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Sydney, 17 November, 2003: Mr Tony Blunn, AO, is to be appointed Chairman of the independent Code Compliance Monitoring Committee (CCMC) for monitoring banks’ compliance with the Code of Banking Practice.
Mr David Bell, Chief Executive of the Australian Bankers’ Association (ABA), and Jillian Segal, Chair of the Banking and Financial Services Ombudsman (BFSO), are pleased to announce Mr Blunn’s appointment, which is a joint decision of the two organisations.
The method of appointment is provided for under the Code of Banking Practice 2003 to ensure independence by gaining input from both consumer and banking perspectives from the two organisations.
The CCMC is an independent body that is to have the power to receive and determine complaints about possible breaches of the Code of Banking Practice. Anyone can make a complaint about a possible breach of the Code to the CCMC. It also has the power to initiate its own independent enquiries into banks’ compliance with the Code.
The CCMC will comprise a three-member panel of which Mr Blunn is to be the independent Chair. Other panel members will represent the interests of consumers and the banking industry. Announcements concerning these two appointments will be made in the near future. Decisions of the CCMC will be on a simple majority basis.
Mr Blunn has extensive knowledge of and experience in legal, financial, commercial and consumer issues acquired during his career in the Commonwealth Public Service, which clearly makes him highly qualified for the position.
Mr Blunn retired from the Commonwealth Public Service in 2000 as Secretary of the Attorney General’s Department and, at that time, was the longest serving departmental head.
Since leaving full-time Commonwealth employment, he has undertaken consultancy work for the Departments of Defence, Treasury, Attorney-General, Health Insurance Commission, Australian National Audit Office and National Capital Authority.
Mr Blunn said he was delighted to accept the office and emphasised the independence of the committee which he believed had an important role in the broader structure of the governance arrangements of the banking sector.
Chair of the Banking and Financial Services Ombudsman (BFSO) Scheme, Jillian Segal, said the Scheme is pleased to be part of the process of appointing the Chairman of the CCMC.
“We look forward to the work of the Committee complementing what is done by the Banking and Financial Services Ombudsman in resolving disputes between banks and their customers,” Ms Segal said.
David Bell, CEO of the ABA, said: “The CCMC will have a very important role, especially when it comes to taking action against a bank.”
“Naming a bank means that the members of the public and regulators will know about the breach with resulting damage to the bank’s reputation. The Code is contractually binding, so a regulator might even consider action of its own.”
Background notes for editors:
- The Code of Banking Practice is the banking industry’s customer charter on best banking practice standards. The Code sets out the banking industry’s key commitments and obligations to customers on standards of practice, disclosure and principles of conduct for their banking services.
- The Code of Banking Practice 2003 replaces the original Code of Banking Practice which was developed nine years ago.
- A copy of the 2003 Code of Banking Practice and a list of the banks that have adopted this Code can be found on the ABA website: www.bankers.asn.au.
- When individual retail banks adopt the Code (2003) their standards and their compliance will be monitored by an independent panel – the Code Compliance Monitoring Committee (CCMC).
- The CCMC will be able to receive complaints from anyone who thinks that a bank has breached the Code. The CCMC will have the power to investigate that complaint and decide whether a breach has occurred. If the breach is serious or systemic, the CCMC can publicly name the bank in its annual report. The CCMC can also name a bank that fails to comply with a request from the CCMC to remedy a breach, or has breached an undertaking given to the CCMC, or has taken insufficient steps to prevent the recurrence of a breach.
- Each bank will lodge an annual report with the CCMC on its compliance with the Code in much the same way as banks have done under the original 1993 Code in reporting annually on compliance to the Australian Securities and Investments Commission (ASIC).
- Arrangements for commencement of the CCMC are close to finalisation and the CCMC is expected to be operational before the end of the year.
For further information:
If you would like to interview Mr Blunn please contact:
Carol Stuart
Good Information Company
Mobile: 0418 552 224
Heather Wellard
ABA Public Relations
Phone: 02 8298 0411
Mobile: 0409 830 439
Colin Neave
Ombudsman
Banking and Financial Services Ombudsman
Mobile: 0418 560 883
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