Essential Reading for Those Involved with Collections, Investigations & Field Services in Australia

AFebruary/MarchGENT 2021 | Volume 54 Issue 1

Essential reading for those involved with Collections, Investigations & Field Services in Australia www.imal.com.au In times of crisis, we’re here for you.

Guides and resources to help businesses manage their risks and navigate insurance implications during COVID-19.

Visit now: ajg.com.au/pandemic-preparedness

To the extent that any material in this document may be considered advice, it does not take into account your objectives, needs or financial situation. You should consider whether the advice is appropriate for you and review any relevant Product Disclosure Statement and policy wording before taking out an insurance policy. 0420-1.1

Built for start-ups. Scalable for growth. Automate • Customize • Import • Cloud • Premise • Integrations Demo.Collect-Cloud.com | CollectSoftware.com.au AGENTFebruary/March 2021 | Volume 54 Issue 1 CONTENTS

ON THE COVER

60 years strong 7

MEDIA & NEWS 4 8

FORUM Elite PI 8 Credit health 101 10

HISTORY 60 years strong 7

PRIVACY Human error dominates 16 10 REGULATORY Occupational mobility 12

INSTITUTE From the President: David Combrink 18 From the CEO: Alan Harries 19

AGENT Editor General, Membership and No part of this journal may be reproduced Contributions, articles, letters and comments Service Directory Enquiries or transmitted in any form or by any February/March 2021 Volume 54 Issue 1 means, electronic or mechanical, including from readers should be directed to: Institute of Mercantile Agents Ltd. AGENT is the official bi-monthly journal of photocopying and recording, or by any the Institute of Mercantile Agents Ltd. Institute of Mercantile Agents Office hours: 8.30am-5.00pm EST information storage or retrieval system without 17B Denney Street the prior written permission of the publisher. 17B Denney St Broadmeadow, NSW 2292 [email protected] Broadmeadow, NSW 2292 Phone (02) 4927 0477 Fax (02) 4927 0677 The views contained in articles by contributing [email protected] authors are not necessarily those of the www.imal.com.au Phone (02) 4927 0477 Fax (02) 4927 0677 PO Box 233, Waratah NSW 2298 publisher, editor or directors of the Institute of ABN: 94 000 514 483 [email protected] Advertising Enquiries Mercantile Agents Limited. Articles and content may have been edited, but remain the copyright ISSN: 1443-3443 The material deadline is the 1st of the Phone (02) 4927 0477 Fax (02) 4927 0677 month preceding publication. of the author. It should be noted that articles ISSN: 2208-3189 (Online) [email protected] are of a general nature and are not a substitute Editorial Director Design and Production for appropriate professional advice. Although Alan Harries Abigail Thompson all reasonable attempts have been made as to Phone (02) 4927 0477 Fax (02) 4927 0677 Phone (02) 4927 0477 accuracy of submitted advertisements and their [email protected] bona fides, no warranty is given to any party. [email protected] The right is reserved to accept or reject any www.imal.com.au articles or advertisements.

www.imal.com.au | Feb/Mar 2021 | AGENT | 3 MEDIA & NEWS

BOOK sold he future of Collection House Limited (Collection House) has been of keen interest to its shareholders, market analysts and Tindustry observers for an extended period, following the company suspending trade on the ASX in early 2020 and commencing a comprehensive Recapitalisation Process as an outcome of a Strategic Review - at the close of 2020 a significant transaction intended to re-set Collection House’s future was announced. In addition to a review of Collection House’s operating model and collection strategies, the Strategic Review reportedly identified the need to write-down the value of the company’s purchased debt ledger (PDL). Collection House explains the write-down captured the net present value impact of the adjusted cash collection profile from adopting more customer-focused collection strategies in its PDL business and in particular, a lower reliance on legal activity. In an announcement to the ASX on 24 December 2020, Collection House detailed the outcome of its Recapitalisation Process (the Transaction), noting the material features were: • The disposal of certain PDL assets (Sale Assets) to Credit Corp Group Limited for an up front purchase price of approximately $160 million; • The prospect of Collection House also receiving additional consideration, up to a maximum of $15 million, over an eight year period, dependent upon the future performance of the Sale Assets; • Proceeds from the Transaction would be immediately applied in reduction of the company’s senior debt; • Collection House’s existing lenders agreed to provide a new 3 year senior debt facility of approximately $45 million on commercial terms; and • Credit Corp Group Limited would provide Collection House with a short term loan of $15 million. The announcement further outlined the Transaction would leave Collection House “with a capital-light, high return on equity servicing model, which it believes will create more sustainable and predictable shareholder value over time. The company retains its best in class capabilities (people, systems and processes), allowing it to provide end-to end receivables management services to clients and customers under either contingent agency collections or purchased debt frameworks”. The full Statement by Collection House can be read here. On 24 December 2020, Credit Corp Group Limited (Credit Corp) announced entering the binding agreement to acquire the PDL book of Collection House Limited. Mr. Thomas Beregi, CEO of Credit Corp, commented that the acquisition was an opportunity to acquire one of the largest PDL books in the Australian market. “Acquisition of Collection House’s Australian book will be the largest single PDL purchase in Credit Corp’s history” he said. Mr Beregi noted that the acquisition would be fully funded using available cash without Credit Corp needing to draw on its presently unutilised $375 million of funding lines. “Even after this acquisition, Credit Corp will retain almost $400 million in available cash and funding lines to deploy as and when suitable investment opportunities arise across all of its segments” he said.

