Submission - Joint submission to the 2007 Review of the Electronic Funds Transfer (EFT) Code of Conduct to ASIC (May 2007)

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Q62 – Should changes be made to the EFT Code to address issues associated with products that only allow electronic communication of account information? If so, what changes should be made?

Many EFT products are entering the market which are based entirely on electronic communications. The EFT Code does not appear to present an impediment to such products – there is only one requirement for paper records to be supplied (Clause 22.3) and it will only apply in exceptional circumstances. All organisations already have the capacity to provide paper records in exceptional circumstances (e.g. litigation).

The ASIC Consultation paper asks whether the EFT Code should include further provisions on disclosure for products based solely on electronic communication. For example, it suggests increased disclosure on the implications of relying solely on electronic communication. However, in 2007 these implications are well understood and are likely to be accepted by customers selecting such products. For consumers switching from paper communication to electronic communication in existing products Clause 22 already provides sufficient disclosure.

This is not a high priority issue for the Code. In the interests of simplifying and shortening the Code no additional disclosure requirements should apply to products that rely solely on electronic communication. 

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