PIB 6.12.2 Guidance
1. In complying with PIB Rule 6.12.2, an
Authorised Firm should take out and maintain a contract for professional indemnity insurance (PII) from a reputable and well-capitalised insurer and such contract should include cover in respect of claims for which the Authorised Firm may be liable as a result of the conduct of itself and its Employees and appropriate cover in respect of legal costs arising from a claim.
2. Pursuant to PIB Rule 6.4.1(c), an
Authorised Firm should notify the DFSA of any significant PII claim made. What amounts to a significant claim will depend on the nature size and complexity of the Authorised Firm and the DFSA would expect the Authorised Firm to treat a series of small single claims which are significant in aggregate as significant for the purposes of PIB Rule 6.4.1(c).
Authorised Firm can fulfil the requirements under this section by ensuring coverage of its activities under a group-wide PII policy, provided that policy covers the Authorised Firm and its activities and that policy meets the conditions specified in this section. Where the Authorised Firm's group PII cover does not meet the requirements specified under this section, the Authorised Firm will be required to obtain PII cover that meets those requirements.
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]