Code of Banking Code of Practice Banking FIFTH Practice nbsp; code of Banking Practice which took effect from 1 July 2007. compliance ... standards or practices may apply to products

  • View
    214

  • Download
    1

Embed Size (px)

Text of Code of Banking Code of Practice Banking FIFTH Practice nbsp; code of Banking Practice which took...

  • C o d e o f B a n k i n g Practice

    |FIFTHE D I T I O N 2012

    Code of Banking Practice

    |FIFTHE D I T I O N 2012

    n z b a . o r g . n z

  • 1new zealand bankers association

    contents1 introduction 3

    1.1 thiscode 31.2 GoverningPrinciplesandobjectivesofthecode 41.3 dealingwithcomplaintsanddisputeresolutionSchemes 5

    2 communication 72.1 customerPrivacy 72.2 communicationwithYou 82.3 Bankdisclosure 9

    3 ProductSandServiceS 103.1 accounts,ProductsandServices 103.2 PaymentServices 12

    4 chequeS 144.1 cheques 144.2 Bankcheques 15

    5 credit 175.1 Provisionofcredit 175.2 GuarantorsandProvidersofotherSecurity 19

    6 PinSandPaSSwordS 216.1 PinsandPasswords 21

    7 cardS 237.1 cards 237.2 Liability 257.3 merchantcardServices 26

    8 internetBankinG 288.1 GeneralPrinciples 28

    9 otherServiceS 339.1 ForeignexchangeServices 339.2 otherFinancialServices 34

    10 StatementSandaccountinFormation 3510.1 Statementsandaccountinformation 35

    11 aPPendix 3711.1 Glossary 3711.2 PrincipalLegislation 4311.3 ParticipatingBanks 46

    index 47

  • 3new zealand bankers association

    1 introduction

    1.1 thiscode

    (a) thiscodehasbeenpreparedbythememberbanksofthenewZealandBankersassociationandiseffectivefrom1July2012.itreplacesthecodeofBankingPracticewhichtookeffectfrom1July2007.compliancebyparticipatingbankswiththecodeisconsideredbyapproveddisputeresolutionSchemesthroughcomplaintinvestigationsundertakenfromtimetotime.Formalreviewofthiscodebyparticipatingbankswillbecommencedwithinthreeyearsoftheeffectivedate.consultationwiththepublic(includinginterestedorganisations)willtakeplaceduringthereviewprocess.changestobankingpractice,technologyandlegislationmayalsojustifyaninterimreviewandamendmentofthecode.

    (b) inthiscodewe,ourorusmeansyourbank,youoryourmeansyouthecustomer.

    (c) thiscoderecordsgoodbankingpractices.weagreetoobservethesepracticesasaminimumstandard.thiscodeisnotacompleterecordofourrelationshipwithyou,asspecificproductsandservicesmayhavetheirowntermsandconditions.thesetermsandconditionsmayincludeadditionalrightsandobligationsforbothyouandus.thiscodedoesnotalterorreplacethosetermsinanyway.

    (d) wewillensurethatourstaffareawareofthecodeandtheminimumstandardsofgoodbankingpracticethatarerelevanttotheirareaofwork.

  • 4 code of banking Practice | fifth edition | 2012

    (e) othercodes,actsofParliament,orinternationallyacceptedbankingstandardsorpracticesmayapplytoproductsandservicessoldbyusdirectlyoronbehalfofanotherparty.weshallcomplywithallourlegalobligationsincludingthosestatuteslistedunderclause11.2.

    (f) thiscodeappliestoourrelationshipwithallourcustomersotherthanourwholesalecustomers.

    (g) intheappendixtothecodeyouwillfind:

    (i) aglossarydefininganumberoftermsusedinthiscode;and

    (ii) alistoftheprincipallegislationandthatmayaffectservicesprovidedbybanksinnewZealand.

