[ARCHIVE] Obligations for foreign entities – local agents and accreditation requirements

Note: This article is out of date and has been archived.

Please visit the CDR website and the Accreditation guidelines for information on how to become and accredited data recipient. 

Archived Text

Updated on 20.04.2023 to consolidate with the knowledge article on Local agents. The answer to Question 1 was also updated to include the definition of a 'local agent' while a reference to CDR representatives was included in the answer to Question 3. These changes ensured that the article remained accurate and up to date.

Question

With respect to Obligations for foreign entities, there is a line which states that: 'If a foreign business does need to become accredited to provide services under the CDR, then they will need to have an local agent and address in Australia.'

1. Does the 'Local Agent' need to be a subsidiary of the 'Foreign Entity' or can it be a Business Partner or 'Affiliated Entity' of some form?
2. Either way, what are the accreditation and/or certification requirements/commitments of the 'Local Entity' and the 'Foreign Entity' to participate in CDR?
3. If a Local Entity, without being a subsidiary of the Foreign Entity, can combine with them to potentially become an ADR and participate in CDR, are there any specific requirements/certifications (eg. monetary, insurance, security, IT, etc) that the Local Entity must comply with participate?

Answer

1. Rule 1.7 of the CDR rules states that a local agent, in relation to a foreign entity, means a person who:

• is appointed by the foreign entity; and
• has addressee for service; and
• is authorised to accept service of documents on behalf of the foreign entity.

    Therefore, a local agent does not need to be a subsidiary of a foreign entity.

2.  Any entity needs to be accredited in order to participate in the CDR. Further information and guidance on the accreditation requirements and how to lodge a valid accreditation application is set out in the ACCC’s Accreditation guidelines.

Where a foreign entity wishes to apply for accreditation under the CDR regime, they must have a local agent to ensure the entity has an address for service in Australia. As part of the CDR Participant Portal account creation process, the foreign entity must provide their local agent’s physical and electronic addresses for service. Please refer to the CDR Participant Portal user guide for further information.

3. Having a local agent is a requirement of the rules to ensure that any foreign entity wishing to become accredited has an address for service in Australia.  

A local agent otherwise would not be able to participate in the CDR (for example by collecting or using CDR data itself) unless it was either:

• accredited in its own right; or
• an outsourced service provider under rule 1.10 of the CDR Rules to a person who was accredited; or
• a CDR representative under rule 1.10AA to a person who was accredited.