Commonwealth legislation

Payment Systems (Regulation) Act 1998 - Exemption Notice for Certain Guaranteed Holders of Stored Value Under Section 25

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Commonwealth

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legislative instrument

Plain English Summary

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This Reserve Bank exemption (under section 25) permits certain corporations to hold stored value for purchased payment facilities without being an authorised deposit‑taking institution or holding a section 23 authority. The relief applies only where the corporation’s obligations are guaranteed by an authorised deposit‑taking institution or a Commonwealth, State or local government, and where APRA has not made a regulation‑3 determination and the facilities are not covered by the RBA’s 10 March 2004 section 9(3) exemption. RBA grants the exemption; affected firms must obtain guarantees and monitor APRA rulings.

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Current sections

Direct links to the current provisions in Payment Systems (Regulation) Act 1998 - Exemption Notice for Certain Guaranteed Holders of Stored Value Under Section 25.

Payment Systems (Regulation) Act 1998 - Exemption Notice for Certain Guaranteed Holders of Stored Value Under Section 25

	RESERVE BANK OF AUSTRALIAPayment Systems (Regulation) Act 1998Exemption Notice for Certain Guaranteed Holders of Stored ValueUnder Section 25

The Reserve Bank of Australia, under section 25 of the Payment Systems (Regulation) Act 1998 (“Act”), grants an exemption to the following class of corporations allowing each corporation in the class to be the holder of the stored value in respect of purchased payment facilities in the following class even though the corporation is not an authorised deposit-taking institution (within the meaning of the Banking Act 1959), and does not have an authority under section 23 of the Act that covers those facilities, where:

(a) the class of corporations is constituted by corporations:

(i) whose obligations in respect of a purchased payment facility described in paragraph (b) are guaranteed by:

(A) an authorised deposit-taking institution (within the meaning of the Banking Act 1959); or

(B) a Commonwealth, State or local government authority; and

(ii) which are not the providers of purchased payment facilities in relation to which a determination has been made by the Australian Prudential Regulation Authority ("APRA") under regulation 3 of the Banking Regulations 1966; and

(b) the class of facilities is constituted by facilities:

(i) which do not fall within the scope of the exemption issued by the Reserve Bank of Australia pursuant to section 9(3) of the Act on 10 March 2004; and

(ii) in relation to which a determination has not been made by APRA under regulation 3 of the Banking Regulations 1966.

Unless the contrary intention appears, words used in this instrument have the same meaning as in the Act.

Signed

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1J Macfarlane
Governor
Reserve Bank of Australia

Date

Source text

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

1 Payment Systems (Regulation) Act 1998 - Exemption Notice for Certain Guaranteed Holders of Stored Value Under Section 25

	RESERVE BANK OF AUSTRALIAPayment Systems (Regulation) Act 1998Exemption Notice for Certain Guaranteed Holders of Stored ValueUnder Section 25