2

ABS 's CODE OF BANKING PRACTICE 2013 and Code Compliance Monitoring Mandate

CONTENTS

PART A: INTRODUCTION 5

1. Introduction 6

PART B: APPLICATION 7

2. Application of this Code 8

PART C: OUR KEY COMMITMENTS AND GENERAL OBLIGATIONS 9

3. Our key commitments to you 10

4. Compliance with laws 10

5. Retention of your rights 10

6. Review of this Code 10

7. Customers with special needs 11

8. Customers in remote Indigenous communities 11

9. Staff training and competency 12

10. Promotion of this Code 12

11. Availability of copies of this Code 12

PART D: INFORMATION WE

WILL GIVE YOU ABOUT OUR BANKING SERVICES 13

12. Terms and conditions 14

13. Copies of documents 15

14. Cost of credit 16

15. Operation of accounts 16

16. Account suitability 17

PART E: BANKING SERVICES PRACTICES 18

17. Bank cheques and inter-bank transfers 19

18. Pre-contractual and new account information 19

19. Account combination 19

20. Changes to terms and conditions 20

21. Direct debits 21

22. Chargebacks 21

23. Information relating to foreign exchange services 21

24. Privacy and confidentiality 21

25. Payment instruments 22

26. Statements of account 22

27. Provision of credit 23

28. If you are experiencing financial difficulties with your credit facility 23

29. Joint debtors 24

30. Joint accounts and subsidiary cards 24

31. Guarantees 25

32. Debt collection 29

33. Closure of accounts in credit 29

34. Branch closure protocol 29

35. Electronic communications 30

PART F: RESOLUTION OF DISPUTES, MONITORING AND SANCTIONS 31

36. Monitoring and sanctions 32

37. Internal dispute resolution 33

38. External dispute resolution 34

39. Availability of information about dispute resolution processes 35

40. Family law proceedings 35

PART G: TRANSITION 36

41. Transitional provisions 37

PART H: DEFINITIONS 39

42. Definitions 40

CONTENTS CODE OF BANKING PRACTICE

INTRODUCTION - PART A

6 CODE OF BANKING PRACTICE 2013

PART A INTRODUCTION

PART A: INTRODUCTION

1. Introduction

This Code is a voluntary code of conduct which sets standards of good banking practice for us to follow when dealing with persons who are, or who may become, our individual and small business customers and their guarantors.

APPLICATION - PART B

8 CODE OF BANKING PRACTICE 2013

PART B APPLICATION

2. Application of this Code

2.1. This version of the Code of Banking Practice commences on the 2013 transition date, and we will generally apply this Code to:

(a) new banking services we provide to you on or after that date;

(b) new Guarantees we take from you on or after that date; and

Guarantees.

2.2. There are some exceptions to these general principles. Please see clause 41 for more details of how the Code will apply in relation to your existing and new banking services or Guarantees.

PART B: APPLICATION

OUR KEY COMMITMENTS AND GENERAL OBLIGATIONS - PART C

10 CODE OF BANKING PRACTICE 2013

PART C OUR KEY COMMITMENTS AND GENERAL OBLIGATIONS

3. Our key commitments to you

3.1. We will:

(a) through the ABA, consult with

small business and consumer

organisations, to continuously

work towards improving the

standards of practice and

service in the banking industry

(see also clause 6.3);

(b) promote better informed

decisions about our banking services:

i. by providing effective

disclosure of information;

ii. by explaining to you, when

asked, the contents of

brochures and other written

information about banking

services; and

iii. if you ask us for advice on

banking services:

A. by providing that

advice through our staff

authorised to give such

advice;

B. by referring you to

appropriate external

sources of advice; or

C. by recommending that

you seek advice from

someone such as your

legal or financial adviser;

about the rights and obligations

that arise out of the banker and

customer relationship in relation

to banking services;

(d) provide information to you in

plain language;

(e) communicate with you and/

or your representatives in a

timely and responsible manner

whether by written or electronic

communications (including by

telephone); and

(f) monitor external developments

relating to banking codes of

practice, legislative changes and

related issues.

3.2. We will act fairly and reasonably

towards you in a consistent and

ethical manner. In doing so we will

consider your conduct, our conduct

and the contract between us.

3.3. In meeting our key commitments

to you, we will have regard to our

prudential obligations.

4. Compliance with laws

4.1. We will comply with all relevant

laws relating to banking services.

4.2. If this Code imposes an obligation

on us, in addition to obligations

applying under a relevant law, we

will also comply with this Code

except where doing so would lead

to a breach of a law (for example, a

privacy law).

5. Retention of your rights

In addition to your rights under this

Code, you retain any rights you

may have under Federal, State and

Territory laws.

6. Review of this Code

6.1. We will require the ABA to

commission an independent review

of this Code every 5 years after

PART C: OUR KEY COMMITMENTS AND GENERAL OBLIGATIONS

CODE OF BANKING PRACTICE 2013 11

PART C OUR KEY COMMITMENTS AND GENERAL OBLIGATIONS

the commencement date of this

Code, or earlier at our request,

with the review to be conducted in

consultation with:

(a) banks which adopt this Code;

(b) small business and consumer

organisations;

associations;

(d) relevant regulatory bodies; and

(e) other interested stakeholders.

6.2. We will participate in any such

review and co-operate with the

person conducting it.

6.3. We will require the ABA to

establish, and we will support, a

forum (including consumer, small

business and banking industry

representatives) for the exchange of

views on:

(a) banking issues; and

(b) the effectiveness of this Code.

We will also require the ABA to

ensure that these views are taken

into account in the next review of

this Code.

6.4. We will require the ABA to

promptly publish on its website:

(a) the recommendations and

report arising from a review of

this Code (and to make them

available to the public in hard

copy on request);

(b) reasons why any such

recommendation has not been

accepted; and

implementation of those

recommendations which have

been accepted, until the

implementation process is

complete.

7. Customers with special needs

We recognise the needs of older

persons and customers with

a disability to have access to

transaction services, so we will take

reasonable measures to enhance

their access to those services.

8. Customers in remote

Indigenous communities

If you are a member of a remote

Indigenous community, we will take

reasonable steps to:

(a) make information about

banking services that may be

relevant to you available in an

accessible manner;

(b) at your request, provide you

with details of accounts which

may be suitable to your needs,

including in a remote location.

This information may include

details of our accounts which

attract no or low standard fees

and charges;

identification requirements

(having regard to our

obligations under the Anti-

Money Laundering and Counter-

Terrorism Financing Act 2006);

(d) appropriately train staff who are

regularly dealing with you in a

remote location to be culturally

aware; and

(e) consider publicly-announced

key Commonwealth, State and

Territory government programs,

such as income management

programs, that may be relevant

in providing our banking

services to you.

12 CODE OF BANKING PRACTICE 2013

PART C OUR KEY COMMITMENTS AND GENERAL OBLIGATIONS

9. Staff training and competency

We will ensure our staff (and our

authorised representatives) will be

trained so that they:

(a) can competently and efficiently

discharge their functions and

provide the banking services

they are authorised to provide in

compliance with this Code; and

(b) have an adequate knowledge

of the provisions of this Code

and its application to banking

services.

10. Promotion of this Code

We will require the ABA to:

(a) promote this Code; and

(b) clearly make public:

i. which banks subscribe to this

Code; and

ii. how you can get a copy of

this Code.

11. Availability of copies of this

Code

We will:

(a) display, at our branches, a copy

of this Code in a readily visible

manner;

(b) make this Code available on

request;

website; and

(d) send this Code to you by

electronic communication or

mail on request.

INFORMATION WE WILL GIVE YOU ABOUT OUR BANKING SERVICES - PART D

14 CODE OF BANKING PRACTICE 2013

PART D INFORMATION WE WILL GIVE YOU ABOUT OUR BANKING SERVICES

12. Terms and conditions

12.1. We will expeditiously provide to

you, or any person, on request:

(a) the terms and conditions of

any ongoing banking service

we currently offer;

(b) full particulars of standard

fees and charges that are, or

may become, payable for any

banking service we currently

offer; and

applicable to any banking

service we currently offer.

12.2. The terms and conditions of our

banking services will:

(a) be distinguishable from

marketing or promotional

material;

(b) be in English and any other

language we consider to be

appropriate;

(d) be provided at the time of,

or before the contract for an

ongoing banking service

is made, except where it is

impracticable to do so, in which

case they will be provided as

soon as practicable afterwards;

and

(e) draw attention to the availability

of the general descriptive

information referred to in

clauses 15.1 and 15.2 if it is

relevant, and where relevant,

will specifically mention the

availability of information about:

i. account opening procedures;

ii. our obligations regarding

the confidentiality of your

information;

iii. complaint handling

procedures;

iv. bank cheques;

v. the advisability of you

informing us promptly when

you are in financial difficulty; and

vi. the advisability of you reading the terms and

conditions applicable to the

relevant banking service.

12.3. Any written terms and conditions

will include a statement to the

effect that the relevant provisions

of this Code apply to the banking

service but need not set out those provisions.

12.4. We will include (where relevant) the

following in, or with, our terms and

conditions applying to a banking service:

(a) the standard fees and charges

that then apply;

(b) the method by which interest,

if any, is calculated and the

frequency with which it will be

credited or debited;

notified of changes to:

i. the terms and conditions;

ii. fees and charges; and

iii. interest rates;

(d) if appropriate, the fact that

more than one interest rate may apply;

PART D: INFORMATION WE WILL GIVE YOU ABOUT OUR

BANKING SERVICES

CODE OF BANKING PRACTICE 2013 15

PART D INFORMATION WE WILL GIVE YOU ABOUT OUR BANKING SERVICES

(e) any minimum balance

requirement or restriction

on depositing money in, or

withdrawing money from, an

account;

(f) for term deposits:

i. how we will pay interest and

repay the principal;

ii. how funds may be dealt with

at maturity; and

iii. details of any fee or charge

or change in an interest rate

resulting from a withdrawal in

advance of maturity;

(g) in respect of a loan to you which

is not regulated by the National

Credit Code, the repayment details;

(h) subject to clause 26, the

frequency with which statements

of account will be provided;

(i) a statement that information

on current interest rates and

standard fees and charges is

available on request;

(j) how we will process the

cancellation of a direct debit

request relevant to a banking

service, in accordance with

clause 21 of this Code; and

(k) how you or we may alter or stop

another payment service.

12.5. We will include in, or with, the

terms and conditions for our credit

cards and, where relevant, debit cards:

(a) general information on

chargeback rights;

(b) a prominent statement:

i. that you should report a

disputed transaction to us

as soon as possible (so that

we may reasonably ask for

a chargeback where such a

right exists); and

ii. which refers you to

the specific reporting

requirements for disputed

transactions in your credit

card terms and conditions

and that time limitations may

not apply in circumstances

where the ePayments Code applies; and

dispute a transaction may be

lost if it is not reported within

the timeframes we specify or describe.

12.6 If you have a credit facility

secured over your primary place

of residence or your residential

investment property with us, we

will remind you annually of your

obligations to insure the property

under the terms and conditions

of your relevant mortgage. Our

reminder to you will also include:

(a) a general statement to make

inquiries with your insurer about

your cover; and

(b) a reference to ASIC’s

MoneySmart website

(www.moneysmart.gov.au)

for information on property insurance.

13. Copies of documents

13.1. If you request a copy of a

document, you may have rights

in respect of that request under

the National Consumer Credit

Protection Act 2009 or Chapter

7 of the Corporations Act 2001,

which are greater than those which

apply under this Code. We will

16 CODE OF BANKING PRACTICE 2013

PART D INFORMATION WE WILL GIVE YOU ABOUT OUR BANKING SERVICES

comply with the relevant law when

it applies. Otherwise this clause 13 applies.

13.2. At your request, we will give you

a copy of any of the following

documents that we have retained in

accordance with relevant legislation

for the retention of documents,

relating to a banking service you

have, or had, with us:

(a) a contract (including terms and

conditions, standard fees and

charges and interest rates);

(b) any mortgage or other security document;

(d) a notice previously given to you

relevant to us exercising our rights.

