Review of 11 banks found more work still needed
Banking Code Compliance Committee has told banks to keep a heightened focus on deceased estates after a follow-up review found uneven progress across 11 lenders.
In its report, Managing deceased estates: A follow-up review, the BCCC examined how 11 banks responded to recommendations first issued in 2023.
Eight of the 11 banks took steps that matched the 2023 recommendations. Those changes covered systems, processes, product identification, monitoring arrangements and staff training.
However, the BCCC found some banks still rely on manual processes, fragmented arrangements or underdeveloped monitoring and quality assurance.
Three banks also identified further work in key areas. Those areas included quality assurance frameworks, fee identification controls and staff training.
BCCC chair Sean Hughes said the follow-up review showed the committee’s work had helped lift standards across the industry. “This follow-up reveals that most banks – but not all – have acted in response to the 2023 report. The majority appear to have taken the findings and recommendations seriously and implemented important changes,” Hughes said.
For representatives, managing a deceased estate can bring grief, financial pressure, uncertainty and unfamiliar legal or banking processes. According to Hughes, better bank processes reduce the risk of delays, confusion and unnecessary distress.
Hughes said banks need processes that are accurate, timely and easy to navigate. He linked that standard to customer service and to commitments under the Banking Code of Practice.
11-bank BCCC review
Sean Hughes also warned that banks with unresolved weaknesses had been on notice for long enough. As a result, those lenders should expect more formal and targeted engagement from the BCCC.
“These are not new issues, nor are they particularly complicated or expensive to repair,” Hughes said.
He added that the BCCC had given banks ample time after the 2023 recommendations to review their practices. If gaps still remain, the committee may consider further investigation and formal action.
Following the review, the BCCC wants every bank to show that its deceased estate processes work in practice, not just on paper. That includes accurate product identification, correct fee controls, sound quality assurance and effective staff training.
Meanwhile, the findings show improvement across most of the 11 banks, but not all. Since three banks still reported work in key control areas, the BCCC says the industry-wide job is not finished.
