Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 14 OCTOBER 2008

Compensation And Insurance Arrangements: ASIC Regulatory Guide 126

Norton Rose Fulbright Australia
Explore more from Norton Rose Fulbright Australia

On 28 March 2008 the Australian Securities & Investments Commission (ASIC) released Regulatory Guide 126 entitled 'Compensation and insurance arrangements for AFS licensees' (RG126).

AustraliaInsurance
Leisa Mikkelsen
Leisa Mikkelsen
Author LinkedIn connections

On 28 March 2008 the Australian Securities & Investments Commission (ASIC) released Regulatory Guide 126 entitled 'Compensation and insurance arrangements for AFS licensees' (RG126). RG126 sets out how ASIC will administer the compensation requirements under section 912B of the Corporations Act 2001 (Cth) (Corporations Act).

Section 912B requires Australian Financial Services licensees to have in place arrangements for compensating retail clients for losses they suffer as a result of a breach by the licensee, or its representative, of their obligations under Chapter 7 of the Corporations Act (Chapter 7 relates to financial services and markets).

The arrangements must satisfy the requirements in the Corporations Regulations 2001 (Cth) which are that AFS licensees must obtain professional indemnity insurance cover that is "adequate" having regard to the nature of the AFS licensee's business and its potential liability for compensation claims or must be an

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

AFCA’S New Approach To General Insurance Claims Handling: GICOP Compliance May Not Be Enough

The Australian Financial Complaints Authority has published new guidance clarifying how insurers must handle claims, including strict timeframes and expanded compensation rules. Insurers now face potential liability beyond policy limits for unreasonable delays, and may be required to compensate claimants for non-financial losses. With storm season approaching and complaint volumes rising, these changes create significant operational and financial pressure on the insurance industry.
AustraliaInsurance
Gilchrist Connell
Gilchrist Connell
Article

The Data Centre Boom: Growth, Opportunity And Emerging Risk For The Insurance Industry

Data centres have become critical infrastructure assets in Australia's digital economy, attracting significant investment while facing mounting regulatory scrutiny over energy demands and infrastructure costs. As these facilities expand to meet AI-driven computing needs, they present complex insurance challenges spanning climate exposure, business interruption risk, and cyber vulnerabilities that require careful risk management strategies.
AustraliaInsurance
Kennedys
Kennedys
Article

ASIC Puts Motor Vehicle Premium Transparency Under The Spotlight

ASIC's Report 838 reveals significant transparency gaps in motor vehicle insurance premium communications, finding that renewal documents often fail to explain price changes adequately and that over 30% of consumers who contacted their insurer successfully negotiated lower premiums. The report establishes clear expectations for better practice in pricing disclosures and signals continued regulatory scrutiny of insurance pricing practices.
AustraliaInsurance
Gilchrist Connell
Gilchrist Connell
Article

From Sustainability To Supply Chains: Rethinking Data Centre Risk In APAC

Asia-Pacific data centre expansion is creating unprecedented insurance challenges as rapid infrastructure growth strains regional water and power resources. Could intensive resource consumption by data centres generate environmental liability claims from affected communities and regulators? And are traditional property insurance models adequately capturing the contingent business interruption risks created by concentrated digital infrastructure dependencies?
AustraliaInsurance
Kennedys
Kennedys
Article

One Claim. $2 Million Penalty. A Warning To Every Insurer.

Australia's securities regulator has secured a landmark $2 million civil penalty against Hollard Insurance for breaching its duty of utmost good faith during a 17-month storm damage claim. The Federal Court found that repeated delays, inadequate expert assessment, and poor communication constituted a single contravention—even without deliberate misconduct. This precedent-setting decision signals that claims-handling failures on individual policies can now trigger seven-figure penalties, fundamentally
AustraliaInsurance
Kennedys
Kennedys