Finance Industry Code

AFIA Finance Industry Code of Practice – Open for Consultation

AFIA has released Australia’s first non-bank lending Code of Practice for consultation. We are seeking feedback from stakeholders to help us ensure that the Code supports positive outcomes for customers and financial firms by promoting transparency, fairness and customer confidence.

AFIA has four industry Codes in place that apply to some of our members. This Code is a significant milestone for the finance industry as it aims to set industry-leading standards in consumer lending, novated leasing, and business finance that will apply to almost all of our members.

The Code reflects the legal obligations of our members but also aims to explain what that means for customers in practice and how they can expect to be treated through the lifecycle of a product.

We have also carefully considered how to address issues such as the use of technology and AI, data security, scams and fraud, and customers experiencing vulnerability, abuse or financial difficulty in a way that is helpful to customers but also recognises the scale and nature of the businesses operated by AFIA members.

Self-regulatory practices are an important part of our co-regulatory framework. This Code is part of the industry’s measures to continuously improve practices to provide innovative products, services and technologies and support Australians experiencing financial difficulties, particularly as their needs and circumstances change as economic conditions change. With these objectives in mind, we propose to implement code monitoring and oversight arrangements that align with AFIA’s existing code governance framework, including the establishment of a Code Compliance Committee.