13.3. We will, subject to clauses 13.4 and

13.5, provide you with a copy of a document:

(a) within 14 days, if the original

came into existence 1 year or

less before the request is given;

(b) within 30 days, if the original

came into existence more than 1

year but less than 7 years before

the request is given; and

13.4. We do not have to give you a

copy of a notice which requires

you to take action if we receive

the request more than 2 years after

discharge or termination of the

original contract to which the notice is related.

13.5. We do not have to give you

another copy of a statement of

account within 3 months after we

have given you a copy of the same statement of account.

13.6. A copy of a document provided

to you under this Code may be in

electronic form containing the same

information as the original or in any

other form as mutually agreed.

13.7. We may charge you a reasonable

fee for providing you with a copy of

a document under this Code.

14. Cost of credit

We will make available to you,

a prospective customer or an

appropriate external agency the

interest rates and standard fees

and charges applicable to a

banking service that is a credit

facility offered by us, for use in the

preparation of a comparison rate.

15. Operation of accounts

15.1. We will provide to you or a

prospective customer, on request,

general descriptive information

concerning our banking services,

including where appropriate:

(a) account opening procedures;

(b) our obligations regarding

the confidentiality of your information;

(d) bank cheques;

(e) the advisability of you informing

us promptly when you are in

financial difficulty so that we

may discuss your situation; and

(f) the advisability of you reading

the terms and conditions

applying to the relevant banking service.

CODE OF BANKING PRACTICE 2013 17

PART D INFORMATION WE WILL GIVE YOU ABOUT OUR BANKING SERVICES

15.2. When you open an account with

cheque access, and on request,

we will provide you with general

descriptive information on:

(a) the time generally taken for

clearing a cheque and how

a cheque may be specially cleared;

(b) the effect of crossing a

cheque, the meaning of “not

negotiable” and “account

payee only” and the significance

of deleting “or bearer” when

any of these expressions appear on a cheque;

(d) how a cheque may be made

out so as to reduce the risk of

unauthorised alteration; and

(e) the dishonour of cheques,

including post-dated and stale cheques.

16. Account suitability

16.1. Clause 16 does not apply if you are a small business.

16.2. If you tell us that:

(a) you are a low income earner

or a disadvantaged person

(regardless of whether you

are an existing or prospective customer); or

(b) you would like factual

information about accounts

which attract no or low standard fees and charges,

we will provide you with factual

information about any of our

accounts which may be suitable to

your needs. That information may

include details of our accounts

which attract no or low standard

fees and charges.

16.3. If in the course of speaking with

you, in relation to your accounts,

we become aware that you may

be the holder of a Commonwealth

Seniors Health Card, Health Care

Card or Pensioner Concession Card

(regardless of whether you are an

existing or prospective customer),

we will provide you with factual

information about our accounts

which attract no or low standard fees and charges.

16.4. Please note that we will not

assess continuously whether you

may be a low income earner or

a disadvantaged person, but we

encourage you to let us know at

any time if this is the case.

16.5. We will make information publicly

available about accounts which

attract low or no standard fees

and charges on our website and

through other means.

16.6. We will train staff to help them to

recognise a customer that may

qualify for an account which attracts

no or low standard fees and charges.

16.7. Information disclosed under this

clause 16 will include:

(a) terms and conditions of

relevant accounts; and

(b) fees and charges for relevant accounts.

BANKING SERVICES PRACTICES - PART E

CODE OF BANKING PRACTICE 2013 19

PART E BANKING SERVICES PRACTICES

17. Bank cheques and inter-bank transfers

Where we charge you for the

provision of a bank cheque, an

inter-bank transfer or like service,

we will disclose the fee or charge to

you when the service is provided,

or at any other time on request,

except where the relevant banking

service is regulated by Chapter 7 of

the Corporations Act 2001.

18. Pre-contractual and new account information

18.1. We will disclose to you the

existence of any application fee

or charge and whether the fee

or charge is refundable if your

application is rejected or not

pursued. This will be done before

you are liable to pay any such fee or charge.

18.2. We will provide to you or a

prospective customer on request,

general descriptive information

(which may consist of, or include,

material made available by a government) about:

(a) the identification requirements

of the Anti-Money Laundering

and Counter-Terrorism Financing Act 2006; and

(b) the options available to you or a

prospective customer under tax

file number legislation.

18.3. When you already have an account

with us and we open a new account

for you, we will state in writing:

(a) whether the new account may

be combined with the existing account; and

(b) what the consequences are if

the accounts are combined.

19. Account combination

19.1. We will inform you promptly after

exercising our right to combine

your accounts. In exercising a

right to combine accounts, we

will comply with any applicable

requirements of the Code of

Operation for Department of

Human Services and Department

of Veterans’ Affairs Direct Credit Payments.

19.2. We will not exercise our right

to combine your accounts in

connection with amounts you owe

in respect of your credit facility

with us which is regulated by the

National Credit Code:

(a) while we are actively

considering your financial

situation under clause 28 or

under the hardship provisions

of the National Credit Code.

We may ask you, as a condition

of not exercising our right to

combine your accounts, that

you agree to retain funds in

an account until our decision

on your application has been made; or

(b) while you are complying

with an agreed arrangement

with us resulting from our

considerations referred to in

clause 19.2(a).

PART E: BANKING SERVICES PRACTICES

20 CODE OF BANKING PRACTICE 2013

PART E BANKING SERVICES PRACTICES

20. Changes to terms and conditions

20.1. When, in relation to a banking

service, we intend to:

(a) introduce a fee or charge (other

than a government charge

referred to in clause 20.2);

(b) vary the minimum balance to

which an account keeping fee applies;

interest is calculated;

(d) vary the balance ranges within

which interest rates apply to a

deposit account; or

(e) vary the frequency with which

interest is debited or credited,

we will provide written notice of

the introduction or variation to

you at least 30 days before the

change takes effect except where

this notice is not required, where

you cannot reasonably be located

or you have engaged in the

transaction or procured the service anonymously.

20.2. We will notify you of the

introduction or variation of a

government charge payable

directly, or indirectly, by you by

advertisement in the national

media or local media or in writing

to you, unless the introduction

or variation is publicised by a

government, government agency

or representative body.

20.3. We will notify you of variations to

the terms and conditions (other

than a variation referred to in clause

20.1 or clause 20.2) in relation to a

banking service by advertisement

in the national media or local media

or in writing to you, no later than

the day on which the variation takes effect.

20.4. If:

(a) you are a small business with a

banking service being a credit facility; and

(b) we make a variation (other than

a variation referred to in clause

20.1 or 20.2) to only the terms

and conditions of your credit

facility (and not to the terms

and conditions of the credit

facilities of other small business

customers), and we reasonably

consider the variation will be

materially adverse to you,

we will give you a reasonable

period of notice (not less than 10

business days) in writing of that

variation, unless we consider a

shorter notice period is necessary

for us to avoid or reduce an

increase in the credit risk to us.

20.5. In both clauses 20.3 and 20.4, for

the avoidance of doubt, a variation

to the terms and conditions

includes a variation of standard

fees and charges or of an interest

rate, but does not include changes

to an interest rate linked to money

market rates or some other external

reference rate, changes of which

we cannot notify you of in advance.

20.6. Clauses 20.1 to 20.4 do not apply

to a banking service regulated by:

(a) the National Credit Code; or

(b) Chapter 7 of the Corporations Act 2001.

This is because these laws have

their own notice requirements.

CODE OF BANKING PRACTICE 2013 21

PART E BANKING SERVICES PRACTICES

21. Direct debits

21.1. We will take and promptly process your:

(a) instruction to cancel a direct

debit request relevant to a

banking service we provide to you; and

(b) complaint that a direct debit

was unauthorised or otherwise irregular.

21.2. We will not direct or suggest that

you should first raise any such

request or complaint directly with

the debit user (but we may suggest

that you also contact the debit user).

21.3. Clause 21.1 does not apply to a

payment service relating to a credit

card account (see clause 22).

22. Chargebacks

22.1. If you have disputed a card transaction with us within the required timeframe, we will, in relation to a credit card or, where relevant, a debit card transaction (including an unauthorised payment debited to your card account pursuant to a recurring payment arrangement):

(a) claim a chargeback right, where one exists, for the most appropriate reason; and

(b) not accept a refusal of a chargeback by a merchant’s financial institution unless it is consistent with the relevant card scheme rules.

22.2. We will make available general information about chargebacks on our website or by electronic communication to you and we will notify you of the availability of this information on or with the relevant card statement of account at least once every 12 months.

23. Information relating to foreign exchange services

23.1. In providing a foreign exchange

service, other than by credit or

debit card or travellers’ cheque, we

will provide to you:

(a) details of the exchange rate and

commission charges that will

apply or, if these are not known

at the time, details of the basis

on which the transaction will be

completed if they are known to us; and

(b) an indication of when money

sent overseas on your

instructions would normally

arrive at the overseas destination.

23.2. Prior to advancing a foreign

currency loan in Australia, we will

provide to you in our letter of offer,

loan terms and conditions (which

may be in the form of a master

agreement) or other relevant

document, a general warning in

writing of the risks arising from

exchange rate movements and

will inform you generally of the

availability of mechanisms, if they

exist, for limiting such risks.

24. Privacy and confidentiality

We acknowledge that, in addition

to our duties under the Privacy Act

1988, we have a general duty of

confidentiality towards you, except

in the following circumstances:

22 CODE OF BANKING PRACTICE 2013

PART E BANKING SERVICES PRACTICES

(a) where disclosure is compelled by law;

(b) where there is a duty to the public to disclose;

(d) where disclosure is made with your express or implied consent.

25. Payment instruments

25.1. We will inform you of the

advisability of safeguarding

payment instruments such as credit

and debit cards, cheques and passbooks.

25.2. We may require you to notify us,

as soon as possible, of the loss,

theft or misuse of your payment instruments.

25.3. We will inform you of:

(a) the consequences arising from

your failure to comply with

any requirement referred to in

clause 25.2 that we impose on you; and

(b) the means by which you can

notify us of the loss, theft

or misuse of your payment instruments.

26. Statements of account

26.1. We will give you a statement of

all transactions relating to your

deposit account since the last

statement at least every 6 months unless:

(a) the deposit account is a passbook account; or

(b) it has been agreed that:

i. some other method will

be used to record the transactions; or

ii. a statement need not be provided; or

credited to the account during

the statement period (other

than debits for government

charges, or duties, on receipts or withdrawals); or

(d) we are unable, after taking

reasonable steps, to locate you; or

(e) the transaction information has

already been provided to you.

26.2. You may ask for more frequent

statements of account on a deposit account.

26.3. Even if you are in default, we will:

(a) if it is practicable for us to do

so, give you a statement on a loan account; or

(b) if it is not practicable (for

example, because automatic

statement generation is not

available on defaulted accounts)

we will inform you about the

availability of statements and

the method for requesting

them and provide you with

statements, on request, in a timely manner.

26.4. If you are a small business, or

an individual and the National

Credit Code statement of account

provisions do not apply to your

loan or other credit account,

we will give you a statement of

transactions on your account

consistent with the content and

timing requirements of the National

Credit Code except where the

CODE OF BANKING PRACTICE 2013 23

PART E BANKING SERVICES PRACTICES

nature of the banking service is

such that it would be impractical

to apply the National Credit Code

statement of account provisions to the banking service.

27. Provision of credit

Before we offer, give you or

increase an existing, credit facility,

we will exercise the care and skill

of a diligent and prudent banker in

selecting and applying our credit

assessment methods and in forming

our opinion about your ability to

repay the credit facility.

28. If you are experiencing

financial difficulties with your credit facility

28.1. This clause 28 applies to a credit

facility you have with us.

28.2. With your agreement and cooperation,

we will try to help you

overcome your financial difficulties

with any credit facility you have with

us. We could, for example, work

with you to develop a repayment plan.

