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The AFIA Code of Practice, or simply the Code, reflects Australian Finance Industry Association (AFIA) members’ commitment to protecting customers, strengthening trust, and ensuring the finance industry continues to operate responsibly and sustainably.
Launched in September 2025, the Code promotes higher standards, clearer disclosures, and stronger customer protections.
It will take effect from 1 October 2026, following a transition period allowing members to align their systems, policies, and practices with the commitments and standards set out in the Code.
AFIA CEO Diane Tate said the Code lifts standards across the industry, while delivering greater consistency and stronger protections for customers.
“The AFIA Code puts customers first. It is designed to ensure positive outcomes by promoting good industry practices, supporting compliance with legal obligations, and strengthening trust and confidence in Australia’s finance industry,” Tate said.
“Pepper Money’s decision to sign on early demonstrates how responsible lenders already operate to high standards and are committed to continuous improvement in their DNA. This serves as an example of the significant impact the AFIA Code will have on raising standards throughout the industry.
“As additional members join by 1 October 2026, its influence will continue to grow.”
Pepper Money, alongside other non-bank lenders, participated in multiple Code working groups during its development. Its involvement is further reflected in Pepper Money CEO Mario Rehayem’s tenure as AFIA chair since March 2024.
A major player in residential, commercial, and asset finance across Australia and New Zealand, Pepper Money capped 2025 with record originations and assets under management, as reported in sister brand The Adviser.
Rehayem said formally signing the Code reflects the lender’s longstanding approach.
“For more than 25 years, Pepper Money has built its reputation on really helpful, responsible lending. By formally signing the AFIA Code, we’re reinforcing the customer-first standards that already guide the way we lend. This is about strengthening protection for customers and raising expectations across the non-bank lending sector,” Rehayem said.
Implications for customers
Rehayem said the Code would help provide greater clarity and confidence for customers.
“The AFIA Code gives customers greater clarity and confidence,” he said. “It makes existing protections more visible, and ensures a higher, more consistent level of customer support across our industry.”
The Code will be independently monitored by the Finance Industry Code Compliance Committee (FICCC).
As listed by AFIA, consumers will benefit from the Code through:
- Confidence that AFIA members are putting customers first and are truly customer-centric: 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 complaint handling and external mechanisms if complaints cannot be resolved directly with their finance provider.
Pepper Money said the Code reinforces commitments already embedded in its lending practices, including responsible lending focused on affordability and suitability, enhanced support for hardship and vulnerable customers – including those at risk of domestic violence and/or financial abuse – plain-English communication, and transparent processes across the lending life cycle.
“This is a positive step for our industry and a win for customers,” Rehayem said.
“We’re proud to lead by example and support a more transparent, resilient and customer-focused non-bank lending sector.”
Growing role of non-banks
The introduction of the AFIA Code comes amid the expanding role of non-bank lenders in Australia’s credit market.
The Reserve Bank of Australia’s April 2025 Financial Stability Review noted the continued expansion of non-bank lenders as banks tighten lending standards and regulatory buffers constrain credit supply.
In 2024, major banks’ share of broker-originated home loans fell below 40 per cent to around 36 per cent, as brokers directed more borrowers towards regional banks, international banks, and non-bank lenders.
According to AFIA’s inaugural Residential Mortgage Non-Bank Lenders (RNBL) report, published in December 2025, non-bank lenders helped 51,000 Australians purchase a home in the financial year 2025, with $72.2 billion in home loans across surveyed AFIA members.
The report also found early-stage arrears remained at 0.67 per cent compared to 0.58 per cent for major banks, while 90-plus-day arrears were lower for non-banks at 0.81 per cent compared to 1.10 per cent for major banks. More than 80 per cent of hardship applications received by residential mortgage non-bank lenders were approved.
Non-bank lenders operate as licensed credit providers and are regulated under consumer credit frameworks administered by multiple regulators, including the Australian Securities and Investments Commission (ASIC).
[Related: Self-employed surge a golden opportunity for brokers: Pepper Money]