The Australian Finance Industry Association (AFIA) has recently unveiled its Finance Industry Code of Practice – the first of its kind for Australia’s non-bank lending and specialist banking sector – setting a new benchmark for integrity, transparency and fairness across the industry.
The Code reflects AFIA members’ commitment to protecting customers, strengthening trust and ensuring the finance industry continues to serve Australians responsibly and sustainably. The Code supports delivery of the efficiencies and safeguards that customers are asking for, including clearer communications, scam protection and cybersecurity safeguards, responsible deployment of technologies, and support for customers experiencing financial hardship or other vulnerabilities.
What the AFIA Code means for customers:
- Clear standards of conduct and disclosure that support good customer and industry outcomes.
- Clear communication and transparency – simple, customer-friendly information about products, terms and fees.
- Increased protection from scams and fraud – clear rules on scam prevention, information and data protection, and privacy and security measures.
- Responsible use of technology and AI – ensuring industry innovation is balanced with safeguards.
- Support for customers – stronger obligations to assist people experiencing financial hardship or small businesses dealing with financial difficulties and a commitment to help prevent the misuse of products to inflict harm on another person.
- Access to dispute resolution – prompt and efficient complaints handling, and external mechanisms if complaints cannot be resolved directly with their finance provider.
The Code will be fully effective from 1 October 2026, following a transition period to allow AFIA members to align their systems, policies and practices with the commitments and standards in the Code.
The Code will be independently monitored by the Finance Industry Code Compliance Committee (FICCC).
This is a significant milestone for both AIFA members and Australian consumers. By adopting this Code, AFIA members are strengthening trust in the finance industry, improving outcomes for customers and contributing to a stronger, more resilient economy.