AFIA recommits to lifting industry standards following ASIC motor finance report
24 June 2026
The Australian Finance Industry Association (AFIA) acknowledges the release of the Australian Securities and Investments Commission’s (ASIC’s) final report into the motor finance sector and the findings on lending practices and customer outcomes across the sector.
AFIA supports strong customer protections and robust regulatory oversight across the motor vehicle finance market. While the report outlines areas for improvement, it also recognises that participating lenders have already begun taking steps to uplift practices in response to ASIC’s review.
AFIA CEO Diane Tate said the report provides an important opportunity for industry, regulators and consumer representatives to work together to deliver further practical improvements and embed higher standards across the sector.
“Motor finance must be fair, transparent and responsible. ASIC’s report shows that while progress has been made, there is still more work to do, and our members are committed to taking that work forward.
“This means building on the practical steps already taken by participating lenders to strengthen customer outcomes and embedding these improvements consistently across the sector to ensure they translate into better day-to-day outcomes for customers,” Ms Tate said.
Ms Tate said AFIA is carefully reviewing ASIC’s findings and will continue to work constructively with regulators and stakeholders.
“Our expectation is clear: customers must be treated fairly and respectfully, lenders must meet their legal obligations, and the industry must continue to lift standards in line with evolving customer needs and the changing conditions in the transport market and the broader economy,” Ms Tate said.
Ms Tate said the new AFIA Finance Industry Code of Practice will play a central role in this process, by setting clear expectations across key areas identified in ASIC’s report, including:
• clearer communication and transparency
• enhanced support for customers experiencing financial hardship or vulnerability
• improved complaints handling and dispute resolution, and
• stronger oversight of distribution channels.
“Our members are actively onboarding to the AFIA Code, demonstrating a clear commitment to lifting standards above existing legal requirements and being responsive to evolving customer needs in a fast-changing world.
“We’ve also been working with stakeholders, such as motor dealers to raise awareness of industry standards and ensuring the AFIA Code is widely known across dealer networks.
“We’re also engaging with consumer representatives to better understand customer experiences, especially customers dealing with financial difficulties due to ongoing cost of living pressures and other changes in their financial and personal circumstances,” Ms Tate said.
ASIC’s report highlights the wide range of lending options and distribution channels available for Australians in the motor vehicle finance market.
AFIA’s recent Motor Vehicle Finance Report highlights the sector’s important role in supporting Australians, with motor finance non-bank lenders assisting more than half a million (507,000) customers to access $24.4 billion in vehicle finance in 2025, supporting a competitive and diverse market.
“For many Australians, a car is a necessity, not a luxury, and motor finance non-bank lenders literally keep Australians moving. In a country defined by distance, where access to a vehicle is often essential for work, family and daily life, the sector plays a critical role in economic and social participation. That role comes with responsibility – customers must have confidence that finance is accessible, competitive and focused on delivering fair outcomes.
“The AFIA Code strengthens expectations that customers are communicated with clearly, supported early, and given accessible pathways to resolve issues if things go wrong. The AFIA Code reflects our commitment to continuous improvement, and our willingness to work with ASIC and stakeholders to ensure it evolves alongside best practice and emerging risks,” Ms Tate said.
The AFIA Code – the first of its kind for Australia’s non-bank and specialist lending sector – will take effect from 1 October 2026 and will be independently monitored by the Finance Industry Code Compliance Committee (FICCC), reinforcing accountability and ongoing improvement across the motor finance sector.
View a copy of the media release.