Annual Compliance Report 2016-17

The Customer Owned Banking Code Compliance Committee has published its Annual Compliance Report for 2016-17 in accordance with section 4.3(k) of the Customer Owned Banking Code Compliance Committee Charter. The report provides an in-depth look at its work in monitoring compliance with the Customer Owned Banking Code of Practice.

A copy of the report can be downloaded from here.

The report finds that:

  • Self-reported Code breaches increased by 50%, indicative of a growing culture of positive breach reporting among customer owned banking institutions.
  • But reporting is inconsistent: 25% of institutions self-reported no breaches and 12% self-reported no complaints.
  • Customer owned banking institutions need to review their sources for compliance processes and reporting to ensure that they are a true reflection of performance.
  • 24% of self-reported Code breaches were for non-compliance with privacy obligations, commonly involving the advertent disclosure of personal information to third parties, with human and processing errors typically identified as the primary cause.
  • 12% of self-reported Code breaches were for non-compliance with responsible lending practice, representing an increase of nine per cent in this area. This included one institution with over $1b in assets self-reporting 86 breaches.
  • 11% of self-reported Code breaches were for non-compliance with legal and industry obligations.
  • 11% of self-reported Code breaches were for non-compliance with the customers’ rights as owners’ obligation, to ensure that customers receive balanced and adequate information about the benefits, costs and impacts of any proposal to change the institution’s ownership structure, such as mergers and takeovers.
  • 24% of self-reported complaints were about customer service issues, including general feedback and improvement suggestions.
  • From the four matters received for investigation, the Committee identified one Code breach.

Committee Chairman, Dr Sue-Anne Wallace AM, said that the Committee hoped the Report findings would ‘be a valuable source of insight and learning for customer owned banking institutions, prompting renewed efforts to improve customer service’.

The Committee welcomes any feedback or comments to info@codecompliance.org.au.

 

Back to the top