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So this is the scenario that played out on the table next to mine last weekend:

Grey Knights and Salamanders vs. Nurgle Demons and Necrons (Special house-rules. No alliance penalties since it was two different players on each side.) Psychic phase turn 2, a squad of GK Paladins are prepping to charge a Demon Prince. They cast Iron Arm on themselves and Perils on a double "6". The demon fails to deny the witch, and the GK player rolls a "6" on his Perils result. Both this match and my opponent decide to pause our respective games to discuss how this actually interacts with Brotherhood of Psykers. Since the entire unit was casting the power, we decide that the entire unit receives the result, so basically, we now have five Paladins going Super Saiyan with Iron Arm. It's the only time I've ever seen a Demon Prince piss himself.

So I guess the question is, was this the correct RAW ruling, or did we just create a house rule that resulted in awesomeness?

No it's only the unit champion that's affected, in the same way that the whole unit isn't removed on a 1. How exactly did paladins get iron arm though? They come with fixed powers from the sanctic deck.

 JamesY wrote:
No it's only the unit champion that's affected, in the same way that the whole unit isn't removed on a 1. How exactly did paladins get iron arm though? They come with fixed powers from the sanctic deck.

I honestly don't know. I don't play GK and don't know their codex.

I think you got done mate. They can't cast it. If a salamanders psyker joined the unit they'd be affected, but it would be the salamander rolling on perils.

"If the unit has the Brotherhood of Psykers/Sorcerers special rule, the effects of the Perils of the Warp result apply a randomly determined model in the unit who has the Brotherhood of Psykers/Sorcerers special rule."

 Mr. Shine wrote:
"If the unit has the Brotherhood of Psykers/Sorcerers special rule, the effects of the Perils of the Warp result apply a randomly determined model in the unit who has the Brotherhood of Psykers/Sorcerers special rule."

Ah well, there you go.

Don't know why I had it in my head it was the unit champion

Two side notes: 1) Paladins can't access Biomancy, they have fixed powers.
2) Even if a Space Marine HQ joined them and had Iron Arm, Iron Arm targets "the Psyker" not his whole unit.

In either case, however, a Daemon Prince is still probably hosed by getting charged by Paladins. They have Force and Psyout grenades, which make any Daemons being assaulted strike as Init:1.

If you don't play GK, but you play Daemons, question EVERY rule. Too many GK players just assume stuff is gonna kill Daemons, and too many Daemon players just accept it. In truth, Daemons can beat GK's almost every game *IF* both palyers know their rules.

So basically we had a general rules failure. At least it made for an awesome mental image and a good cinematic moment. I'll make sure to point this out next time I see these guys playing. BTW, this wasn't my game, it was the game next to mine. We were just called over to consult (and we apparently failed at this).