28.3. We will deal with you or,

at your request, with your

authorised financial counsellor or

representative where you have

given us their correct contact

details. If our reasonable attempts

to contact or otherwise deal with

your financial counsellor or other

representative are unsuccessful, we

will revert to dealing with you.

28.4. If, in the course of our personal

dealings with you, we identify that

you may be experiencing difficulties

in meeting your repayments under

the credit facility, we may decide

to contact you and invite you to

discuss your situation with us and

the options available to assist you

in meeting your obligations in these circumstances.

28.5. If, at any time you consider you

are, or expect to be, experiencing

difficulties in meeting your

repayments to us, you should make

contact with us as soon as possible

to discuss your situation with us

and the options available to assist

you in meeting your obligations.

28.6. We will respond promptly (for

example, within the timeframes

prescribed by the National Credit

Code, if it applies) to any requests

for assistance from you, or your

authorised representative, in

relation to your financial difficulties

with a credit facility you have

with us. We will take into account

the information available to us,

including the information you

provide to us, about your financial

situation in determining whether

or not we are able to provide

assistance and the nature and

extent of any assistance.

28.7. If, when you contact us in any of

the circumstances described in

clauses 28.5 and 28.6 or when you

discuss your situation with us as

a result of an invitation described

in clause 28.4, we think that the

hardship provisions of the National

Credit Code could apply to your

circumstances, we will inform you about them.

28.8. We will inform you in writing of

our decision whether or not to

provide you with any assistance if

you are in financial difficulty with

24 CODE OF BANKING PRACTICE 2013

PART E BANKING SERVICES PRACTICES

a credit facility you have with us

and the reasons for our decision.

If we agree to provide you with

assistance, we will confirm in

writing the main details of the arrangements.

28.9. We will:

(a) not require you to apply

for early release of your

superannuation benefi ts to

repay the whole or any part of

your credit facility with us; and

(b) recommend that you seek

independent advice on the option

of applying for early release of

your superannuation benefits,

for example, from a financial

counsellor or financial adviser.

Information on having your

superannuation benefits released

early is available from the

Department of Human Services

(www.humanservices.gov.au).

28.10. We will make information about

our processes for dealing with

customers in financial difficulty with

a credit facility available on our

website (including relevant contact

numbers). We will inform you at

your request about how to fi nd this

information on our website and we

will make this information available

in another format if you tell us you

do not have access to our website.

28.11. We will take reasonable steps to

ensure that relevant staff, who are

responsible for dealing with you

about your financial diffi culties

with a credit facility you have with

us, are trained in relation to the

hardship provisions of this Code

and the National Credit Code.

29. Joint debtors

29.1. We will not accept you as a codebtor

under a credit facility where

it is clear, on the facts known to us,

that you will not receive a benefit

under the facility.

29.2. We will, before signing you up as a

co-debtor, take all reasonable steps

to ensure that you understand

that you may be liable for the full

amount of the debt and what your

rights are under clause 29.3.

29.3. If you are jointly and severally liable

under a credit facility, we will allow

you to terminate your liability

in respect of future advances or

financial accommodation on giving

us written notice. This right only

applies where we can terminate

any obligation we have to provide

further credit to any other debtor

under the same credit facility.

30. Joint accounts and subsidiary cards

30.1. If you are opening a joint account,

we will provide you with general

descriptive information on:

(a) how funds may be withdrawn

from the joint account, having

regard to the instructions given by you;

(b) the manner in which such

instructions can be varied; and

incurred on the joint account.

30.2. When accepting your instructions

to issue a subsidiary credit or debit card, we will:

(a) provide general descriptive

information to you, as the

primary cardholder, on your

potential liability for debts

CODE OF BANKING PRACTICE 2013 25

PART E BANKING SERVICES PRACTICES

incurred by the subsidiary

cardholder using the card; and

(b) inform you, as the primary

cardholder, of the means by

which a subsidiary card may

be cancelled or stopped and

the fact that this may not be

effective until the subsidiary

card is surrendered or you have

taken all reasonable steps to

have the card returned to us.

30.3. If you are a primary cardholder, you

will not be liable for the continuing

use of a subsidiary card from the later of:

(a) the date you request us (as

the issuing bank) to cancel the subsidiary card; and

(b) when you have taken all

reasonable steps to have the

subsidiary card returned to us.

31. Guarantees

31.1. This clause 31 applies to every

guarantee and indemnity obtained

from you (where you are an

individual at the time the guarantee

and indemnity is taken) for the

purpose of securing any financial

accommodation or facility provided

by us to another individual

or a small business (called a

“Guarantee”), except as provided

in clauses 31.15 and 31.16.

31.2. We may only accept a Guarantee if your liability:

(a) is limited to, or is in respect of,

a specific amount plus other

liabilities (such as interest

and recovery costs) that are

described in the Guarantee; or

(b) is limited to the value of a

specified security at the time of recovery.

31.3. A Guarantee must include a

statement to the effect that the

relevant provisions of this Code

apply to the Guarantee but need

not set out those provisions.

31.4. We will do the following things

before we take a Guarantee from you:

(a) give you a prominent notice that:

i. you should seek

independent legal and

financial advice on the effect of the Guarantee;

ii. you can refuse to enter into the Guarantee;

iii. there are financial risks involved;

iv. you have a right to limit your

liability in accordance with

this Code and as allowed by law; and

v. you can request information

about the transaction or

facility to be guaranteed

(“Facility”) (including

any facility with us to be

refinanced by the Facility);

(b) tell you:

i. about any notice of demand

made by us on the debtor,

and any dishonour on any

facility the debtor has (or

has had) with us, which has

occurred within 2 years

before we tell you this; and

ii. if there has been an excess

or overdrawing of $100

or more on any facility the

debtor has (or has had) with

us which has occurred within

6 months before we tell you

this, and we will give you

26 CODE OF BANKING PRACTICE 2013

PART E BANKING SERVICES PRACTICES

a list showing the extent of

each of those excesses or overdrawings;

we have given the debtor will

be cancelled, or if the Facility

will not be provided, if the

Guarantee is not provided;

(d) provide you with a copy of:

i. any related credit contract

together with a list of any

related security contracts

which will include a

description of the type

of each related security

contract and of the property

subject to, or proposed to

be subject to, the security

contract to the extent

to which that property is

ascertainable and we will

also give you a copy of any

related security contract that you request;

ii. the fi nal letter of offer

provided to the debtor by

us together with details of

any conditions in an earlier

version of that letter of offer

that were satisfied before

the fi nal letter of offer was issued;

iii. any related credit report from

a credit reporting agency;

iv. any current credit-related

insurance contract in our possession;

v. any financial accounts

or statement of financial

position given to us by the

debtor for the purposes of

the Facility within 2 years

prior to the day we provide

you with this information;

vi. the latest statement of

account relating to the

Facility (and any other

statement of account) for a

period during which a notice

of demand was made by

us, or a dishonour occurred,

in relation to which we

are required to give you

information under clause

31.4(b)(i); and

vii. any unsatisfi ed notice of

demand made by us on the

debtor in relation to the

Facility where the notice was

given within 2 years prior to

the day we provide you with

this information; and

(e) give you other information

we have about the Facility

(including any facility with us to

be refi nanced by the Facility)

that you reasonably request, but

we do not have to give you our

own internal opinions.

31.5. We will not ask you to sign a

Guarantee, or accept it, unless we have:

(a) provided you with the

information described in clause

31.4 to the extent that that

information is required by this

Code to be given to you; and

(b) allowed you until the next day

to consider that information.

We do not have to allow you the

period referred to in clause 31.5(b)

if you have obtained independent

legal advice after having received

the information required by clause

31.4

CODE OF BANKING PRACTICE 2013 27

PART E BANKING SERVICES PRACTICES

31.6. We will:

(a) not give the Guarantee to the

debtor, or to someone acting on

behalf of the debtor, to arrange

the signing (except if they are

a legal practitioner or financial

adviser); and

(b) ensure that you sign the

Guarantee in the absence of

the debtor where we attend the

signing of the Guarantee.

31.7. We will also provide you, on

request, with additional copies of

any information described in clause

31.4(d) that we have given you and will do so:

(a) within 14 days, if the original

came into existence 1 year or

less before the request is given; or

(b) within 30 days, if the original

came into existence more than 1

year before the request is given,

except we do not need to do so

if we have given the requested

information within 3 months prior to the request.

31.8. We will ensure that a warning

notice (substantially in the form

required by section 55 of the

National Credit Code, and

detailed in Form 8 of the National

Consumer Credit Protection

Regulations 2010 and which is

consistent with this Code) appears

directly above the place where you sign.

31.9. You may, by written notice to us,

limit the amount or nature of the

liabilities guaranteed under the

Guarantee, except that we do not

have to accept such a limit if:

(a) it is below the debtor’s liability

under the relevant credit

contract at the time plus any

interest or fees and charges

which may be subsequently

incurred in respect of that liability; or

(b) we are obliged to make further

advances or would be unable

to secure the present value of

an asset which is security for

the loan (for example, a house under construction).

31.10. You may, at any time, extinguish

your liability to us under a

Guarantee by paying us the then

outstanding liability of the debtor

(including any future or contingent

liability), or any lesser amount to

which your liability is limited by

the terms of the Guarantee, or

by making other arrangements

satisfactory to us for the release of the Guarantee.

31.11. You can, by written notice to us:

(a) withdraw from the Guarantee

at any time before the credit is

first provided under the relevant

credit contract; or

(b) withdraw after credit is first

provided, if the credit contract

differs in a material respect

from the proposed credit

contract given to you before the

Guarantee was signed,

Guarantee guarantees

obligations under the credit contract.

28 CODE OF BANKING PRACTICE 2013

PART E BANKING SERVICES PRACTICES

31.12. A third party mortgage will be

unenforceable in relation to a future

credit contract or future Guarantee

unless we have:

(a) given the mortgagor a copy

of the future credit contract

document or future Guarantee document; and

(b) subsequently obtained the

mortgagor’s written acceptance

of the extension of the third party mortgage.

31.13. A Guarantee given by you will be

unenforceable in relation to a future

credit contract unless we have:

(a) given you a copy of the future

credit contract document; and

(b) subsequently obtained your

written acceptance of the

extension of the Guarantee.

However, a Guarantee given by

you will be enforceable to the

extent the future credit contract

(together with all other existing

credit contracts secured by that

Guarantee), is within a limit

previously agreed in writing by you

and we have included in the notice

we give you under clause 31.4(a)

a prominent statement that the

Guarantee can cover a future credit

contract in this way.

31.14. We will not, under a Guarantee,

enforce a judgment against you unless:

(a) we have obtained judgment

against the principal debtor

for payment of the guaranteed

liability which has been

unsatisfied for 30 days after we

have made written demand for

payment of the judgment debt;

(b) we have made reasonable

attempts to locate the debtor without success;

(d) a court, tribunal or other body

with relevant jurisdiction has

relieved us of the obligation

to proceed first against the principal debtor;

(e) you have provided a mortgage

or other security for your

liability under the Guarantee

and the principal debtor has not

provided a mortgage or other

security for the guaranteed liability; or

(f) the principal debtor has

provided a mortgage or other

security for the guaranteed

liability and we have enforced

that mortgage or other security

or reasonably expect that the

proceeds of its enforcement will

not be sufficient to repay the guaranteed liability,

but these rules in clause 31.14

do not apply where the principal

debtor is a small business.

31.15. Where you are a commercial asset

financing guarantor, sole director

guarantor or trustee guarantor

clauses 31.4(b) to (e) (inclusive),

31.5, 31.6 and 31.7 do not apply.

