A Review of the Regulation of Payment Facilities
Murdoch University Electronic Journal of Law, Vol. 11, No. 3, 2004
Journal of Banking and Finance Law and Practice, Vol. 16, p. 325, 2005
37 Pages Posted: 7 Feb 2011
Date Written: April 21, 2004
This second article focuses on the risks associated with payment facilities, the case for their regulation and consideration of possible regulatory models. An understanding of the legal nature of payment facilities is vital to designing an appropriate regulatory regime.
The first section of this article considers in detail the main risks associated with payment facilities. This will cover the risks associated with well-established payment schemes such as cheques and those associated with new electronic payment facilities. An understanding of the The second section of this article examines the case(s) for regulation of payment facilities. This will discuss the risks associated with payment facilities considered previously and whether regulation is warranted to address those risks. It will also discuss the regulation of payment facilities from a simplified cost-benefit perspective.
The third part of this article will examine how payment facilities are currently regulated in a number of developed countries. It will examine the current regulation of payment facilities in Australia, the United Kingdom and the United States. The fourth part of this article will consider possible models for the regulation of payment facilities. It considers four possible regulatory models involving the key elements of disclosure, minimum standards, prudential regulation, and conduct and disclosure licensing.
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