RG 126
Compensation and insurance arrangements for AFSL holders
Mandatory PI insurance for AFSL holders dealing with retail clients.
In plain English
This guide explains compensation and insurance requirements for Australian Financial Services Licence (AFSL) holders.
RG 126 applies to AFSL holders. It details arrangements for compensating retail clients if an AFSL licensee fails to provide financial services effectively. It covers professional indemnity (PI) insurance. The guide also outlines requirements for compensation schemes. It was last revised in December 2023.
Why it matters
AFSL holders must have appropriate PI insurance. This protects clients and demonstrates a commitment to responsible financial service delivery. Failing to comply can impact an AFSL’s ability to operate.
AI-assisted summary, grounded in the source link below. Generated 2026-05-23 via gemma3:12b.
Issuing regulator
ASIC →Topics
Source: https://asic.gov.au/regulatory-resources/find-a-document/regulatory-guides/rg-126-compensation-and-insurance-arrangements-for-afs-licensees/. Rules Mate indexes + summarises; always verify against the regulator's live publication.