[Source: Announcements by Collection House Limited and Credit Corp Limited - 24 December 2020]

4 | AGENT | Feb/Mar 2021| www.imal.com.au

MEDIA & NEWS BANKRUPTCY ASIC approves SIC has approved variations to the Banking Code changes Aof Practice, as proposed by the Australian Banking Association - the variations do the following: ttorney-General Christian Porter in December 2020 announced that • Amend the Code’s definition of ‘banking services’ AAustralia’s personal bankruptcy threshold will be set at $10,000. to address an anomaly in the Code’s previous The threshold was temporarily lifted from $5,000 to $20,000 on 24 wording that had the unintended result of March 2020 in response to the COVID pandemic. The new threshold of excluding certain types of small business banking $10,000 will be permanent, and came into effect on 1 January 2021. customers who would otherwise meet the Code’s “The new permanent $10,000 threshold will ensure that Australians in definition of ‘small business’ financial difficulty are not made bankrupt over relatively small amounts • Make some minor amendments to the Code’s of debt,” Attorney-General Christian Porter said. definition of ‘small business’ “This also accounts for the changing value of money since the $5,000 • Extend the application of the Code’s COVID-19 threshold was last increased in 2010, as well as changes to debt levels Special Note, which allows for special application since that time.” of specified Code provisions in light of the In mid-January 2021, the Australian Government as part of its response extraordinary external environment caused by to the effects of the pandemic, sought further stakeholder views on COVID-19, for a further six months until 1 possible changes to the bankruptcy system involving: the default period September 2021 of bankruptcy; debt agreements; personal insolvency agreements; and • Specify situations in which banks may decline offence provisions. to continue dealing with a representative that a The reduction of the bankruptcy period from 3 years to 1 year is again customer in financial difficulty has appointed, if under consideration: first raised in 2015 with a Bill introduced into the bank reasonably considers that representative Parliament in 2017 but which lapsed in April 2019 when Parliament is no longer able to act in the customer’s best was prorogued for the election, the proposal is now being reintroduced, interests reportedly with some refinements to discourage abuse by “rogue, reckless • Align the Code’s timeframes for responding and repeat bankrupts”. Despite such refinements, the concept of reducing to complaints with the updated timeframes in the bankruptcy period is likely to get a mixed reception from stakeholders. ASIC’s Regulatory Guide 271: Internal dispute The Government’s Discussion paper can be read here. resolution, which is due to commence on 5 [Source: Media Releases by Attorney-General October 2021. - 18 December 2020 and 13 January 2021] [Source: ASIC Media Release - 8 January 2021] INSOLVENCY reforms ONLINE chats he Corporations Amendment (Corporate Insolvency Reforms) Bill 2020 was passed by both houses on 10 December 2020 and assented The next quarterly online Chats of members T to on 15 December 2020. This Bill is to implement insolvency reforms to for the sectors will be on: support small business, namely: Investigations • small business restructuring: a new formal debt restructuring Tuesday 23 February at 2.00pm AEDT process in the Corporations Act for eligible incorporated small Field Services businesses, which the Government has indicated will apply to Wednesday 24 February at 2.00pm AEDT businesses with liabilities of less than $1 million, to allow a faster and less complex process to restructure existing debts and maximise Collections their chances of survival; Thursday 25 February at 2.00pm AEDT • small business liquidation: a new simplified liquidation pathway Invites will be issued to those who have in the Bankruptcy Act for eligible incorporated small businesses, previously joined a Chat or flagged an which the Government has indicated will apply to businesses with interest - to be added to the invite list, please liabilities of less than $1 million, to provide for a faster and lower click this link or email [email protected]. cost liquidation process; and • to provide temporary insolvency relief until 31 March 2021: to address the issue of eligible small businesses not being able to access the process immediately whilst insolvency practitioners become familiar with small business restructuring. These provisions will commence on 1 January 2021. Additionally, the Bill amends the Corporations Act to expand the situations where documents relating to the external administration of a company may be given electronically. These provisions commenced on the day after Royal Assent.

