The Council of Financial Regulators (CFR) has today released an Issues Paper: Review of Retail Payments Regulation: Stored-Value Facilities.
The Issues Paper is part of a review into the regulatory regime for ‘stored value facilities’, which are payment products that allow users to pre-load money for future purchases (such as a travel money card). While the CFR’s review will primarily consider how stored-value facilities are regulated, the review will also focus on identifying opportunities for improvements or clarification to other aspects of the regulation of retail payments service providers retail payments regulation. The CFR intends to provide recommendations to streamline and enhance regulation while ensuring appropriate consumer protections.
Australian regulator ASIC has encouraged interested stakeholders to view the CFR’s Issues Paper and consider making a submission to the review. Submissions are due by 19 October 2018. A copy of the Issues Paper and details on how to make a submission can be found on the CFR website.
The CFR review
The CFR’s review follows recommendations relating to the regulation of retail payments service providers retail payments regulation in the final report of the 2014 Financial System Inquiry and the Productivity Commission’s 2018 report following its Inquiry into Competition in the Australian Financial System.
A Working Group involving representatives of the CFR agencies – the Australian Prudential Regulation Authority (APRA), the Reserve Bank of Australia (RBA), the Commonwealth Treasury and ASIC – was established earlier in 2018 to undertake the review and to make recommendations on the regulatory framework for stored-value facilities and related services.
A particular area of interest to ASIC in the Issues Paper is ensuring the regulatory framework contains appropriate consumer protections.
The CFR coordinates Australia’s key financial regulatory agencies and has the roles of contributing to the effectiveness and efficiency of financial regulation and promoting stability in the financial system. It is made up of the RBA (as Chair), APRA, Treasury and ASIC.