Liquidators will need to obtain professional indemnity (PI) and fidelity insurance under legislation coming into effect next Tuesday.

ASIC has brought in the new regime to maximise creditors’ compensation. The regulator is phasing in the requirements gradually and has extended the transitional period for liquidators until July 31 next year.

Previously, liquidators were required either to lodge a security with ASIC or hold PI and a public practice accounting certificate.