The Banking Code Compliance Committee (BCCC) has expressed concerns about banks’ organisational capability – particularly in relation to how they equip and enable staff to comply with the Banking Code – the adequacy of staff training and the robustness of their compliance frameworks to identify the genuine root cause of breaches and prevent a recurrence.
The BCCC’s report, Building Organisational Capability, makes 17 better practice recommendations under five key areas:
- Communication strategy – that is effective and ensures employees understand the intent and importance of processes related to the Code’s customer protections.
- Learning and development – that goes beyond Code awareness to ensure all staff understand the Code’s role in the consumer protection framework.
- Systems, processes, and technology – that is designed for compliance and has the customer and employee’s needs at its centre.
- Robust compliance frameworks – that can accurately identify a breach, drill down to find the true root cause, and fix it to prevent it from happening again.
- Culture – that promotes customer-centric decision-making and empowers staff to take ownership of achieving fair customer outcomes.
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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.