>The Australian Securities and Investments Commission (ASIC) on Tuesday >approved a rewritten code of conduct for banks ... ... >The new code of conduct will be mandatory for retail banks that are members of >the Australian Bankers' Association, whereas previously signing the code was >voluntary.
[The dismal quality of regulatory agencies in the country is confirmed. [We've had a Banking Royal Commission that's shown deep moral turpitude among the banks, and instances of downright illegal behaviour. [So one of the banks' protectors, ASIC, puts its imprimatur on an unenforceable pile of motherhood statements by the ABA, arranges for bank execs to say nice things, and pretends the problem's solved. [Is the media really going to buy this appalling piece of nonsense?] [ABA's media pap is here: https://www.ausbanking.org.au/media/media-releases/media-release-2018/a-new-higher-standard-in-australian-banking [The new Code here: https://www.ausbanking.org.au/code https://www.ausbanking.org.au/images/uploads/Banking_Code_of_Practice_2019_Web.pdf [Within the Code, the hilariously empty bit about sanctions and enforcement is at para.215 on p.55.] [The yet-another-pseudo-self-regulatory-body is here: http://www.ccmc.org.au/ 'Raising the bar': Banks vow to be more ethical under new code Clancy Yeates Fairfax 31 July 2018 https://www.smh.com.au/business/banking-and-finance/banks-vow-to-lift-ethical-standards-under-new-code-20180731-p4zuqa.html Bank chiefs have vowed the industry will be under new obligations to be more ethical and customer-focused, as part of a revamped code of conduct that has been given the green light by the corporate regulator. The Australian Securities and Investments Commission (ASIC) on Tuesday approved a rewritten code of conduct for banks, which is part of the industry's attempt to win back customers' trust after a run of scandals, and fierce political pressure including the royal commission. Banks say the new code will strengthen the sector's ethical obligations. Under the code, banks have committed to a range of changes including making it easier to cancel credit cards, and introducing stronger protections for customers who act as guarantors on loans. Small businesses borrowing up to $3 million will also gain extra protections, after recent royal commission hearings questioned if banks had been too quick to call in loans to small businesses. National Australia Bank chief Andrew Thorburn said the bank would prioritise implementing the code, which takes effect from 2019, "as quickly as possible." Advertisement "The code raises the bar that banks must meet every day for our customers to deliver the service they can and should expect," Mr Thorburn said. "At NAB we are committed to listen and respond to be better and the code will hold us to that commitment as we work to grow trust and respect in our bank and industry," he said. Westpac chief executive Brian Hartzer welcomed the approval, saying the industry had worked with the regulator to "completely rewrite" the industry's commitments to customers. "Westpac fully supports the new banking code which is one part of how we are strengthening transparency and relationships with our customers," Mr Hartzer said. ANZ chief executive Shayne Elliott said via Twitter the bank would implement the code ahead of schedule. Bank of Queensland chief Jon Sutton said that as a result of the code, the community could "look forward to a more customer-focused and sustainable banking industry". Australian Banking Association chief Anna Bligh said the code represented a stronger commitment to ethical behaviour from the banks. "Customers will see real tangible benefits, including more information about changes to their accounts, delay in offering on add-on insurance products and simpler contracts, with fewer conditions for small business loans," Ms Bligh said. The $3 million limit for small business is lower than the $5 million small business groups and the regulator had argued for, but ASIC said it would would cover 92 to 97 per cent of Australian business borrowers. The code will also make it easier for customers to cancel their credit cards, borrowers will be told when an interest-free period is about to end, and guarantors will be given a three-day cooling off period. The new code of conduct will be mandatory for retail banks that are members of the Australian Bankers' Association, whereas previously signing the code was voluntary. -- Roger Clarke http://www.rogerclarke.com/ Xamax Consultancy Pty Ltd 78 Sidaway St, Chapman ACT 2611 AUSTRALIA Tel: +61 2 6288 6916 http://about.me/roger.clarke mailto:[email protected] http://www.xamax.com.au/ Visiting Professor in the Faculty of Law University of N.S.W. Visiting Professor in Computer Science Australian National University _______________________________________________ Link mailing list [email protected] http://mailman.anu.edu.au/mailman/listinfo/link
