Grain Trade Australia (GTA) have released their updated Operating Standards for Grain Pool Providers, as part of a review of the Australian Grains Industry Code of Practice (COP).
All GTA Members will be required to adhere to the revised pool standards.
GTA CEO, Mr Pat O’Shannassy, said “This is all about ensuring confidence in our industry. These Operating Standards for Pool Providers are about improving the pool participants’ experience and confidence in these types of marketing products.
“The revised operating standards will help to define the responsibilities of Pool Providers and also help growers to understand and compare different pool products available in the market.”
Mr O’Shannassy said GTA commissioned an Industry Working Group to review the Operating Standards.
“The Working Group spent considerable time working to improve the operating standards by focusing on the terms and definitions used in describing pool products; ensuring clarity and transparency of costs, such as where Pool Providers choose to publish estimated pool returns; and also ensuring products can be readily compared by growers and that all relevant risks are described and disclosed.
“The Working Group was also very clear that a Pool Provider’s first and foremost responsibility is to the Pool Participants,” Mr O’Shannassy added.
The Working Group comprised a cross section of industry including pool operators, production sector, traders and marketers, marketing advisors and risk management consultants and independent analysts. The blend of experience and perspective on the Working Group provided for good discussion and focus on issues at all levels.
Included as part of the revised Operating Standards is a new Pool Product Disclosure Guide (PPDG) that Pool Providers will be required to provide as part of offering a Pool Product.
Mr O’Shannassy said “The revised Pool Operating Standards and new Pool Product Disclosure Guide are important parts of the industry’s Self-Regulatory Framework, which is underpinned by many of the products and services, including the Australian Grains Industry Code of Practice, provided by GTA to the broader grains industry.
“Pool Providers who offer Pool Products must adhere to the Operating Standards as part of the Australian Grain Industry Code of Practice. All GTA Members are required to adhere to the Code of Practice.
“Our understanding is that all current grain Pool Providers in Australia are members of GTA and consequently must adhere to COP,” Mr O’Shannassy said.