The banking industry’s Code of Banking Practice is on track to be finalised by the end of 2017, with redrafting underway while consulting with stakeholders, according to the Australian Bankers’ Association (ABA).
The review of the code concluded when the final report from independent consultant, Phil Khoury, was published in February.
ABA acting chief executive, Diane Tate said the aim of finalising the new code by the end of 2017 was ambitious but necessary.
The next phase was conducting consumer testing, with the ABA working with the Code Compliance Monitoring Committee on its role and mandate to strengthen the governance of the code.
Since publishing the association’s initial response in March, the industry had consulted with more than 30 stakeholders, including consumer groups, small business and farming representatives, regulators, government representatives, ombudsmen, and other peak bodies.
The code aims for more transparency around products and services, more commitment to ethical behaviour, and a new section to help small businesses.
“The industry has been working through the 99 recommendations from the review, as well as recommendations made by various other inquiries and reviews,” Tate said.
“The extensive stakeholder engagement phase is helping find solutions to some of the more complex issues. The new code will result in better outcomes for customers in important areas such as credit cards and financial hardship.”
Banks have also carried out 12 workshops to deliberate over all the feedback and resolve outstanding recommendations, while a plain English specialist is redrafting the code to make it a consumer-friendly resource.
The ABA would then be providing the Australian Securities and Investments Commission (ASIC) with a new code to seek their approval under the Corporations Act.
Banks would provide a quarterly update on the code redraft, with the next update due to be issued in September.
