CEO and Managing Editor Chris Whitehead Chartered Banker F FIN noted that the 12-page submission on behalf of members was guided by the belief that the best customer outcomes were based on a principles-based approach.
The letter to the ALRC in relation to Financial Services Legislation also draws on the recent submission made to the Review of the Banking Code of Practice.
It states: “A prescriptive approach can never anticipate every circumstance.
“FINSIA suggests that frequently the cause of customer harm and dissatisfaction is the application of rigid policies when the application of professional judgement is needed.
“However, a principles-based approach requires a professional framework of skills, experience and conduct rules which supports the application of sound judgement.
“FINSIA has recently raised this issue in the context of the Independent Review of the Banking Code of Practice 2021 and suggested that the Code is…