[Source: brightlaw.com.au - 15 December, 2020]

6 | AGENT | Feb/Mar 2021| www.imal.com.au HISTORY

2021 marks 60 years since a meeting in Sydney decided to form an industry association to be known as The Institute of Mercantile Agents (IMA). Need driven A few good men however the original decision to require The idea of forming such a group was On 6 December 1961, four like-minded attendance at three meetings before first mooted in about 1950 by William agents decided to proceed to form The admission of any new member was upheld. Rupert Absalom Willcocks Snr, proprietor Institute of Mercantile Agents – those The third meeting took place on 12 April of the Combined Creditors Association. men were Warren B Barripp, William R 1962 at the offices of the Combined His suggestion was the group could A Willcocks Snr, William R A Willcocks Creditors Association at 18 Randle Street, formulate a standard of ethical conduct Jnr and Kenneth B Griffits. Barripp was Sydney and on this occasion, a further 10 to be followed by collectors and to codify elected as Chairman and Willcocks Snr as agents were admitted as members of the the qualifications needed for any person Registrar of the new group. new group. This enlarged group then seeking employment as a collector. The men forwarded circulars inviting other proceeded to draft the set of rules for Further, he proposed agents be licensed on agents to a meeting on 24 January 1962 the Institute, which were adopted on 6 the basis of character and qualification and in the Real Estate Rooms, Martin Place, December 1962. that agents be required to provide a bond Sydney, having first decided they would or subscribe to a fidelity fund as a sign of accept no other members to the group Wider need their bona fides. until after attendance at 3 meetings as they By that stage, the NSW Government acting Reportedly, many agents of the day only wanted agents who were sufficiently in response to “a number of particularly conceded licensing and bonding were interested in attending the meetings and serious defalcations among agents” had desirable to protect reputable agents and whose reputations and backgrounds had announced it would legislate for the the public from the “activities of dishonest been thoroughly vetted before admission to licensing and bonding of commercial agents and snide operators” taking advantage of membership of the group. comprising collection agents, repossession “small business people, professional men agents, tracers of goods sold under hire- and others who were prone to be taken in Others joined in purchase, process servers, private enquiry by glib and impractical stories”. The January 1962 meeting saw an agents including tracers of missing persons, Unfortunately, Willcocks found it attendance of 12 agents – discussion guards and watchmen. impossible at that time to convince others centred on the concept of licensing and The group decided in light of this, that that to a great extent, the remedy to bonding and gathering suggestions for despite membership being originally only their concerns about such operators and amendments to existing laws for the for collection agents, that all categories, the damage being wreaked upon the recovery of outstanding accounts. The next named in the proposed legislation should reputation of collectors generally was “in meeting a month later attracted 14 agents be admitted to the membership of the their own hands”. with a number wishing to join the Institute, Institute. ■

William R A Willcocks Snr Warren B Barripp William R A Willcocks Jnr Kenneth B Griffits

www.imal.com.au | Feb/Mar 2021 | AGENT | 7 FORUM ELITE PI One of the world’s well known PIs recently passed away following a “brutal attack” outside his home.

