What does it mean for you? THE CODE OF CONDUCT What does it mean for you? Presented By: Meisha Rainford, Bank of Jamaica 6 April 2017

Introduction The Code of Conduct “the Code” was issued on 30 August 2016 in accordance with the Banking Services Act (BSA). Applicable to deposit taking institutions under the BSA i.e. commercial banks, merchant banks and building societies. Governs the relationship between the DTI and their customers; The Code will take effect on 30 August 2017

The Code of Conduct The Code establishes minimum service standards for DTIs in relation to you its customers. These include: Keeping language in contracts simple and clear; Highlighting and explaining key terms in contracts for customers’ attention; Notifying customers of fees, charges, and terms and conditions of contracts; Providing customers with reasonable notice of changes to fees, charges, and terms and conditions of contracts; Providing periodic statement of account balances and transactions;

The Code of Conduct Expressing interest rates as effective annual interest rates. That is, an interest rate that will allow for easy comparison of financial products across all product types and DTIs; Establishing systems and tools to record and effectively address customer complaints. Advising customers of the steps to make a complaint.

Key Provisions

Key Provisions – Fees and Charges, Terms and Conditions Informing customers of terms and conditions, fees and charges and interest rates prior to acquiring a product or service. Identifying key terms for the customers attention. Notification of changes to fees charges, terms and conditions and interest rates (45 days in advance) Prominent display of fees and charges in locations of operations.

Key Provisions - Access to Information At a reasonable cost. Provision of monthly statements of accounts (physical or electronic means) that are self-explanatory and legible. Maintaining up-to date records for each customer

Key Provisions - Complaints DTIs are required to tell you about their complaints handling process at the account opening stage. When a complaint is filed, DTIs are required to: Acknowledge receipt within five business days and indicate the period within which an initial response on the progress of the investigation will be provided; Provide you with a final response no later than forty-five business days from receipt of the complaint;

Key Provisions - Complaints Where the complaint is upheld (in whole or in part), DTIS are required to inform you of the action taken or to be taken by the institution to remedy the situation; If your complaint is not resolved in accordance with the institution’s complaints handling procedures, you may report the matter to BOJ in writing by email at customer.complaints@boj.org.jm

Key Provisions – Complaints DTI’s are required to maintain up-to-date records of all complaints received including those from their agents, such as: name of complainant, date, nature and description of complaint, copy of DTIs response

Codes of Conduct BOJ is required to publish Statistics on customer complaints annually. Complaints referred to the Bank in relation to a Code of Conduct

Codes of Conduct . Where the Code has been breached, the Bank may firstly issue a warning to the DTI. If the breach is not resolved within the time specified, then directions may be issued to the DTI. Non-compliance with these directions constitutes an offence which is liable on conviction to a fine or imprisonment.

Expectation of DTIs Ensure compliance with the Code in the offering of all banking products and services through the various service delivery channels. Establish adequate and effective structures, policies, procedures and control systems for ensuring compliance with the Code.

Benefits to Customers Promotes greater transparency, by requiring the disclosure of important contractual terms such as fees and interest rates. Requires DTIs to develop internal processes for handling customer complaints.

Thank you for your attention