31.16. If you are a director guarantor

clauses 31.4(d) and 31.5 apply as follows:

(a) we will tell you that:

i. you have the right to receive

the documents described in clause 31.4(d); and

CODE OF BANKING PRACTICE 2013 29

PART E BANKING SERVICES PRACTICES

ii. those documents contain

important information that

may affect your decision to

give a Guarantee;

(b) you may choose not to receive

some or all of the documents

described in clause 31.4(d);

make these choices;

(d) we will provide you with a copy

of any document described in

clause 31.4(d) that you have requested;

(e) you can tell us that you do not

wish to have the benefi t of the

period referred to in clause 31.5(b); and

(f) apart from telling you the

things set out in clauses (a)

and ii, 31.16(b) and 31.16(c)

and as required under other

provisions of this Code, we will

not attempt to influence your

choices under clauses 31.16(b) and 31.16(e).

32. Debt collection

32.1. We and our collection agents

will comply with the ACCC’s and

ASIC’s “Debt Collection Guideline:

for Collectors and Creditors” (the

“Debt Collection Guideline”)

dated May 2010 (as amended or

replaced from time to time) when

collecting amounts due to us and

we will take all reasonable steps

to ensure that our representatives

do likewise. If we become aware

that our collection agents or

representatives are not complying

with the Debt Collection Guideline

we will direct them to comply.

32.2. If we sell a debt to a third party, we

will choose a third party that agrees

to comply with the Debt Collection

Guideline referred to in clause 32.

32.3. We will not assign your debt,

except as part of a funding

arrangement such as securitisation

or the issue of covered bonds, while we are:

(a) actively considering your

financial situation under clause

28 of this Code or under the

hardship variation provisions of

the National Credit Code; or

(b) while you are complying

with an agreed arrangement

with us resulting from our

considerations referred to in clause 32.3(a).

33. Closure of accounts in credit

33.1. Subject to the terms and conditions

of any relevant banking service and

any related security, we:

(a) will, at your request, close an

account of yours that is in credit;

(b) may close an account of yours

that is in credit by giving you

reasonable notice and paying

you the amount of the credit balance; and

is our reasonable estimate of

the costs of closure.

34. Branch closure protocol

We will comply with the ABA’s

protocol on branch closures,

published by the ABA from time to

time. This protocol is available from

the ABA’s website: www.bankers.asn.au.

30 CODE OF BANKING PRACTICE 2013

PART E BANKING SERVICES PRACTICES

35. Electronic communications

35.1. If a legislative electronic

communications regime also

applies to any information which

this Code requires us to provide

(by writing or other means) we may

provide you with that information

by electronic communication

in accordance with that regime.

Otherwise, provided it is not

prohibited by legislation, we may

provide this information to you

consistently with the requirements

for electronic communications

specified in the ePayments Code

(regardless of whether that code

applies to the communication).

RESOLUTION OF DISPUTES, MONITORING AND SANCTIONS - PART F

32 CODE OF BANKING PRACTICE 2013

PART F RESOLUTION OF DISPUTES, MONOTORING AND SANCTIONS

36. Monitoring and sanctions

We agree:

(a) that the Code Compliance

Monitoring Committee

(“CCMC”), that has been

established under the Code, comprises:

i. 1 person with relevant

experience at a senior level

in retail banking in Australia

as our representative, to be

appointed by the ABA on our behalf ;

ii. 1 person with relevant

experience and knowledge

as your representative, to be

appointed by the consumer

representatives on the Board

of Directors of the FOS; and

iii. 1 person with experience

in industry, commerce,

public administration or

government service as the

Independent Chairperson of

the CCMC, to be appointed jointly by the Chief

Ombudsman of the FOS and

the ABA on our behalf;

(b) that, subject to the CCMC

Mandate referred to in

sub-clause 36(c), the CCMC’s functions will be:

i. to investigate, and to make

a determination on, any

allegation from any person,

including the FOS, that we

have breached this Code but

the CCMC will not resolve, or

make any determination on, any other matter;

ii. to monitor our compliance

under this Code, which

includes conducting its own

motion inquiries into our

compliance with the Code; and

iii. to monitor any other aspects

of this Code that are referred

to the CCMC by the ABA.

The CCMC’s compliance

monitoring, investigation

and reporting functions and

powers do not extend to

clauses 3 and 4 of the Code

unless a breach of clause 3 or

4 is also a breach of another

provision of the Code;

For the avoidance of doubt, the

CCMC’s functions only relate to the

Code as it has applied since the

CCMC was established. In particular

the CCMC’s functions do not

extend to investigating, monitoring

and making determinations in

relation to the Code as it applied before this time.

consultation with the CCMC,

to provide to the CCMC and

publish on the ABA’s website a

mandate (“CCMC Mandate”)

setting out in further detail

the CCMC’s Code compliance

monitoring, investigation and

determination processes and

other relevant matters. This

clause 36 is to be read together

with the CCMC Mandate as

amended from time to time;

(d) to ensure that the CCMC

has suffi cient resources and

funding to carry out its functions

satisfactorily and effi ciently;

PART F: RESOLUTION OF DISPUTES, MONITORING AND SANCTIONS

CODE OF BANKING PRACTICE 2013 33

(e) to include in the CCMC

Mandate an indemnity by

us to release and indemnify

the CCMC, its offi cers

and employees (CCMC’s

personnel) in respect of their

Code compliance monitoring activities;

(f) to annually lodge with the

CCMC (in a form acceptable

to the CCMC) an annual

compliance statement on our

compliance with this Code;

(g) to co-operate and comply

with all reasonable requests of

the CCMC in pursuance of its functions;

(h) to require the CCMC to arrange

a regular independent review

of its activities and to ensure a

report of that review is lodged

with ASIC. This review is to

coincide with the periodic

reviews of this Code (see clause

6 unless the ABA determines otherwise);

(i) to empower the CCMC to carry

out its functions and to set

operating procedures dealing

with the following matters, first

having regard to the operating

procedures of the FOS and then

consulting with the FOS and the ABA:

i. receipt of complaints;

ii. privacy requirements;

iii. civil and criminal implications;

iv. timeframes for acknowledging

receipt of a complaint, its

progress, responses from the

parties to the complaint and

for recording the outcome;

v. use of external expertise; and

vi. fair recommendations,

undertakings and reporting.

(j) to empower the CCMC to name

us on the CCMC’s website, in

the next CCMC annual report,

or both, in connection with a

breach of this Code, where it

can be shown that we have:

i. been guilty of serious or

systemic non-compliance;

ii. ignored the CCMC’s request

to remedy a breach or failed

to do so within a reasonable time;

iii. breached an undertaking

given to the CCMC; or

iv. not taken steps to prevent

a breach reoccurring after

having been warned that we might be named.

37. Internal dispute resolution

37.1. We will have an internal process for

handling disputes with you which is free and accessible.

37.2. If you are:

(a) an individual, and not a small business; or,

(b) a small business to which any

relevant internal complaints

handling standard or guideline

which ASIC publishes for

application to Australian financial services and credit

licensees (“Approved

Standard”) applies,

our internal process will meet the

standards set out in the Approved

Standard (for example, as at the

date of the publication of this

Code, Regulatory Guide 165).

PART F RESOLUTION OF DISPUTES, MONOTORING AND SANCTIONS

34 CODE OF BANKING PRACTICE 2013

PART F RESOLUTION OF DISPUTES, MONOTORING AND SANCTIONS

37.3. If clause 37.2 does not apply to

you, then, clauses 37.3(a) to 37.3(g) apply to you.

(a) We will notify you of the name

and contact number of the

person who is investigating your dispute;

(b) Within 21 days of becoming

aware of a dispute, we will:

(i) complete the investigation

and inform you of the

outcome of the investigation; or

(ii) inform you of our need for

more time to complete our investigation.

circumstances, we will complete

our investigation within 45 days

of receipt of the dispute.

(d) If we are unable to resolve a

dispute within 45 days, we will:

i. inform you of the reasons for the delay;

ii. provide you with monthly

updates on progress with the dispute; and

iii. specify a date when a

decision can reasonably be expected,

unless we are waiting for a

response from you which we have

told you we require.

(e) If the rules of an external

dispute resolution scheme of

which we are a member, provide

that a matter may be referred

to it if a decision is not made

within a specified time period,

then we will inform you, no

more than 5 business days after

the expiry of that time period,

that a dispute may be lodged with the scheme.

(f) Our dispute resolution process

is available for all complaints

other than those that are

resolved to your satisfaction at

the time they are drawn to our attention.

(g) We will provide you with the

above information in writing

unless it has been mutually

agreed that it can be given verbally.

38. External dispute resolution

38.1. We will have available for you

an external process for resolving

disputes. This process will be:

(a) free of charge; and

(b) consistent with any external

dispute resolution standard

or guide that ASIC publishes

for application to Australian

financial services and credit

licensees (for example, as at the

date of the publication of this

Code, Regulatory Guide 139)

where this applies to you; and

with its terms of reference.

CODE OF BANKING PRACTICE 2013 35

PART F RESOLUTION OF DISPUTES, MONOTORING AND SANCTIONS

39. Availability of information

about dispute resolution processes

39.1. We will prominently publicise the

availability and accessibility of both

our internal and external processes

for resolving disputes through our

points of contact with you where

we control that point of contact including:

(a) branches;

(b) internet sites; and

39.2. We will also provide you with

information about:

(a) our internal process for dealing

with a dispute at the time the

dispute arises; and

(b) the external process, at the

same time as you are told about

the fi nal outcome of the internal

process, if your complaint is not wholly satisfied.

40. Family law proceedings

Guidelines setting out the manner

in which we will:

(a) deal with applications for

transfers of mortgage and

consents to transfer of title

pursuant to a Family Court

determination or approval; and

(b) otherwise enforce debts

affected by a family law property

settlement,

are available on our website.

TRANSITION - PART G

CODE OF BANKING PRACTICE 2013 37

PART G TRANSITION

41. Transitional provisions

41.1. On and after the 2013 transition

date we will be bound by this

Code in respect of:

(a) any banking service that we

commence to provide to you; and

(b) any Guarantee (as described in

clause 31) we obtain from you,

on or after that date.

41.2. On and after the 2013 transition

date, we will be bound by this

Code in respect of any ongoing

banking service we were providing

to you at the 2013 transition date

and continue to provide afterwards except for:

(a) clauses 12.2 to 12.5 of this

Code, by which we shall only

be bound when we provide

you with a revised and updated

version of the terms and conditions;

For the avoidance of doubt, this

means that terms and conditions

applying to existing banking services

do not need to be re-issued because

of the commencement of this Code

(subject to clause 41.5).

(b) clause 23 (Information relating

to foreign exchange services);

which we commenced to

provide to you before the

2003 transition date – clauses

26.2 and 26.4 (Statements of

Account) and clause 31.12 (Third

Party Mortgages);

(d) in relation to a commercial

asset financing facility where

the banking service is provided

before June 2004, and we were

not disclosed as the provider of

that banking service; and

(e) as otherwise provided for below,

and the equivalent provisions of

the 2003 Code [and if relevant,

the Code of Banking Practice

November 1993], shall cease to

apply to such banking services from that date.

41.3. On and after the 2013 transition

date, we will be bound by this

Code in respect of Guarantees as follows:

(a) in respect of any Guarantee

we obtain from you on or after

the 2013 transition date we

will be bound by all applicable

provisions of this Code;

(b) in respect of any Guarantee

taken on or after the 2003

transition date and subject

to the 2003 Code, we will

be bound by all applicable

provisions of this Code relating

to Guarantees, and the

equivalent provisions of the

2003 Code shall cease to apply

to such Guarantees;

respect of any Guarantee in

relation to a commercial asset

financing facility where the

banking service or Guarantee

is provided or taken before

1 June 2004, and we are not

disclosed as the provider of

that banking service or as the

person taking the Guarantee

we will not be bound by this Code; and

PART G: TRANSITION

38 CODE OF BANKING PRACTICE 2013

PART G TRANSITION

(d) we will be bound by clauses

31.9, 31.11(a) and 31.13 of

this Code in respect of any Guarantee:

i. subject to the Code of

Banking Practice November

1993 and taken prior to the

2003 transition date; and

ii. if we had not adopted the

2003 Code by 1 January

2005, any guarantee

taken on or after the 2003

transition date which would

have been subject to the

2003 Code had we been

subject to the 2003 Code,

(except that the reference to the

notice we give you under clause

31.4(a) in clause 31.13 shall be

deemed not to have been made in

respect of any such guarantee).

