Submission - Joint response to the Review of the Electronic Funds Transfer Code of Conduct (2008)

Proposal B5

B5Q1 Do you agree with this proposal? Please give reasons.

If businesses offering electronic funds transfer payment products do not subscribe to the EFT Code voluntarily, we propose that the government give consideration as to whether:

(a) membership of the EFT Code should be made mandatory; or

(b) whether consumer protection in this area should be dealt with through regulation.

B5Q1 Do you agree with this proposal? Please give reasons.

ASIC has proposed that the government consider either making Code membership mandatory for businesses offering EFT services, or dealing with consumer protection for EFT services through regulation. This is an important issue and consumer stakeholder strongly support resolution of this issue.

It is essential that emerging payment systems, payment intermediaries and mobile payment providers are all covered by the same standards of consumer protection. Consumers will be confused about their rights and responsibilities if there are gaps in coverage. Also, existing members of the Code should not be disadvantaged.

Consumer stakeholders suggest that when the revised Code comes into effect all EFT Service providers should be warned that membership of the Code is expected to be universal within 12 months. At the end of the 12 month period ASIC should initiate a review of coverage. If there are gaps in coverage, consumer stakeholders will support a mandatory code.

If necessary, consumer stakeholders will support regulation, although it should be noted that the change in status and terminology that will result from such a change may lead to confusion and may also lower the profile that has been achieved during the long history of the Code.





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