ASIC has revised Regulatory Guide 126 Compensation and insurance arrangements for AFS licensees (PDF). 
 
The major change is the removal of the requirement for Australian Financial Services (AFS) licensees to obtain 12 months of automatic run-off cover for their professional indemnity insurance. This has been removed on the basis that such cover is not available to AFS licensees in the current insurance market. The revised RG 126 also clarifies that fraud cover is not required for licensees who are sole traders. 
 
For more information, see the media release on the ASIC website.