The Australian Competition and Consumer Commission has granted authorisation* for five years to the Australian Payments Clearing Association for certain provisions of the High Value Clearing System (HVCS) Regulations and Procedures.
The provisions relate to suspension and termination of HVCS membership and the requirement that members use the SWIFT payment delivery system in clearing and settling payments.
The HVCS provides a framework within which members can electronically exchange high value payments. SWIFT is the payment delivery system used by the HVCS in clearing and settling payments. The HVCS regulations and procedures were previously authorised by the ACCC in 1998.
"A public benefit in the form of protecting the security, efficiency and integrity of the high value payments clearing and settlement process will be maintained through the suspension and termination provisions of the HVCS regulations," ACCC Chairman, Mr Graeme Samuel, said.
"The ACCC decided that there is likely to be minimal anti-competitive detriment associated with the suspension and termination provisions."
In coming to this conclusion, the ACCC took into account the procedures within APCA and the HVCS arrangements to protect against the anti-competitive use of the suspension and termination provisions.
These include the review power of the APCA board over decisions of the HVCS Management Committee, including those regarding suspension and termination, and the requirement that the Reserve Bank of Australia be consulted in respect of any decision to suspend a member.
*The ACCC has the function, through the authorisation process of adjudicating on certain anti-competitive practices that would otherwise breach the Trade Practices Act 1974. Authorisation provides immunity from court action, and is granted where the ACCC is satisfied that the practice delivers a net public benefit. When an authorisation expires the holder of the authorisation may either apply for a new authorisation for the conduct or apply to revoke and substitute the existing authorisation.