41.4. For the avoidance of doubt, if:

(a) a thing was done (or not done)

in respect of a banking service

or a Guarantee prior to the

2013 transition date; and

(b) doing (or not doing) that thing

did not breach a provision of the

Code of Banking Practice as it

applied to the banking service

or Guarantee at the time the

thing was done (if any) (for

example because the obligation

did not exist or the equivalent

obligation was performed as it applied at the time):

i. having done (or not done)

that thing does not result

in a breach of this Code on

or after the 2013 transition date; and

ii. we are not obliged to do

the thing or do it again, on

or after the 2013 transition date,

even if this Code would, on or after

the 2013 transition date, require

the thing to have been done (or

not done or done differently) in

otherwise similar circumstances, or

before doing something else.

Example

If we entered into a Guarantee

in 2005 the relevant behaviour

in entering into that Guarantee

will be assessed by reference to

the Code as it applied at that time.

If we commenced to provide

a banking service in 2001 the

terms and conditions provided

at that time and any assessment

made in relation to that service

shall be assessed by reference

to the rules applying in the

Code as it applied at that time.

41.5. If you have a credit card account with us on the 2013 transition date, we will give you a statement containing the information described in clause 12.5 no later than 12 months after the 2013 transition date (unless already provided).

41.6. Except as expressly stated in this clause, the application of the Code of Banking Practice November 1993 and the 2003 Code are not altered by the provisions in this clause 41.

41.7. To the extent of any inconsistency, this Code is to be read subject to the ePayments Code.

PART H - DEFINITIONS

40 CODE OF BANKING PRACTICE 2013

PART H - DEFINITIONS

42. Definitions

In this Code any words in bold like this

have the following meanings:

2003 Code means the Code of Banking

Practice August 2003 as it has applied

to us from time to time since the day on

which we publicly announced that we had adopted it.

2003 transition date means:

i. the date from which we publicly

announced that we had adopted the

Code of Banking Practice August 2003; or

ii. if (a) does not apply, 1 January 2004.

2013 transition date means:

(a) the day on which the ABA has

published on its website our

subscription to this Code, which will

be no later than 1 February 2014; or

(b) if we are not a signatory to this

Code as at 1 February 2014, then

commencement date means the

date from which we have publicly

announced we have adopted this Code.

ABA means the Australian Bankers’ Association.

ACCC means the Australian Competition and Consumer Commission.

Approved Standard has the meaning given in clause 37.2(b).

ASIC means the Australian Securities and Investments Commission.

Australia includes the coastal sea of each jurisdiction but does not include an external territory.

bank means a corporation authorised by law to carry on the general business of

banking in Australia and that is authorised

under the Banking Act 1959 to use the

word “bank” or a similar expression in its name.

banking service means any financial

service or product provided by us in Australia to you:

(a) including any financial service or

product provided by us whether

supplied directly or through an intermediary; and

(b) in the case of a financial service or

product provided by another party and

distributed by us, extends only to our

distribution or supply of the service or

product to you and not to the service or product itself.

business day means a day that is not a

Saturday, a Sunday or a public holiday in Australia.

CCMC has the meaning given in clause 36(a).

Code of Banking Practice means the

Code of Banking Practice as it has

applied to us from time to time since

the commencement date and including,

where relevant, the Code of Banking

Practice November 1993, 2003 Code

(including as amended in 2004) and this Code.

Code and “this Code” means this Code

of Banking Practice as published by the

ABA at the 2013 transition date and,

for the avoidance of doubt, includes any

subsequent amendments from time to

time which have been published by the

ABA and publicly adopted by us.

PART H: DEFINITIONS

CODE OF BANKING PRACTICE 2013 41

PART H DEFINITIONS

commencement date means the date

that we first subscribed to the Code

of Banking Practice. However, see the

definition of 2013 transition date.

commercial asset financing facility

means a lease, rental, hire purchase, bill

of sale, chattel mortgage facility or a

related insurance premium funding facility provided to a company.

commercial asset financing guarantor

means a guarantor where the Guarantee

is to be taken for a Facility that is a

commercial asset financing facility and:

(a) the guarantor is a director, shareholder

or manager of the company, and:

i. the guarantor has not given security

to support the Guarantee; or

ii. where the guarantor has previously

given security, the guarantor has

been notified in writing that the

previous security may extend to

liabilities under the Guarantee; and

(b) apart from guarantees and any

security referred to in (a)(ii) given by

directors, shareholders or managers

of the company, only the asset

financed secures the commercial asset financing facility.

credit-related insurance contract means

a contract for insurance of any of the

following kinds in connection with a credit contract:

(a) insurance over mortgaged property;

(b) consumer credit insurance;

insurance contract” for the purposes

of section 142(1)(c) of the National Credit Code.

debit user means a person who, by

agreement with the customer, issues

debit payment instructions through their

financial institution for distribution to the

relevant customer’s financial institution.

debt collection guidelines has the

meaning given in clause 32.1

direct debit means an amount debited

to a specified account of a customer with

the customer’s financial institution, as

requested and authorised in writing by

that customer, to and in favour of a debit

user (or to a third party in its capacity as

agent for that named debit user) which

is processed through the Bulk Electronic Clearing System.

direct debit request means an authority

and request to debit amounts to a

specified account of a customer with the

customer’s financial institution, given in

writing by that customer to and in favour

of a debit user or their agent.

director guarantor means a guarantor of

a Facility who is a director of a company

which is to be the debtor for the Facility

other than a sole director guarantor or a

commercial asset financing guarantor.

dispute means a complaint by you in

relation to a banking service, that has

not been immediately resolved when you

bring the complaint to our attention.

electronic communication means:

(a) a communication of information

in the form of data, text or images

by means of guided or unguided

electromagnetic energy, or both; or

(b) a communication of information in the

form of sound by means of guided or

unguided electromagnetic energy, or

both, where the sound is processed at

its destination by an automated voice recognition system.

42 CODE OF BANKING PRACTICE 2013

PART H DEFINITIONS

ePayments Code means the industry

code named the e-Payments Code issued

by ASIC and available at www.asic.gov.au,

and includes, while it continues to apply

to us and remains in force, its predecessor

the Electronic Funds Transfer Code of Conduct.

Facility has the meaning given in clause 31.4.

FOS means Financial Ombudsman Service

Ltd (ABN 67 131 124 448).

Guarantee means a guarantee described in clause 31.1.

manager means a person who is actively

involved in the day-to-day running of a

business and who makes, or participates

in making, decisions that affect the whole,

or a substantial part of the business or

who has the capacity to affect signifi cantly

the business’s financial standing.

National Credit Code means the

National Credit Code set out in Schedule

1 of the National Consumer Credit Protection Act 2009.

security includes, without limitation, a

security interest within the meaning of the

Personal Property Securities Act 2009.

small business means a business having:

(a) less than 100 full time (or equivalent)

people if the business is or includes

the manufacture of goods; or

(b) in any other case, less than 20 full time

(or equivalent) people,

unless the banking service is provided

for use in connection with a business that

does not meet the elements of (a) or (b) above.

sole director guarantor means a

guarantor of a Facility who is a director of

a company that has only one director, and

that company is to be the debtor for the Facility.

standard fees and charges means fees

and charges normally charged by us in

respect of a banking service.

terms and conditions means those terms

and conditions specifi cally applied by

us to a banking service, but does not

include any other terms and conditions

that may apply by operation of law.

third party mortgage means a mortgage

or charge given for the purpose of securing:

(a) any financial accommodation provided

by us to an individual or a small business; or

(b) a Guarantee, other than such a security which contains

a personal undertaking by the mortgagor

to pay the secured money.

trustee guarantor means a guarantor of a Facility where:

(a) the guarantor and the debtor are the same person; and

(b) that person is acting as trustee of a

trust in one of these roles and is acting

in their personal capacity in the other role.

URL means a Universal Resource Locator.

we, us and our means the bank that you

deal with that has adopted this Code.

CODE OF BANKING PRACTICE 2013 43

PART H DEFINITIONS

you and your means a person who, at

the time the banking service is provided,

is an individual or a small business that

is our customer (or, where this Code

specifically applies to prospective

customers, a prospective customer) and

includes, in clauses 31, 35 and 2, any

individual from whom we have obtained,

or propose to obtain, a Guarantee.

However, where this Code applies in

relation to a banking service which

is a “financial product” or a “financial

service” for the purposes of Chapter

7 of the Corporations Act 2001, then

you means a person who, as a “retail

client” as described in Chapter 7 of the

Corporations Act 2001, enquires about or

is, or may be, provided with that banking

service. Therefore this Code does not

apply to a person who is a “wholesale

client” in respect of such products and services.

A reference in this Code to any law or

binding code or standard includes a

reference to any such law or binding code

or standard as amended from time to time.

46 CODE COMPLIANCE MONITORING COMMITTEE MANDATE 2013

CONTENTS CODE COMMITTEE COMPLIANCE MONITORING MANDATE

Section A: Preliminary Matters 48

1. Introduction 48

1.1. Scope of this document 48

1.2. Functions of the CCMC 48

1.3. Principles that underpin the CCMC’s operation 48

1.4. CCMC Operating Procedures 49

1.5. Supplementary procedures 49

1.6. Annual business plan 49

1.7. Memorandum of Understanding 49

1.8. Funding 49

2. CCMC Members 50

2.1. Composition of the CCMC 50

2.2. Tenure 50

2.3. Re-appointment 50

2.4. Resignation 50

2.5. Termination 50

2.6. Casual vacancies 50

2.7. Automatic vacancies 50

3. Organisational structure 51

3.1. Staffi ng and administrative support 51

3.2. Independent Chairperson 51

3.3. Delegation of CCMC powers 51

4. Meeting of CCMC Members 52

4.1. Meetings and proceedings of CCMC 52

4.2. Quorum 52

4.3. Voting 52

4.4. Conflicts of interest 52

4.5. Alternate representative 53

Section B: CCMC’s compliance

monitoring process 54

5. Compliance monitoring process 54

5.1. Methods 54

5.2. Annual Compliance Statement 54

Section C: CCMC’s compliance investigation process 55

6. Institution of a compliance investigation 55

6.1. Commencement of a compliance investigation 55

6.2. Matters outside the scope of

CCMC’s investigative powers 55

6.3. CCMC’s discretion in relation to compliance investigations 57

CONTENTS

CODE COMPLIANCE MONITORING COMMITTEE MANDATE 2013 47

CONTENTS CODE COMMITTEE COMPLIANCE MONITORING MANDATE

7. Compliance investigations approach 57

7.1. Approach 57

7.2. Provision of information by

Code Subscribers 57

7.3. Other obligations required of

Code Subscribers 58

7.4. Other information 59

7.5. Consequences of non-compliance

with a CCMC request 59

8. Other matters 59

8.1. Rules of evidence 59

8.2. External consultation 59

9. Process for concluding compliance investigations without a Determination 60

9.1. Process 60

10. Process for concluding compliance investigations by way of Determination 60

10.1. Reasonable opportunity to be heard 60

10.2. Criteria for Determination 60

10.3. Notice of Determination 60

10.4. Determination 61

Section D: Sanctioning Code

Subscribers 62

11. Public naming of a Code Subscriber 62

11.1. Grounds for public naming of a

Code Subscriber 62

12. Collection of information by the CCMC 62

12.1. Data collection 62

12.2. Publication of data 63

Section E: Interpretation 64

13. Interpretation 64

13.1. Defi ned terms 64

13.2. General 65

Section F: General 66

14. confidentiality and other matters 66

14.1. CCMC’s confidentiality obligations 66

14.2. Immunity from liability 66

14.3. Review 67

14.4. Amendment of the Mandate 67

PRELIMINARY

48 CODE COMPLIANCE MONITORING COMMITTEE MANDATE 2013

SECTION A

1. Introduction

1.1. Scope of this document

This mandate is made in pursuance

of the Code of Banking Practice

(the Code). Together with the

Code, this mandate sets out

the terms, to which the Code

Subscribers have agreed,

that govern the functions and

operations of the Code Compliance

Monitoring Committee (CCMC)

contemplated in the Code.

