ASIC has released a consultation paper initiating the public phase of a review of the Electronic Funds Transfer Code of Conduct (EFT Code). The EFT Code is a voluntary industry code of practice covering all forms of consumer electronic payments transactions. ASIC is responsible for administration of the Code, including conducting periodic reviews.

ASIC has invited submissions in response to the consultation paper by Friday, 13 April 2007. ASIC will appoint a stakeholder working group, chaired by ASIC, in early 2007 to review submissions and suggest amendments to the Code.

There will be a further public consultation on a revised draft code once the working group has completed its initial redrafting of the Code.

Key matters to be examined as part of the review include:

    * liability issues arising from the growth and growing sophistication of Internet fraud;
    * regulation of alternative payment facilities;
    * coverage issues, including whether the protections of the Code should extend to small business as well as consumer account holders;
    * obligations around mistaken payments;
    * administrative arrangements associated with the EFT Code, including compliance monitoring and ASIC’s role as Code administrator; and
    * other more specific issues raised by stakeholders in preliminary consultations.