20Arbitration of disputes

20 Arbitration of disputes

(1) The Reserve Bank may arrange for a dispute to which this Division applies to be settled by arbitration in accordance with this section if: (a) it considers that the dispute raises issues related to: (i) the financial safety of payment systems for participants; or (ii) the efficiency of payment systems; or (iii) the competitiveness of payment systems; or (iv) risk to the financial system; and (b) the parties to the dispute agree to the Reserve Bank arranging the arbitration; and (c) if the dispute is of a kind mentioned in paragraph 19(b)—the dispute relates to whether an access regime imposed by the Reserve Bank under subsection 12(1) is being complied with.

Note: The Reserve Bank may be acting on its own initiative or in response to a request from one or more of the parties to the dispute in arranging for the arbitration.

(1A) A nominated special regulator in relation to a special designated payment system may arrange for a dispute to which this Division applies to be settled by arbitration in accordance with this section if: (a) the dispute is of a kind mentioned in paragraph 19(b); and (b) the dispute relates to whether an access regime imposed by the nominated special regulator under subsection 12(1A) is being complied with; and (c) the parties to the dispute agree to the nominated special regulator arranging the arbitration.

Note: The nominated special regulator may be acting on its own initiative or in response to a request from one or more of the parties to the dispute in arranging for the arbitration.

(2) The arbitration is to be conducted: (a) in the case of an arbitration arranged by the Reserve Bank—by the Governor of the Reserve Bank, or by a person appointed in writing by the Governor to conduct the arbitration; or (b) in the case of an arbitration arranged by a nominated special regulator—by the head of the nominated special regulator, or by a person appointed in writing by the head of the nominated special regulator to conduct the arbitration.

Note: The functions and powers of the Governor of the Reserve Bank and the head of a nominated special regulator under this subsection cannot be delegated: see subsections 31(2A) and 31A(3).

(3) The person conducting an arbitration is not subject to any action, claim or demand by, or liable to, any person in respect of anything done, or omitted to be done, in good faith in connection with the arbitration. (4) The arbitration must be conducted in accordance with the regulations. (5) The fact the dispute is being, or has been, settled by arbitration under this section does not prevent a party to the dispute from bringing an action in a court in connection with the dispute, unless the court otherwise orders.