Annual Regulatory Plan
Payment Systems 2011–12
As at 10 October 2011
The Payments System Board (PSB), like other Australian Government agencies, is required to publish an annual regulatory plan on its website each year. The regulatory plan deals with the PSB's area of responsibility and contains information about:
- changes to business regulation that have occurred since the beginning of the previous financial year; and
- activities planned in the current financial year that could lead to changes to business regulation.
A regulatory plan covers business regulation. This includes primary legislation, subordinate legislation, quasi-regulation or treaties that have a significant impact on business. Quasi-regulation refers to rules or arrangements where governments influence businesses to comply, but which do not form part of explicit government regulation.
The regulatory plan does not include information on:
- regulations of a minor or machinery of government nature that are unlikely to substantially alter existing arrangements;
- regulations that involve consideration of specific Government purchases;
- regulations of a state or self-governing territory that apply in a non-self-governing territory; and
- anticipated activity about which it would be inappropriate to publish information on grounds of confidentiality.
In addition, there may be some regulatory activities that the PSB is unable to forecast. In view of these exclusions, readers should not take this regulatory plan to be a comprehensive source of information on past and likely future changes to business regulation.
It should also be noted that there are no other regulatory activities of the RBA that need to be reported in terms of these requirements.
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Section 1: Past Regulatory Activity
Over the period 1 July 2010 to 30 June 2011, the PSB did not engage in any regulatory activities of the nature described above. Information on payments system reforms that took place prior to 1 July 2010 can be found at Reforms. Information on any prior determinations and variations of the Financial Stability Standards for Clearing and Settlement Facilities can be found at Standards. Enquiries about reforms and standards may be directed to:
Christopher Kent
Head of Payments Policy Department
Reserve Bank of Australia
Phone: +61 2 9551 8700
Fax: +61 2 9551 8024
E-mail: kentc@rba.gov.au
Section 2: Planned Regulatory Change
| Title | Strategic Review of Innovation |
| Description of issue | On 28 May 2010, the Reserve Bank announced that it would be conducting a strategic review of innovation in the Australian retail payments system. This was followed by a media release on 22 July 2010, setting out the objectives of the strategic review and calling for initial consultation. The preliminary input from this initial consultation, as well as information gathered from a survey of consumer payment patterns and the Reserve Bank's participation in an international study of retail payments innovation being undertaken by members of the Committee on Payment and Settlement Systems (CPSS) formed the basis of a consultation document, released on 30 June 2011. This consultation document identifies some of the issues that were raised in the preliminary consultation process, as well as the priorities of the review, which include ensuring that the governance structure for the industry is one that supports innovation and identifying how potential gaps in the current payments infrastructure might be addressed through innovation in the medium-term. |
| Consultation opportunities | On 22 July 2010, the Reserve Bank issued a media release calling for initial consultations that would help to identify issues of concern for the strategic review. These consultations culminated in the release of the consultation document on 30 June 2011. Following this release, the Reserve Bank began a more formal consultation process, inviting written submissions by the end of August 2011. Those that made submissions have been offered the opportunity to discuss their views with Reserve Bank staff. |
| Expected timetable | The Payments System Board intends to issue its final conclusions to the strategic review in early 2012. |
| Contact details | Christopher Kent Head of Payments Policy Department Reserve Bank of Australia Phone: +61 2 9551 8700 Fax: +61 2 9551 8024 E-mail: kentc@rba.gov.au |
| Title | Review of Card Surcharging |
| Description of issue | On 8 June 2011, the Reserve Bank released a consultation document, which outlined concerns that recent surcharging practices may have reduced the effectiveness of the previous surcharging reforms and canvassed possible modifications to the surcharging Standards to allow the schemes to place some limits on surcharging. |
| Consultation opportunities | The Reserve Bank issued a media release calling for written submissions by 20 July 2011 following the release of the consultation document. Submissions received were placed on the Reserve Bank's website and those making submissions were offered the opportunity to discuss their views with Reserve Bank staff. |
| Expected timetable | The Payments System Board considered the results of consultations at the Board meeting in August and an announcement about the results of the review will be made in due course. |
| Contact details | Christopher Kent Head of Payments Policy Department Reserve Bank of Australia Phone: +61 2 9551 8700 Fax: +61 2 9551 8024 E-mail: kentc@rba.gov.au |
| Title | Central Clearing of OTC Derivatives |
| Description of issue | On 17 June 2011, the Reserve Bank of Australia, on behalf of the Council of Financial Regulators (comprising the Australian Prudential Regulation Authority, the Australian Securities and Investments Commission and the Treasury, and chaired by the Reserve Bank), issued a discussion paper as part of its consideration of Australia's response to the substantial international reform efforts underway in global OTC derivatives markets. The paper discusses the evolving global landscape for OTC derivatives and central clearing, the Australian market for OTC derivatives, and a range of considerations that need to be weighed if central clearing in the domestic market is to be established. |
| Consultation opportunities | The Council of Financial Regulators issued a media release calling for written submissions by 1 September 2011 following the release of the discussion paper. Submissions received were placed on the Reserve Bank's website. The Council agencies will host a number of roundtable discussions and will arrange individual meetings as appropriate. |
| Expected timetable | After considering the results of submissions and discussions, the Council of Financial Regulators will develop recommendations to the Government as appropriate, which may involve further rounds of consultation with industry over the remainder of 2011 and into 2012. |
| Contact details | Mark Chambers Senior Manager, Payments System Stability Payments Policy Department Reserve Bank of Australia Phone: +61 2 9551 8702 Fax: +61 2 9551 8024 E-mail: chambersm@rba.gov.au |
