AST BCCC Banking Code of Practice

On Nov. 29, AST BCCC issued reports on compliance and transition.

  • Two key reports released by AST BCCC contain important findings for the industry.
  • The reports are compliance with the code of banking practice 2018–19 and banks’ transition to the 2019 banking code of practice which were published on Nov. 28.
  • Significant concerns about the reporting of breaches under the 2013 code of banking.
  • Banks will need to continue ongoing efforts in order to meet the BCCC’s expectations and the higher standards of the new 2019 banking code of practice.
  • Compliance Report
  • The report on compliance with the code of banking practice 2018-19 shows that code subscribing banks reported over 15,500 breaches of the 2013 code in 2018-19.
  • This affected at least 9mn customers and with a financial impact of more than $90mn.
  • While this is a 54% percent increase in the number of breaches reported compared to previous year, questions remain about quality of some banks’ compliance frameworks.
  • BCCC chief executive Sally Davis expressed concern about banks’ ability to report timely, correct data as they transition to the 2019 code, which came into effect Jul. 1.
  • A considerable amount of work needs to be done if banks are to meet the BCCC’s expectations for the new reporting standards of the 2019 code.
  • Banks Transition
  • Correlates with findings of the report into banks’ transition to the 2019 banking code of practice, which outlines that while transition to the new code was a major priority.
  • In the lead-up to its implementation, BCCC has major concerns over compliance.
  • A number of specific recommendations for banks to achieve good practice and ensure ongoing compliance with 2019 code are set out in the report, with a focus on issues.
  • Including senior executive oversight; staff training and key metrics; inclusive and accessible services; customers experiencing vulnerability, and small business, farming.
  • AST BCCC Priorities
  • Will work closely with individual banks, the Australian Banking Association, consumer groups and small business representatives on an ongoing basis to help compliance.
  • In light of the ongoing community concern about the quality and fairness of banking services, the BCCC intends to use its sanction powers to name individual banks.
  • Publicly if they fail to adequately change their processes in a timely manner when serious breaches are brought to their attention for rectification by the BCCC.

Regulators AST BCCC
Entity Types Bank
Reference RP, 11/29/2019
Functions Compliance; Operations; Reporting
Countries Australia
Products Banking; Corporate
Regions AP
Rule Type Guidance
Rule Date 11/29/2019
Effective Date 11/29/2019
Rule Id 68266
Linked to N/A
Reg. Last Update 11/29/2019
Report Section International

Last substantive update on 12/01/2019