Industry feedback encouraged
Practice put forth by the Australian Banking Association (ABA).
The banking code, owned and published by ABA, is a compilation of standards that subscribing banks are expected to uphold, ensuring a fair and transparent banking environment for customers and small businesses.
ABA, headed by CEO Anna Bligh (pictured above), intends to seek ASIC’s approval for the revised banking code. The endorsement from ASIC, though not mandatory, will signal that the code is one in which consumers and industry participants can place confidence.
ASIC consultation
The latest ASIC consultation is the first time that the regulator is soliciting public input before deciding on the approval of the banking code. This move will help inform ASIC on whether the proposed code will continue to provide real benefits to consumers, small businesses, and subscribing banks.
The ASIC consultation seeks to obtain feedback and insights on critical issues such as:
- whether the proposed code goes beyond legal requirements and effectively addresses potential consumer harms
- whether the proposed code provides effective administrative systems for monitoring compliance and the enforceability of obligations
- whether code review recommendations, not supported by the ABA, should be incorporated
- whether the ABA-supported recommendations are appropriately reflected in the proposed code and charter
- whether the proposed code strikes a balance between simplifying the code and minimising regulatory duplication while promoting consumer awareness of the protections for their banking relationship
- valuing the role of industry guidelines in the proposed changes
Inviting stakeholder participation
Interested parties are encouraged to review the proposed Banking Code of Practice, changes to the Banking Code Compliance Committee Charter, and a new customer-facing document, titled Banking with confidence: your key rights and protections as a customer.
Stakeholders are invited to submit feedback and insights before the consultation deadline on January 15, 11:59 pm AEDT, via email to [email protected]. ASIC will evaluate the submissions and release the decision on code approval in the first half of 2024.
Download Consultation Paper 373 Proposed changes to the Banking Code of Practice. To see the media release, visit the ASIC website.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