ack Palladino, 76, died days after career to doggedly pursuing truth and clients that included “the Hell’s Angels, Jfalling and hitting his head when justice, it is fitting that, in the midst of a the Black Panthers and the Teamsters, 2 men attempted to steal his new brutal attack, he managed to help crack as well as celebrities like Kevin Costner camera - witnesses report he was in a the case”. and Don Johnson. Other clients included physical struggle on the passenger side the musician Courtney Love and the auto of a vehicle, when his fall occurred as Jack Palladino and his career executive John DeLorean”. he grabbed hold of the camera as the Born 9 July 1944, John Arthur Palladino Review past high profile US scandals thieves’ car drove off. graduated from the University of and you will encounter matters in which His wife later pieced together for a local California, Berkeley in political science Jack Palladino was actively involved, TV station that Palladino must have seen in 1968 and with a law degree in 1975. including: a theft in progress from his street facing He was admitted to the California state • In the 1990s, he undertook office and darted outside to document bar 3 years later and received his private an investigation to protect the the event - she believes the perpetrators investigator’s licence. credibility of whistle-blower Jeffrey caught Palladino snapping their photo As a San Francisco private investigator Wigand who helped prosecutors and rushed him to grab the evidence. with wife and business partner Sandra in a case against major tobacco She explained “he would never back off Sutherland, Jack Palladino had a companies - Palladino went on to from anything…that’s who he was”. The reputation for ‘bare-knuckle tactics’ play himself in the film The Insider perpetrators attempted to wrestle the however in various media interviews, he which told the Wigand story camera from him, but he resisted and fell. always maintained despite his reputation • During the 1992 presidential Although the thieves didn’t get the for aggressive tactics, his methods had race, he was hired by the Clinton camera, the police did, taking it as key to be legal and he most often presented campaign after Gennifer Flowers evidence. Palladino had managed to himself, truthfully and simply, as a released tapes of phone calls with photograph the two men and their vehicle private investigator. In one interview, Mr. Clinton to back up her claim immediately before his injury occurred - he elaborated: “I have to be concerned they had had an affair they have since been identified from his with how it will be perceived by a judge • Harvey Weinstein, the once-powerful photographs and arrested. or jury…if it looks scummy, it may be movie mogul who was sentenced in San Francisco District Attorney discounted”. 2020 to prison for 23 years for sex Chesa Boudin in a news briefing said: The San Francisco Chronicle in 2000 crimes hired Palladino to defend “His persistent, brilliant approach to reported Palladino and Sutherland worked accusations of sexual assault - the investigations was unparalleled. As out of their home, charging at that time New Yorker in 2019 reported his someone who dedicated his lengthy US$300 an hour and had worked for firm “created dossiers on both

he was elite among investigators

8 | AGENT | Feb/Mar 2021| www.imal.com.au FORUM

journalists and accusers” collected by Palladino to brand her as a of doing. I mean, he was elite among • The 1978 Jonestown, Guyana deaths “bimbo” and a “pathological liar”. investigators”. where more than 900 people died The managing editor of Pursuit by suicide or were murdered at the His techniques Magazine (the US magazine for behest of cult leader Jim Jones - According to the New York Times, professional investigators) Kim Green Palladino reportedly spent seven Palladino was known for making told The New York Times, Jack years investigating this tragedy surreptitious recordings, deploying Palladino hadn’t evoked feelings of attractive women or posing as a journalist neutrality, “especially in a profession The Clinton assignment to extract information and discredit that values privacy and behind-the- Past media articles detail Palladino accusers as part of the tactics employed scenes manoeuvring - some folks in the embarked on a mission, as he described in his investigations. investigative community can be pretty in a memo, to impugn Ms. Flowers’s He explained to the paper’s journalist in sceptical of PIs who become celebrities “character and veracity until she is 1999: “We all much prefer being who we in their own right” but added “there’s no destroyed beyond all recognition”. are, but sometimes you use a deception question he made his mark on the field, “Every acquaintance, employer and past because nothing else will produce the as part of that tradition of myth-busting lover should be located and interviewed”, truth…you know if you stated honestly Bay Area sleuths who rejected the trench Mr. Palladino wrote “she is now a shining to this person that you were a private coat stereotype and modernised the icon - telling lies that so far have proved investigator, they would lie to you”. profession”. all benefit and no cost - for any other In another interview with The Chronicle opportunist who may be considering he maintained it was “absolutely legal” for Retirement short-lived making Clinton a target”. private investigators to mislead, as long At the time of his fall, Palladino His staff scoured Arkansas and beyond, as they didn’t present themselves as law and his wife were retired although collecting disparaging accounts from enforcement officials or as representatives Sutherland later told US media, Palladino Ms. Flowers’s ex-boyfriends, employers of the target of an investigation. He occasionally still worked a case to help and others who claimed to know her, conceded that as an ethical issue, it was someone in need but “he was basically accounts that the Clinton campaign then “more dicey”. retired and loving it”. The couple disseminated to the news media. Following his death, Palladino’s friend have homes in San Francisco, Italy and Years later when Clinton finally Jack Immendorf told CNN, “he worked Australia - before the pandemic struck admitted to “sexual relations” with Ms. the high-profile cases and he did it in a last year, they’d intended on splitting Flowers, Clinton aides had used stories way that very few people were capable their time among the three. ■

