• ASIC to increase surveillance to monitor compliance with PI insurance requirements
• AFS licensees should check their PI policy to determine whether cover is adequate
• Insurers should review their PI offerings to ensure cover is compliant with RG 126

Following an eight month review, ASIC has released its findings on the PI insurance market and areas of regulatory risk for AFS licensees providing financial product advice to retail clients on Tier 1 products (referred to as ‘advice licensees’).

While the availability of PI insurance cover has improved, ASIC found that not all advice licensees have adequate cover.

ASIC detected compliance issues in five key areas and signalled an intention to increase surveillance of advice licensees to monitor compliance. ASIC’s position is that these issues should be addressed by the industry.