Banking: Australia's ACCC's proposed cheque clearing rules
The Australian Competition and Consumer Commission proposes to authorise certain regulations governing the operation of the Australian Paper Clearing System managed by the Australian Payments Clearing Association.
The APCS coordinates, manages and ensures the implementation and operation of policies and procedures for the processing of payments made using paper instruments, primarily cheques.
APCA has sought reauthorisation for the suspension and termination provisions of the APCS regulations. These provisions have been authorised by the ACCC, and its predecessor, the Trade Practices Commission, since 1993.
"The ACCC considers that the suspension and termination provisions continue to produce a public benefit through protecting the security, efficiency and integrity of the paper clearing process," ACCC chairman Graeme Samuel said.
"The ACCC considers that the suspension and termination provisions do not place unreasonable requirements on APCS members. Reflecting this, the suspension and termination provisions have never had to be used.
"Further, there are checks and balances in place to prevent the misuse of the suspension and termination provisions for anticompetitive purposes."
In December last year the ACCC also reauthorised the suspension and termination provisions of APCA's Consumer Electronic Clearing System (which covers ATM and EFTPOS transactions).
The ACCC now invites comments on the draft determination. The ACCC's draft determination and information about making a submission will be available from the ACCC website, www.accc.gov.au/AuthorisationsRegister and by following the links to this matter. Parties wishing to make submissions should do so by 26 March 2010.
Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.
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