On 3 October 2008, the Australian Securities and Investments
Commission (ASIC) released its Consultation Paper
90 "Review of the Electronic Funds Transfer Code of Conduct
2007/08: ASIC proposals". The consultation paper proposes to
make amendments to the Electronic Funds Transfer Code of Conduct
Replace the current two-part EFT Code with one-part structure,
with tailored requirements for certain products
Introduce a simpler, technology-neutral concept for the
transactions covered by the EFT Code
Consider ways to expand the membership of the EFT Code
Redraft the EFT Code in plain English
Possible extension to cover small business consumers.
Refine the requirements for receipts relating to
"opt-in" systems, when a receipt is required and voice
Clarify the requirements for disclosure of surcharges charged
by third party ATMS.
Reflect the introduction of a new Australian Standard on
Clarify the obligation for subscribers to give consumers
written information about how they investigate complaints unless
the complaint is immediately settled
Introduce a requirement for subscribers to respond to requests
for information from another subscriber within 30 days
Deal with the situation where a subscriber does not respond to
a request by an external dispute resolution scheme for
Introduce a limitation period of 6 years for making
Liability for disputed transactions and mistaken payments:
ASIC proposes to retain the current approach to allocating
liability for unauthorised transactions with proposed amendments to
Provide that a consumer would be liable for unauthorised
transactions that occur because they leave a card in an active ATM
which has automatic shut down procedures
Require subscribers to prohibit merchants from taking
consumer's PINs as part of "book up" practices in
Deal with mistaken payments.
Electronic communications and privacy:
Amend the requirements for delivering information
Introduce new requirements for what is printed on receipts to
protect consumer's privacy.
Administration and review of the EFT Code:
ASIC to have a general power to modify the EFT Code
EFT Code to be reviewed every five years
ASIC to monitor compliance with specific requirements of the
EFT Code, including a requirement for subscribers to provide
certain information on unauthorised transactions.
ASIC's timeframe for review process
Consultation paper on ASIC's proposals
Submissions due on the consultation paper
Final report to be released
Revised EFT Code to be released
How can you benefit from this review?
You should read the consultation paper to see how it affects
your business. You can contribute to the revised version of the EFT
Code by making submissions now! Please contact us if you require
our assistance in making a submission.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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