They tell me a lot about the organisation’s business model and their approach to compliance.

In fact if I’m visiting a client I prefer to walk in the front door rather than the side or back executive entrance.

I’m not a “mystery shopper”, so what am I looking for?

Apart from the general atmosphere (is it fresh or tired, open or formal?) I look at the level of the staff counters. Are the staff standing behind bulletproof glass? They’re usually the cashiers under strict instructions not to give advice but can smile and make small talk if there isn’t a queue. (Those airport ribbon queues are now standard equipment in bank service centres).

If the staff are sitting down at open desks in the main area  it means they have more time to talk to you and are probably trained personal advisers.

Can customers hear your staff talking with or about other customers?

Can customers see internal sales memos on staff desks? Or other customer’s files? 

Are all conversations with customers scripted? Are special offers in a conspicuous place?

Are there self-service kiosks or a battery of ATM’s placed between the customer entry and staff?

Or must you sit and watch a TV with corporate ads while you wait for your number to be called?

Are the ads ambiguous or misleading?

Are there pre-printed brochures and comparison rates posters? Are they current?

Are the brochures mixed up untidily in a rack, different topics, different version dates?

Are there signs about Codes of Practice, complaints and dispute resolution?

Where are the brochures placed? At the entrance or the back? Or are brochures only printed on demand after speaking to a customer service officer?

Is there a manager’s office with a closed solid door? Or is it clear glass (so other customers can see who he is talking to) or does the manager sit in an open office? Does this mean the branch manager has some delegated authority or is he just a post box and are all decisions centralised?

There are a lot of issues involved in branch design (including balancing customer convenience, privacy, costs and staff and customer security) but don’t forget what your design says about your approach to compliance.

So it is good to see the launch of a new website, Bank Directors Desktop, from the US Federal Reserve which provides free online director training and resources.

There’s a free Basics for Bank Directors book but the core of the site is the online self-paced training with interactive questions and answers. It’s worth browsing and trying out the questions.

Whilst there is much that’s specific to the USA there are some good general sections on risk management.

It is interesting that they still use the CAMELS system which started in the 80’s: Capital, Asset quality, Management, Earnings, Liquidity plus Sensitivity to market risk.

The President’s comments are worth reading in full here. They are very emotional ending with:

So if these folks want a fight, it’s a fight I’m ready to have. And my resolve is only strengthened when I see a return to old practices at some of the very firms fighting reform; and when I see soaring profits and obscene bonuses at some of the very firms claiming that they can’t lend more to small business, they can’t keep credit card rates low, they can’t pay a fee to refund taxpayers for the bailout without passing on the cost to shareholders or customers — that’s the claims they’re making. It’s exactly this kind of irresponsibility that makes clear reform is necessary.

We’ve come through a terrible crisis. The American people have paid a very high price. We simply cannot return to business as usual. That’s why we’re going to ensure that Wall Street pays back the American people for the bailout. That’s why we’re going to rein in the excess and abuse that nearly brought down our financial system. That’s why we’re going to pass these reforms into law.

The Australian Government is currently deciding on its response to the Productivity Commission Report on Executive Remuneration and it will be interesting to see whether it adopts similar language.

Listen to BBC Business Daily report.

Langes has drafted a Remuneration Committee Charter and Remuneration Policy to comply with the amendments to APRA APS 510. LCAP members can download the documents here.

Further information is available at Hardship Threshold.

From 1 July 2010 (when the National Credit Law starts) the threshold will be fixed at $500,000.

When a bargaining process commences (which can happen at any time) an employer is required, within 14 days, to provide each employee with a notice of the right to be represented by a bargaining representative. This may be anyone (including a union, provided they are entitled to represent the employee in that particular role). Employers cannot refuse or deny to recognise a valid bargaining representative.

If an employer isn’t prepared to bargain, a bargaining representative can apply to Fair Work Australia for a determination that a majority of “employees” wish to bargain with the employer. FWA may then make orders to this effect.

“Good faith” bargaining, includes:

• Attending and participating in meetings at reasonable times;
• Disclosing all relevant and non-confidential information in a timely manner;
• Responding and giving genuine consideration to proposals and reasons for responses to those proposals; and
• Refraining from “capricious and unfair” conduct that undermines freedom of association or collective bargaining.

Any agreement reached in a collective bargain must meet the BOOT (Better Off Overall Test) according to FWA, and comes into effect seven days after its approval is received.

Langes has experience dealing with the Finance Sector Union and can assist with negotiations.

USA Credit unions are specifically mentioned as worthy recipients of deposits.

The campaign describes US banks’ relationship with their customers as an “abusive, dysfunctional relationship”: see this video by Bill Maher.

The US satirical current affairs program Colbert Report is now shown weeknights on ABC2.

There is a video of Stephen Colbert’s interview earlier this week with Eugene Jarecki from the Move Your Money campaign here.

Of course the USA banking and credit union system is different from Australia’s and Australia’s banks did not need bailing out.

And Australian banks have actually increased their share of the market post-GFC.

But it is interesting that the campaign focusses on customer relationships.

We suggest you set up a project committee if you haven’t already done so.

We will be providing general support through our Compliance Assurance Program and customised support as you require.

We have a dedicated consumer credit reform website here which features a preparation checklist.

You can subscribe for updates here.

It follows up on a 2003 report and concludes:

Over the past six years, the microfinance field in Australia has grown steadily stronger, with a number of programs starting to slowly build a degree of scale. The achievements to date should be recognised and celebrated. However, there has by no means been a prolific growth of the sector—there has not been a flourishing development of new programs, nor has the scaling up of existing programs accelerated to the extent predicted in the earlier report.

From 1 January 2012, EDR schemes will only be allowed to limit (cap) the maximum amount of compensation payable per claim to a minimum of $280,000 (or $150,000 if the claim relates to an insurance broker) with the ability to opt for a higher figure in the rules of the scheme.

See Table 2 here for details of the transition for each EDR scheme.

The Terms of Reference for the Financial Ombudsman Service have changed.

Disputes lodged with it on or after 1 January 2010 will be considered under the 2010 Terms of Reference.

Its maximum amount of compensation for banking and finance and mutuals claims will remain at $280,000 until 1 January 2012.

Disputes lodged with the Financial Ombudsman Service before 1 January 2010 will continue to be considered under the previously applicable Terms of Reference.