An interim review of the Customer Owned Banking Code of Practice has recommended stronger protections for at‑risk customers, signalling potential changes for mutual banks and credit unions that many brokers deal with.
Independent reviewer Eva Scheerlinck of Scheerlinck Consulting has released preliminary findings and draft recommendations following consultation with a wide range of stakeholders.
“We are grateful for the extensive feedback received to date, which has been instrumental in shaping the interim report,” Scheerlinck said.
She said the recommendations are designed to clarify what customers can expect from their institutions while maintaining the sector’s co‑operative focus.
“I am now seeking feedback on my proposed recommendations that make structural changes to the code to clearly define the outcomes customers can expect,” Scheerlinck said.
The interim report proposes a series of updates to the code, including stronger provisions aimed at preventing and responding to financial abuse. It also seeks to improve support for customers experiencing vulnerability and to lift the effectiveness and consistency of hardship assistance across customer‑owned institutions.
Customer Owned Banking Association (COBA) chief executive Michael Lawrence, who will retire later this year, said the review is a chance to lift standards for the more than 5.4 million Australians who use customer‑owned banking.
“We would like to thank the independent reviewer for her work to date. It is important that our consumer protections remain robust in today’s rapidly changing environment,” Lawrence said.
The Customer Owned Banking Code of Practice is the industry code for mutual banks and credit unions, and must be independently reviewed at least every five years. Stakeholders are now invited to consider the interim report and comment on the proposed recommendations, with submissions due by Monday, 8 June.
Feedback gathered during this phase will shape the final report, which is scheduled to be delivered to COBA on Tuesday, 30 June. Any changes adopted from the review are expected to guide future conduct standards across the customer‑owned banking sector, with flow‑on implications for mortgage and finance products offered through these institutions.
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