Terms of Reference

Scope & Terms of Reference for the Review of the Code Compliance Monitoring Committee

Introduction

The Code Compliance Monitoring Committee (CCMC) is an independent compliance monitoring body established under clause 36 of the 2013 Code of Banking Practice (the Code).

The CCMC’s purpose is to monitor compliance with the Code, thereby contributing to the improvement of standards of practice and service by code-subscribing banks.

The CCMC’s Mandate (the Mandate), together with the Code, sets out the terms that govern the functions and operations of the CCMC, to which the Code Subscribers have agreed. The Mandate is published with the Code by the Australian Bankers Association (ABA).

The Code and Mandate state that the CCMC has the following functions:

  • To investigate, and to determine, an allegation from any person that a code- subscribing bank has breached the Code.
  • To monitor code-subscribing banks’ compliance with the Code’s obligations.
  • To monitor any aspects of the Code that are referred to the CCMC by the ABA.

On 20 April 2016, the ABA announced that a review of the Code would be conducted in
2016. Clause 14.3 of the Mandate requires the CCMC to arrange a periodic review of its activities, to coincide with the periodic review of the Code by the ABA.

This review of the CCMC is, therefore, being undertaken in accordance with that requirement.

Independent Reviewer

In commissioning this review of its activities, and after consultation with the ABA and other stakeholders, the CCMC has appointed Philip Khoury, of Cameronralph Navigator, an independent person with relevant qualifications and experience to conduct this review.

Mr Khoury will also conduct the review of the Code. The CCMC considers that this represents a prudent and efficient course of action and does not create a conflict of interest.

Scope of the Review

The Scope of this review is to assess the CCMC’s performance of its functions and operations in respect to the requirements set out in its Mandate.

In doing so the review will consider:

  • the Committee’s performance of its investigations role
  • the Committee’s performance of its monitoring role
  • the Committee’s performance of its role of monitoring aspects of theCode referred by the ABA
  • the Committee’s external relationships
  • the Governance arrangements put in place by the Committee.

The review will also consider the performance of the CCMC taking into account good practice standards such as:

  • Those parts of ASIC’s Regulatory Guide 183: Approval of financial services sector codes of conduct that relate to the operation of the CCMC.
  • The principles of the ‘Benchmarks for industry-based Customer Dispute Resolution Schemes’ that relate to the operation of the CCMC.
  • The Australian Privacy Principles, published by the Office of the Australian
    Information Commissioner.

In completing this review, recommendations which will improve the CCMC’s functions and operations should be made where appropriate.

Further Terms of Reference are provided below.

Terms of Reference

In completing this review, reference will be made to the further terms listed below.  As noted in the Scope, this review will assess the CCMC’s performance of its functions and operations, and, where appropriate, make recommendations for improvements.

1.  The CCMC’s performance of its monitoring and investigation role

  1. The extent to which the CCMC achieves its purpose of creating a better banking experience by monitoring compliance with the Code, and thereby contributing to the improvement of standards of practice and service by code-subscribing banks.
  2. The extent to which the CCMC is properly interpreting its role under the Code and Mandate.
  3. Consideration of whether the CCMC has adopted an appropriate and effective approach to compliance monitoring and compliance investigations.
  4. The appropriateness of the sanctions available to the CCMC with respect to its role.
  5. The extent the CCMC’s performance of its role has provided credibility to the Code as a self-regulatory scheme.
  6. The extent to which the CCMC responds appropriately to the concerns of customers who raise allegations of breaches of the Code.

2.  The CCMC’s external relationships

  1. The appropriateness of the CCMC’s public profile.
  2. The effectiveness of the relationships the CCMC has developed with its stakeholders.
  3. The adequacy of the CCMC‘s access to necessary information from stakeholders to enable it to assess bank’s compliance with the Code.

3.  The practical application of the CCMC’s role

  1. How well the CCMC has prioritised the various compliance monitoring activities it is required to undertake.
  2. Whether fair, efficient and transparent procedures for dealing with alleged breaches of the Code have been put in place and the extent to which these procedures are being followed.
  3. Whether, and to what extent, the CCMC has acted in accordance with the principles of the ‘Benchmarks for industry-based Customer Dispute Resolution Schemes’ when dealing with alleged breaches of the Code.
  4. The extent to which the CCMC fulfils its functions in accordance with the guidance related to code administration set out in ASIC’s Regulatory Guide 183: Approval of financial services sector codes of conduct.

4.  Governance  requirements

  1. The extent to which the CCMC has met its reporting requirements.
  2. Whether the CCMC has acted fairly, independently and appropriately with respect to its role under the Code and its Mandate.
  3. Whether the CCMC has put in place procedures which ensure it acts fairly, efficiently and transparently in all its dealings and the extent to which these procedures are being followed.
  4. The appropriateness of the current structure of the CCMC and its support staff, in particular whether it has sufficient resources to fulfil its role.
  5. The extent, if any, to which the CCMC has been prevented from fulfilling its functions because of the requirements and restrictions of its Mandate and clause 36 of the Code.