ASIC RG 126: Compensation & Insurance for AFS Licensees
This guide is for Australian financial services (AFS) licensees and their representatives, advisers and insurers.
The objective of this guide is administering the compensation requirements is to reduce the risk that a retail client’s losses (due to breaches of Ch 7 for which an AFS licensee is responsible) cannot be compensated by a licensee because of a lack of financial resources (referred to in this guide as the ‘policy objective’).
It sets out how ASIC administers the compensation requirements under s912B of the Corporations Act. In particular, it sets out:
- ASIC’s general approach to compensation requirements and insurance arrangements
- What is considered adequate professional indemnity cover
- How to apply for alternative arrangements
- What exemptions are available to AFS licensees
- The discharging of security bonds
- Disclosure in FSGs
Getting StartedClick "Book a demo" and our team will provide you with an overview of our content library within the 6clicks GRC platform.
|Laws or related obligations