Shadow Assistant Treasurer Stephen Jones MP has today welcomed the commencement of the new Australian Finance Industry Association’s Buy Now Pay Later Industry Code as a first step to an appropriate regulatory regime for the emerging sector.
 
The Code fulfils a 2019 recommendation made by the Labor-led Senate Economics References Committee inquiry into credit and financial services and represents a key step towards the development of an appropriate regulatory regime for the sector.

While many provisions of the Code have already been adopted by individual operators, the development of a new sector-wide Code will ensure consumers are better protected.
 
Labor expects that all industry participants will abide by the clear rules of conduct and consumer protections set out in the Code.
 
Labor will be watching to ensure that the Code is effectively enforced by the independent committee established by the Australian Finance Industry Association.

Critically, the Code ensures that all participants must have appropriate hardship measures, have suitability assessment processes and be members of the Australian Financial Complaints Authority.
 
These crucial measures must stay in place to protect consumers.

Quotes attributable to the Shadow Assistant Treasurer:
 
“This Code represents a key step towards the development of an appropriate regulatory regime for the BNPL sector, and Labor welcomes this initiative.

“This is a genuine attempt by the industry to set sensible and fair rules around conduct in an emerging sector of the financial services sector.
 
“The financial services industry needs to show it has learned the lessons of the Banking Royal Commission and ensure that these Code provisions are rigorously enforced.”