H.M. TREASURY

HM Treasury News Release

128/00

8 November 2000

DEANNE JULIUS TO CHAIR BANKING SERVICES CONSUMER CODES REVIEW

Better consumer services in banking and other financial services are the target of a review of industry codes of practice, Economic Secretary Melanie Johnson said today.

Announcing that the review, to be chaired by DeAnne Julius of the Bank of England Monetary Policy Committee, will begin work shortly, Miss Johnson said :

"The review is an important step forward in getting an improved deal for financial service consumers. I am pleased that the review will be carried out by a group from a broad range of backgrounds, including consumer bodies, the financial services industries and others familiar with customer concerns".

"This will help the review to develop recommendations with a clear focus on consumer interests, so that codes of practice are easily accessible and easily understood. We want effective tools to ensure that consumers are treated fairly and in accordance with clearly set out standards."

The codes to be reviewed include the Banking Code, Mortgage Code, the proposed Banking Code for Small Businesses, and the Statement of Principles of Business Banking.

The remaining members of the review group, who will serve in a personal capacity, will be named shortly. The review is part of the package of measures to improve competition announced in the Government response to the Cruickshank Report on Competition in UK Banking. The review group will welcome evidence from all interested parties. It has been asked to publish its findings by April 2001.

NOTES FOR EDITORS

Chancellor of the Exchequer Gordon Brown announced the setting up of the Banking Consumer Codes Review group as part of the Government response to the Cruickshank Report on Competition in UK Banking on 4 August 2000 (HM Treasury press release 98/00).

The review will examine:

whether the voluntary codes are delivering sufficiently strong benefits to consumers;

what scope there is to introduce greater independence and consumer representation in the drawing up of codes;

what role there is for the Ombudsman in influencing or determining standards for consumers;

whether greater information disclosure can be achieved without the need for further regulation.

DeAnne Julius has been a full-time independent member of the MPC since September 1997. Previously held a number of positions in the private sector, including Chief Economist of British Airways and of Royal Dutch Shell. Currently member of the National Learning and Skills Council, the Funding Options Review Group of the Committee of Vice Chancellors and Principals and Vice Chairman of the Institute of Development Studies at the University of Sussex.

Don Cruickshank’s report Competition in UK Banking: A Report to the Chancellor of the Exchequer was published on 20 March 2000. It is available on the Banking Review website at www.bankreview.org.uk, together with press releases issued by the Banking Review team.

The Government Response to the Cruickshank report can be found on the Treasury website at www.hm-treasury.gov.uk.

Media enquiries should be addressed to Charles Keseru at the Treasury press office on 020 7270 5188.