ASIC has released an updated version of Regulatory Guide 126 Compensation and insurance arrangements for AFS licensees (RG 126) to include new information for trustee companies providing traditional trustee company services (traditional services) to retail clients.

From 1 May 2011, all trustee companies will be required to hold an AFS licence to provide traditional services and meet certain obligations under the Corporations Act 2001 (as amended by Schedule 2 of the Corporations Legislation Amendment (Financial Services Modernisation) Act 2009) . This includes having adequate arrangements in place to compensate retail clients.