The Hong Kong Monetary Authority (HKMA) welcomes the launch of the revised Code of Banking Practice ("Code") by the Hong Kong Association of Banks (HKAB) and the DTC Association (DTCA) today. The Code is issued by HKAB and the DTCA and endorsed by the HKMA.
The Code is revised after a comprehensive review undertaken by the Code of Banking Practice Committee comprising representatives of HKAB, the DTCA and the HKMA. The review aimed at providing a wider protection to customers, promoting good banking practices as well as enhancing the provisions of the Code to align with international standards on financial consumer protection.
Major enhancements to the Code, covering a wide range of banking products and services, include:
Mr Norman Chan, Chief Executive of the HKMA, said, “In the wake of the global financial crisis, considerable international efforts have been directed to, amongst other things, the strengthening of financial consumer protection. In this connection, the HKMA has also taken a proactive approach and seek to cultivate a culture of treating customers fairly in the banking industry. The enhancement of the Code of Banking Practice is another milestone, further to the launch of the Treat Customers Fairly Charter in 2013, in strengthening banks’ corporate culture to take good care of the interests of customers in their day-to-day business dealings.”
“I am pleased that the Code is enhanced to provide better protection for financial consumers in line with the evolving customers’ needs, and to align with good international practices promulgated by the G20.”, Mr Chan added. “The HKMA will continue to work with the industry and the relevant stakeholders to promote bank consumer protection and good business practices.”
The revised Code is effective from 6 February 2015. AIs are expected to achieve full compliance with the new provisions as quickly as possible within 6 months of the effective date. Another 6 months is allowed for compliance with those provisions that require system changes. The HKMA will monitor compliance as part of its ongoing supervision of AIs.
A copy of the revised Code can be found at: http://www.hkma.gov.hk/media/eng/doc/code_eng.pdf.
Hong Kong Monetary Authority
6 February 2015
1 The HKMA participated in the international discussion of G20 High-level Principles on Financial Consumer Protection as well as the Effective Approaches to Implement the High-Level Principles as endorsed by G20 Leaders. The ten G20 High-level Principles on Financial Consumer Protection cover areas of importance to Hong Kong including disclosure and transparency, responsible business conduct, and financial education. For details, please refer to the OECD website at: http://www.oecd.org/daf/fin/financial-markets/48892010.pdf.