Banks are changing the way they hire employees with the development of a new conduct background check protocol.
Building on existing hiring practices, banks will be able to share more information with each other about a job applicant’s employment history and conduct, so they can make better recruitment decisions.
The protocol will require banks to ask a series of fact-based questions, including whether someone was dismissed or resigned in circumstances relating to misconduct such as selling customer data or repeatedly breaching bank policies.
It will create more consistency between how banks hire employees, so individuals with a history of poor conduct don’t move around the industry.
The protocol will apply broadly across banks and their employees and will be implemented no later than 1 July 2017 by major banks and 1 October 2017 by non-major banks.
This will complement the Reference Checking & Information Sharing Protocol for when banks employ financial advisers.