This mandate must be published

on the website of the Australian

Bankers’ Association (the ABA).

1.2. Functions of the CCMC

The CCMC is established in

pursuance of clause 36 of the Code

and in accordance with the terms of this mandate:

(a) to investigate, and make

a Determination on, any

allegation from any person

that a Code Subscriber has

breached the Code (however

the CCMC will not investigate,

or make any Determination on, any other matter);

(b) to monitor Code Subscribers’

compliance with the Code,

which includes conducting its

own motion inquiries into one

or more Code Subscribers’

compliance with the Code; and

the Code that are referred to

the CCMC by the ABA.

For the avoidance of doubt, the

CCMC’s functions only relate to the

Code as it has applied since the

CCMC was established. In particular

the CCMC’s functions do not

extend to investigating, monitoring

and making Determinations in

relation to the Code as it applied before this time.

1.3. Principles that underpin the CCMC’s operation

(a) The CCMC must act reasonably

in carrying out its responsibilities

to (as relevant) monitor,

investigate, determine and

report on compliance by Code

Subscribers with the Code.

(b) When monitoring, investigating,

determining and reporting on

compliance with the Code, the CCMC must:

PRELIMINARY MATTERS

CODE COMPLIANCE MONITORING COMMITTEE MANDATE 2013 49

SECTION A PRELIMINARY MATTERS

i. act with independence and

do what in the CCMC’s

opinion is appropriate having

regard to the nature of its

functions and activities;

ii. be fair;

iii. proceed efficiently and with

the minimum necessary

formality and technicality; and

iv. be as transparent as

possible, whilst also acting

in accordance with its

confidentiality and privacy obligations.

1.4. CCMC Operating Procedures

(a) The CCMC must set operating

procedures, in accordance with

clause 36(i) of the Code and this

mandate, first having regard

to the operating procedures of

the FOS and then by consulting

with the FOS and the ABA.

The CCMC will advise Code

Subscribers of these operating

procedures prior to their taking

effect or, if any are already in

effect at the time this mandate

first comes into effect and the

CCMC has not already advised

Code Subscribers of them, as

soon as practicable after that time.

(b) Any proposed changes to those

operating procedures which,

in the opinion of the CCMC,

are material will be developed

by first having regard to the

operating procedures of the

FOS and then by consulting

with the FOS and the ABA.

The CCMC will advise Code

Subscribers of such changes

prior to their taking effect.

1.5. Supplementary procedures

As is deemed appropriate by the

CCMC, the operating procedures

may be supplemented with

more detailed procedures of a

less material nature. Where the

CCMC reasonably expects it is

necessary to do so, the CCMC will

advise Code Subscribers of these

supplementary procedures prior to their taking effect.

1.6. Annual business plan

The CCMC must develop an

annual business plan and provide

a copy of the annual business plan

to the Chief Ombudsman of the

FOS and to the ABA prior to the

commencement of the relevant

Financial Year for which the plan has been developed.

1.7. Memorandum of Understanding

The CCMC may enter into a

Memorandum of Understanding

with the FOS for the purpose of facilitating:

(a) referrals to the CCMC of

an allegation that a Code

Subscriber has breached the Code; and

(b) information exchanges between

the FOS and the CCMC relevant

to the CCMC’s functions, as

described in clause 1.2.

1.8. Funding

The CCMC will be funded and

resourced by Code Subscribers in

accordance with clause 36(d) of the Code.

50 CODE COMPLIANCE MONITORING COMMITTEE MANDATE 2013

SECTION A PRELIMINARY MATTERS

2. CCMC Members

2.1. Composition of the CCMC

The Code specifi es that the CCMC

shall be comprised of 3 members

(each a CCMC Member):

(a) 1 person, as representative of

Code Subscribers with relevant

experience at a senior level

in retail banking in Australia,

to be appointed by the Code

Subscribers;

(b) 1 person, as representative of

individual and small business

customers (as defined in the

Code) with relevant experience

and knowledge, to be

appointed by the consumer

representatives on the Board of

Directors of the FOS; and

Chairperson of the CCMC

with experience in industry,

commerce, public administration

or government service, to be

appointed jointly by the Chief

Ombudsman of the FOS and by

the ABA on behalf of the Code Subscribers.

2.2. Tenure

Subject to clause 2.5, a

CCMC Member (including the

Independent Chairperson) holds

office for a 3 year term.

2.3. Re-appointment

A person who was, or is currently, a

CCMC Member is eligible for

re-appointment to the CCMC.

2.4. Resignation

A CCMC Member may resign from

the offi ce during their term by

notifying the relevant appointor(s)

of that CCMC Member (see clause

2.1) in writing with at least 7 days’ notice.

2.5. Termination

The appointment of a CCMC

Member may be terminated in

writing by the relevant appointor(s)

of that CCMC Member (see clause

2.1) in writing with at least 7 days’ notice.

2.6. Casual vacancies

A person may be appointed by

the relevant appointor(s) under

clause 2.1 to fi ll a casual vacancy

in the offi ce of a CCMC Member,

other than the position of the

Independent Chairperson. A

person appointed under this clause:

(a) must fulfi l the experience

requirements of the relevant

paragraph of clause 2.1 as if the

appointment were an ordinary

appointment for that role under clause 2.1; and

(b) shall hold office until the casual

vacancy ceases or the period

during which their predecessor

CCMC Member would have

held office expires, whichever occurs first.

2.7. Automatic vacancies

The office of a CCMC Member

(including the Independent

Chairperson) will be automatically vacated if the person:

(a) becomes bankrupt or makes any

arrangement or composition with creditors;

(b) becomes prohibited by law from being a director;

CODE COMPLIANCE MONITORING COMMITTEE MANDATE 2013 51

SECTION A PRELIMINARY MATTERS

(d) resigns from the office during

their term; or

(e) has their appointment

terminated by their relevant appointors.

3. Organisational structure

3.1. Staffi ng and administrative support

(a) The CCMC may create the

position of a Chief Executive

Offi cer (CEO) and may appoint

a person with relevant skills,

experience and knowledge to that position.

(b) The CEO will, if appointed,

be under the supervision and

direction of the CCMC.

supported by staff led by

the CEO (or if a CEO is not

appointed, the Independent

Chairperson), who shall

carry out administration and

management, within the funding

and resource constraints in the

annual budget, of the CCMC office and staff.

(d) The CCMC may proceed on

the basis that the FOS will

provide administrative and

staffing services to the CCMC.

The provision of those services

may be reviewed by the FOS in

consultation with the ABA and the CCMC.

3.2. Independent Chairperson

(a) The Independent Chairperson

shall do all such things as are

reasonable for the CCMC

to perform its functions and

activities and shall exercise

such powers or perform such

duties as the CCMC may from

time to time delegate to the

Independent Chairperson.

(b) The Independent Chairperson

may take action, in accordance

with a resolution of the CCMC,

including but not limited to:

i. engaging and dismissing staff;

ii. entering into, varying and terminating leases;

iii. operating bank accounts;

iv. negotiating and entering

into contracts with the FOS

including, without limitation,

contracts for staff, equipment and facilities;

v. negotiating and entering

into such other contracts

or commitments as are

necessary or desirable for

the CCMC to enter, having

regard to the nature of its

functions and activities; and

vi. signing, or otherwise

executing, all such

documents or instruments as

may be required for any of the foregoing.

3.3. Delegation of CCMC powers

(a) The CCMC will exercise the

power to make Determinations

and may not delegate this power.

(b) The CCMC may delegate any

of its other powers to the CEO

(either generally or in specifi c

cases and either with or without

conditions or restrictions).

For example, the CCMC may

delegate to the CEO the power:

i. to undertake a compliance

investigation (whether as

52 CODE COMPLIANCE MONITORING COMMITTEE MANDATE 2013

SECTION A PRELIMINARY MATTERS

a result of an allegation by

any person that a Code

Subscriber has breached the

Code, a referral by the ABA

or the CCMC’s compliance

monitoring process); and

ii. to request a Code

Subscriber or any person

making an allegation that

a Code Subscriber has

breached the Code to

provide information to, or to

procure information for, the CCMC.

4. Meeting of CCMC Members

4.1. Meetings and proceedings of CCMC

The CCMC will meet, discharge

its responsibilities and convene,

adjourn and otherwise regulate its

meetings and proceedings in such

manner as it may from time to time determine.

4.2. Quorum

A quorum for a meeting of the

CCMC shall be the 3 persons

comprising the CCMC at the time of the meeting.

4.3. Voting

At a meeting of the CCMC:

(a) each CCMC Member has one vote; and

(b) decisions are made on the basis

of a simple majority of votes:

i. subject to clause 4.3(b)(ii), on

a show of hands; or

ii. where a meeting is

conducted by teleconference,

on the voices of each CCMC Member.

4.4. Confl icts of interest

If a CCMC Member has a material

personal interest in relation to a

matter that is being considered

at a meeting of the CCMC,

in relation to the institution,

conduct or conclusion of any

compliance investigation and

any Determination, the CCMC

Member must not:

(a) be present while the matter

is being considered at the meeting; or

(b) vote on the matter, unless:

i. the CCMC Member has

declared the material

personal interest in relation

to the matter that is being

considered by the CCMC to

the other CCMC Members;

ii. the other CCMC Members

are satisfied the material

personal interest should

not disqualify the CCMC

Member from voting on the matter;

iii. a proper minute is made

including details of the

material personal interest

and the circumstances in

which it was disclosed to the

other CCMC members; and

iv. any minute, Determination

or other report on the matter

are made available for

inspection on request by any

Code Subscriber affected.

CODE COMPLIANCE MONITORING COMMITTEE MANDATE 2013 53

SECTION A PRELIMINARY MATTERS

For the avoidance of doubt, a

material personal interest for

the purposes of this clause does

not arise solely by reason of

a CCMC Member’s current or

previous employment with a Code

Subscriber, or by reason of the

financial institution of which a

CCMC Member is a customer.

4.5. Alternate representative

(a) Each of the CCMC Members,

other than the Independent

Chairperson, may nominate an

alternate person for a specifi ed

meeting, provided that the

CCMC Member has asked

the person whom the relevant

CCMC Member proposes to

nominate as an alternate if

that person has any material

personal interest in relation to a

matter that is being considered

at the relevant meeting of the

CCMC, and the person has

declared to have had no such interest.

(b) A person nominated as an

alternate may exercise all

the powers of the CCMC

Member by whom the person

is nominated to be an alternate,

other than the power to

nominate an alternate, and is

subject to all the requirements

applying to the offi ce of their

nominator at the meeting

which they attend at which their

nominator is not present.

54 CODE COMPLIANCE MONITORING COMMITTEE MANDATE 2013

SECTION B

5. Compliance monitoring process

5.1. Methods

The CCMC may for the purpose

of monitoring compliance with the Code:

(a) issue one or more Code

Subscribers with a

questionnaire to gather

information about practices

and procedures and undertake

onsite testing procedures to verify that information;

(b) request a Code Subscriber or

the person that has made a

relevant allegation to provide

information to, or to procure

information for, the CCMC;

assess compliance with the

Code by one or more Code

Subscribers, including through

mystery shopping activities;

(d) conduct own motion inquiries

for the purpose of monitoring

one or more Code Subscribers’

compliance with the Code,

such as by conducting, by prior

arrangement with the Code

Subscriber, a compliance

visit at the premises of a

Code Subscriber including

interviewing representatives of

the Code Subscriber; and

(e) request each Code Subscriber

to lodge an Annual Compliance

Statement (ACS) with the CCMC.

