ASIC Grants Approval for Variations to the Banking Code of Practice

The Australian Securities and Investments Commission (ASIC) announced today that it has approved variations to the Banking Code of Practice (the Code).

As proposed by the Australian Banking Association (ABA), the variations include:

• Modify the Code's definition of 'banking services' to address an anomaly in the Code's previous wording that excluded certain types of small business banking customers who would otherwise meet the Code's definition of 'small business'.
• Amend slightly the Code's definition of 'small business'.
• Lengthen the application of the Code's COVID-19 Special Note for a further six months until 1 September 2021 to allow for special application of specified Code provisions given the extraordinary external environment caused by COVID-19.
• Name situations in which banks may refuse to continue dealing with a representative that a customer in financial difficulty has appointed, as the bank reasonably considers that representative as unable to act in the customer's best interests.
• Align the Code's timeframes to prepare for complaints with the updated timeframes in ASIC's Regulatory Guide 271 Internal dispute resolution due to commence on 5 October 2021.