ACCC proposes to approve clearing rules

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

The APCS coordinates 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 is seeking 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 Deputy Chair, Ms Louise Sylvan, 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.

The ACCC is now seeking comments on its draft decision from the applicant and interested parties. These comments will be taken into account by the ACCC before it issues its final decision. Interested parties wishing to provide comments in relation to the ACCC’s draft decision should address their submission to: