Superannuation funds have another reason to assess data collection and storage processes as new privacy legislation is introduced from March next year.
According to chief executive of the Association for Data-driven Marketing and Advertising (ADMA) Jodie Sangster, incoming amendments have dredged up big issues around trans-border data flows as more and more companies turn to hosting data in cloud solutions.
Some of the changes did not seem substantial, but if a super fund got it wrong each infringement could cost $1.7 million, Sangster said. It was therefore important funds extended privacy policies and practices to comply with new legislation.
“They need to have processes, procedures, and practices in place to make sure they are protecting the data,” she said.
“That’s going to be quite an undertaking for a company as large as a super fund – to actually go through and make sure that data is secure.”
The changes include new powers for the privacy commissioner to audit companies, and also an increased obligation on behalf of companies to proactively inform customers about data collection processes and embed that message into communications materials.
Sangster said all companies needed to conduct an audit of their data and review new definitions for what is considered private information.
Super funds that had not yet updated legacy systems might need to work more quickly.
“Every business has data all over the place, it’s in spreadsheets, it’s in databases,” Sangster said.
“Step one is what have you got, where is it, let’s have a look at it and make sure it’s all in one spot.”
