BOQ Specialist Change to Terms and Conditions Code of Banking Practice and ePayments Code May 2015 NOTICE TO EXISTING BOQ SPECIALIST CUSTOMERS CHANGE TO TERMS AND CONDITIONS DUE TO THE CODE OF BANKING PRACTICE AND EPAYMENTS CODE It is currently anticipated that on or about the 1st of June 2015 (subject to regulatory approvals and other matters) (Transfer Date), BOQ Specialist will become a division of Bank of Queensland Limited (BOQ) and on and from the Transfer Date: • Products and services of BOQ Specialist will be provided by BOQ Specialist as a division of Bank of Queensland Limited ABN 32 009 656 740 AFSL and Australian Credit Licence no 244 616; and • All rights of BOQ Specialist under the relevant Terms and Conditions for these products and services will be transferred to, and will be exercised by BOQ. Up to date information regarding the Transfer Date will be made available at www.boqspecialist.com.au. BOQ has adopted the Code of Banking Practice and the ePayments Code (Codes) and from the Transfer Date important changes will take effect for existing BOQ Specialist customers. For all our clients, it is very much business as usual. We continue to operate as we always have with the same people, delivering a unique specialist banking proposition characterised by our high touch service, niche expertise and ability to be nimble, flexible and innovative. Your account details and our products remain the same. You can continue operating with us as normal. What are the Codes? Code of Banking Practice The Code of Banking Practice is a voluntary code of conduct for member banks of the Australian Bankers Association. It is a self-regulatory code which aims to foster good relations, and to promote good banking practice, when dealing with individual and small business customers, prospective customers and guarantors. ePayments Code The ePayments Code is published and monitored by the Australian Securities and Investments Commission (ASIC). It regulates consumer electronic payment transactions, including EFTPOS, direct debits and online payments. What does this mean for you? You will have the benefit of the Codes in respect of relevant products and services as set out in this Notice. We have made changes to the Terms and Conditions for the products and services we provide to you in order to reflect our compliance with the Codes, with such changes taking effect from the Transfer Date. What are the changes? The following information details all changes that have been made to the various Terms and Conditions for each product or service that we provide to you. Privacy - additional information On and from the Transfer Date, some of the third parties to whom we may disclose your personal information may be located in South Africa, United Kingdom, New Zealand, Philippines, India, Singapore, the United States of America and other countries. While these third parties outside Australia will often be subject to privacy and confidentiality obligations, you acknowledge that: a) they may not always comply with those obligations or those obligations may differ from Australian privacy laws; b) we will not be accountable for the third party under the Privacy Act; c) you may not be able to seek redress under the Privacy Act; and d) the third party may be subject to foreign laws which might compel further disclosures of personal information (e.g. to government authorities). 2 For further information on our privacy and information handling practices, please refer to the BOQ Specialist Privacy Policy, which is available at boqspecialist.com.au or upon request by calling 1300 160 160. Changes to the Use of a Combined Product Disclosure Statement and Financial Services Guide On and from the Transfer Date, a Combined Product Disclosure Statement and Financial Services Guide for Transaction and Savings Accounts and a Combined Product Disclosure Statement and Financial Services Guide for Transaction and Savings Accounts (with Overdraft) will no longer be available for new customers and the existing documents will be renamed “Transaction and Savings Accounts and Overdraft Facility Terms and Conditions.” Details of the specific changes to the documents are set out in the table relating to Transactional And Savings Accounts. You should carefully review the changes to each of the products and services that apply to you. There is also a Quick Reference Table to help you locate your specific products and services in this Notice. If you would like to receive a new copy of any of the updated Terms and Conditions documents referred to in this Notice, please call our Client Service Centre on 1300 160 160 or visit boqspecialist.com.au from the Transfer Date. 3 Quick reference guide Banking Service Page reference General Information 5 Existing Credit Card and Debit 10 Cardholders Credit Cards 11 Transaction and Savings Accounts 12 Government Guarantee 19 Online Banking 20 Commercial Lending 27 Personal Lending 29 Home Loans 30 4 General Information We provide the following important information in respect of the banking services we provide to you. Subject Information Code of We will comply with the Code of Banking Banking Practice, where it applies to the banking Practice services we provide to you. The Code of Banking Practice requires us to make certain information available to you on request. In particular, you can request information (where applicable) regarding: • account opening procedures; • our obligations regarding the confidentiality of your information; • complaints; • bank cheques; • what to do when you are in financial difficulty; • the importance of you reading the Terms and Conditions applying to the banking services we provide to you; • current interest rates and standard fees and charges. Information about the banker and customer relationship The relationship between a bank and its customer (including the relationship between you and us) has been defined by a number of court cases. Set out below are some of the terms which are implied into any contract between a bank and its customer. You should be aware that the specific Terms and Conditions applying to our banking services may alter these implied terms, and may add new or additional terms. Terms implied into the contract between banker and customer Following are some of the terms that are implied into the contract between a bank and its customer in addition to those in your contract for your account, unless the Terms and Conditions of the particular account say otherwise: 5 General Information Subject Information Code of i. Our duties: Banking • Opening accounts – we owe a duty Practice of care to you in opening accounts (Continued) to make proper enquiries to ensure accurate identification of you and verification of account details. • Duty of secrecy – we have a duty of secrecy to you with respect to the transactions which go through your account. However, this duty is not absolute and is subject to certain qualifications. For example, we may disclose information where you have expressly or impliedly consented or as required by law. • Financial advice – we must exercise care and skill when providing financial advice to you as part of, or incident to, the banking services we offer. • Conform with your mandate – due to the debtor/creditor nature of your relationship with us, we are bound to conform strictly with your mandate which may be issued in the form of a cheque or some other written order. Unless otherwise agreed, we are specifically obligated to repay an amount on demand at the branch where the account is located. • Question of valid mandate – while we are subject to the primary duty to repay on demand an amount due to you, this is conditional upon our duty to question a request for payment. We will do this in circumstances which raise a serious or real possibility that fraud is being committed on the account. 6 General Information Subject Information Code of • Issuing correct statements – we are Banking under a duty to keep accurate Practice accounts. This duty is subject to our (Continued) entitlement to reverse errors which you know or should have known existed (although you are not under an express duty to read statements and discover and report forgeries). • Appropriating payments into accounts – we can allocate a payment at our discretion unless you have clearly asked the payments to be used for a special purpose or a particular account. ii. Your duties • Clear instructions – your instructions on payment of funds must be clear. • Minimising the risk of forgery – you must exercise reasonable care in making out cheques so that we are not mislead and forgery is not facilitated. You must notify us of any forgeries (including unauthorised transactions on your account) known to you. You generally do not have a duty to inspect statements to discover forgeries, although you are generally obliged to read your account statements and notify us of any entries which you believe are unauthorised. • Care of methods of accessing you account – if you access your account electronically, you are likely to have specific obligations relating to the security of any equipment (such as cards) or security codes (such as a PIN). 7 General Information Subject Information ePayments We warrant that we will comply with the Code requirements of the ePayments Code. Also, the following new definitions apply: “Electronic Equipment is an electronic terminal, computer, television, telephone or similar equipment and includes EFTPOS terminals and any other authorised electronic terminal or device connected to our electronic banking system from time to time.” “Electronic Transaction is a transfer of funds initiated by an instruction given through Electronic Equipment using an access method (not including a method that requires a voucher, receipt or other document to be signed) to debit or credit an account and includes for example, purchasing goods and services from a provider using a card.” Liability under For Electronic Transactions you perform the ePayments in relation to a facility you hold as an Code individual, your liability for losses resulting from unauthorised transactions will be determined by the ePayments Code.