ASIC has issued a reminder to Australian financial services licensees that the compensation requirements in s912B of the Corporations Act 2001 commence, for most licensees, on 1 July 2008. 

Many licensees will comply with these requirements
by obtaining professional indemnity (PI) insurance. Those licensees who
are seeking ASIC’s approval of alternative arrangements are reminded
that they will need to apply to ASIC for approval soon.

Regulatory Guide 126 Compensation and insurance arrangements for AFS licensees