Appendix C: Industry Implementation

Recommendation 1.8 –

Amending the Banking Code

Australian Banking Association (ABA), individual banks

The ABA has announced the amended Banking Code, incorporating recommendations 1.8 and 1.13, will be implemented by March 2020.

The Government welcomes the Customer Owned Banking Association taking action to review its Code of Practice.

Recommendation 1.10 –

Definition of small business

ABA

The Government notes the view of the Council of Financial Regulators that maintaining the current definition of small business, with an independent review to be undertaken 18 months after commencement of the new Banking Code on 1 July 2019, would be appropriate to understand and manage any risks to business access to finance.

Recommendation 1.13 –

Charging default interest

ABA, individual banks

See recommendation 1.8.

Recommendation 1.14 –

Distressed agricultural loans

Individual banks

The Government expects that banks will implement recommendation 1.14 as soon as possible.

Recommendation 1.16 –

2019 Banking Code

ABA

The Government expects the ABA to work co‑operatively with ASIC to have the relevant provisions of the Banking Code approved as ‘enforceable code provisions’ as soon as practicable after legislation providing ASIC with these powers (recommendation 1.15) has been enacted.

Recommendation 4.9 –

Enforceable code provisions

Financial Services Council (FSC), Insurance Council of Australia (ICA)

The Government expects the FSC and ICA to work co‑operatively with ASIC to have the relevant provisions of their codes approved as ‘enforceable code provisions’ as soon as practicable after legislation providing ASIC with these powers (recommendation 1.15) has been enacted.

Recommendation 4.10 –

Extension of the sanctio
ns power

FSC, ICA

The Government expects the FSC and ICA to strengthen sanctions powers in their codes as soon as possible.

Recommendation 5.4 –

Remuneration for front line staff

All financial services entities

The Government expects all financial services entities to monitor remuneration arrangements on an ongoing basis, as recommended.

Recommendation 5.5 –

The Sedgwick Review

ABA member banks

The Government expects that banks will implement the recommendations of the Sedgwick Review relating to staff remuneration as soon as possible.

Recommendation 5.6 –

Culture and governance

All financial services entities

The Government expects all financial services entities to monitor culture and governance on an ongoing basis, as recommended.