More professional indemnity required
Demand for professional indemnity insurance is likely to rise another notch with confirmation this week that it will also need to be carried by all registered liquidators.
The Australian Securities and Investments Commission (ASIC) this week issued a regulatory guide in which it pointed out that under new section 1284 of the Corporations Act, registered liquidators had to have adequate and appropriate professional indemnity and fidelity insurance.
It said that these requirements had applied to newly-registered liquidators since January 1, this year, and would come into force for all other liquidators from July 1.
The new insurance requirements replace the previous requirement for registered liquidators to either lodge and maintain a security with ASIC or hold both professional indemnity insurance and a public practice certificate from one of the professional accounting bodies.
AUTHOR
Mike Taylor
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