Finance Industry Steps Up as New AFIA Code Takes Effect

Lenders and finance providers across the full spectrum of the finance industry have committed to stronger standards, greater accountability and better customer protections from today, as the Australian Finance Industry Association (AFIA) Finance Industry Code of Practice comes into force.

In an Australian first, the AFIA Code brings non-bank and specialist lenders together under a single framework, establishing clear and consistent standards for customers across a diverse range of consumer and business finance products.

The commencement of the AFIA Code represents a significant industry-led uplift. It translates customer and community expectations into practical commitments covering clearer communication, support for customers experiencing financial hardship or vulnerability, protection from scams and financial abuse, cybersecurity safeguards, responsible use of technology and artificial intelligence (AI), and effective complaint and dispute handling.

AFIA CEO Diane Tate said the commencement of the AFIA Code marked an important moment for Australia’s finance industry, was the result of years of work and would deliver real benefits for Australians.

“Today, commitment becomes practice. Non-bank and specialist lenders are stepping forward, making themselves publicly accountable and demonstrating their determination to deliver stronger protections and better outcomes for the millions of Australians they serve.

“At a time of heightened global and economic uncertainty, persistent cost pressures and accelerating technological change, Australians need confidence in the financial system and the organisations they rely on for finance.

“That confidence cannot be taken for granted. It is earned through clear standards, responsible decisions and consistent conduct, particularly when customers are under pressure or circumstances are difficult,” Ms Tate said.

Ms Tate said the AFIA Code reflected a deliberate choice by the non-bank finance industry to lead from the front.

“Leadership is not simply describing what we believe. It is demonstrating what we are prepared to do, being accountable for the decisions we make and continuing to improve as circumstances change.

“The AFIA Code makes that commitment visible. It establishes a clear benchmark for responsible finance, bringing stronger protections and greater accountability together with competition and innovation. Importantly, it provides a framework that will continue to evolve as customer expectations, technologies and risks change, while keeping good customer outcomes at its centre.

“Trust and confidence are built across every stage of the finance journey. From the design and funding of a product through to its promotion, introduction, distribution and ongoing service, Australians should be able to expect high standards, clear information and a consistent focus on their interests.

“By publicly committing to these standards, AFIA Code signatories are helping strengthen confidence not only in their own organisations, but in Australia's broader financial system at a time when that confidence matters more than ever,” Ms Tate said.

For customers of participating AFIA members, the AFIA Code establishes clear expectations including:

• Simple, customer-friendly information about products, terms and fees.

• Stronger support for customers experiencing financial hardship or vulnerability.

• Prompt and efficient complaints handling, with access to dispute resolution pathways.

• Enhanced protections against scams, fraud, privacy breaches and financial abuse.

• Safeguards supporting the responsible use of technology and AI.

Ms Tate said the AFIA Code demonstrated how responsible industry leadership and effective regulation could reinforce one another.

“Good regulation provides an essential foundation, but responsible industries must be prepared to go further. They must anticipate emerging risks, listen to customers and the community, and lift their standards to evolve.

“The AFIA Code is industry leadership in action. It is not a once-off compliance exercise. It is an enduring framework through which members will be expected to learn, adapt and demonstrate how their businesses support good customer outcomes.

“Trust is built through behaviour, not intention. This is how we finance Australia’s future: by working together, taking responsibility for the standards we set, and ensuring competition, innovation and growth are underpinned by integrity, fairness and care for customers, well into the future,” Ms Tate said.

The AFIA Code is independently monitored by the Finance Industry Code Compliance Committee (FICCC).

FICCC Independent Chair Tim Grimwade congratulated AFIA and its members on the commencement of the AFIA Code.

“AFIA has tasked the FICCC with an important oversight and monitoring role in relation to code compliance, and we look forward to working with AFIA Code members in improving standards across the industry and providing better outcomes for customers,” Mr Grimwade said.

“Non-bank lenders and other finance industry participants that are serious about playing their part in building trust, transparency and fairness in the industry need to join the AFIA Code to demonstrate that commitment to their customers.”

AFIA has launched a new AFIA Code Hub, which includes all the signatories and Code details. AFIA members eligible to join the AFIA Code operate businesses in consumer finance, novated leasing, small business lending, insurance premium funding and low cost credit contracts. Large commercial lenders may elect to become an AFIA Code member. AFIA members covered by the AFIA Car Rental Code of Practice or another equivalent industry code, such as the Banking Code of Practice are not required to be an AFIA Code member