The Customer-Owned Banking Association (COBA) has announced the appointment of Phil Khoury, former executive general manager of the Australian Securities and Investments Commission (ASIC), to review the Code of Practice adhered to by mutual banks, credit unions and building societies.
A review of the code is undertaken every five years, with standard outlined in the current code last reviewed in January 2014.
COBA CEO Michael Lawrence said Mr Khoury is well suited to the role, given his experience in the sector, noting that the review is pertinent in light of regulatory scrutiny.
“Mr Khoury has extensive experience in the banking industry and best practice corporate governance,” Mr Khoury said.
“His insights will be invaluable for the customer-owned sector as the regulatory and legal environment continues to evolve in the wake of the financial services royal commission.”
“The success of our model is demonstrated by our sector’s consistently superior performance on measures of trust and loyalty. Our sector exists to serve the interests of its customers, not shareholders.”
Mr Lawrence added: “It is essential that customers have confidence that they are covered by a market-leading, plain English commitment to fair and responsible banking.”
Mr Khoury, who currently serves as principal of cameron.ralph.khoury, has undertaken board effectiveness and governance reviews of more than 150 organisations, including a review into the Banking Code of Practice in 2017.
Mr Khoury said the review of the Customer-Owned Banking Code would serve as an opportunity to re-examine the scope of the code and the obligations it imposes for the benefit of customers.
“The review of the code will seek to ensure stakeholders’ concerns are openly gathered to help guide the final report,” Mr Khoury said.
“I am delighted to have the opportunity to be working with COBA once again.”
Mr Khoury has noted that he intends to release an issues paper at the end of January, requesting submissions to the review.
It is expected that the review would be completed in mid-2019.
[Related: ASIC approves new banking code]