Issue 4

In mid 2008, we highlighted several reviews that were taking place in the regulatory arena. Here in Part Two, we provide the latest update:

Reserve Bank of Australia

Review of Payments System Reforms: In September 2008, the RBA Payment Systems Board announced the findings of its 2007/2008 review, which indicated that the RBA was not persuaded to remove regulation of interchange fees.

The RBA stated that they will continue to monitor industry development until August 2009. If, during that timeframe, insufficient progress has been made in addressing its concerns over strengthening the competitive environment, then regulation of interchange fees will continue.

The Review made a general comment regarding the RBA's concern over a lack of innovation in the payments system; however, no specific mention of BPAY or BPAY transactions was made.

ASIC

Review of the EFT Code of Conduct: A Review containing a number of proposals was released by ASIC on 3 October 2008. ASIC has not yet formed a view on the inclusion of a Mistaken Payments Regime in the Code (the main thrust of the BPAY submission) and the extension to small business. Elements of the ASIC proposals include that BPAY transactions will be explicitly named as subject to the Code.

Australian Law Reform Commission

Privacy: The final Australian Law Reform Commission Report was released on 11 August 2008. The Government's response to the Report will most likely appear directly in legislation to override all State and Territory laws. The draft legislation is expected to be available in 2009.

The legislation will most likely introduce a set of Unified Privacy Principles to replace the National Privacy Principles (private sector) and the Information Privacy Principles (public sector). The new legislation is likely to change some of an organisation's obligations and also to give the Privacy Commissioner enhanced powers of enforcement.