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

Q42 – Should the scope of Part B of the EFT Code continue to be defined by reference to the concepts of ‘stored value facilities’ and ‘stored value transactions’ as at present; or should a different approach be taken? What issues are raised by possible alternative approaches?

This may be a good opportunity to try a completely new approach for stored value products. In the interest of shortening and simplifying the Code and its core consumer protections for EFT facilities, consumer stakeholders are willing to consider removing Part B from the Code and re-publishing it as separate better practice guidance, to be used by industry on a purely voluntary basis.

It appears that stored value product providers are unlikely to subscribe to the EFT Code. This may be because the Code is not sufficiently focused on stored value products and its core brand remains linked to EFT.

At some time in the future, if stored value products become widespread, Part B could be used as the basis for a more specific Code of Conduct for stored value products, not linked to the EFT Code.

There appears to be little risk in this approach. The benefits to the other parts of the Code will be significant.