REWARDING CONTRIBUTORS

The IMA welcomes contributions to the AGENT. No matter what services you provide, you’re sure to have experienced moments and situations which were funny (then or in hindsight), confusing at the time, perhaps frustrating or challenging with unexpected risks. Some may have been sad and others showing the very best of the human spirit. If you have had one of those moments or encounters, why not share your story? Perhaps too you have a learning from your work, which others may find helpful to hear about and consider. For contributing an article which is published, you will receive a free ¼ page advertisement in the following edition of the AGENT. Contributions can be emailed to [email protected] or give us a call on 02 4927 0477 to discuss your idea.

www.imal.com.au | Feb/Mar 2021 | AGENT | 9 FORUM

CREDIT health 101 CreditSmart discusses going back to basics and what you need to know.

redit plays a huge role in our lives. around more, comparing prices, and How to keep your credit healthy in 5 CAccording to our COVID-19 Credit reviewing their budgets. steps: Check-up research, 76% of Aussies currently have some form of credit Australians seem to be emerging Know what’s in your credit product, whether it be credit cards, home from the pandemic more informed 1 report loans, car loans, or Buy Now Pay Later and aware of their behaviour than Your credit report includes products. before. It is important for everyone comprehensive credit information on to understand how adopting good the type of accounts you hold, up to 24 financial habits can help to manage Since the start of the pandemic, months of your repayment history, how consumers have received a wealth the impact of a crisis and help to prepare for big-ticket purchases in many times you’ve applied for credit, and of information about credit and how much debt you have available. finances, and we know that they the future. When we say credit accounts that reflect have been listening and making The Australian credit reporting system your repayment history information, changes to improve their financial situation. changed with lenders now reporting these include credit cards, home loans, comprehensive credit reporting about personal loans, and vehicle loans. The same research revealed that three their customers’ credit account payment There are credit accounts that do quarters of us have admitted to changing habits, which is reflected in your credit not reflect your repayment history our spending, savings, and credit habits report. information - these include telco and as a result of the pandemic. More Below we look at some ways that utilities companies and, currently, Buy consumers are budgeting, repaying debt, Australians can help themselves by going Now Pay Later (BNPL) products. and deferring significant purchases. We back to basics and getting their credit Remember - if you are late making are also seeing consumers shopping health in shape. repayments to credit cards, home,

10| AGENT | Feb/Mar 2021| www.imal.com.au FORUM

personal or vehicle loans because you Be sensible with credit made a payment towards the pair of shoes 4 you purchased using BNPL products, While it may sound fairly obvious, the then the missed repayment will be noted golden rule is not to borrow more than in your credit file, not the repayments you you can handle. made on the BNPL product. Being given a credit card limit of Getting to know what’s in your $20,000 will not help you if you credit report is the first step in aren’t likely to ever use it. On your taking control of it. credit report the entire limit will appear even if you never use the Check your credit report whole amount, so make sure you only borrow what you actually need 2 and can pay back. When you apply for credit or a loan, a lender will look at your credit report to Paying your credit card bills and loans understand your debt commitments and on time is crucial to keeping your credit gain insights into your credit health. You healthy. Be conscious of other repayment are able to check your credit report for obligations - if you are using BNPL FREE, every year, from all three of the services make sure you can afford to credit reporting bodies in Australia - have those repayments leave your bank Experian, Equifax, and illion. account without missing other important You don’t need to pay anyone to handle repayments. your credit data or fix anything for you. Errors in your credit report can be fixed Always ask for help if you for free - you have the right to request 5 are having trouble making that any error is corrected. payments If you’re struggling with repayments Our research found that 40% of whether because of COVID-19 or another Australians checked their credit reason, talk to your credit provider about report between March and June of how they can help. Currently, lenders this year – it pays to be aware of continue to assist many Australians by what is happening to your credit way of a payment pause or deferral to health. help them get through the COVID-19 pandemic, and they may have these or Know the difference - and other options available to help you if 3 importance - between a you’re struggling for any other reason. credit score and credit Resist the temptation to use more report credit to cover loan payments. This can These two are not the same thing. A lead to a ‘debt spiral’ where a small debt CREDIT HEALTH 101 credit score is a number that allows can quickly become much larger and lenders to see, in a snapshot, how credit unmanageable. 1. Know what’s in your worthy you are based on the raw data in Always remember that if you are your credit report. struggling to make your repayments credit report This number will change each month on time, talk to your lender. Free help 2. Check your credit depending on whether you pay your is available from your lender, credit bills on time and can be a good gauge of reporting bodies, financial counsellors, report whether someone is ‘credit-worthy’ or and your community legal centre. ■ not. 3. Know the difference Your credit report is your history of [This article was reprinted with the kind between a credit credit usage and payments over the permission of the Australian Retail Credit last 24 months. This is an important Association - CreditSmart is an information score & credit report document to understand because of the website (creditsmart.org.au) developed by 4. Be sensible with credit detail it has in it. It is a key factor on credit experts to help consumers understand whether or not you will be given access to how credit reporting operates in Australia. 5. Ask for help if having more credit, so it pays to be aware of what It aims to help you understand how recent is in it. credit reporting reforms affect you, by trouble making providing information about the system payments that is unbiased and fair.]

