RG 210

Compensation and insurance arrangements for credit licensees

If you are a credit licensee (and not also regulated by APRA) you must have adequate arrangements in place for compensating consumers. The primary way to comply with this obligation is to have professional indemnity insurance (PI insurance).

Source: https://www.asic.gov.au/regulatory-resources/find-a-document/regulatory-guides/rg-210-compensation-and-insurance-arrangements-for-credit-licensees/. Rules Mate indexes + summarises; always verify against the regulator's live publication.