proof of identity– Individuals – Attorney-General’s Department

– Business (AUSKey) – Tax office

Data integrity is critical…continued

•PPSR a different model

- as facilitator - maintain register in accordance with legislation

- as enabler - work with others to add value and deliver

Australian Financial Security Authority

• Majority of transactions made by business to government (B2G) providers – growing and competitive market

• Sustained growth in use of PPSR

• Stability of the PPSR

Achieving the right balance

• We’re clear about our role

• We have a close working relationship with a range of stakeholders

• We focus on maintaining a competitive environment

• We encourage innovation

• We effectively manage compliance

Achieving our outcomes

Effective stakeholder engagement• Essential to success of the PPSR

• Regular, meaningful engagement > identifies service gaps > co-design solutions

• Regular dialogue with cross-section of stakeholders > builds understanding of competing demands > builds commitment to longer-term benefits

Influencing corporate social responsibility

Encourage competition• Builds capacity of private sector

• Value-add products genuinely competitive with direct access

• Builds market – including harder to reach sectors

• Technical information freely provided > helps potential clients to cost and assess risks

• Limit administrative burden > ease of start up & investment

Influencing corporate social responsibility

Drive innovation• Competitive environment drives innovation

• Co-design technical enhancements > delivers tangible functional improvements and removes technical barriers > creates an environment conducive to innovation

• Investment by AFSA > improved register stability

• Co-design > allows AFSA to keep pace with market expectations and ensures innovation that helps build equity of access

Influencing corporate social responsibility

Monitor compliance• Our terms and conditions ensure register operates well

• Private sector providers have a vested interest in the register operating well

• Private sector providers therefore have vested interest in complying with terms and conditions

• Support self-reporting of non-compliance and assist efforts to comply

Influencing corporate social responsibility

Government agencies can

influence corporate social responsibility• Be clear about the outcomes you need

• Be clear about the role of government

• Commit to genuine engagement with stakeholders

• Encourage competition and innovation

• Build confidence in your providers to self report non-compliance – and support their efforts to comply

Conclusion

Questions / Comments