5.2. Annual Compliance Statement

(a) Each Code Subscriber

must lodge an ACS with the

CCMC reporting on the Code

Subscriber’s compliance with

the Code during the previous

12 months (or, if the Code

Subscriber has adopted the

Code during that 12 month

period, the Code Subscriber

must report how it plans to

achieve compliance with the

Code during the next 12 month period).

(b) The ACS must be in the form

that has been approved by the

CCMC from time to time for use

by all Code Subscribers.

CCMC’S COMPLIANCE MONITORING PROCESS

CODE COMPLIANCE MONITORING COMMITTEE MANDATE 2013 55

6. Institution of a compliance investigation

6.1. Commencement of a compliance investigation

A CCMC compliance investigation

may commence in any of the following ways:

(a) in response to an allegation by

any person, including a referral

by FOS, that a Code Subscriber

has breached the Code (see clause 1.2(a)); or

(b) as an outcome of the CCMC’s

monitoring process if the CCMC

has reason to suspect that a

Code Subscriber may have

breached the Code (see clause 1.2(b));

the ABA (see clause 1.2(c)).

6.2. Matters outside the scope of CCMC’s investigative powers

(a) The CCMC must not commence

a compliance investigation in

the following circumstances:

i. to the extent that the

allegation relates to a Code

Subscriber’s commercial

judgment in decisions about

lending or security. However,

the CCMC may consider

an allegation that a Code

Subscriber has breached

the Code arising from

maladministration by the

Code Subscriber in arriving

at a commercial judgment.

“Maladministration” refers to

an act or omission contrary

to or not in accordance

with a duty owed at law

or pursuant to the terms

(expressed or implied) of the

contract between the Code

Subscriber and its customer;

ii. if the CCMC is, or becomes,

aware that the allegation

is being or will be heard

by another forum (whether

as a standalone matter

or as part of any process

or proceeding) and the

forum may make a fi nal

Determination as to whether

a breach of the Code has

occurred. In such a case the

CCMC must not consider

the relevant allegation until

the relevant forum has

determined, or declined

SECTION C - CCMC’S COMPLIANCE INVESTIGATION PROCESS

56 CODE COMPLIANCE MONITORING COMMITTEE MANDATE 2013

SECTION C CCMC’S COMPLIANCE INVESTIGATION PROCESS

to determine (for whatever

reason), whether a breach of

the Code has occurred. If the

forum determines whether

a breach of the Code has or

has not occurred, the CCMC

must adopt the forum’s finding;

iii. if the CCMC is, or becomes,

aware that the allegation

has been heard (whether

as a standalone matter or

as part of any process or

proceeding) by another

forum, and the forum has

determined whether a

breach of the Code has or

has not occurred. In such a

case the CCMC must adopt

the fi nding of the relevant

forum as to whether a breach

of the Code has or has not occurred;

iv. if the allegation to the CCMC

is based on the same events

and facts as a previous

allegation to the CCMC by

the person making the new

allegation, unless there is new information;

v. if the events to which the

allegation relates occurred

before the Code Subscriber

to which the allegation

relates became a Code

Subscriber or in relation to

an entity which was not a

Code Subscriber at the time

of the events to which the

allegation relates and was

subsequently acquired by a

Code Subscriber;

vi. if the person making the

allegation was aware of

the events to which the

allegation relates, or would

have become aware of them

if they had used reasonable

diligence, more than 1 year

before the person making

the allegation first notifi ed

the CCMC in writing (unless

the person making the

allegation had lodged within

that 1 year period a dispute

with FOS about those events

and FOS considered there

may have been a breach of the Code);

vii. If the investigation is an

outcome of the CCMC’s

monitoring process more

than 1 year after the CCMC

had reason to suspect that

the Code Subscriber may

have breached the Code.

The CCMC may request, in

relation to a particular allegation or

outcome of the CCMC’s monitoring

process referred to in clauses 6.2(a)

(vi) or (vii) above, that a Code

Subscriber extend the relevant

time limit. The Code Subscriber

retains the discretion whether to

agree to such a request for an

extension of the limit.

(b) Whilst a CCMC compliance

investigation may be

commenced as a result of an

allegation by any person and

may comprise determining

whether a Code Subscriber

has breached the Code, the

CCMC’s role does not include

determining what redress

should be provided to a person

affected by non-compliance with

the Code. A Code Subscriber

has internal complaints handling

CODE COMPLIANCE MONITORING COMMITTEE MANDATE 2013 57

SECTION C CCMC’S COMPLIANCE INVESTIGATION PROCESS

arrangements to consider

redress and its membership of

an external dispute resolution

scheme provides an avenue

for redress if a Determination

concludes that there has been a

breach of the Code.

6.3. CCMC’s discretion in relation to compliance investigations

(a) Further to clause 6.2, the

CCMC may decide, at any

stage prior to the making of a

Determination, that it is not

appropriate to investigate or to

continue to investigate a matter

commenced under clause 6.1. In

making this decision, the CCMC

may take into account anything

it considers reasonable and appropriate including:

i. the nature of the allegations

made against the relevant

Code Subscriber, including

the significance of the issues raised;

ii. the period of time that has

elapsed since the alleged

event occurred;

iii. whether a court or other

forum would be a more

appropriate forum to

consider the matter;

iv. whether the matter is

frivolous or vexatious; and

v. previous work undertaken

by the CCMC to monitor

or review practices and

procedures of the Code

Subscriber that are relevant

to the allegations made.

(b) If in the course of conducting

a compliance investigation the

CCMC considers that 6.3(a)(iii)

or 6.3(a)(iv) apply, the CCMC

must not continue to investigate

the allegation.

7. Compliance investigations approach

7.1. Approach

(a) When conducting a compliance

investigation, the CCMC must

take into account the relevant

provisions of the Code and any

applicable laws. If in the course

of conducting a compliance

investigation, the CCMC

decides whether to make a

Determination, clause 10.2

provides for what the CCMC

must have regard to.

(b) The CCMC will ensure, as far as

practicable, that monitoring and

investigations do not:

i. disrupt Code Subscribers’ business unduly; nor

ii. inconvenience Code

Subscribers’ customers unduly.

7.2. Provision of information by Code Subscribers

(a) The CCMC may make

reasonable requests for a Code

Subscriber to provide, or

provide access to, information,

documents or systems, which

are in the possession or power

of the Code Subscriber, that

the CCMC considers necessary

in order to discharge its functions.

(b) The CCMC may require the

Code Subscriber to comply

with the CCMC’s request within

21 business days or such longer

timeframe where the Code

58 CODE COMPLIANCE MONITORING COMMITTEE MANDATE 2013

SECTION C CCMC’S COMPLIANCE INVESTIGATION PROCESS

Subscriber satisfi es the CCMC that

additional time is needed, except

where the Code Subscriber

satisfies the CCMC that:

i. to comply with the

request would breach a

law (including, without

limitation, any law relating

to confidentiality or privacy)

and that, where a third

party’s consent to the Code

Subscriber complying with

the request would avoid

a breach of that law, the

Code Subscriber has taken

reasonable steps to obtain

the appropriate consent

and such consent was not provided;

ii. to comply with the request

would breach a duty of

confidentiality to a third party

and the Code Subscriber

has taken reasonable steps

to obtain consent to the

Code Subscriber complying

with the request and such

consent was not provided;

iii. to comply with the request

would breach a Court

order or prejudice a current

investigation by the police

or other law enforcement agency;

iv. legal professional privilege

attaches to the relevant

information, documents or systems; or

v. the information, documents

or systems do not exist or no longer exist.

document or system is claimed

by the Code Subscriber to

be commercially sensitive, the

CCMC may agree with the Code

Subscriber to receive it or have

access to it on a conditional

basis, including on terms that

preserve confidentiality.

7.3. Other obligations required of Code Subscribers

(a) The CCMC may require

a Code Subscriber to do

anything else that the CCMC

reasonably considers may assist

a compliance investigation

into the Code Subscriber’s

compliance with the Code

undertaken by the CCMC. This

may include requiring:

i. the Code Subscriber to

provide an appropriate

representative to attend an interview; or

ii. the Code Subscriber to

investigate and report

back to the CCMC on

relevant matters (including,

where appropriate, with

the assistance of external expertise).

(b) Where the CCMC makes a

request of a Code Subscriber,

the CCMC may require its

request to be complied with

within 21 business days or such

longer timeframe where the

Code Subscriber satisfies the

CCMC that additional time is needed.

investigation or making a

Determination, the CCMC

will take into account any

undertaking by the Code

Subscriber as to action it will

take, or has taken, in relation to the matter.

CODE COMPLIANCE MONITORING COMMITTEE MANDATE 2013 59

SECTION C CCMC’S COMPLIANCE INVESTIGATION PROCESS

7.4. Other information

Where a compliance investigation is

instituted as a result of an allegation

by any person pursuant to clause

6.1(a), the CCMC may request the

person making the allegation to

provide or procure information that

the CCMC reasonably considers

may assist the CCMC’s investigation of the matter.

7.5. Consequences of non-compliance with a CCMC request

Where a Code Subscriber, or

any person alleging a Code

Subscriber has breached the Code

without reasonable excuse, fails

to comply with a CCMC request

within the timeframe specifi ed by

the CCMC, the CCMC may take

steps it considers reasonable in

the circumstances to conclude the

compliance investigation, including

proceeding with a Determination of the matter.

8. Other matters

8.1. Rules of evidence

The CCMC is not bound by any

legal rule of evidence or by its

previous Determinations.

8.2. External consultation

(a) In discharging its functions,

the CCMC may consult with

independent external experts

as the CCMC thinks reasonably

appropriate and necessary,

provided that the CCMC takes

reasonable steps to ensure that:

i. the identities of any parties

involved in an alleged

breach of the Code are not

disclosed to any relevant

external expert unless

disclosure is material to the

matter and each relevant

party, in each case, has

consented to the disclosure;

ii. any such external expert

maintains confidentiality of

the information provided

to it, including any

information claimed to be

commercially sensitive,

and that the external

expert acts in accordance

with the CCMC’s privacy

obligations, and other duties

of confidentiality, on the

basis that it is deemed to be

bound in each case; and

iii. any such external expert

otherwise complies with

these requirements so far as reasonably relevant.

(b) The reasonable steps to be

taken by the CCMC under

clause 8.2(a) extend to ensuring

those requirements are also

observed by the external

expert’s employees and contractors.

60 CODE COMPLIANCE MONITORING COMMITTEE MANDATE 2013

SECTION C - CCMC’S COMPLIANCE INVESTIGATION PROCESS

9. Process for concluding compliance investigations without a Determination

9.1. Process

Subject to clause 6, the process

for concluding a compliance

investigation without a

Determination is as follows:

(a) The CCMC must give the

Code Subscriber a reasonable

opportunity to respond to

an allegation that the Code

Subscriber has breached the Code.

(b) If the CCMC considers that:

i. there is no basis to

determine a breach of the

Code has occurred; or

ii. the Code Subscriber has

acknowledged that it has,

or may have, breached

the Code, and the Code

Subscriber has taken,

or proposes to take,

appropriate action to remedy

any breach or potential

breach or to prevent a reoccurrence,

then the CCMC may decide

to conclude the matter

without further investigation

or proceeding to a formal Determination.

a compliance investigation

without a Determination, the

CCMC will inform the Code

Subscriber of the outcome,

and where a compliance

investigation was commenced in

response to an allegation that a

Code Subscriber has breached

the Code, the person who

made the allegation will also be

informed of the outcome.

10. Process for concluding compliance investigations by way of Determination

10.1. Reasonable opportunity to be heard

The CCMC must give the

Code Subscriber a reasonable

opportunity to respond to

an allegation that the Code

Subscriber has breached the Code.