    (h) copiesofthiscodeareavailableatallBranches,onbankwebsites,andonrequestfromus.theyarealsoavailablefromthenewZealandBankersassociation.thecontactdetailsforthenewZealandBankersassociationareasfollows:

    New Zealand Bankers Association Level14,kordiahouse,109-125willisStreetPoBox3043,weLLinGton6140

    telephone:(04)8023358website:www.nzba.org.nz

    1.2 GoverningPrinciplesandobjectivesofthecode

    (a) thepurposeofthecodeisto:

    (i) recordandcommunicatetoyoutheminimumstandardsofgoodbankingpracticethatwewillobserve;and

    (ii) maintaingoodbank/customerrelationshipsandcommunication.

    (b) inordertoachievetheseobjectiveswewill:

    (i) complywiththeprovisionsofthiscode;

    (ii) provideyouwithtimelyinformation,usingplainlanguagewherewecan,tohelpyouunderstandhowyouraccountsandproductsorservicesoperate,sothatyoucandecidewhethertheyareappropriatetoyourneeds;

    (iii) useourbestendeavourstomakesurethatourbankingsystemsandtechnologyaresecure;and

    http://www.nzba.org.nz

  • 5new zealand bankers association

    (iv) actfairlyandreasonablytowardsyou,inaconsistentandethicalway.whatmaybefairandreasonableinanycasewilldependonthecircumstances,includingourconductandyours.

    (c) wewillrecognisetheneedsofelderlyanddisabledcustomerstohaveaccesstobankingservicesandwewilluseourreasonableendeavourstoenhanceaccesstothoseservicesforthesecustomers.ininterpretingreasonableendeavoursforthepurposesofthisclausewewillbeguidedbythedefinitionofreasonableaccommodationascontainedintheglossary.

    (d) Pleaseaskusforclarificationifyoudonotunderstandanyoftheinformationthatweprovide.

    (e) Youmaywanttoseekindependentlegalorotherprofessionaladvicerelatingtotheproductsandservicesweprovide.wewillco-operatewithyouradvisersand,onrequest,supplytheinformationtheywillneedtoadviseyouproperly.

    1.3 dealingwithcomplaintsanddisputeresolutionSchemes

    Dealing with Complaints (a) ifyouwanttomakeacomplaint,youshouldfirstinformusofthecomplaint.

    wewillofferfreecomplaintsreviewproceduresforhandlingcomplaintsaboutanyofourproductsandservices.theFinancialServiceProviders(registrationanddisputeresolution)act2008alsorequiresfinancialserviceproviderstobelongtoanapproveddisputeresolutionSchemesuchastheBankingombudsmanScheme.

    (b) ifyouhavemadeacomplaintaboutourproductsorservices:

    (i) wewillacknowledgetoyouwehavereceivedyourcomplaintwithinfivebusinessdaysofourreceiptofyourcomplaint;

    (ii) wewillundertakeareviewunderourowninternalcomplaintsprocedures;

    (iii) ifyouaredissatisfiedwithourdecision,wewillinformyou(usuallyinourfinalresponsetoyou)thatyoumayreferyourcomplainttoourapproveddisputeresolutionSchemeforfurtherconsideration,andwewillalsoprovideyouwiththecontactdetailsforthatdisputeresolutionScheme;and

  • 6 code of banking Practice | fifth edition | 2012

    (iv) thedisputeresolutionSchememaythenindependentlyreviewyourcomplaintandmakearecommendation.

    (c) ourinternalcomplaintsprocedureswill:

    (i) bedocumented;

    (ii) beaccessibletoyou;and

    (iii) provideforthetimelyresolutionofcomplaintsinafairandreasonablemanner.

    (d) BrochuresrelatingtoourcomplaintsproceduresandthedisputeresolutionSchemeofwhichweareamemberwillbeondisplayinallofourBranches.ourcomplaintsprocedureswillalsobeavailableonourwebsitesandonrequestfromus.

