INDEPENDANT CONSULTANT TO REVIEW THE CODE OF BANKING PRACTICE Sydney, 12 May, 2000: Independent consultant Dick Viney will conduct a review of the Code of Banking Practice initiated by the Australian Bankers' Association (ABA). ABA member banks agreed to an independent review of the code every three years when it was put in place in 1996. The code sets out standards of disclosure and conduct which banks agree to observe when dealing with their customers. The standards cover matters such as terms and conditions of bank accounts, disclosure of fees and charges, privacy, confidentiality, and how to resolve disputes. "This review intends to update the code with current banking trends and customer needs. It will be a transparent process in which I will be seeking the views of a wide number of groups in the community, government and financial services industry to ensure that there is full consultation on the issues, " said Mr Viney. An independent consultant with his own company specialising in retail finance, Mr Viney is experienced for this task. He was co-leader of the Uniform Consumer Credit Code drafting committee, responsible for delivering policy decisions for final approval by participating governments and director of the Australian Financial Institutions Commission which was the previous regulator of building societies and credit unions (1995 -99). Chief Executive of the Australian Bankers' Association, Tony Aveling, said: "The Code of Banking Practice is fundamental to sound banking because it sets out the standards of practice that banks agree to adopt when they deal with their customers. We are absolutely committed to ensuring the banking industry moves forward with new technological advances and that the code's standards of practice will continue to meet customer expectations." Mr Viney will be seeking the views of banks, customers, interest groups and members of the public on: Changes which have occurred in the banking services market The needs and behaviour of consumers Harmonising the code with the regulatory environment Any changes that will result in a more effective code in the next three years. The review process will involve: An advertised invitation for interested parties to make a submission by July 14, 2000. A report, to be delivered by the end of August, will recommend changes that need to be made to the code Report recommendations to be considered by ABA members. The current code is published on the ABA website: www.bankers.asn.au under the Resources section. For further information contact: Heather Wellard ABA PR Phone: 02 8298 0411 Mobile: 0409 830 439     ENDS May 12, 2000, 04/00