Commonwealth legislation

Payment Systems (Regulation) Act 1998 - Declaration No. 2 of 2006 regarding Purchased Payment Facilities

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legislative instrument

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The RBA declares two classes of purchased payment facilities outside the Payment Systems (Regulation) Act: those with total payment obligations ≤ $10,000,000 and those payable to ≤ 50 persons. This removes those facilities from the Act’s regulatory perimeter, easing compliance costs for issuers and purchasers and may incentivise product design to fit the thresholds.

The instrument replaces a 2004 exemption; the RBA says the small, restricted purchaser base makes regulation inappropriate.

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Payment Systems (Regulation) Act 1998 - Declaration No. 2 of 2006 regarding Purchased Payment Facilities

RESERVE BANK OF AUSTRALIA

Payment Systems (Regulation) Act 1998

Declaration No. 2, 2006 regarding Purchased Payment Facilities

The Reserve Bank of Australia, under Section 9(3) of the Payment Systems (Regulation) Act 1998 (the ‘Act’), declares that the Act does not apply to the following specified classes of facilities:

(a) Limited-value facilities, being facilities where the total amount of obligations to make payments under the facility does not exceed $10,000,000. The Reserve Bank considers that it is not appropriate for the Act to apply to these facilities, having regard to restrictions on the number and types of people who may purchase these facilities.

(b) Limited-participant facilities, being facilities where the number of people to whom payments may be made using such a facility does not exceed 50 persons.

This notice replaces the ‘Exemption Notice for Limited Facilities Under Section 9(3)’, gazetted on 10 March 2004.

Signed

[IJM]

IJ Macfarlane

Governor

Reserve Bank of Australia

Date 24/04/2006

Source text

Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.

1 Payment Systems (Regulation) Act 1998 - Declaration No. 2 of 2006 regarding Purchased Payment Facilities