www.imal.com.au | Feb/Mar 2021 | AGENT |11 REGULATORY OCCUPATIONAL mobility The Australian Government is working to improve occupational mobility, making it easier for Australians in licensed occupations to move where their skills are needed and enable businesses and consumers to access skilled workers more quickly. o improve occupational mobility, of carrying on those activities Tdraft legislation to amend the to operate across permitted under their home state Mutual Recognition (MR) Act to jurisdictions, registration. implement a uniform scheme of • A registered person will not automatic mutual recognition (AMR) has while maintaining be required to pay extra been developed by the Commonwealth high standards of fees or meet any additional with the States and Territories. consumer protection requirements for the issue or AMR will allow a person who is licenced renewal of a registration to or registered for an occupation in one undertake permitted activities in jurisdiction to be considered registered IMA members in regard to cross-border the second state. The person will to perform the same activities in licensing issues. have to meet requirements relating another, without going through further to insurance, fidelity funds, trust application processes or paying additional Purpose and scope of the Exposure accounts or the like, as well as other registration fees. Draft Bill requirements such as working with AMR will make it easier and less The amendments covered by the children checks, that are designed expensive for businesses, tradespeople Bill focus on reforms to the existing to protect the public, consumers and other professionals to operate across framework of the MR Act to establish a and others. States may also require jurisdictions, while maintaining high new Part 3A and to make consequential notification of intent to work in their standards of consumer protection and changes to other parts of the Act. jurisdiction. worker and public health and safety. Key elements of the Bill include: • A registered person will need to The Deregulation Taskforce, based • A new Part 3A will establish a second comply with local laws in the in the Department of the Prime mutual recognition principle that second state and is subject to Minister and Cabinet, has been seeking a person who is registered for any applicable disciplinary stakeholder views on exposure draft an occupation in their home actions. A registered person legislation to amend the MR Act state is entitled to carry on those subject to disciplinary action or developed in collaboration with State and activities authorised under their who has conditions on their licence Territory governments. home state registration in a as a result of disciplinary, civil Members can access both the second state. or criminal action in relation to Consultation Paper and the Exposure • This principle will be the activity will not be eligible for Draft Bill at https://pmc.gov.au/ operationalised through automatic deemed registration. domestic-policy/deregulation-taskforce/ automatic deemed registration, • A registered person will need occupational-mobility. whereby a person who is registered to apply for a new home state The proposed legislation which is for an occupation in their home registration should their home scheduled to commence from 1 July state is taken to be registered in state change. In this situation, the 2021 is expected to be beneficial for the second state for the purposes registered person could apply for a

12| AGENT | Feb/Mar 2021| www.imal.com.au RS Full Page Nov 2020.pdf 1 2/12/2020 12:18:12 PM

