(27 March 2018 – Australia) In a significant ramp up of the industry’s efforts to improve conduct and culture, all Australian banks will be required to sign up to the new Banking Code of Practice.
The new Code, once approved by ASIC, will be binding and enforceable, and a requirement of membership to the Australian Banking Association.
Anna Bligh, CEO of ABA highlighted that “this new code will be binding, forming part of relevant customer contracts, enforceable by law and will be monitored by an independent body.
“Australians expect their banks to operate in an ethical and appropriate way when they apply for [..] a small business loan or other financial product.
“The industry is committed to genuine reform which will rebuild trust with the Australian community, with the new Code an important step in the right direction.”
Previously signing up to the Code of Conduct was at the discretion of individual banks however will now be compulsory.