Financial Crime World

Regulating Banking in Australia: What You Need to Know

As one of the most critical sectors in the Australian economy, banking plays a vital role in facilitating financial transactions and providing essential services to consumers. However, ensuring that banks operate fairly and transparently is the role of the Australian Securities and Investments Commission (ASIC).

How ASIC Regulates Financial Services

Key Objectives

  • Ensure banks meet strict licensing conditions
  • Adhere to industry standards
  • Act professionally and prioritize customers’ best interests
  • Provide suitable financial products
  • Meet responsible lending obligations
  • Disclose crucial information about their offerings

The ePayments Code: Protecting Consumers

Key Provisions

  • Regulate transactions, including:
    • ATM payments
    • EFTPOS transactions
    • Credit card payments
    • Online transactions
  • Set clear guidelines for subscribers to follow

Resolving Issues with Your Bank

Three-Step Approach

  1. Contact the bank directly: Reach out to your bank’s customer service department to resolve any issues.
  2. Make a formal complaint: If the issue is not resolved, submit a formal complaint to your bank.
  3. Escalate to AFCA (if necessary): If you’re not satisfied with the outcome, contact the Australian Financial Complaints Authority (AFCA) for further assistance.

Banking Codes of Conduct

Industry Standards

Industry codes of conduct have been developed by various associations to promote transparency and accountability. These codes outline enforceable rules for banks to adhere to and aim to:

  • Raise standards
  • Complement legislative requirements
  • Boost consumer confidence

Help for Indigenous Consumers and Managing Debt

Resources Available

For Indigenous consumers seeking assistance with banking issues, ASIC offers a dedicated help line (1300 365 957). Additionally, resources are available to help individuals manage debt and find financial counseling services.

Staying Informed

With the ever-evolving regulatory landscape, it is essential to stay informed about changes affecting your bank account and financial transactions. By understanding how ASIC regulates banking in Australia, you can make more informed decisions about your financial affairs and navigate any issues that may arise with confidence.