Risk and Collections Managers’ Roundtable Australia - New Zealand

2013 CHARTER

Purpose

The purpose of the Risk Managers’ Roundtable is to serve as a forum for Senior Risk and Collections Managers to discuss, resolve and influence non-competitive credit risk issues attributed to the issuance and management of credit card, unsecured personal loan, mortgage and other lending products as agreed by the members. The Roundtable will provide lenders with the opportunity to exchange ideas and discuss subjects of mutual interest, within legal limitations. The Roundtable promotes shared leadership and responsibility in contributing toward the implementation of global best practices to the benefit of their customers, the Australian and New Zealand financial environment and their respective financial institutions.

Membership

• Membership is open to any financial institution participating in the lending of funds through credit cards, unsecured personal loans, mortgages and/or other products agreed and approved by the members.
• The individual eligible to be the Roundtable representative from each member is the person who is responsible for the institution’s credit risk management for that relevant lending product.
• Members are required to actively participate in the Roundtable and to submit relevant performance statistics on a monthly basis to an independent third party (“ITP”) for analysis by the 20th of the following calendar month.
• New members are required to participate for a minimum of one year.
• The representative of the member is expected to personally attend all Roundtable meetings and forums. Delegation of attendance to more junior staff by the designated representative is discouraged, but is preferable to non-attendance by the member.
• Members may terminate membership upon the provision of at least 3 months’ notice to both the Chairman of the Roundtable and the ITP. Membership shall be terminated forthwith if a member becomes insolvent or a liquidator, provisional liquidator, administrator, receiver or receiver and manager is appointed to a member of to any of its assets or undertakings. A member:
  • the representative of which misses two or more consecutive meetings of the Roundtable, or
  • which fails to pay the quarterly fee required within a reasonable time will be required to show cause as to why its membership of the Roundtable should not be terminated.

Organisation

• Meetings and forums will be scheduled at least on a quarterly basis at a suitable location, which will be rotated for the convenience of most participants. Unless otherwise agreed, quarterly meetings and forums will be hosted by members, by rotation and as appropriate to the suitable location, either at their own premises or at premises they have provided.
• The Roundtable will undertake special studies of topics and issues that are important to the members and the industry. In this manner the focus of the studies and costs to undertake them can be shared across a number of financial institutions.
• The Roundtable will create portfolio performance benchmarks (shared management information). This service will provide timely and useful comparative benchmarking information on risk parameters and portfolio performance.
• The ITP will handle the administrative aspects of the Roundtable including meeting administration, assistance in scheduling general meetings, circulation of minutes of meetings, facility arrangements, and scheduling guest speakers.
• Members will provide standardised data to the ITP on a monthly or ad hoc (eg. for specific surveys) basis. This data will be treated as confidential and will be compiled by that ITP to provide composite statistics for the participating institutions as a whole, as well as individual member performance versus the participating group. All data will be presented in a manner that ensures confidentiality of the individual member’s data.
• In addition to administration, the ITP will be retained to handle the following aspects of the Roundtable:
  • Benchmarking. Collecting, compiling, analyzing, distributing and presenting portfolio statistics submitted by members on a confidential basis and participating in the shared MIS.
  • Ad Hoc Reporting. Design of surveys, collection, compilation, analysis and presentation of findings for occasional special studies as commissioned by the Roundtable.
  There will be a quarterly fee per member, which is payable to the ITP. The amount will be set by the ITP in consultation with the ROUNDTABLE members. Fees will be invoiced by the ITP directly to each member on a quarterly basis at the mid-point of the quarter. At the request of individual members the ITP may invoice subscription fees to that member up to 12 months in advance. Fees are inclusive of the ITP’s out-of-pocket expenses for travel and lodging, guest speaker out-of-pocket expenses and costs associated with hosting a dinner for meeting participants at each quarterly meeting.
• Subscription fees are payable within 30 days of date of invoice. In the event of non-payment of fees 60 days from the date of invoice by any member, the ITP will advise the ROUNDTABLE Chair and will withhold Monthly and Quarterly reports to that member until such time as the fees are paid.
• Within the Roundtable, members may choose to establish a Steering Committee which would be elected by Roundtable members and that would ensure that the members will make a positive contribution to the overall success of the Roundtable and which would provide direction in the administration of the Roundtable. Responsibilities of the Steering Committee would include developing meeting agendas, giving meeting presentations, leading meeting discussions, arranging for meeting presenters, identifying new prospective members and directing special projects. The Steering Committee would comprise the Chairman, two member representatives (usually one from an Australian member and one from a New Zealand member), and a representative of the ITP.
• Members may be required to vote upon certain matters:
  • for general business of the Roundtable, each member shall be entitled to one vote and any such business requiring a vote shall be decided by a vote of a simple majority of members in attendance at a meeting of the Roundtable.
  • for any proposal concerning a change or amendment to the Charter, each Group of Members shall be entitled to one vote and such proposal shall be decided by a vote of a simple majority of all votes entitled to be cast for such proposal. Presence at a meeting is not a requirement of eligibility to vote on such a proposal. For these purposes a “Group of Members” means each member or, where a member and another member are Related Bodies Corporate under section 50 of the Corporations Act, it shall comprise all such bodies corporate which are so related.
  • for any proposal concerning the appointment, termination or replacement of the ITP, each member shall be entitled to one vote and such proposal shall be decided by a vote of a simple majority of all votes entitled to be cast for such proposal. Presence at a meeting is not a requirement of eligibility to vote on such a proposal.
  • for the election of the Chairman and Deputy Chairman of the Roundtable for each lending product, the term of the Chairman and Deputy Chairman being a 12 month period after which another election is to take place. Each member shall be entitled to one vote and a vote on the Chairman shall be decided on a simple majority of members. Presence at a meeting is not a requirement of eligibility to vote in the election of the Chairman and Deputy Chairman.
• No business shall be dealt with at a meeting of the Roundtable unless a quorum of members is present. A quorum for a meeting of the Roundtable is the attendance of members holding at least 70% of all votes entitled to be cast by all members in respect of general business of the Roundtable and on the assumption that all members were in attendance at the meeting.
• A member may disclose to third parties the existence of the Roundtable and the general nature of its activities. Except as provided in Schedule 1 (unless otherwise agreed by a majority vote of members of an individual forum), Members shall not disclose to third parties nor make any public statement nor issue any media release concerning any specific matters considered by the Roundtable, or any reports, or subsets thereof, prepared by the ITP for the Roundtable, without the unanimous approval of all members of the country and roundtable concerned. Presence at a meeting is not a requirement of eligibility to vote on such a matter.

