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Retirement

Investor favourites set for inside-out reform

  • July 12 2019
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Retirement

Investor favourites set for inside-out reform

By Cameron Micallef
July 12 2019

Following the banking royal commission, the ACCC yesterday announced interim authorisation to allow the Australian Banking Association to take steps to change its Banking Code of Practice.

ACCC

Investor favourites set for inside-out reform

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  • July 12 2019
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Following the banking royal commission, the ACCC yesterday announced interim authorisation to allow the Australian Banking Association to take steps to change its Banking Code of Practice.

ACCC

The interim authorisation allows member banks to agree not to charge default interest on loans secured under agricultural land if a drought or natural disaster is declared in the area. 

ACCC chair Rod Sims believes it’s an important first step towards the banking sector aligning with the Hayne royal commission. 

“We’re allowing the banks to start making important changes following the Hayne royal commission, and for them to start taking steps to ensure they are prepared ahead of a new banking code coming into effect next year,” said Mr Sims.

It also allows member banks to agree not to charge dishonour fees or overdrawn fees or allow informal overdrafts on basic bank accounts. 

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Interim authorisation removes the risk that the ABA and its member banks would breach competition laws by agreeing to make and implement these changes to the banking code.

Interim authorisation commences immediately and remains in place unless it is revoked by the ACCC or when the ACCC completes its assessment of the application for authorisation.

The ACCC will consider any submissions and possible changes the ABA proposes in response to these issues before deciding whether to grant interim authorisation for the basic banking proposals.

The ACCC expects to issue a draft determination on the ABA’s authorisation application in September of this year.

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Investor favourites set for inside-out reform
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About the author

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Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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