Advice client data use not free-for-all
Financial services organisations that collect client data for aggregation and analysis will need to be acutely aware of privacy laws and the extent to which they can use client data, The Fold Legal warned.
The Fold Legal managing director, Claire Wivell-Plater, said a recent case where a company had to hand over personal metadata back to the customer served as a warning that organisations may not have unlimited rights to use client data even if individual identifiers have been removed so the client cannot be identified.
"Everybody thinks that so long as the information has been de-identified, the data can be used for any purpose," Wivell-Plater said.
"The recent case indicates that, generally speaking, the ability to use even the de-identified data isn't as extensive as people think it might be."
The comments come off the back of a Deloitte report, which said there is increased interest in Australia to look into the development of providers who specialise in aggregation and analysis of clients' financial situations to tailor financial advice.
As technology improves and the sophistication of the analysis increases, financial data aggregation services will be able to include non-financial data such as health, to examine the link between financial wellbeing and other aspects of life, the report said.
But Wivell-Plater said regulators were keenly aware and concerned about the way big data is being used and were looking at tightening the privacy regime.
"Deloitte's concept is a good one but whoever was collecting the data will need to very carefully watch the developments in privacy law to ensure that the uses to which they propose to put that data will be legal."
AUTHOR
Malavika Santhebennur
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