The Australian Banking Association has announced that it will amend the Banking Code of Practice to address the following issues:

• Ending ‘fees for no service’ – Banks will change the way they manage ongoing financial advice, proactively contacting customers to confirm what advice is required and only charging for what is provided;
• Deceased estates – Once notified of a customer’s death, banks will proactively identify fees that are for products and services that can no longer be provided in the circumstances, stop charging those fees and refund any paid.

Both issues were considered by the Financial Services Royal Commission.

The Australian Banking Association has also announced that it will seek changes to the Corporations Act to remove all legislative provisions that allow grandfathered payments and trail commissions in financial advice.