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). We may also approve alternative arrangements.
We will administer the compensation requirements with the objective of reducing the risk that credit licensees cannot meet claims for compensation, due to insufficient financial resources.
Whether a PI insurance policy for credit licensees is adequate depends on the amount and scope of cover and the relevant terms and conditions of that policy.