The Code Compliance Committee for the Mutual Banking Code of Practice has announced its areas of focus for 2012 will include Code training and compliance with the rules on direct debits:
- The Committee will be examining compliance by Mutuals with their Code obligations to adequately train staff on their Code obligations and ensure that they apply the training in their dealings with members. The review will include an examination of whether Code requirements under Key Promises 5 and 10 and Part E, Section 2 of the Code, have been incorporated into day-to-day procedures and processes.
- The Committee will conduct a follow up shadow shopping exercise to assess compliance by mutuals with the rules on direct debits (Part D, Section 20.1). The objectives of the follow up review are to gauge any improvement in the industry’s compliance of Section 20.1 of the Code since the last review was conducted in 2010 and examine if disclosure information in Mutuals T&Cs is consistent with the obligations under the Code. Mutuals that did not take part in the 2010 direct debit shadow shop may be the subject of a shadow shop on this occasion.