Submission - Joint submission to the 2007 Review of the Electronic Funds Transfer (EFT) Code of Conduct to ASIC (May 2007)

Q18 – Are there aspects of the product disclosure regime under the Corporations Act that should be adopted as part of the regulatory framework under Part A of the EFT Code?

It would be inappropriate to extend the Corporations Act approach to risk to include the security risks posed by EFT systems. A significant body of law is emerging to assist in the interpretation of risks that must be disclosed under the Corporations Act. The security risks posed by EFT systems would appear to be in an entirely different category. It may be more efficient to find another mechanism – elsewhere in the EFT Code – to discuss security risks, without raising any potential confusion with the term ‘risk’ under the Corporations Act.