ASIC Corporations (Non-cash Payment Facilities) Instrument 2016/211 (Cth)

ASIC Corporations (Non-cash Payment Facilities) Instrument 2016/211

About this compilation

Compilation No. 1

This is a compilation of ASIC Corporations (Non-cash Payment Facilities) Instrument 2016/211 as in force on 13 November 2018. It includes any commenced amendment affecting the legislative instrument to that date.

This compilation was prepared by the Australian Securities and Investments Commission.

The notes at the end of this compilation (the endnotes) include information about amending instruments and the amendment history of each amended provision.

Contents

Part 1—Preliminary 1 Name of legislative instrument 4 Authority 5 Definitions Part 2—Relief for non-cash payment facilities 6 Loyalty schemes 7 Road toll facilities 8 Non-cash payment facilities used for third party payments 9 Low value non-cash payment facilities 10 Gift facilities 11 Prepaid mobile facilities 12 Requirement to confirm transactions for travellers' cheques Endnotes Endnote 1—Instrument history Endnote 2—Amendment history

Part 1—Preliminary

1 Name of legislative instrument This is the ASIC Corporations (Non-cash Payment Facilities) Instrument 2016/211.

4 Authority This instrument is made under subsections 765A(2) and 1020F(1) and paragraphs 601QA(1)(a), 926A(2)(a), 951B(1)(a) and 992B(1)(a) of the Corporations Act 2001.

5 Definitions In this instrument: Act means the Corporations Act 2001. device means any object by which a person may use a low value non-cash payment facility or gift facility. eligible non-cash payment facility means a non-cash payment facility that: (a) is issued by a financial services licensee; or (b) is issued by a participant in a designated payment system, within the meaning of section 7 of the Payments Systems (Regulation) Act 1998, and that relates to that system. expiry date means a date after which a non-cash payment facility cannot be used to make non-cash payments. facility has a meaning affected by section 762C of the Act. gift facility means a non-cash payment facility in relation to which all of the following apply: (a) the amount available for making non-cash payments under the facility: (i) is set when the facility is issued; (ii) cannot be increased after the facility is issued unless it is because of the reversal of a payment made under the facility or the correction of an error; (iii) cannot be withdrawn from the facility by means of a cash payment unless all of the following apply: (A) one or more non-cash payments have already been made using the facility; (B) the amount available for making non-cash payments is an amount that, in the reasonable opinion of the issuer of the facility, is unlikely to be able to be conveniently used under the facility; (C) the withdrawal is of the full amount standing to the credit of the facility; (b) the facility may be used to make non-cash payments on more than one occasion; (c) the facility is only promoted or marketed as a gift product; (d) where the facility has an expiry date and the person who holds the facility is provided with a device to use the facility: (i) the expiry date is prominently set out on the device in a manner that makes it clear that it is an expiry date; or (ii) the date of issue of the facility (or a date that is no later than 3 months after that date) is prominently set out on the device together with a statement that the facility cannot be used after a specified period after the date set out on the device; (e) where the facility has an expiry date but no device is provided, the expiry date is prominently displayed in a manner that: (i) could reasonably be expected to come to the attention of a person who is given, or given use, of the facility at the time it is given and at the time it is used; and (ii) makes clear that it is an expiry date; (f) the facility is not a component of another financial product. low value non-cash payment facility means a non-cash payment facility in relation to which all of the following apply: (a) the total amount available for making non-cash payments under all facilities of the same class issued by that issuer and held by any person at any one time does not exceed $1,000; (b) the total amount available for making non-cash payments under all facilities of the same class issued by that issuer does not exceed $10,000,000 at any time; (c) the facility is not a component of another financial product. loyalty scheme means a non-cash payment facility in relation to which all of the following apply: (a) the facility is issued as part of a scheme the dominant purpose of which is to promote the purchase of goods from, or the use of services of, the issuer of the facility or another person; (b) a person who uses or holds the facility is allocated credits (however described) as a result of the purchase of goods from, or the use of the services of, the issuer of the facility or the other person; (c) the credits allocated under the facility can be used to make a payment or part payment for goods or services or to obtain some other benefit; (d) the facility is not a component of another financial product. makes non-cash payments has the meaning given by section 763D of the Act. non-cash payment facility means a facility through which, or through the acquisition of which, a person makes non-cash payments. offer has a meaning affected by subsection 1010C(2) of the Act. prepaid mobile facility means a non-cash payment facility in relation to which all of the following apply: (a) the facility is part of an arrangement for the supply of a public mobile telecommunications service under which the service may be used to the extent it is covered by the amount (the prepaid amount) paid in advance which remains unused; (b) the non-cash payments made under the facility are debited against the prepaid amount; (c) the facility is not a component of another financial product. public mobile telecommunications service has the meaning given by section 32 of the Telecommunications Act 1997.