Financial planners: insurance and scheme requirements

Personal financial advice provided under an Australian financial services licence.

Data as at 2026-08-25

Required by law or licence

Licence liability condition: Yes. Section 912B of the Corporations Act 2001 (Cth) requires an AFS licensee providing financial services to retail clients to have arrangements for compensating those clients, and ASIC's position is that a licensee "must hold adequate professional indemnity (PI) insurance which takes into account the nature of the financial services business and the potential liability for compensation claims". ASIC Regulatory Guide 126 sets out what adequate means, including how defence costs are to be treated relative to the indemnity limit. NSW · effective 2002-03-11 ASIC · 2026-08-24
Licence evidence required: At AFS licence application and on an ongoing basis. ASIC must be satisfied the arrangements are adequate before granting the licence, and a certificate of currency is the usual evidence. The obligation is continuing rather than a one-off application hurdle. NSW · effective 2002-03-11 ASIC · 2026-08-24
Licensing body: ASIC — again FEDERAL, not New South Wales. Financial advice is licensed under the Corporations Act 2001 (Cth); the credential is an Australian Financial Services (AFS) licence, or authorisation as a representative of a licensee. NSW · effective 2002-03-11 ASIC · 2026-08-24
Licence liability condition: Yes. Section 912B of the Corporations Act 2001 (Cth) requires an AFS licensee providing financial services to retail clients to have arrangements for compensating those clients, and ASIC's position is that a licensee "must hold adequate professional indemnity (PI) insurance which takes into account the nature of the financial services business and the potential liability for compensation claims". ASIC Regulatory Guide 126 sets out what adequate means, including how defence costs are treated relative to the indemnity limit. VIC · effective 2010-07-01 ASIC · 2026-08-24
Licence evidence required: At AFS licence application and on an ongoing basis. ASIC must be satisfied the arrangements are adequate before granting the licence, and a certificate of currency is the usual evidence. The obligation is continuing, not a one-off application hurdle. VIC · effective 2010-07-01 ASIC · 2026-08-24
Licensing body: ASIC, under the Corporations Act 2001 (Cth) — FEDERAL law, so there is no VIC financial planner licence. The credential is an Australian Financial Services licence, or authorisation as a representative of a licensee, and it covers advice given to clients in Victoria without any state overlay. VIC · effective 2010-07-01 ASIC · 2026-08-24
Licence liability condition: Yes. Section 912B of the Corporations Act 2001 (Cth) requires an AFS licensee providing financial services to retail clients to have arrangements for compensating those clients, and ASIC's position is that a licensee "must hold adequate professional indemnity (PI) insurance which takes into account the nature of the financial services business and the potential liability for compensation claims". ASIC Regulatory Guide 126 sets out what adequate means, including how defence costs are treated relative to the indemnity limit. QLD · effective 2010-07-01 ASIC · 2026-08-24
Licence evidence required: At AFS licence application and on an ongoing basis. ASIC must be satisfied the arrangements are adequate before granting the licence, and a certificate of currency is the usual evidence. The obligation is continuing, not a one-off application hurdle. QLD · effective 2010-07-01 ASIC · 2026-08-24
Licensing body: ASIC, under the Corporations Act 2001 (Cth) — FEDERAL law, so there is no QLD financial planner licence. The credential is an Australian Financial Services licence, or authorisation as a representative of a licensee, and it covers advice given to clients in Queensland without any state overlay. QLD · effective 2010-07-01 ASIC · 2026-08-24
Licence liability condition: Yes. Section 912B of the Corporations Act 2001 (Cth) requires an AFS licensee providing financial services to retail clients to have arrangements for compensating those clients, and ASIC's position is that a licensee "must hold adequate professional indemnity (PI) insurance which takes into account the nature of the financial services business and the potential liability for compensation claims". ASIC Regulatory Guide 126 sets out what adequate means, including how defence costs are treated relative to the indemnity limit. WA · effective 2010-07-01 ASIC · 2026-08-24
Licence evidence required: At AFS licence application and on an ongoing basis. ASIC must be satisfied the arrangements are adequate before granting the licence, and a certificate of currency is the usual evidence. The obligation is continuing, not a one-off application hurdle. WA · effective 2010-07-01 ASIC · 2026-08-24
Licensing body: ASIC, under the Corporations Act 2001 (Cth) — FEDERAL law, so there is no WA financial planner licence. The credential is an Australian Financial Services licence, or authorisation as a representative of a licensee, and it covers advice given to clients in Western Australia without any state overlay. WA · effective 2010-07-01 ASIC · 2026-08-24
Licence liability condition: Yes. Section 912B of the Corporations Act 2001 (Cth) requires an AFS licensee providing financial services to retail clients to have arrangements for compensating those clients, and ASIC's position is that a licensee "must hold adequate professional indemnity (PI) insurance which takes into account the nature of the financial services business and the potential liability for compensation claims". ASIC Regulatory Guide 126 sets out what adequate means, including how defence costs are treated relative to the indemnity limit. SA · effective 2010-07-01 ASIC · 2026-08-24
Licence evidence required: At AFS licence application and on an ongoing basis. ASIC must be satisfied the arrangements are adequate before granting the licence, and a certificate of currency is the usual evidence. The obligation is continuing, not a one-off application hurdle. SA · effective 2010-07-01 ASIC · 2026-08-24
Licensing body: ASIC, under the Corporations Act 2001 (Cth) — FEDERAL law, so there is no SA financial planner licence. The credential is an Australian Financial Services licence, or authorisation as a representative of a licensee, and it covers advice given to clients in South Australia without any state overlay. SA · effective 2010-07-01 ASIC · 2026-08-24
Licence liability condition: Yes. Section 912B of the Corporations Act 2001 (Cth) requires an AFS licensee providing financial services to retail clients to have arrangements for compensating those clients, and ASIC's position is that a licensee "must hold adequate professional indemnity (PI) insurance which takes into account the nature of the financial services business and the potential liability for compensation claims". ASIC Regulatory Guide 126 sets out what adequate means, including how defence costs are treated relative to the indemnity limit. TAS · effective 2010-07-01 ASIC · 2026-08-24
Licence evidence required: At AFS licence application and on an ongoing basis. ASIC must be satisfied the arrangements are adequate before granting the licence, and a certificate of currency is the usual evidence. The obligation is continuing, not a one-off application hurdle. TAS · effective 2010-07-01 ASIC · 2026-08-24
Licensing body: ASIC, under the Corporations Act 2001 (Cth) — FEDERAL law, so there is no TAS financial planner licence. The credential is an Australian Financial Services licence, or authorisation as a representative of a licensee, and it covers advice given to clients in Tasmania without any state overlay. TAS · effective 2010-07-01 ASIC · 2026-08-24
Licence liability condition: Yes. Section 912B of the Corporations Act 2001 (Cth) requires an AFS licensee providing financial services to retail clients to have arrangements for compensating those clients, and ASIC's position is that a licensee "must hold adequate professional indemnity (PI) insurance which takes into account the nature of the financial services business and the potential liability for compensation claims". ASIC Regulatory Guide 126 sets out what adequate means, including how defence costs are treated relative to the indemnity limit. ACT · effective 2010-07-01 ASIC · 2026-08-24
Licence evidence required: At AFS licence application and on an ongoing basis. ASIC must be satisfied the arrangements are adequate before granting the licence, and a certificate of currency is the usual evidence. The obligation is continuing, not a one-off application hurdle. ACT · effective 2010-07-01 ASIC · 2026-08-24
Licensing body: ASIC, under the Corporations Act 2001 (Cth) — FEDERAL law, so there is no ACT financial planner licence. The credential is an Australian Financial Services licence, or authorisation as a representative of a licensee, and it covers advice given to clients in the Australian Capital Territory without any state overlay. ACT · effective 2010-07-01 ASIC · 2026-08-24
Licence liability condition: Yes. Section 912B of the Corporations Act 2001 (Cth) requires an AFS licensee providing financial services to retail clients to have arrangements for compensating those clients, and ASIC's position is that a licensee "must hold adequate professional indemnity (PI) insurance which takes into account the nature of the financial services business and the potential liability for compensation claims". ASIC Regulatory Guide 126 sets out what adequate means, including how defence costs are treated relative to the indemnity limit. NT · effective 2010-07-01 ASIC · 2026-08-24
Licence evidence required: At AFS licence application and on an ongoing basis. ASIC must be satisfied the arrangements are adequate before granting the licence, and a certificate of currency is the usual evidence. The obligation is continuing, not a one-off application hurdle. NT · effective 2010-07-01 ASIC · 2026-08-24
Licensing body: ASIC, under the Corporations Act 2001 (Cth) — FEDERAL law, so there is no NT financial planner licence. The credential is an Australian Financial Services licence, or authorisation as a representative of a licensee, and it covers advice given to clients in the Northern Territory without any state overlay. NT · effective 2010-07-01 ASIC · 2026-08-24

