The Council of Financial Regulators and the ACCC have jointly released a consultation paper proposing a regulatory framework for cash distribution in Australia.
The paper highlights the role of cash in ensuring payment system resilience during outages and natural disasters, and its continued importance as a store of value despite electronic transactions increasingly displacing cash.
It also notes growing economic pressures on the cash distribution network, especially in rural communities where service provision is costliest.
The preliminary view of the CFR and ACCC is that a regulatory framework is likely to be the most proportionate approach to meeting the public interest objective.
A regulatory framework for the cash distribution sector could incorporate:
- better visibility of cash distribution service providers and their capabilities and challenges
- crisis readiness and resolution powers to safeguard the continuity of critical cash distribution services
- regulatory powers to ensure the sector continues to function sustainably, effectively and efficiently by ensuring fair terms, third-party access, and service level standards for regional business customers
- powers for regulator(s) to enforce the framework and pursue penalties where appropriate.
The Government has committed to maintaining adequate access to cash for as long as Australians wish to use it.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
