Date posted: 22/02/2019 4 min read

CA ANZ Professional Standards Scheme progresses to public notification stage

The PSC has approved our Professional Standards Scheme for public notification

On Friday 15 February the Professional Standards Council (Council) considered CA ANZ’s application for a Professional Standards Scheme (Scheme).  We are pleased to advise that the Council has approved our proposed Scheme instrument for public notification.  Whilst this is not final approval of our application it is a significant milestone in our Scheme application.  The proposed Scheme instrument is now open for public comment for the next 28 days, please see the public notification documents below.  If you wish to provide a comment on the proposed Scheme please send your comments to the Chief Executive Officer of the Professional Standards Council via email pscinfo@psc.gov.au.

At the next Council meeting, there will be consideration of comments received on our proposed Scheme instrument and our application.  If Council is satisfied, the next step will be to progress to the gazettal phase and the new Scheme (which under mutual recognition is recognised in all states and territories) will be applicable for members in public practice from 8 October 2019. 

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 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

A five year Scheme and the inclusion of ALL CA ANZ members in practice will be of tremendous value to the CA ANZ membership and is a reflection of the high professional standards that are required of CA ANZ members. The current Scheme operated to exclude members who were holders or authorised representatives of an Australian Financial Services Licence (AFSL) that was not a limited licence. If approved, and when it is in place, this new Scheme will provide protection for more members than the current Scheme.

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 

Actions 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 your business documents
  • That, if requested, you respond to our information requests and the annual Scheme questionnaire

More Information

Please continue to refer to this webpage for more updates on our proposed Scheme. Frequently asked questions will be prepared and issued when Council approval is received. Watch out for invitations to other member knowledge sharing events on the Scheme between June and October.

Check your Professional Indemnity Obligations

Make sure your professional indemnity insurance complies with CA ANZ Regulation CR 2A.

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Find out who needs a Certificate of Public Practice

All principals in public practice require a certificate of public practice or affiliate membership. CA ANZ Regulation CR 2 provides the regulations and relevant information to help you determine whether or not you or others in your practice need to obtain a certificate of public practice of affiliate membership.

Read more