Bank price signalling law under review
A review of the price signalling provisions of the Competition and Consumer Act, including which sectors they apply to, is one of the options raised in the first issues paper released by the Competition Policy Review.Since June 2012, the Act has prohibited both the private disclosure of pricing or other information to a competitor, and the general disclosure of information where the purpose of the disclosure is to substantially lessen competition in a market. The provisions currently apply only to banks. These provisions were enacted in response to concern over the established practice of bank executives employing media interviews and investor briefings to think aloud about their options on repricing loans and deposits in the context of shifts in the cost of funding.The issues paper said this "conduct may not amount to an 'understanding', but may nonetheless have an impact on the level of competition in a market."The issues paper asks for comments on whether the provisions should be retained, repealed, amended or extended to cover other sectors.