ACCC approves cheque clearing rules

The Australian Competition and Consumer Commission has granted authorisation* for five years to the Australian Payments Clearing Association (APCA) for certain regulations governing the operation of the Australian Paper Clearing System.

The APCS co-ordinates and manages the implementation and operation of policies and procedures for the conduct and settlement of exchanges of paper-based payment instructions, primarily cheques, between its participating members.  The APCS Regulations and Procedures along with APCA's Memorandum and Articles of Association were previously authorised by the Trade Practices Commission in September 1993. 

APCA sought re-authorisation only for certain provisions of the APCS Regulations relating to the suspension and termination of APCS membership. 

"The ACCC considers that the suspension and termination provisions of the APCS Regulations are likely to continue to result in a benefit to the public through the protection of the security, efficiency and integrity of paper clearing processes", ACCC Chairman, Mr Graeme Samuel, said today. 

The ACCC also considers that the anti-competitive detriment associated with the suspension and termination provisions is likely to be minimal. 

"The ACCC considers that there are important checks and balances within APCA and the APCS arrangements to guard against the anti-competitive use of the suspension and termination provisions".

In this respect, the ACCC took into account the review power of the APCA Board over decisions of the APCS Management Committee, including those regarding suspension and termination, and the ability of the RBA to monitor the performance of the APCS Management Committee through its position on both the Management Committee and the APCA Board. 

Background

* The Trade Practices Act 1974 prohibits certain forms of anti-competitive agreements including agreements between competitors which limit their ability to deal with who they choose or on the terms they choose. Authorisation provides immunity from court action under the Act arising from certain anti-competitive agreements. Generally speaking, authorisation can only be granted where the ACCC is satisfied that the public benefit arising from the conduct outweighs any competitive detriment.