& MANAGEMENT

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new registration through existing o Additionally, a Minister in the the existing mutual recognition mutual recognition arrangements. A second state will be able to arrangements. person will continue to have access declare a specific registration • The proposed amendments will not to automatic deemed registration, temporarily exempt prevent a person from seeking relying on their original home state from automatic deemed mutual recognition under the registration until a registration from registration, where the Minister existing framework in Part 3 of the new home state is issued. is not satisfied that there is no the Act nor will it disrupt existing • A Minister in the second state may significant risk to consumer national registration schemes or declare that specific registrations protection, or the health or safety existing state-based automatic are exempt from automatic of workers or the public in that mutual recognition schemes, such as deemed registration in their state or territory. the NSW scheme for electrical trade jurisdiction where they determine • States and local registration work licences. ■ there is a significant risk to authorities will be required to consumer protection, or the health make available to each other or safety of workers or the public. relevant information about a [Source: Consultation Paper: Automatic These exemptions will be published, registered person and prepare Mutual Recognition of Occupational sunset after five years and be subject and publish guidance on the Registrations: Exposure Draft Legislation to review by the state if they are to operation of automatic deemed issued by the Dept of Prime Minister and be renewed. registration, consistent with Cabinet – 17 December 2020]

14| AGENT | Feb/Mar 2021| www.imal.com.au Collect more Make more!

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Call 1300 765 609 or visit debtcol.com.au PRIVACY HUMAN error dominates Data breaches attributed to human error continue to increase according to the Office of the Australian Information Commissioner’s latest Notifiable Data Breaches Report. he Office of the Australian notifying and reviewing data breaches. TInformation Commissioner (OAIC) reduce the risk “Critically, they need to provide received 539 data breach notifications individuals with clear and timely from July to December 2020, an increase of a data breach information about data breaches, of 5% on the previous six months (512). by addressing including recommendations on steps they Australian Information Commissioner human error can take to protect themselves from harm. and Privacy Commissioner Angelene Falk Any unnecessary delay in providing this said 38% of all data breaches notified information undermines the purpose of during the period were attributed to industry sector, followed by finance, the Notifiable Data Breaches scheme.” human error. which notified 15% of all breaches. Commissioner Falk said entities should “In the past six months, we saw an For the first time, the Australian use the information and guidance increase in human error breaches both in Government entered the top 5 industry provided in the report to help review terms of the total number of notifications sectors by notifications, accounting for their processes and ensure they are fit for YOUR received - up 18% to 204 - and 6% of all breaches, with human error the purpose. proportionally - up from 34% to 38%” leading cause. “We are nearing three years of operation BUSINESS Commissioner Falk said. “Ensuring the security of personal of the Notifiable Data Breaches scheme “The human factor is also a dominant information is an area of regulatory and expect that entities have systems theme in many malicious or criminal focus for the OAIC, particularly in the in place to report breaches in line with HERE attacks, which remain the leading source health and finance industries, which have legislative requirements” she said. of breaches notified to my office. consistently been the top two sectors to “We also expect organisations to “Organisations need to reduce the risk report breaches,” Commissioner Falk have improved the security of personal of a data breach by addressing human said. information they hold to prevent error - for example, by prioritising The OAIC is also calling for entities breaches. We will continue to closely training staff on secure information to have effective systems in place for monitor compliance with the scheme and handling practices.” responding to data breaches. prioritise regulatory action where there Malicious or criminal attack accounted “Being prepared for a data breach is are significant failings.” for 310 notifications during the period important for all entities that handle Read the Notifiable Data Breaches (58%) and system fault was responsible personal information,” Commissioner Report for July to December 2020. ■ for 25 notifications (5%). Falk. Health service providers again notified “Entities must have effective systems [Source: OAIC Media Release the most data breaches (23%) of any for detecting, containing, assessing, - 28 January 2021]

Notifiable Data Breaches Report - July to December 2020

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16| AGENT | Feb/Mar 2021| www.imal.com.au CLASSIFIED ADS

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www.imal.com.au |Feb/Mar 2021 | AGENT |17 FROM THE PRESIDENT RESILIENCE IMA President David Combrink reflects on pandemic interruptions and the need to adapt as we proceed through the year ahead.

although hotspot restrictions may cause a stop-start effect, in general things are looking up! David Combrink

