912AEDInsurance requirements

912AED Insurance requirements

The licensee must maintain at all times professional indemnity insurance and insurance covering fraud by its officers and employees that: (a) is adequate having regard to the nature of the activities carried out by the licensee in relation to MDA services; and (b) covers claims at the same time amounting in aggregate to the lesser of: (i) $5 million; or (ii) the aggregated average value of the client portfolio assets of all people to whom it provided MDA services as retail clients during a 12 months period ending no more than one month previously or, if it has not been providing MDA services for 13 months, the amount that it reasonably estimates will be the aggregated average value of the client portfolio assets of all people whom it will provide MDA services to as retail clients during the first 12 months that it provides MDA services.