China Construction Bank (New Zealand) Limited (CCBNZL)
Fair Conduct Programme (FCP) Summary
About us:
CCBNZL is a limited liability company incorporated in New Zealand on 30 January 2014 (incorporation number 4929019), and registered as a bank in New Zealand on 15 July 2014.
CCBNZL is a wholly-owned subsidiary of China Construction Bank Corporation (CCBC) established in October 1954 with the head office located in Beijing. CCBC is a leading commercial bank in China and dually listed on the Hong Kong and the Shanghai Stock Exchange.
CCBNZL is locally governed by the CCBNZL Board and has one physical office in Auckland operating from:
48 Shortland Street
Level 29, Vero Centre
Auckland
CCBNZL provides residential mortgages to consumers and this Fair Conduct Program (FCP) helps CCBNZL to demonstrate our commitment to our consumers.
Key elements to FCP summary:
The fair conduct principle is the overarching principle that a financial institution must treat consumers fairly. CCBNZL’s FCP applies to retails consumers.
CCBNZL’s FCP sets out effective policies, processes, systems and controls designed to ensure compliance with the fair conduct principle and to ensure CCBNZL’s employees treat consumers fairly. This includes:
- Looking after the interests of our consumers.
- Acting ethically, transparently, and in good faith.
- Helping our consumers making informed decisions.
- Ensuring CCB NZL’s products meets the needs of our consumers.
- Ensuring that the interests of our consumers are at the heart of our decision making.
- Ensuring that no consumer is subject to undue pressure or influence.
The objective of this summary is to provide consumers assistance to understand:
- How CCBNZL treats consumers fairly.
- How consumers can make informed decisions about their interaction with Relationship Managers (RMs) on the products offered by CCBNZL.
- What the complaints process at CCBNZL is in the event consumers want to submit a complaint about service or a product received.
Treating our consumers fairly
A consumer is a person who is offered credit under a consumer credit contract and the person who receives the service will be a retail consumer. CCBNZL treats consumers fairly by:
- Designing our consumer products to meet the needs and objectives of our consumers.
- Supporting consumers in vulnerable circumstances.
- Ensure our distribution methods through our RMs provide the best service to our consumers.
- Having supportive policies, procedures and systems in place to manage the quality of service and products.
- Reviewing the communication channels to ensure consumers understand the service and products they received.
- Defining roles and responsibilities to ensure that our consumers are treated fairly.
- Providing a fixed salary structure without targeted sales incentives to RMs.
What does this mean for CCBNZL consumers?
Governance:
CCBNZL is governed by a board of directors in New Zealand and chaired by an independent Chairman. The board consists of independent members, the Chief Executive and executive members of CCBNZL.
The Board Audit, Risk and Compliance Committee (BARC) is a subcommittee of the board and independently chaired, not by the board chair.
Both the board and BARC meet quarterly where they receive risk and compliance updates and have the opportunity to challenge the updates.
Product design:
CCBNZL only offers retail mortgage and term deposit products to consumers. These are very straight forward products in design and not complex, therefore CCBNZL will continue to:
- Monitor and review the products to make sure they remain fit for purpose.
- If needed adjust the product to ensure it is lean and meet the needs of our consumers.
Vulnerable consumers:
CCBNZL has policies, procedures, training and guidance in place to ensure our RMs can identify vulnerable consumers (temporary or permanent) and support consumers to meet their banking needs.
Distribution:
CCBNZL has dedicated RM’s all whom are registered on the Financial Services Providers Register (FSPR) as Financial Advice Providers (FAP) and linked to the FAP licence of CCBNZL, licenced by the Financial Markets Authority (FMA). Our mortgage product will be offered through one of these qualified RMs.
CCBNZL also contractually engaged aggregators who are not employees of CCBNZL and are not acting on behalf of CCBNZL. The aggregators operates under their own FAP licence issued by the FMA. They are also registered on the FSPR and are members of an approved Disputes Resolution Scheme. They are required to comply with conduct obligations including the requirement to treat consumers fairly as per their licence requirements enforced by the FMA.
If aggregators are unable to comply with their obligations or breach any legal or regulatory requirement, CCBNZL may terminate their relationship and they will be prohibited from providing our product as part of their product suit. CCBNZL will also report that to the FMA. From an advice perspective the consumer is the customer of the aggregator and from a lending perspective the consumer is a CCBNZL consumer.
