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Credit Union and Building Society Codes of ConductFor some time, the conduct of Building Societies and Credit Unions has been governed by their respective Codes of Conduct. However, that position is changing, with the Credit Union Code under review and with most Building Societies having 'opted out' of complying with the Building Society Code in light of the requirements now imposed by the Australian Financial Services licensing regime. The conduct of Credit Unions continues to be governed by a Code of Conduct. However, following a review in December 2003, a revised Code is to be developed, which is likely to match substantially the requirements of the revised Code of Banking Practice. The Building Society Code was developed to govern the conduct of Building Societies. However, ASIC's annual code monitoring report for the period 2002-2003 states that at that time, only eight of the 14 building societies had adopted the Building Society Code. Given all Building Societies now hold Australian Financial Services licenses, it appears that the Building Society Code is effectively redundant, as many of the matters previously dealt with in the Building Society Code are now dealt with pursuant to the licensing requirements. Credit Union Code The Code applies where an individual for personal, domestic or household purposes makes a deposit or obtains a loan or other facility. But it doesn't apply to a number of services, including one involving a bill of exchange, an insurance or financial planning product or service and credit without prior agreement. The Code acknowledges privacy duties under legislation, specifically the Privacy Act 1988. The Code also expressly provides for compliance with the requirements of the Credit Reporting Code of Conduct issued by the Privacy Commissioner. The Code allows for the disclosure of customer or member information to a Related Entity:
Under the code:
In addition, the Code acknowledges the general law duty of confidentiality and specifies its four exceptions. For more information, see the Credit Union Code of Practice. |
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