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RESERVE BANK OF AUSTRALIA

Code of Conduct for Payments System Board Members

Preamble

The powers and duties of members of the Payments System Board are set out in section 10B of the Reserve Bank Act 1959. The Act says relatively little, however, about the conduct of members. In pursuing the Payments System Board’s legislated goals, members recognise their responsibility for maintaining an unparalleled reputation for integrity and propriety in all respects. Hence they agree to adhere to this Code of Conduct.

General Principles

Members shall observe the highest possible standards of ethical conduct. They will avoid any action, or inaction, that could in any way impair the Bank’s capacity to carry out its duties, or compromise its standing in the community and its reputation for integrity, fairness, honesty and independence.

Legal Requirements

Members must by law meet the general obligations of directors of statutory authorities, as set out in the Commonwealth Authorities and Companies Act 1997 (CAC Act). This explicitly states that directors must:

  • discharge their duties with care and diligence;
  • act in good faith, and in the best interests of the Bank;
  • not use their position to benefit themselves or any other person, or to cause detriment to the Bank or any person;
  • not use any information obtained by virtue of their position to benefit themselves or any other person, or to cause detriment to the Bank or any person; and
  • declare any material personal interest where a conflict arises with the interests of the Bank.

The relevant sections of the CAC Act (sections 21–27) form part of this Code.

On appointment, each member signs a Declaration of Secrecy, as required under the Reserve Bank Act. This commits members to maintain secrecy in relation to the affairs of the Payments System Board and the Bank. They promise not to divulge any information in any way except as agreed by the Payments System Board or under compulsion or obligation by law. The declaration forms part of this Code.

Application

Taking as given that members are bound by the provisions of the CAC Act and the Declaration of Secrecy as above, this Code further provides that members will observe the following:

  1. The confidentiality of information – including in the Payments System Board materials and in the discussion at the meetings – must be strictly maintained, including after members have left the Payments System Board. Members shall also avoid any situation where they might be perceived as having acted with the benefit of knowledge not available to the general marketplace.
  2. Conflicts of interest, whether of an actual or potential nature, and whether involving a member’s personal or business affairs, shall be promptly and fully disclosed. In the event that a member becomes aware of a conflict of interest associated with a particular issue facing the Payments System Board, the member must immediately disclose it to the Payments System Board, as required in the CAC Act, which also sets out how such conflicts are to be handled. Members considering taking on a material interest that might present, or might be perceived as presenting, some risk of conflict with their role as a Payments System Board member shall consult the Governor before committing themselves.
  3. In order to avoid any possibility of perceived conflicts that could damage the Bank’s reputation, members shall exercise due care in accepting from third parties entertainment, travel or accommodation, or any other benefit that is offered solely or mainly on the basis of membership of the Payments System Board.
  4. Members generally shall refrain from public commentary about current payments system policy issues, respecting the confidentiality of Payments System Board discussions. Members who, in the ordinary course of their activities outside the Reserve Bank, have occasion to discuss payments system policy matters generally, shall do so on the basis that the views so presented are personal or affiliated with another institution, not the Bank. The Governor, as Chair, and the Deputy Chair will on occasion need to speak on payments system policy issues as part of their official duties, but in doing so shall still respect the confidentiality of the Payments System Board discussions.
  5. The Governor and the Deputy Chair shall adhere not only to this code but also to the Reserve Bank staff code of conduct.

Where questions of interpretation of this Code arise, members shall consult with the Governor. Where issues arise that cannot be specifically foreseen in this Code, members shall be expected to exercise sound judgement and behaviour consistent with the general principles outlined above. Members shall, where appropriate, consult with the Governor and, if necessary, the Treasurer.