Review of Clause 14 (Account Suitability) – March 2007

In November 2006, the Code Compliance Monitoring Committee (the CCMC) established an Inquiry into banks’ interpretation and compliance with Clause 14 of the Code of Banking Practice (the Code) which reads as follows:

“Account suitability

If you tell us that you are a low income earner or a disadvantaged person (regardless of whether you are an existing or prospective customer but not if you are a small business), we will provide you with details of accounts which may be suitable to your needs. We will also do this if you ask for this information or if, in the course of dealing personally with you, we become aware that you are in receipt of Centrelink or like benefits.”

For a copy of the report, please click here.