The 2015-2016 Annual Report of the Code Compliance Monitoring Committee (CCMC), the Independent Committee established to monitor the Code of Banking Practice (the Code) has been published.
Subscriber banks reported 21% more breaches than the previous year and an increase in significant breaches. The CCMC believe that banks have improved their internal monitoring and processes for identifying and reporting breaches of the Code and that this partly explains the increase in breaches reported.
Provision of credit obligations now account for the largest proportion (29 per cent) of self-reported Code breaches. Credit products and issues related to the provision of credit also account for the majority of CCMC investigations.
The trends in both consumer Code breach allegations and self-reported breaches over recent years alerted the CCMC to compliance risk with regard to the Code’s provision of credit obligations. The CCMC is currently finalising the report of its own motion inquiry into the provision of credit obligations under the Code.
The independent report on the Reviews of the Code itself and of the Code Compliance Monitoring Committee has been deferred until the end of January 2017.
