Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:3:p41
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 3 (pt 41/43)
Character Range: 805695–808562

that it holds professional indemnity insurance, or has an alternative compensation arrangement in place that, together with other financial resources available to it, provides compensation protection for clients of the licensee, that is adequate to cover claims to which the security bond could apply;
 (c) the licensee is a company or institution of any of the following kinds:
 (i) a general insurance company regulated by APRA under the Insurance Act 1973;
 (ii) a life insurance company regulated by APRA under the Life Insurance Act 1995;
 (iii) an authorised deposit‑taking institution regulated by APRA under the Banking Act 1959;
 (d) the licensee certifies, in the form approved by ASIC, that it holds a guarantee given by a company or institution mentioned in paragraph (c) that, together with other financial resources available to it, provides compensation protection for clients of the licensee that is adequate to cover claims to which the security bond could apply.
Note: A decision to refuse to approve a guarantee is a reviewable decision under section 1317B of the Act.

Transitional
 (5) Subregulations (1), (2) and (3) take effect as follows:
 (a) for a financial services licensee whose licence commences before 1 January 2008—on 1 July 2008;
 (b) for a financial services licensee whose licence commences on or after 1 January 2008—on the date of commencement of the licence.

7.6.02AA  Modification of section 912B of the Act: professional indemnity insurance and security instead of arrangements for compensation
 (1) For paragraph 926B(1)(c) of the Act, Part 7.6 of the Act applies as if section 912B of the Act were modified by substituting that section with the following:
'912B  Financial services provided to persons as retail clients—requirements in certain circumstances
 (1) Subsection (2) applies in relation to a financial services licensee if the licensee's financial services licence authorises the licensee to carry on an activity:
 (a) to which paragraph 19(1)(b) or subparagraph 31B(1)(a)(ii) or (b)(ii) of the Insurance (Agents and Brokers) Act 1984 (the repealed Act) would have applied if that Act were not repealed; and
 (b) for which the licensee would have been required under those provisions to have in force an acceptable contract of professional indemnity insurance.
 (2) The repealed Act, and any associated provisions, continue to apply in relation to the licensee to the extent necessary to require the licensee to have in force an acceptable contract of professional indemnity insurance in relation to the activity.
 (3) Subsections (4) and (5) apply in relation to a financial services licensee if the licensee's financial services licence authorises the licensee to carry on an activity:
 (a) to which Part 7.3 of the old Corporations Act would have applied if that Part were not repealed; and
 (b) for which the