10.2. Criteria for Determination

When deciding whether to make

a Determination, the CCMC will

do what is reasonable in all the

circumstances, having regard to:

(a) legal principles relevant to the

decision making process;

(b) applicable Code provisions; and

10.3. Notice of Determination

The CCMC may conclude a

compliance investigation by way

of a Determination only after

adhering to the following process:

(a) before the Determination is

made, the CCMC must give at

least 21 business days written

notice to the relevant Code

Subscriber and, if applicable,

the person that has made a

relevant allegation, about the

CCMC’s intention to make a

Determination. The notice must include:

i. a brief description of what

Determination and fi ndings

the CCMC intends to make

and its reasons;

CODE COMPLIANCE MONITORING COMMITTEE MANDATE 2013 61

SECTION C CCMC’S COMPLIANCE INVESTIGATION PROCESS

ii. if applicable, a brief

description of any fi nding

the CCMC intends to make

that the Code Subscriber

is responsible for serious or

systemic non-compliance

with the Code, where the

CCMC reasonably suspects

that this is the case;

iii. in the case of a compliance

investigation commenced in

response to an allegation,

a statement about any

conclusions the CCMC has

formed regarding the merits of the allegation;

(b) the CCMC must then seek fi nal

comments on the matter from

the Code Subscriber and,

in the case of a compliance

investigation commenced

in response to an allegation

by any person that the Code

Subscriber has breached the

Code, from the person making

the allegation; and

reasonable opportunity for the

relevant parties to make final comments.

10.4. Determination

(a) After the CCMC has given the

relevant parties a reasonable

time within which to make fi nal

comments, the CCMC may

make a Determination if it

continues to consider that this is appropriate.

(b) Each Determination must:

i. be in writing;

ii. include a brief description of the issues;

iii. set out the CCMC’s findings

and views. In the case of a

compliance investigation

instituted in response

to an allegation, the

Determination will include

the CCMC’s views as to

whether the alleged breach

was established in whole

or in part, or whether the

allegation was unfounded;

iv. if applicable, include any

minutes or other reports

made relating to a material

personal interest of a CCMC Member;

v. if applicable, state any

fi nding by the CCMC that

the Code Subscriber is

responsible for serious or

systemic non-compliance

with the Code; and

(vi) include brief reasons for the

conclusions and fi ndings

of the CCMC including, if

applicable, the conclusions

and fi ndings that support

the CCMC’s intention to

name the Code Subscriber

(see clause 11.1) in its next

Annual Report or on the

CCMC website, or both.

made the CCMC must inform

the Code Subscriber of the

Determination and, in the case

of a compliance investigation

commenced in response to

an allegation by any person

that a Code Subscriber has

breached the Code, the

CCMC must inform the person

making the allegation of the Determination.

62 CODE COMPLIANCE MONITORING COMMITTEE MANDATE 2013

SECTION D

11. Public naming of a Code Subscriber

11.1. Grounds for public naming of a Code Subscriber

The CCMC may name a Code

Subscriber in accordance with

clause 36(j) of the Code in its next

Annual Report or on the CCMC website, or both.

12. Collection of information by the CCMC

12.1. Data collection

The CCMC must, for each period

for which it must prepare an Annual

Report (see clause 12.2), collect

and record information in relation

to its operations for inclusion (in

all cases de-identified except as

contemplated in clause 11.1) in

the Annual Report for the period including:

(a) information about the CCMC’s

monitoring activity and the results of that activity;

(b) the ACS from each of the Code

Subscribers on their compliance with the Code;

the ABA to the CCMC and the

results of those referrals;

(d) the number of compliance

investigations it has

commenced, the source

of information for those

investigations and the status of

those investigations, including:

i. where a compliance

investigation is open,

the age and status of the

investigation; and

ii. where a compliance

investigation has been

concluded, whether or not a

Determination was made;

(e) the time taken to conclude

compliance investigations;

(f) details of allegations which were

determined to be outside the

CCMC’s responsibilities and why;

(g) the demographics of persons

alleging that a Code Subscriber

has breached the Code (where practicable);

SANCTIONING CODE - SUBSCRIBERS

CODE COMPLIANCE MONITORING COMMITTEE MANDATE 2013 63

SECTION D SANCTIONING CODE SUBSCRIBERS

(h) the level of compliance with

the Code which the CCMC

has ascertained as a result

of its monitoring activity and

compliance investigations; and

(i) a profi le of current and

completed compliance

investigations that identifies,

where relevant or necessary:

i. the relevant provisions of the Code;

ii. the type of products or services involved;

iii. any underlying cause of the

non-compliance with the Code;

iv. any compliance measures

implemented by relevant Code Subscribers; and

v. any systemic breaches or other trends.

The CCMC may in its discretion also

collect, for inclusion in its Annual

Report, information about benefi ts

and disadvantages to customers

resulting from Code Subscribers’

compliance with the Code.

12.2. Publication of data

(a) The CCMC must publish an

Annual Report within 6 months

of the end of each Financial Year and:

i. provide a copy of the Annual

Report to each Code

Subscriber, the ABA and to the FOS; and

ii. make copies of the Annual

Report available to the

public on its website and on request.

(b) Each Annual Report must be

a fair and adequate summary

and analysis of the information

specifi ed in clause 12.1, the

financial affairs of the CCMC

and any other matters the

CCMC thinks appropriate that

are consistent with the functions

of the CCMC under the Code and this mandate.

SECTION D

64 CODE COMPLIANCE MONITORING COMMITTEE MANDATE 2013

13. Interpretation

13.1. Defined terms

The following words have the following

meanings where they appear in this mandate:

ABA means the Australian Bankers’ Association.

ACS means Annual Compliance Statement. See clause 5.2.

Annual Report means the report specified in clause 12.2.

ASIC means the Australian Securities and Investments Commission.

CCMC means the Code Compliance

Monitoring Committee established

pursuant to clause 36 of the Code and in

accordance with this mandate.

CCMC Member means a member of the

CCMC. See clause 2.1.

CCMC Personnel means the offi cers

(including the CEO) and employees of the CCMC. See clause 14.2.

CEO means the person appointed to the role in clause 3.1.

Code means the Code of Banking Practice.

Code Subscriber means a bank that has adopted the Code.

Determination means a decision in

accordance with clause 10 as to whether

there has been a breach of the Code by

a Code Subscriber and if so whether the

Code Subscriber should be named in accordance with clause 11.

Financial Year means the 12 months

ending 30 June in any calendar year.

Forum means any court, tribunal,

arbitrator, mediator, independent

conciliation body, dispute resolution body,

complaint resolution scheme (including,

for the avoidance of doubt, the FOS) or

statutory Ombudsman, in any jurisdiction.

FOS means Financial Ombudsman Service

Limited ACN 131 124 448 or its successor entity.

Independent Chairperson means the

Chair of the CCMC specifi ed in clause

2.1(c).

SECTION E - INTERPRETATION

CODE COMPLIANCE MONITORING COMMITTEE MANDATE 2013 65

SECTION E INTERPRETATION

13.2. General

a) A reference to the singular

includes the plural and vice versa.

(b) The words “including”, “such

as” or “for example”, when

introducing an example, does

not limit the meaning of the

words to which the example

relates, that example or

examples of a similar kind.

the CCMC shall be construed

as including a reference to a

person who is contracted as

an employee of the FOS to act

solely for the CCMC as if that

person were an employee of

the CCMC, and includes each CCMC Member.

(d) Where a term is used in this

document that is not defi ned

in clause 13.1, the term is to

be interpreted as having, if

applicable, the same meaning

as in the Code, and otherwise

its everyday meaning and

usage, unless the context otherwise requires.

(e) References to clauses are to

clauses of this document unless stated otherwise.

(f) A reference to a statute,

ordinance, Code or other

law includes regulations and

other instruments under it and

consolidations, amendments,

re-enactments or replacements of any of them.

(g) Headings are inserted for

convenience only and do not

affect the interpretation of this document.

(h) A reference to a clause or

provision of the Code includes

the clause or provision of the

Code and any amendment to,

restatement of, or substitution

for that clause or provision in

the Code and in any succeeding

version or revision of the Code

resulting from any review of the

Code as in effect in relation to

the relevant Code Subscriber from time to time.

i. This mandate will apply to

all new CCMC compliance

monitoring or compliance

investigations commenced

after the date this mandate

comes into effect, which is

the published date agreed

to between the CCMC and

the ABA, on behalf of Code Subscribers.

SECTION E

66 CODE COMPLIANCE MONITORING COMMITTEE MANDATE 2013

14. Confidentiality and other matters

14.1. CCMC’s confidentiality obligations

(a) All information provided by or

on behalf of a party (including a

Code Subscriber) to the CCMC

(including, for the avoidance

of doubt, to any employee,

consultant, independent

contractor or agent of the

CCMC acting in that capacity)

and designated as confidential,

and all information provided

by or on behalf of the CCMC

to a Code Subscriber being,

in either case, information that

is not in the public domain

(otherwise than by breach of

this clause), shall be deemed confidential.

(b) The CCMC must return or, with

the consent of the relevant

party, permanently delete, any

item containing confidential

information as soon as

practicable after an investigation

is resolved, withdrawn or

concluded. If an allegation is

sent to another forum then

the CCMC must, unless the

CCMC is compelled by law to

provide the information, obtain

the consent of the relevant

party before forwarding any

information to the new forum.

Subscriber (as recipients of

any such information) shall take

reasonable steps to ensure

that the confidentiality of such

information is maintained,

including taking reasonable

steps to ensure that their

employees, consultants,

independent contractors or

agents, abide by the same

obligation. This does not,

however, restrict the CCMC from

using or disclosing information:

i. to the extent reasonably

necessary to carry out the

CCMC’s responsibilities,

including under this mandate

or for any incidental purpose; or

ii. as required or permitted by law.

14.2. Immunity from liability

(a) The Code Subscribers agree to

release and indemnify (to the

extent the assets of the CCMC

SECTION F - GENERAL

CODE COMPLIANCE MONITORING COMMITTEE MANDATE 2013 67

are inadequate), the CCMC

and its offi cers and employees

(CCMC Personnel) and to hold

them harmless against all losses,

damages, costs (including,

without limitation, legal costs),

actions, claims, demands and

liabilities incurred or suffered by

the CCMC or CCMC Personnel

arising out the CCMC’s

performance of its functions

and activities in accordance

with this mandate, other than

with respect to any wilful or

reckless acts, omissions or gross

negligence on the part of the

CCMC or CCMC Personnel.

(b) The CCMC must effect and

maintain at all relevant times the

following insurance, which must

in all circumstances fully cover

any claim made at any time in

respect of an event occurring:

i. professional indemnity

insurance; and

ii. insurance against any liability

which may arise under the

general law, including,

without limitation, any

relevant workers’ or accident

compensation legislation,

with respect to any of CCMC

Personnel.

indemnified out of the assets of

the CCMC and (to the extent

that they are inadequate) by

each Code Subscriber against

all liabilities arising out of

their responsibilities as CCMC Personnel.

14.3. Review

The CCMC will arrange a periodic

review of its activities, coinciding

with the periodic review of the

Code by the ABA, in consultation

with Code Subscribers, and will

provide a copy of each review

report to the Code Subscribers,

the ABA, the FOS and ASIC.

14.4. Amendment of the Mandate

The ABA, after consultation

with the CCMC, may amend the

Mandate including, but not limited

to, the need to take account of

external developments, changes

affecting or made to the Code, the

CCMC’s relationship with the FOS

and other matters related to the

operations of the CCMC. The Code

Subscribers agree to be bound by

any such amendment.

SECTION F GENERAL

SECTION F

SECTION C OUR COMMITMENTS AND GENERAL OBLIGATIONS

68 CODE COMPLIANCE MONITORING COMMITTEE MANDATE 2013

NOTES

CODE COMPLIANCE MONITORING COMMITTEE MANDATE 2013 69

NOTES

70 CODE COMPLIANCE MONITORING COMMITTEE MANDATE 2013

CODE COMPLIANCE MONITORING COMMITTEE MANDATE 2013 71

AUSTRALIAN BANKERS’ ASSOCIATION INC

Level 3 56 Pitt Street, Sydney NSW 2000

p. +61 (0)2 8298 0417 f. +61 (0)2 8298 0402