Communication:
CCBNZL promotes products and services honestly and clearly. CCBNZL will keep communication clear and concise. Disclosures provided by RM’s must also be clearly understood by consumers.
When products are advertised CCBNZL will ensure that it meets the New Zealand law and principles and guidance of the Financial Advertising Code as published by the Advertising Standards Authority.
Incentives:
CCBNZL does not offer any incentives to staff based on sales targets but are focussed on good consumer outcomes. Employees receive a fixed salary and performance is measured against CCBNZL values.
Intermediaries promoting CCBNZL mortgages is not operating under CCBNZL FAP licence and are not working for CCBNZL. They operate under their own FAP licence requirements. There are fixed contracts in place with the intermediary agencies binding intermediaries to a fixed percentage on a CCBNZL mortgage. There are no set target incentives and the percentage is determined at the beginning of the relationship agreement and is not linked to the value of the product.
Employee training:
Staff training is conducted throughout the year at an ongoing basis relevant to staff roles. CCBNZL provides support and ongoing professional development to ensure consumers are treated fairly.
Conduct and Culture:
CCBNZL has strong policies in place to manage conduct and culture to ensure all staff can identify conflicts, or perceived conflicts, are familiar with gifting and understand the CCBNZL Code of Conduct. Staff must annually attest to understanding and adhering to the policies, including that they have reported all conflicts, perceived conflicts and gifts.
CCBNZL also:
- Has a Whistleblowing policy and process in place to encourage employees to raise any concerns relating to conduct and culture anonymously.
- Advocate the Whistleblowing Service at the Banking Ombudsman Scheme to encourage staff to raise any concerns identified relating to conduct and culture.
Roles and Responsibilities:
CCBNZL has clearly defined roles and responsibilities in place with an outcome focus to:
- Treat consumers fairly.
- Identify any conduct that may lead to unfair consumer treatment.
- To take appropriate action when a consumer was treated unfairly.
Financial Advice:
CCBNZL has qualified financial advice providers linked to the FAP licence of CCBNZL. They are the only people at CCBNZL who can provide financial advice and have the understanding when to recommend or not to recommend a product to a consumer.
Other staff of CCBNZL can only provide factual information in relation to lending which is not regulated financial advice. This is given by a staff member to the consumer in relation to a consumer credit contract, and to either comply with the lender’s lending responsibilities or as a reasonably incidental consequence of complying with the lender’s lender responsibility and all reasonable steps were taken to ensure that the consumer understands that the advice is not a regulated financial advice or implications of that. Examples is where a staff member, who is not one of the financial advisers, provide factual information on the loan, the terms, the payment or the rates.
CCBNZL conducts regular reviews of the FAPs to ensure they meet the standards and provide quality service. All issues identified will be investigated and dealt with in accordance with the processes and procedures.
Intermediaries will provide annual self-assurance that they:
- Maintain their licences at the FMA.
- Adhere to the requirements and obligations of the licence conditions as issued by FMA.
Responsible Lending:
CCBNZL is committed to the Responsible Lending Code and the Code of Banking Practice.
Financial Hardship:
CCBNZL has policies and procedures in place to ensure consumers are treated fairly when a consumer suffers unforeseen financial hardship.
Complaints:
CCBNZL has policies and procedures in place to manage and investigate complaints to ensure we treat our consumers fairly. Complaints can be submitted by any of the following channels:
|
CCBNZL Complaints Department |
In writing via letter |
Direct face-to-face |
|
Direct Dial: +64（9）338 8200 extension 5 Freephone: 0800 2995533 extension 5 Email: |
CCBNZL Complaints Department PO Box 305 Shortland Street Auckland 1140 |
CCBNZL Level 29 48 Shortland Street AUCKLAND 1010 |
CCBNZL also belongs to the Banking Ombudsman Scheme. The Banking Ombudsman Scheme provides a free and independent service to assist complainants to resolve complaints in the event the complainant is not satisfied with the outcome of CCBNZL’s investigation.
Phone 0800 805 950
Email: help@bankomb.org.nz
Facebook message: http://www.facebook.com/bankombnz
