Customer Owned Banking Code of Practice update

The Customer Owned Banking Code Compliance Committee (COBCCC) has released its 2021-22 Annual Data Report which includes the COBCCC’s findings of the 2021-22 Annual Compliance Statement (ACS) program as well as providing guidance and recommendations for subscribers on the implementation of the 2022 Customer Owned Banking Code of Practice.

The Report principally considers breach data and complaints data to provide the following insights:

  • Quality of reporting needs improvement: Although there was a significant increase in the number of complaints reported by subscribers, the COBCCC notes that too many Code subscribers reported no breaches or a low number of breaches and some subscribers reported inadequate or no breach recording systems.
  • Lack of addressing detailed Code provisions: subscribers should use specific Code obligations wherever possible when reporting breaches.
  • Lack of details about remedial action: For just under half of all breaches, subscribers used the category ‘other’ to provide details for immediate remedial action. And about three-quarters of breaches did not specify long-term remedial action.
  • Lack of assessment regarding severity and impact: One-third of subscribers did not provide details about the severity and management of reported breaches.

The commencement of ASIC’s Regulatory Guidance 271 – Internal Dispute Resolution on 5 October 2021 meant subscribers had to comply with new requirements for internal dispute resolution and recording and reporting complaints.

The COBCCC aligned its categories for products involved in breaches with the ASIC’s IDR Data Reporting Handbook to assist subscribers with the collation of data and avoid the duplication of systems.

The Report also identifies key misconceptions about recording and reporting complaints and breaches.

If you found this article helpful, then subscribe to our news emails to keep up to date and look at our video courses for in-depth training. Use the search box at the top right of this page or the categories list on the right hand side of this page to check for other articles on the same or related matters.

David Jacobson

Author: David Jacobson
Principal, Bright Corporate Law
About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.

Print Friendly, PDF & Email

Your Compliance Support Plan

We understand you need a cost-effective way to keep up to date with regulatory changes. Talk to us about our fixed price plans.