Introduction

CA ANZ is very pleased to secure the approval of its new Professional Standards Scheme commencing 13 July 2025. This five-year approval is for the maximum duration and is a powerful endorsement by the Professional Standards Councils of CA ANZ's long standing and continuing dedication to uphold the highest professional standards and safeguard the public interest.

Dispelling Doubts, Embracing Strength

Recent Australian parliamentary inquiries into the integrity of consulting service providers highlighted the importance of robust co-regulatory oversight of the accounting, assurance and associated professional services sectors. The approval of our new Scheme directly addresses those concerns, solidifying CA ANZ's position as a leader in co-regulation and demonstrating our unwavering commitment to maintaining the integrity of the accounting profession. As the occupational association with the largest cohort of Scheme participants, we lead by example.

Understanding the Scheme: A Shield for Professionals, a Safeguard for Consumers

So, what exactly is a Professional Standards Scheme? In essence, it's a statutory mechanism designed to protect consumers by ensuring high professional standards and mandatory professional indemnity (PI) insurance. In return for adhering to these rigorous standards, participating CA ANZ members in public practice benefit from having occupational liability statutorily capped.

Key Features of the new Scheme

• Continuity and Consistency: The new Scheme is identical to and operates in the same way as the current one, ensuring a seamless transition for members.
• Broad Coverage: It applies to all members holding a current Australian Certificate of Public Practice (CPP), as well as Affiliate Members and Australian Practice Entity Members (PEM).
• Legislative Foundation: The Scheme is approved under the Professional Standards Act 1994 (NSW) and operates across Australia through mutual recognition. 
• Defined Occupational Liability: The Scheme limits "occupational liability," covering civil liability arising from professional actions of Scheme participants, with specific exclusions for personal injury, breach of trust, fraud and dishonesty. 
• Service Categories: The Scheme covers a wide range of services, categorised into Audit, Insolvency, and Other (including taxation, compliance and consulting services).   
• Fee-Based Liability Caps: The Scheme utilises a fee-band system, where the highest engagement fee determines the liability cap and required PI insurance.   
• Mandatory Participation: Participation in the Scheme is mandatory for eligible members unless an exemption is received from the Board of CA ANZ on the grounds of financial hardship in meeting the business asset or professional indemnity insurance requirements of the Scheme.
• Regulatory Oversight: CA ANZ is subject to statutory reporting obligations and demonstrates its commitment to professional development and consumer protection through its Annual Professional Standards Report (APSR).

What Scheme Approval signifies

The approval of the new Scheme is a significant legislative endorsement of CA ANZ's co-regulatory frameworks as meeting the requirements of occupational associations under the professional standards legislation. It operates as an acknowledgement of the design effectiveness of our conduct framework and the implementation of recommendations from the recent Professional Conduct Framework Review. This approval reinforces our commitment to: 

• educating and regulating members on all aspects of public practice 
• improving professional standards of members, particularly those in public practice 
• protecting consumers of professional services from our members in practice. 

Looking Ahead

This approval allows CA ANZ to confidently move forward with Scheme compliance plans and actions, focusing on our core mission of upholding the highest standards of professional excellence. We encourage all members to familiarise themselves with the details of the new Scheme and to continue playing their part in maintaining the integrity of our profession. 

By working together, we can strengthen public trust and ensure the continued success of the accounting profession. 

Want to learn more?

• Learn more about the Professional Standards Scheme. 
• Review your PI insurance coverage to ensure it aligns with the Scheme's requirements. Let our PI Checklist assist you with this.
• Read the CA ANZ Professional Standards Regulation and Conduct Annual Report for Australia.
• Stay informed by registering for our popular Sharing Knowledge learning events.