    Dispute Resolution Schemes(e) BankssubscribingtothiscodealsobelongtoadisputeresolutionScheme.

    theprimarypurposeofthedisputeresolutionSchemeistoreviewandrecommendwaystoresolveyourdisputesthatremainunresolvedafterconsiderationunderyourbanksinternalcomplaintsprocedures.detailsofthedisputeresolutionSchemeofwhichyourbankisamemberareavailablefromyourbank.ifyourbankisamemberoftheBankingombudsmanScheme,detailsofthatfreeschemeareavailablefromusorfromtheBankingombudsman.theBankingombudsmanmay,whereappropriate,refercomplainantstootherorganisationssuchastheinsuranceandSavingsombudsman,thePrivacycommissionerorthehumanrightscommissioner.contactdetailsfortheBankingombudsmanareasfollows:

    Office of the Banking OmbudsmanLevel11,BPhouse,20customhousequayPoBox10573,theterraceweLLinGton6011

    Freephone:0800805950Fax:(04)4710548email:help@bankomb.org.nzwebsite:www.bankomb.org.nz

    mailto:help@bankomb.org.nzhttp://www.bankomb.org.nz

  • 7new zealand bankers association

    2 communication

    2.1 customerPrivacy

    (a) wehaveastrictdutytoprotecttheconfidentialityofallourcustomersandformercustomersaffairs.wearealsoobligedinourdealingswithourpersonalcustomerstoobserveandcomplywiththePrivacyact1993.

    (b) whenyouaredealingwithuswemayaskyoutoproveyouridentity.thishelpsusprotectyourpropertyandinformation.

    (c) wewillendeavourtoensurethatyourinformationthatweholdisaccurate.Promptadviceofanychangesinyourpersonalcontactdetailssuchasresidentialoremailaddress,ortelephoneorfacsimilenumberswillhelpustodothis.thisisveryimportantbecausewewillthenbeabletocommunicatewithyouandsendyouinformationonyouraccountsandotherrelevantmatters.

    (d) wewillonlyusetheinformationweholdaboutyouforthepromotionofotherproductsorservicesifyouhaveconsentedtothis.ifyoudonotwishtoreceivepromotionalmaterialfromusatanytime,tellusandwewillnotsendit.

    (e) werequireallofouremployees,contractorsandagentstosignaconfidentialityagreement.

    (f) Youcanhelpustoprotectyourconfidentialinformationbykeepingallinformationregardingyouraccounts,productsandservicesinasafeplace.

  • 8 code of banking Practice | fifth edition | 2012

    (g) whenyouaredealingwithusbytelephone,yourconversationwithusmayberecordedforverificationortrainingpurposes.

    (h) certaincircumstancesrequireustodiscloseyourconfidentialinformation,forexample,underthetaxadministrationact1994theinlandrevenuedepartmentmayrequestcertaininformationfromus,ascouldothergovernmentagenciesordepartmentsunderrelevantlegislation.wemayberequiredtodiscloseinformationonindividuals,companiesandotherentitiesforthepurposeofinvestigation.Section11.2ofthiscodelistsexamplesofsomeadditionallawsthatmayrequireustodiscloseyourconfidentialinformation.

    2.2 communicationwithYou

    (a) wewillprovideinformationtoyoufromtimetotimeusingplainlanguagewherewecan.thismayincludeadvisingyouofchangesthatmayaffectyourbusinesswithus.wewillcommunicatewithyouinatleastoneofthefollowingways:

    (i) bydirectcommunication(e.g.byletter,email,faxortelephone);

    (ii) bydisplayinginformationinallBranches;

    (iii) bynoticeinthemedia(includingpublicnotices);

    (iv) bynoticeonourwebsite;or

    (v) byanyelectronicbankingchannelusedbyyou.

    (b) whenthereisachangetothetermsandconditionsofanybankingservice,includingchangestofeesandcharges,wewillgiveyouatleast14daysnoticeofsuchchangeinatleastoneofthefollowingways:

    (i) bydirectcommunication(e.g.byletter,email,faxortelephone);

    (ii) bydisplayinallBranches;

    (iii) bynoticeinthemedia(includingpublicnotices);

    (iv) bynoticeonourwebsite;or

    (v) byanyelectronicbankingchannelusedbyyou.

    (c) Priornot