ob体育 has approved variations to the Banking Code of Practice (Code).
The variations, as proposed by the Australian Banking Association (ABA), do the following:
- Amend the Code鈥檚 definition of 鈥榖anking services鈥� to address an anomaly in the Code鈥檚 previous wording that had the unintended result of excluding certain types of small business banking customers who would otherwise meet the Code鈥檚 definition of 鈥榮mall business鈥�.
- Make some minor amendments to the Code鈥檚 definition of 鈥榮mall business鈥�.
- Extend the application of the Code鈥檚 COVID-19 Special Note, which allows for special application of specified Code provisions in light of the extraordinary external environment caused by COVID-19, for a further six months until 1 September 2021.
- Specify situations in which banks may decline to continue dealing with a representative that a customer in financial difficulty has appointed, if the bank reasonably considers that representative is no longer able to act in the customer鈥檚 best interests.
- Align the Code鈥檚 timeframes for responding to complaints with the updated timeframes in ob体育鈥檚 Regulatory Guide 271 Internal dispute resolution, which is due to commence on 5 October 2021.
Background
ob体育 previously approved the Code, as a whole, in December 2019. That Code commenced on 1 March 2020. On 1 January 2021, as part of the Financial Sector Reform (Hayne Royal Commission Response) Bill 2020, which received Royal Assent on 17 December 2020, a new framework commenced for ob体育鈥檚 approval of codes of conduct.
If an application is made to vary an approved code of conduct, ob体育 may, by legislative instrument, approve the variation. In the approval, ob体育 may identify a provision of the code of conduct as an 鈥榚nforceable code provision鈥� if ob体育 considers that the provision or provisions meet specific legislative criteria.
This approval does not identify any enforceable code provisions. The relatively narrow set of variations are changes to existing Code provisions, and the ABA will be commencing its comprehensive triennial review of the Code later in 2021. The terms of reference for that review will specifically consider the enforceable code provisions framework.
The changes to the small business definition were recommended by Pottinger, the independent firm who reviewed the definition in September and October 2020. The review recommended that those changes be made now and that the more comprehensive changes will be considered as part of the Code鈥檚 triennial review.
Download
听
听