Cover commonly held

Ordered by how central each cover is to this occupation. This is what businesses in the trade commonly hold and what contracts commonly ask for — it is not a statement that any of it is legally required, and it is not a recommendation.

Professional indemnity insurance — Cover for legal liability arising from professional advice or services, written on a claims-made basis.
Public liability insurance — Cover for legal liability to third parties for personal injury or property damage arising from business activities.
Workers compensation insurance — Statutory cover for injury to workers, arranged through each state or territory scheme rather than on the open market.
Cyber liability insurance — Cover for the costs of a data breach or cyber incident, including response, restoration and third-party liability.
Management liability insurance — Cover for company and director exposures such as employment practices, statutory liability and defence costs.
Business pack insurance — A packaged policy combining property, liability and interruption sections for small business.
Tax audit insurance — Cover for the professional fees of responding to an audit or review by a revenue authority.

Statutory schemes that can apply

Workers compensation (NSW) · NSW — The New South Wales workers compensation scheme, with the nominal insurer and specialised insurers underwriting employer policies.
Workers compensation (Queensland) · QLD — The Queensland workers compensation scheme, underwritten by the state insurer with self-insurance available to large employers.
WorkCover (Victoria) · VIC — The Victorian workers compensation scheme, administered by the state regulator through appointed agents.
Workers compensation (Western Australia) · WA — The Western Australian workers compensation scheme, where cover is placed with approved private insurers under a regulated framework.
Return to Work (South Australia) · SA — The South Australian work injury scheme, funded by employer levies and administered by the state corporation.
Workers compensation (Tasmania) · TAS — The Tasmanian workers compensation scheme, where employers hold a policy with a licensed insurer.
Workers compensation (ACT) · ACT — The Australian Capital Territory private-underwriter workers compensation scheme.
Workers compensation (Northern Territory) · NT — The Northern Territory workers compensation scheme, placed with approved insurers.

Checking what you hold

The document a principal, a landlord or a licensing team will ask for is a certificate of currency. The checker reads one and lists what it does and does not show.

Sources

ASIC — Australian Securities and Investments Commission