Banking Code
| Company type | Voluntary industry code |
|---|---|
| Industry | Banking, Finance |
| Founded | 1993 (Australia) |
Area served | United Kingdom, Australia |
| Products | Banking conduct guidelines, ePayments Code (Australia) |
The Banking Code represented a voluntary set of guidelines agreed upon by banks in various nations. It generally detailed the procedures banks followed for managing deposits, withdrawals, and resolving customer complaints. In many jurisdictions, these codes have been supplanted by mandatory financial regulation established by government authorities.
United Kingdom
The Financial Services Authority (FSA) Banking Conduct Regime was introduced on 1 November 2009, governing the regulated activity of deposit acceptance. This regime replaced the non-credit elements of both the Banking Code and Business Banking Code, which were previously overseen by the Banking Code Standards Board.
Additionally, the Banking Code addressed legal responsibilities related to disputed debit and credit card transactions. As of 1 November 2009, it was replaced by the FSA Payment Services Regulations 2009, which hold banks legally accountable for transactions unless they can demonstrate customer consent.
Australia
Established in 1993, the Banking Code of Practice sets enforceable standards guiding how Australian banks interact with customers, small enterprises, and guarantors. This Code supplements statutory obligations and frequently imposes more stringent requirements.
Crafted by the Australian Banking Association, the Code undergoes an independent review every three years to ensure ongoing applicability. Notably, on 31 July 2018, it became the first Australian banking code to receive approval from the corporate regulator Australian Securities and Investments Commission under its industry code approval authority.
In response to concerns raised by Australia's Financial Services Royal Commission, banks revised the Code to enhance standards of integrity. Nonetheless, critiques persist concerning the independence of the Banking Code Compliance Committee, as its members are appointed by participating banks. Some stakeholders advocate for integrating recommendations from the Royal Commission’s interim report into the Code and enforcing strict legal liabilities with criminal sanctions for violations to improve its effectiveness.
ePayments Code
The ePayments Code safeguards Australian consumers engaging in electronic payment methods and was formerly known as the Electronic Funds Transfer Code of Conduct (EFT Code) since 1986. It governs electronic transactions including ATM withdrawals, EFTPOS payments, credit card use, online payments, internet and mobile banking services, as well as BPAY. This Code operates alongside regulatory frameworks such as financial services licensing requirements and consumer credit regulations under the Corporations Act 2001 and National Consumer Credit Protection Act 2009.