Hong Kong – Code Of Banking Practice Update.

Where digital marketing media or channels are used, AIs should consider the appropriate means to disclose product information effectively and clearly, e.g. incorporate images, infographics or other means of conveying the necessary information to customers

AIs should maintain channels to allow members of the public to verify the authenticity of the marketing materials of the AIs and third parties engaged by them. The channels should remain available for verification for a reasonable period of time after the conclusion of the marketing activities

AIs should issue warnings to customers about cyber threats, frauds, scams, bogus advertisements and other customer security risks as soon as practicable and should suggest protective measures that the customers should adopt

All fees and charges in relation to an AI’s internet banking services and the rates offered in respect of its accounts should be made available on its website and principal interest banking platforms

Where information is provided to customers in a non-paper based form, AIs should ensure that it is in a format that allows customers, within a reasonable time period, to download and store the relevant information for future reference and retention; the information must remain unchanged during that period

Non-paper based statements should be stored on an AI’s internet banking platforms to allow for customers’ retrieval for at least 7 years. Similar requirements apply for credit cards under paragraph 36.5

Expansion of the application of the Code to cover internet and mobile banking services.
 

Card issuers should make available a form for cardholders to initiate an error/dispute resolution process and provide information on the chargeback mechanism on their websites and internet platforms. Frontline staff should be able to provide prompt and appropriate assistance in response to customers’ queries about chargeback requests

Enhanced information disclosure by AIs as regards cross-boundary and local payments, e.g. the time when an outgoing payment instruction will be effected and received, the time required for the funds to be transferred back to the customer if transfer of funds is unsuccessful, total fees and charges incurred by the customer or beneficiary, the identity of the intermediary institutions and correspondent banks involved, their fees and processing time, etc.

Paragraph 44.4 of the Code expressly requires AIs to observe the procedures set out in “Handling Procedures for Following up Mis-transfer of Funds Reported by Customers” jointly issued by the HKAB and DTCA when handling reports from customers as regards mistaken fund transfers

Ensure reasonable opportunity is given to customers to review product application and transaction information – where electronic devices are used to present the relevant information, AIs should provide customers with alternative means to review the relevant information upon request

Provide effective and timely notification (e.g. via written notice, message on the statement of account, e-mail or SMS) to customers as regards changes to promotional interest rates.

AIs should take into account the needs of customers for physical banking services (e.g. elderly and those with impairments) when closing, relocating or performing a material change to the scope of services of their branches and take measures to minimise the impact on customers

Paragraph 10.3 of the Code expressly requires AIs to observe the following guidelines jointly issued by the HKAB and DTCA when providing services to customers with impairment or special needs – “Practical Guideline on Barrier-free Banking Services” and “Guideline on Banking Services for Persons with Intellectual Disabilities”.