Second Progress Report on Implementation Process to Update
the Code of Banking Practice

Sydney, 3 June 2010: The Australian Bankers’ Association (ABA) is working on producing an updated Code of Banking Practice following a review of the current Code.

The ABA committed to provide progress reports - the first was published in January 2010 and below is the second progress report.
 
Second Progress Report

In November 2009, the ABA engaged Mr Phil Khoury of The Navigator Company Pty Ltd to assist with the process to implement a key recommendation from   the Review of the Code of Banking Practice involving the future governance and other arrangements for the Code Compliance Monitoring Committee.
 
The Navigator Company’s Phil Khoury has developed a draft issues paper and draft mandate for the Code Compliance Monitoring Committee (CCMC) to be established as a separate independent unit within the Financial Ombudsman Service (FOS). The drafts are close to finalisation.
 
The first stage of this consultation is largely complete.  It was to be a selective process - to get across the issues and understand the perspectives of the key stakeholders.  The plan was to then prepare a draft Mandate that would be used as a basis for a more thorough second stage process of consultation.

The consultants have spoken with a cross section of stakeholders.
 
The second stage of the process will follow the publication of the Issues Paper and draft CCMC Mandate.  Mr Khoury will consult with key interested parties before making his final recommendations to the ABA.

The ABA is expecting to receive some further feedback on the review from members of the ABA’s Community and Consumer Consultative Forum.
 
Meanwhile, the ABA has taken steps for the preparation of a marked up exposure draft of the Code for consultation with key stakeholders.  The exposure draft is expected to be available in July 2010.
  
Background notes

Read the First Progress Report
 
Read the Code of Banking Practice

 
For further information: 

Heather Wellard ABA PR, Ph: 02 8298 0411 Mobile: 0409 830 439

ENDS