All members of the American Association of Private Lenders (AAPL) voluntarily agree to follow the AAPL Code of Ethics. This Code isn’t meant to restrict; it’s meant to encourage the right kind of action at the right time. But deciding whether or how to enforce violations of our Code requires careful deliberation-and deciding what makes for a malicious infraction rather than an honest mistake.

Back in 2009, AAPL took a leadership role in setting ethical standards for not only its members but the private lending industry. With as busy as we all are it seems important to talk about the goals and purpose of the Code and why it came to be.  It was intended to reflect a set of common values and mutual expectations of members but also to raise standards of conduct by giving members (and professionals in general) higher norms for which to aim. It was also intended to ensure the welfare of the consumer.

As the industry changes and grows it has become even more important for us to make the Code of Ethics more meaningful; to be evidence that people respond to aspirational goals more than fear of punishment.

We understand that this comes with some expectation of accountability to our members and the public. Within the first quarter or 2015 we will be sharing several documents regarding the new framework to the AAPL Code of Ethics. After all, a code without the benefits of enforcement or sanction just creates an illusory sense of shared values which is not something we find valuable to our members or their consumers.

The statement on AAPLs Code of Ethics and principles will be “participatory” in nature. We are in the process of forming an Executive Advisory Committee to take a role in violation reviews. They will be initially tasked with modifying and adapting the Code to fit the today’s private lender. Don’t worry! It will continue to reflect what we value as professionals and be established based on principles of duty, fairness, and responsibility.

Finally, in order for any code to serve a meaningful purpose, it must be relevant to the life of the professional or the organization. We are planning the reinforcement for members through website content, training programs, videos, conferences, and other forums. Please stay tuned in as we continue to grow in 2015!