The unveiled Banking Code of Practice has some positives but leaves unresolved issues, according to the Small Business and Family Enterprise Ombudsman Kate Carnell.
In a statement following the ABA’s release of an ethical code on Wednesday, Ms Carnell said she was concerned the code cannot be properly enforced.
“The committee will not be fully independent and banks won’t be obliged to accept its recommendations,” she said.
“The code stipulates only that banks will comply with ‘reasonable’ requests of the committee. This means effectively that banks will only act on recommendations if they feel like it. If they don’t think the committee is reasonable they have an escape clause.
“It’s like the umpire is appointed by the home team and they don’t have to accept the umpire’s decision.”
At the same time Ms Carnell welcomed the code’s “simplified language” and specific focus on small businesses.
When financial failures occur and accountability can’t be pinpointed clearly, often it is the adviser that gets ...
When dealing with high-risk investment portfolios and platforms, it is important advisers manage expectations even when ...
Orbis Investments has added a new marketing head to extend its reach to advised retail investors as part of its “next ...
Never miss the stories that impact the industry.
Get the latest news! Subscribe to the ifa bulletin