THE Banking Code Compliance Committee (BCCC) has highlighted its first independent review and the work it has undertaken to implement the recommendations in its 2021-22 Annual Report.

In response to the review, the BCCC said it was improving its approach to operate more efficiently "while maintaining a high quality, trusted program of compliance monitoring".

'We were pleased with the consultative approach of the review and the comprehensive report that followed,’ BCCC chair, Ian Govey AM said.

"The report showed that the BCCC plays a critical role in promoting compliance with the Code and we are working hard on implementing the recommendations it made."

In its annual report, the BCCC noted the significant progress it had made on several recommendations. In particular, it emphasised how it had revitalised its Small Business and Agribusiness Advisory Panel.

"Breathing new life into the Small Business and Agribusiness Advisory Panel is an important step," Mr Govey said.

"The expert insight and advice we get from this panel is vital and we already see the value in its renewed form."

The annual report also made note of the need for banks to reduce breaches of the Code, and the BCCC expected improvements in the next 12 months.

For three consecutive reporting periods, July 2020 to December 2021, banks reported about 20,000 breaches, resulting in an overall increase of nearly 20 percent.

"A rise in Code breaches suggests that banks can still improve their systems and processes to comply with obligations," Mr Govey said.

"Although we have had changes in the regulatory environment in the past 18 months, banks have had sufficient time to consider the implications and ensure appropriate systems and processes are put in place.

"We expect to see better results in the coming 12 months."

The BCCC’s inquiry into inclusivity, accessibility and vulnerability was also a feature of the Annual Report, and it points to more work with banks in this area.

It showcases the findings of the inquiry, reiterating banks are in a prime position to identify customers at risk of poor outcomes and should ensure their systems and processes allow fair outcomes for all customers.

It states that the BCCC will follow up with banks in 2022-23 to see the action they took to address the inquiry’s findings and recommendations.

"This follow-up work is crucial," Mr Govey said. "To see the true effect of the inquiry, and whether it has led to improvements, we need to follow up with banks and examine their responses.

"The next financial year will reveal the extent to which banks implemented the recommendations. We expect to see some good results."

For the first time, the BCCC consulted stakeholders on its work program. The consultation focused on issues of the greatest risk of consumer harm, and the responses contributed to the development of the BCCC’s priority areas for the year ahead.

About the BCCC

The Banking Code Compliance Committee (BCCC) monitors adherence to the Banking Code of Practice. The BCCC’s purpose is to monitor and drive best practice Code compliance. To do this, the BCCC:

• examines banks’ practices
  * identifies current and emerging industry wide problems
  * recommends improvements to bank practices
  * sanctions banks for serious compliance failures, and
  * consults and keeps stakeholders and the public informed.

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THE Select Committee on Workforce Australia Employment Services will hold its first public hearing today, Thursday November 3, from 11.30am to 5pm AEDT.

The Committee will hear from the Department of Employment and Workplace Relations (DEWR), with a focus on key components of the system such as mutual obligations and the Targeted Compliance Framework. DEWR will also provide data on participant cohorts and demonstrate how online services platforms are used by individuals and employers.

There will be visual presentations and interactive demonstrations through most of the hearing to publicly explain and expose the:

• composition of the current unemployment caseload – who are the unemployed in Australia today and where do they live?
• online systems that unemployed Australians and employers use, and
• controversial Targeted Compliance Framework.

Committee Chair, Julian Hill MP said, “This is a first-principles review of Workforce Australia and the employment services system. We will build a robust evidence base starting with an understanding of who are the unemployed in Australia today and what are the systems they are required to engage with and be subject to. The Committee needs to understand the issues in detail to make recommendations so that employment services are best designed to meet current and future challenges facing Australian society”.

The Committee will call for submissions to its inquiry into Workforce Australia Employment Services in the coming weeks and will publish guidance material to assist submitters.

Further information about the inquiry, including Terms of Reference, published submissions and hearing transcripts, will be available on the inquiry website.