False sense impact, although the impact on the WA residents could be forgiven for affected residents is overwhelming. having a rather relaxed attitude toward COVID in recent months: walking in a Diamond Jubilee shopping centre, going to the cinema The shutdowns do bring me to consider or attending a sporting event 2 weeks how we are to schedule our next IMA ago, it was ‘life as normal’ as before the National Conference in this our Diamond pandemic. With zero locally acquired Jubilee year, if these are the rules of cases in many months and very few engagement and given the propensity restrictions, other than strong border of state and territory leaders to impose control, West Australians lulled into a travel and mobility restrictions at such false sense of security were recently short notice on their residents. jolted back to reality. Getting members and others to attend My wife and I were at the local the conference will be difficult while shopping centre when we realised it was there is uncertainty as to whether travel emptying out rather quickly. This is and accommodation bookings can be when our daughter called to say that a used if there is any outbreak and further snap lockdown was starting in 2 hours if there is any anxiety that once travel across Perth metro and the Peel region, commences, the delegate might get stuck as a hotel quarantine security guard for an extended period of quarantine in had became infected with the highly the destination state, or upon return to transmittable and unpredictable UK the home state. variant strain of COVID-19. The fact he The best we can hope for is a prompt was a prolific traveller who moved all over rollout of and successful efficacy for the Perth in the previous few days added fuel vaccines as unfortunately, the UK and to the flames. South African variants of COVID-19 are And just like that, all planning went out creating new and unexpected challenges. the window. Meetings and jobs lined Australians are resilient and always up for the next week had to be changed. ready to adapt, which is exactly how Only essential staff were allowed into we will proceed through 2021. Many the office and the rest had to work from members are reporting that work has home. started to flow again and although hotspot During the week of lockdown, Perth restrictions may cause a stop-start effect, took a 2nd hit with a massive bushfire in general things are looking up! destroying 81 homes and counting in the Perth Hills and surrounds, fortunately Kind regards, involving no loss of life to date - perhaps likely due to everyone being at home because of the lockdown and having ample time to watch, act and evacuate in David Combrink time. All this reminded me of similar short notice lockdowns initiated in Sydney and Brisbane recently. The strategy of state governments shutting down an affected area (hotspot) rather than the entire state is welcomed, as it reduces the economic

18| AGENT | Feb/Mar 2021| www.imal.com.au FROM THE CEO OPTIMISTIC IMA CEO Alan Harries looks with optimism to 2021 past the challenges of the COVID-19 pandemic.

the industry as a trusted and reputable partner to its clients remains the principal commitment of the IMA Alan Harries

Looking ahead slowly; manufacturing to grow slowly; There may be differences of opinion interest rates to not change; and the as to the origins of the COVID-19 virus recovery to be big. I’m certainly hoping which impacted the world in 2020, but his expectations materialise. what is universal in 2021 is the desire to In recent weeks, when talking with see the back of the pandemic and a return members I have noted an increased sense to life as it was. Hope and optimism of optimism that wasn’t evident for much abounds for the roll out of vaccines - with of 2020. It is good to hear many members Australia reportedly nearing vaccination are reporting that workflows are resuming commencement, thoughts move towards and rebuilding towards pre-pandemic the efficacy of the various vaccines and activity, although there will be some who how soon lifestyle and business activities are yet to see those green shoots of activity we used to take for granted can resume. - those working on behalf of major law Much has been written and said by firms are keen to see the lawyers back at many about the pandemic and the way their offices and resuming the usual pace different countries and governments have of their litigation work. responded to the challenges of the virus and what the impact would mean for Milestone many not only in terms of possible loss of 2021 marks a very significant milestone life or poor health but also for the wider for the IMA being its 60th year since economic impost both at a micro and formation. Over that period, there have macro level. been many changes in expectations, Many initial wild speculations of adverse activities and campaigns but something consequences, fortunately for Australia which hasn’t changed since our haven’t materialised but COVID-19 association was first mooted is that the certainly wreaked havoc and will be with industry’s reputation is in the hands of us for a time yet. The most obvious the industry. The industry’s operations impact has been the damage to the are influenced by the legislative and economy with government borrowings at regulatory environments of the day record levels and parts of the economy and the changing expectations of the unable to resume normal trading such community and other stakeholders. as the travel and hospitality industries. The IMA’s 60 years strength reflects its The ending of JobKeeper and JobSeeker members cooperatively and professionally subsidies proposed for March may also working through and embracing the present challenges for recipients. challenges of changed expectations and Hopefully though, a successful regulatory landscapes. Members have vaccination program will restore proven to be safe hands for the industry. confidence for the community and obviate Maintaining and promoting the industry the need for states and territories to as a trusted and reputable partner impose disruptive short notice lockdowns. to its clients remains the principal Commentary by respected economist commitment of the IMA. Chris Richardson of Deloitte Access economics reported by the ABC in mid- Cheers January was pretty upbeat for the year ahead. He expects flights to resume bringing in students and tourists; unemployment to improve slightly and Alan Harries

www.imal.com.au | Feb/Mar 2021 | AGENT |19 2021 IMA NatIonal Conference Melbourne