18 March 2019
Today’s release of a consultation paper about further enforcement of industry codes is welcomed by Australia’s banks, who look forward to working with regulators and the Treasury to identify what more can be done to further enforce its new Banking Code of Practice.
The new Banking Code of Practice, to take full effect by July 1 this year, lifts the bar by introducing a range of new measures to make banking products easier to understand and more customer focussed.
The new Code was the first industry code to be approved by ASIC under Regulatory Guide 183. The Code itself is currently enforceable through the courts and the Australian Financial Complaints Authority, as it forms part of a customer’s contract with their bank. The Banking Code of Practice is the standard used by AFCA when assessing disputes between a customer and credit provider, regardless of whether they are a member of the Australian Banking Association.
Following the recommendations of the Royal Commission, the industry recently announced a further shakeup to the Code, which will be implemented as soon as possible.
CEO of the Australian Banking Association Anna Bligh said the industry stood ready to work with all stakeholders to implement this recommendation of Commissioner Hayne.
“The Industry worked closely with regulators and government to ensure our new Banking Code of Practice set a new higher standard, lifting the bar by introducing measures to make banking easier to understand and more customer focussed,” Ms Bligh said.
“While the new Code is already enforceable as relevant clauses form part of a customer’s contract, the industry will work with the government to identify what more can be done regarding enforceability following the recommendation of the Royal Commission.
“The ABA Code remains the only financial services industry-wide Code to be approved by ASIC, whose criteria for approval is an appropriate benchmark for codes of this nature,” she said.
ENDS
Contact: Rory Grant 0475 741 007
Latest news
Australian banks strongly support the RBA’s proposed ban on debit and credit card surcharges, while overwhelmingly calling for an alternative pathway forward on interchange fees. The ABA has made the following calls in a submission to the RBA’s current consultation on the Review of Merchant Card Payment Costs and Surcharging: ABA CEO Simon Birmingham said… Read more »
Australia’s banks welcome the passing through the Senate of new legislation to ensure payments laws are up-to-date and reflect today’s digital economy. The new laws will bring digital wallets, cash distribution services, buy now, pay later schemes and other emerging payment methods within regulatory oversight, significantly enhancing protections for customers. ABA CEO Simon Birmingham said… Read more »
The ABA welcomes the passage through the House of critical legislation to ensure Australia’s payments regulatory framework is brought up-to-date and urges the Senate to quickly pass this overdue legislation too. The proposed legislation will bring digital wallets, cash distribution services, buy now, pay later schemes and other emerging payment methods within regulatory oversight, significantly… Read more »