The Banking Code Compliance Monitoring Committee (CCMC) maintained focus on its monitoring program in 2017-18, despite extra demands related to preparation for the new Code of Banking Practice and responding to the financial services Royal Commission.
Chair Christopher Doogan said in his foreword to the CCMC Annual Report that a robust compliance monitoring program is the CCMC’s top priority. Work to further develop the program in 2017-18 included:
- improving data collection
- enhancing the risk framework to better inform investigations and inquiries, and improve customer outcomes
- recruiting compliance analysts to bolster CCMC’s capacity and expertise.
In 2017-18 banks self-reported 10,123 breaches of the Code of Banking Practice, 9.5% less than last year. Mr Doogan said the CCMC will release a separate report; Compliance with the Code of Banking Practice 2017–18 to provide more detail about the breaches. A key aim of the CCMC is to improve the quality and consistency in the way banks record and report Code breaches. The CCMC’s Report: Own Motion Inquiry Breach Reporting was one step toward achieving this by examining banks’ compliance monitoring and reporting frameworks and providing guidance to banks about what is expected.
The CCMC’s analysis also found that:
- Consumers made more than 1.13 million complaints to banks (6% less than the previous year), of which 91% were resolved within 5 days
- 298,569 consumers requested financial hardship assistance from banks (1.6% less than the previous year), almost 70% of the requests were approved.
Mr Doogan said banks’ cancellation of direct debits continued to be a concern, due to systemic non-compliance. Some progress was made in 2017-18 but the CCMC will continue to put pressure on banks to improve their performance.
The CCMC also educated consumer advocates, financial counsellors and other stakeholders about the Code through presentations at conferences, training sessions and group meetings.
Information about the Banking Code Compliance Monitoring Committee is available on its website, www.ccmc.org.au.
Banking Code Compliance Monitoring Committee
(03) 9613 7341