The Code of Banking Practice is the banking industry's customer charter on best banking practice standards. A copy of the current Code, which was finalised in 2013, is available here.
New Draft Code
In December 2017, the Australian Banking Association lodged the new draft Banking Code of Practice with ASIC for approval. The new draft Code was developed throughout 2017 following an independent review completed by Mr Phil Khoury.
Following lodgement of the new draft Code, the industry has made further changes. The latest version of the new draft Code as at 23 April is available here. The December 2017 media release is available here.
The Code sets out the banking industry's key commitments and obligations to customers on standards of practice, disclosure and principles of conduct for their banking services. The Code applies to personal and small business bank customers.
Independent review of the 2013 Code
An independent review of the Code of Banking Practice began in July 2016 by Phil Khoury, Managing Director of Cameron Ralph Pty Ltd.
In February 2017 Mr Khoury presented his final report to the ABA with 99 recommendations. More information and a copy of the report is available here.
The review of the Code is part of major industry initiatives announced in April 2016 to raise banking standards. For more information see the ABA media release.
Breach of the Code of Banking Practice
An independent compliance monitoring body, the Code Compliance Monitoring Committee (CCMC) investigates possible breaches of the Code. Anyone can refer a possible breach of the Code to this committee. For more information visit the CCMC website. A customer can also refer an allegation of the breach of the Code to the bank’s external dispute resolution scheme, the Financial Ombudsman Service, if the customer has suffered a loss and is not satisfied with the bank’s internal dispute resolution.
The CCMC Mandate 2013 is a public document that sets out the role, functions and powers of the CCMC for monitoring subscribing banks’ compliance with the Code, including undertaking investigations and own motion inquiries. The Mandate replaces the “Constitution of the Code Compliance Monitoring Committee Association”.
Clause 36 of the 2013 Code and the CCMC Mandate is in force from 1 February 2013.
Although the Code and the Mandate are separate instruments they are contained in a single document to make it easier to read both. The information contained in the Mandate will assist consumers better understand the role of the CCMC.