Transaction fee disclosure on statements for deposit products

The issue of disclosure of transaction fees on statements for deposit accounts is not dealt with in the current Credit Union Code of Practice.

But clause 16.3 of the draft Mutual Banking Code of Practice states:

Account statements will include clear information about our fees and charges incurred on your account during the statement period. Fee amounts will not be bundled, but will be broken down by transaction type and channel. The impact of any applicable fee-free limit or rebate scheme will also be indicated.

This will bring disclosure of transaction fees into line with ASIC Regulatory Guide 40 (good transaction fee disclosure for bank, credit union and building society deposit and payment products).

The Guide has sample transaction fee table disclosure: the objective is to clearly show the cost of each transaction per different delivery channel and the number of such transactions undertaken. The impact of any free transaction limit, rebate scheme or other relationship variable should also be reflected in the summary.

The requirement will not apply to passbook accounts and dormant accounts.

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