Document ID: chunk:federal_register_of_legislation:F2023L01225:body:0:p10
Version: federal_register_of_legislation:F2023L01225
Segment Type: other
Provision Reference: 
Character Range: 29343–32281

of the total account balance included as part of their aggregated protected account balance); and

     (e)          where a business account is held in an entity's name, the balance must be treated as belonging to a single account-holder, being the person (including corporations, etc.) named as the account-holder. If the business account is held in multiple individual names the rules for joint accounts apply.

    3.             An ADI must separately identify and flag each pooled trust account held by an account-holder, to the extent practicable.

Calculation of end-of-day deposit balances
    4.             The amount repayable to an account-holder must be calculated from the sum of the deposit balances calculated at the end-of-day (i.e. 'end-of-day deposit balances') held in all protected accounts in an account-holder's name on the day on which a declaration is made that the FCS applies in relation to an ADI (or if APRA requires the ADI to generate data for test purposes, the day on which APRA instructs the ADI to generate the data). As end-of-day deposit balances could include both cleared and uncleared funds, payments must only be made on the basis of deposit balances comprising cleared funds. Uncleared funds in protected accounts, on the day the FCS is declared, must clear before being eligible to be paid out.

    5.             The timing of the creation of the SCV allows for the finalisation of payments already exchanged and settled at the time of declaration e.g. the processing of dishonours, and returned direct credits and debits. The SCV identifies cleared and uncleared funds, with the latter used for informational purposes in case some items remain uncleared.

    6.             A declared ADI will be withdrawn from the payments system. It is therefore necessary to ensure the correct posting to accounts of all unsettled[7] payments exchanged between the declared ADI and other ADIs on the day of the declaration. These payments could include direct entry credits, cheques and EFTPOS transactions.

    7.             All balances must be adjusted for fees, charges and duties payable applicable to an account (i.e. the net credit balance as defined in section 5 of the Banking Act) and accrued interest and withholding tax.

    8.             Overdrafts and other forms of debt must not be set-off against balances in protected accounts.

Process for determining end-of-day position
    9.             An ADI must ensure consistency in the treatment of payments made between account-holders, where value passes between:

       (a)          two accounts at the same ADI[8]; and

       (b)          one account at the ADI and an account at another ADI.

    An ADI must use the same general principles in the treatment of these transactions as set out in paragraphs 10-22 of this Attachment.  The objective of the principles is to ensure, as far as practicable, that both sides of