SCHEDULE 1

PERMITTED DISCLOSURE OF ROUNDTABLE DATA TO THIRD PARTIES

In the course of audits or in response to specific requests, or as part of the submission of formal papers, Australian and New Zealand Member Roundtable data may be provided to Third Parties on the Approved List below, subject to the following conditions:

• Roundtable reports may be distributed to Third Parties only with the approval of, and subject to notification of, the designated main Representative to the relevant Roundtable forum. A register of designated main Representatives will be maintained by the ITP and reviewed at each quarterly meeting of the Roundtable
• Roundtable data may be used only in aggregate form. Only individual Member data that relates to your own organisation may be used; individual Member data for other organisations may not be used, irrespective of the level of disguising
• Roundtable data may only be used incidentally as an industry performance comparison with the Member’s own data
• The Roundtable reports to be provided by Members of each respective Roundtable must be limited to an agreed “Third Party Pack” to be reviewed, discussed, amended and approved at each quarterly meeting of the respective Roundtable. Additions to the Third Party Pack may be made only with the unanimous approval of all Members; deletions require only majority approval of Members
• The recipient of the data is to be advised in all cases that Roundtable numbers are for performance comparison only and do not represent an official industry benchmark
• Roundtable data provided and recipient regulatory bodies must be advised to the ITP, noted and recorded in the minutes of the subsequent quarterly meeting for the relevant Roundtable forum

If data is to be shared with external Third Parties, all internal reports containing Roundtable data must stipulate that the report contains Roundtable data and its distribution is subject to the conditions outlined in this document

Approved List of Third Parties

• Australian Roundtable data: Australian Competition and Consumer Commission (ACCC), Australian Prudential Regulation Authority (APRA), Australian Securities and Investments Commission (ASIC), The Reserve Bank of Australia (RBA), The Department of Treasury (Treasury), US Federal Reserve (US Fed), The Hong Kong Monetary Authority (HKMA), The UK Financial Services Authority (FSA) and The Office of the Comptroller of the Currency - US Department of Treasury (OCC), Boards and Auditors of Member organisations, Consultants working for Member organisations (subject to Non-Disclosure arrangements being in place that preclude use of Roundtable data other than specifically for the purpose of the consulting assignment)
• New Zealand Roundtable data: The Reserve Bank of New Zealand (RBNZ), Australian Prudential Regulation Authority (APRA), US Federal Reserve (US Fed), Boards of Member organisations