Date posted: 22/05/2019 3 min read

Professional Standards Scheme Application progresses to Gazette phase

The Professional Standards Council has recently passed CA ANZ’s application for a new Professional Standards Scheme. The Scheme Application now progresses to consideration by the minister. Here’s all that you need to know.

In Brief

  • Professional Standards Council has passed CA ANZ’s application for a new Professional Standards Scheme
  • The participation clause of the Scheme now includes all CA ANZ Australian public practice members
  • If approved by the minister, the new scheme comes into effect from October 2019

On 12 April 2019, the Professional Standards Council passed CA ANZ's application for a new Professional Standards Scheme (the Scheme). We are pleased that the Schemes have moved to this phase.

This means our application for a new Scheme has progressed to the final step in the approval process - the Gazettal of the Scheme, which, we anticipate, will occur between now, and the expiry of our current Schemes in October 2019. In this final step, our proposed Scheme instrument will be up for the minister to consider for approval.

  • 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.
  • If approved, the Scheme will be in place for a period of 5 years from 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
  • That, if requested, you respond to our information requests and the annual Scheme Questionnaire.

More information

For more information about the liability capping scheme

Click Here