ASIC investigates ‘account aggregators’

The Australian Securities and Investment Commission (ASIC) has raising consumer protection concerns over account aggregation services which allow consumers to consolidate all their online accounts via one web page.

These accounts could be a bank savings or transaction account, credit cards, managed funds, online share trading, frequent flyer and email accounts. Current account aggregators include AMP, enrichment.com.au and ewise.com.au.

The major issues is the need for consumers to provide their personal identification numbers (PIN) and passwords to the aggregation service. This has implications for liability of unauthorised transactions and who has access to the PIN numbers.

ASIC's has released a 65-page report identifying the availability and functionality of account aggregation services, consumer and regulatory issues and possible responses to ensure that consumers are protected.

Account aggregation services are still in their infancy in this country and the range of institutions partnering the aggregators is still somewhat limited. Currently, you may be able to aggregate a number bank accounts but the aggregator may not have a relationship with your online broker.

The report is available from the ASIC website

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