Date posted: 30/07/2019 4 min read

CA ANZ new Professional Standards Scheme commences 8 October 2019

A win for our members in Public Practice. CAANZ’s new Professional Standards Scheme (the Scheme) which now includes all Australian public practice members commences on 8 October 2019. Here’s all that you need to know:

In brief

  • CA ANZ’s Professional Standards Scheme will commence on 8 October 2019
  • The participation clause of the Scheme now includes all CA ANZ Australian public practice members
  • The new scheme will exist for a period of 5 years

Professional Standards Scheme is approved and commences 8 October 2019

The final step in the approval process of our Scheme Application has occurred. We are pleased that the Schemes have been approved and especially pleased that the participation clause of the Scheme now includes ALL CA ANZ Australian public practice members.  

Scheme details at a glance

  • All Australian members in public practice who hold a certificate of public practice, affiliate members and practice entity members will be eligible participants in the Scheme.
  • The bands for professional indemnity insurance and therefore liability caps are unchanged from our current Scheme (see below).
  • The categories of services are unchanged from our current Scheme being Category 1 – Audit and Assurance Services, Category 2 – Insolvency services and Category 3 – other services.
  • The Scheme will be in place for a period of 5 years from 8 October 2019.

Minimum Professional Indemnity Requirements and Liability Caps

Audit Insolvency Other Services
Where highest fee is <$100k $2 million $2 million $2 million
Where highest fee is ≥$100k but <$300k $5 million $5 million $5 million
Where highest fee is ≥$300k but <$500k $10 million $10 million $10 million
Where highest fee is ≥$500k but <$1million $20 million $20 million $20 million
Where highest fee is ≥$1million but <$2.5million $50 million $20 million $20 million
Where highest fee is ≥$2.5million $75 million $20 million $20 million

Action to take

Please keep doing what you are currently doing. Make sure

  • All principals in your practice have a CPP or affiliate membership of CA ANZ, if you are unsure please refer to CA ANZ Regulation CR 2 Certificates of Public Practice.
  • That your professional indemnity insurance complies with CA ANZ Regulation CR 2A Professional Indemnity Insurance.
  • That you include the disclosure statement (Liability limited by a scheme approved under Professional Standards Legislation) on all your business documents and websites
  • If you are a CPP holder that holds a full AFSL or is an authorised representative of a full AFSL you can be a participant of our new scheme commencing 8 October 2019
  • That, if requested, you respond to our information requests and the annual Scheme Questionnaire.

More information

For more information about the current professional standards scheme (current until 7 October 2019).

Click Here