This is my first report as CEO and I would like to start by thanking Chairperson Anthony Blunn AO, former CEOs Kirsten Trott and Barbara Schade, and Committee member David Tennant, all of whom left during 2008 - 2009. Their contribution to the development of the CCMC is considerable and can be seen in the numerous advances detailed in ‘The Year in Review’.

Meanwhile, I would like to welcome Nicola Howell, who has joined us as Consumer and Small Business representative. A lawyer and academic, Nicola brings considerable experience to the CCMC. Her constructive and optimistic presence is already being felt.

Although I only came on board in January 2009, the evidence shows me that we have had a good 12 months. The CCMC continues to provide a valuable service to the Australian community, a statement endorsed in an independent review of the CCMC by consultant R. T. Viney.

In his executive summary, Mr. Viney observes that the “CCMC’s annual compliance monitoring activities and techniques are effective.” Moreover “the CCMC has succeeded in educating banks and other stakeholders about its role and the importance of, and benefits to be derived from, compliance with the code.”
The recent CCMC review ran parallel to a review of the Code of Banking Practice. Recommendations from both these exercises will, in my view, help drive us forward over the next few years.

For example, I acknowledge that we should emphasise our independence so that we are seen publicly to operate without external influence. We must clearly define our responsibilities so there is a clear understanding of the role of compliance monitoring. Likewise, we need to maintain and improve our accountability for good governance and procedural transparency.

At the same time we need to look at ‘interdependence’, whereby compliance monitoring complements other regulatory activity and dispute resolution. And finally we must improve access to our service, enabling consumers and small business simple and direct channels of contact with the CCMC.

These five areas, I believe, represent the essential challenges that we face in the immediate future. There are testing times ahead. It is a challenge that we are more than ready to meet.

Damian Paull