Cheques and Payment Orders Regulations (Amendment)

Overview

The Cheques and Payment Orders Regulations (Amendment) 1994 No. 406 was enacted to amend the existing regulations under the Cheques and Payment Orders Act 1986. This amendment was made to address the need for an updated and more efficient regulatory framework concerning the clearing of cheques and payment orders in Australia. The primary policy objective behind these regulations is to streamline the process for banks and non-bank financial institutions to specify and communicate notified places for the internal presentment of cheques and payment orders. The Australian Payments Clearing Association (APCA), defined as the eligible authority, was designated to maintain a register of these notices, ensuring transparency and accountability in the cheque and payment orders clearing system. The regulations introduced by Statutory Rules 1994 No. 406, issued under the authority of the Attorney-General, provide for the maintenance of a register of notices by APCA, the conditions under which the register can be inspected, the process for obtaining information from the register, and the fees associated with such inspections and information retrieval. These amendments also included adjustments to the forms within the Schedule to Statutory Rules 1987 No. 130, updating terminology and references to reflect the current legislative context and practices. The regulations were designed to enhance the operational efficiency of the cheque and payment orders clearing systems, ensuring they align with contemporary financial practices and regulatory standards.

Scope and Application

The Cheques and Payment Orders Regulations (Amendment) 1994, No. 406, amends existing regulations made under the Cheques and Payment Orders Act 1986. This Act applies to entities involved in the financial sector, specifically banks and non-bank financial institutions, which include building societies and credit unions, and these entities are collectively represented by the Australian Payments Clearing Association (APCA). The regulations focus on the establishment and maintenance of a register of notices specifying notified places for the purposes of cheque and payment order presentment, as well as the procedures for inspecting and obtaining information from this register. The geographic scope of these regulations is nationwide, as they concern payment systems that operate across Australia. The regulations do not explicitly state exclusions, but they do specify the conditions under which the register can be inspected and information obtained, including the requirement for a written statement from an authorised officer of a bank or non-bank financial institution. The fees for accessing the register are also detailed, with a base fee of $20.00 for information from one notice and a tiered fee structure for multiple notices. The amendments to the forms in the schedule update references to reflect changes in the Act, ensuring the regulations remain current and applicable to the statutory requirements.

Key Provisions

The Cheques and Payment Orders Regulations (Amendment) 1994 No. 406 (the Regulations) amends the existing Regulations made under the Cheques and Payment Orders Act 1986 (the Act) to introduce new provisions relating to the register of notices for notified places, inspection of the register, obtaining information from the register, and fees for such services. Regulation 6 introduces a new requirement for the Australian Payments Clearing Association (APCA) to maintain a register of notices given by banks and non-bank financial institutions specifying notified places for the presentment of cheques and payment orders respectively (section 6). Regulation 6 also mandates that the register include notices varying or revoking previous notices and must be kept in the form and manner directed by APCA. Regulation 7 outlines the process for inspecting the register. According to Regulation 7(1), only employees of APCA and authorised employees of banks or non-bank financial institutions, who are required by their employer to inspect the register, are entitled to do so (section 7). To inspect the register, an authorised person must apply to APCA and present a written statement from an officer of the relevant bank or non-bank financial institution (section 7(2)). Regulation 7(3) requires APCA to allow inspection of the register as soon as practicable, upon receipt of the written statement. Regulation 8 provides for the obtaining of information from the register, for a fee. A person can obtain information from the register for a fee of $20.00 for information from one notice, and fees for information from more than one notice are determined by a specified formula (section 8). The Regulations also make technical amendments to the forms in the Schedule to the existing Regulations, updating references to ensure compliance with the current Act and improving clarity. The Regulations impose specific obligations on APCA and financial institutions. APCA is required to maintain an accurate and up-to-date register of notices and ensure that authorised persons can inspect the register and obtain information as provided for in the Regulations (section 6). Banks and non-bank financial institutions must provide notices to APCA specifying notified places and ensure that their authorised employees comply with the inspection and information-retrieval processes as outlined in the Regulations (section 7). The Regulations do not explicitly outline specific offences, penalties, or civil/criminal consequences for breach. However, non-compliance with the Act or the Regulations could potentially lead to legal action for breach of statutory duty or other related causes of action. The specific consequences would depend on the nature and extent of the breach and the resulting harm or prejudice to affected parties.