ASIC Cracks Down on Compliance in Australia’s Banking Sector

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The Australian Securities and Investments Commission (ASIC) has launched a comprehensive effort to regulate the country’s banking sector, prioritizing customer interests and meeting regulatory requirements.

Setting the Standards

• All banks and financial service providers are required to be licensed and adhere to strict standards.
• These standards include:
  • Providing customers with financial products that meet their needs.
  • Meeting responsible lending obligations.
  • Offering transparent disclosure of fees and conditions.

Taking Action Against Misconduct

• ASIC takes action against financial services providers who engage in:
  • Misleading or deceptive practices.
  • Failing to meet regulatory requirements.
  • Prioritizing profits over customer interests.
• The regulator works closely with other government agencies to ensure a comprehensive regulatory framework.

The ePayments Code: Protecting Consumers

• Safeguards consumers making electronic payments through:
  • ATMs.
  • EFTPOS.
  • Credit cards.
  • Online banking.
  • BPAY.
• Almost all banks, credit unions, and building societies in Australia subscribe to the code.
• The code ensures clear terms and conditions, outlines rules for changes to fees and receipts, and sets standards for unauthorized transactions.

Resolving Issues with Your Bank

• If you encounter errors on your account or mistakenly transfer funds:
  • The ePayments Code provides a framework for resolving these issues.
• For more complex problems:
  • Contact the bank.
  • Make a formal complaint.
  • Escalate the issue to the Australian Financial Complaints Authority (AFCA) if necessary.

Help for Indigenous Consumers and Banking Codes of Conduct

• ASIC offers support for Indigenous consumers through its Indigenous Help Line.
• Developed banking codes of conduct with industry associations to promote higher standards of practice and consumer confidence.
• Customers can report breaches to AFCA.

Managing Debt, Credit Scams, and More

• For further guidance on managing debt, finding a financial counselor, or avoiding credit scams:
  • Refer to relevant resources and links.