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.
||Compliance; Operations; Reporting
|Reg. Last Update
Last substantive update on 12/01/2019