New AFIA Code introduces stronger standards for Australian finance industry

The Australian Finance Industry Association (AFIA) has introduced a new Finance Industry Code of Practice, bringing non-bank and specialist lenders under a single framework covering customer protection, accountability and conduct.

The AFIA Code, which has now come into effect, establishes standards across a range of consumer and business finance products and applies to participating lenders and finance providers.

Its commitments cover clearer customer communications, support for customers experiencing financial hardship or vulnerability, protection against scams and financial abuse, cybersecurity, the responsible use of technology and artificial intelligence, and complaints and dispute handling.

AFIA said the Code represents an industry-led effort to establish consistent standards across the non-bank finance sector.

“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.”

For customers of participating AFIA members, the Code sets expectations around simple information about products, terms and fees, as well as support for those experiencing financial hardship or vulnerability.

It also includes requirements covering complaints handling and access to dispute resolution, protections against scams, fraud, privacy breaches and financial abuse, and safeguards around the use of technology and AI.

Tate said the framework had been designed to evolve alongside changing customer expectations, technologies and risks.

She added: “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.”

Independent monitoring of Code

Compliance with the Code will be independently monitored by the Finance Industry Code Compliance Committee (FICCC).

Tim Grimwade, Independent Chair of the FICCC, said: “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.”

AFIA members eligible to sign up to the Code operate across consumer finance, novated leasing, small business lending, insurance premium funding and low-cost credit contracts. Large commercial lenders can also elect to become Code members.

Members already covered by the AFIA Car Rental Code of Practice or an equivalent industry framework, such as the Banking Code of Practice, are not required to join the new Code.