We encourage a positive culture of self-reporting in the customer owned banking industry through our Annual Compliance Statement program.
This program enables participating credit unions, mutual banks and mutual building societies to self-report breaches of the Customer Owned Banking Code of Practice.
We classify these breaches into the following categories:
A breach is defined as a failure to comply with the obligations of the Code in providing a service.
A significant breach of Code obligations is determined on a case-by-case basis by taking into account the:
We also take into account the:
By definition, significant breaches have the most impact on customers.
A serious breach is non-compliance with the Code that is considered to be fraudulent, grossly negligent or wilful. It may also include instances where a Code Subscriber has not remedied the conduct or errors that led to the breach, or wilfully ignores or fails to act on our Determination or undertaking related to a previously self-reported significant and/or systemic breach.
A serious breach will always also be considered significant.
A systemic breach is non-compliance that has implications beyond the immediate actions and parties affected by the non-compliance with the Code.
Systemic breaches are those which have affected or are likely to affect more than one person. It is likely to involve a process, policy or technological issue within the Code Subscriber’s operations.
A systemic breach may or may not be also considered significant.
We work with Code Subscribers to remedy Code breaches, and if necessary, implement a range of actions to enforce compliance with the Code.
Fact Sheet: Classification of non-compliance (PDF, 1 MB, one page)