Public hearing details

Date: 3 November 2022

Time: 11.30am – 5pm AEDT

Location: Main Committee Room, Parliament House, Canberra

Witnesses: Department of Employment and Workplace Relations

The hearing will be live broadcast via the Parliament’s Watch, Read, Listen website.

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THE 2022-2023 Federal Budget has delivered on the Fedetal Government’s promise to implement its election commitments, according to the Financial Services Council (FSC).

FSC CEO Blake Briggs said, “The Government’s new Housing Accord delivers on the Government’s commitments and the financial services industry looks forward to the opportunity to take on the historical challenges that have prevented institutional capital from investing in affordable housing. 

“The FSC will work constructively with Government to ensure that any capital deployed is consistent with the legal obligation on superannuation trustees to promote the best financial interests of members.”

The FSC also welcomed additional funding to introduce climate reporting standards for large businesses and financial institutions, in line with international reporting requirements.

“The Government has responded to funds management industry calls for a mandatory, principles-based climate-reporting regime that will support investment in climate reduction and abatement, and we look forward to supporting the Government with this initiative,” Mr Briggs said.

The FSC also welcomed the Government’s Women’s Economic Equality Taskforce, which will advise on the optimal settings for the extension of the Government Paid Parental Leave scheme from 18 to 26 weeks, but urged the Government to go further to promote women’s economic security in retirement.

“It would be a missed opportunity if this taskforce did not recommend paying superannuation contributions on the Government’s paid leave program, which would help close the gender gap in superannuation – women on average have 25 per cent less superannuation than men at retirement," Mr Briggs said.

The FSC was also encouraged to see the Federal Budget contained no adverse changes to superannuation taxation and contribution settings.

“Stability in the superannuation tax and contribution settings ensures consumers have the confidence they need to make financial plans for their future as they battle inflation and plan for an uncertain global outlook," Mr Briggs said.

“Future budgets must continue to honour election commitments to provide stability and certainty in superannuation policy settings, and an enhanced focus on structural reform and economic growth to achieve Budget sustainability – not just increased taxes.”

www.fsc.org.au

About the Financial Services Council

The FSC is a peak body which sets mandatory standards and develops policy for more than 100 member companies in one of Australia’s largest industry sectors, financial services. FSC Full Members represent Australia’s retail and wholesale funds management businesses, superannuation funds, life insurers and financial advice licensees. Supporting Members represent the professional services firms such as ICT, consulting, accounting, legal, recruitment, actuarial and research houses. The financial services industry is responsible for investing $3 trillion on behalf of more than 15.6 million Australians. The pool of funds under management is larger than Australia’s GDP and the capitalisation of the Australian Securities Exchange, and is one of the largest pools of managed funds in the world.

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THE Joint Standing Committee on Foreign Affairs, Defence and Trade, through the Trade Subcommittee (the committee), has launched an inquiry into Australia’s tourism and international education sectors, with a focus on the operation of both sectors in the post COVID-19 world.

The Chair of the Trade Subcommittee, Senator Deborah O’Neill said, “Both the tourism and international education sectors have contracted substantially since the emergence of COVID-19. The committee looks forward to understanding how both sectors can be best supported so they can be positioned as key contributors to the post COVID-19 recovery of Australia’s economy.”

The committee will also consider the effectiveness of recent tourism campaigns overseas and how Australia can support tourism in the Asia Pacific region. In relation to international education, the committee is interested in hearing about innovations in the delivery of online education to strengthen the sector’s resilience.

“We encourage a broad range of stakeholders in the tourism and international education sectors from across the country to share experiences about transitioning into the post COVID-19 period,” Senator O’Neill said.

Submissions from interested individuals and organisations are invited by Monday, December 12, 2022. The preferred method of receiving submissions is by electronic format lodged online using a My Parliament account.

Further information about the committee’s inquiry, including the full terms of reference and details on how to lodge a submission is available on the committee’s website.

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