CPA Australia Professional Standards Scheme approved
21 December 2017
The Professional Standards Council (PSC) has advised it has approved CPA Australia’s application for a new Professional Standards Scheme for recommendation to the relevant Ministers in each State and Territory for gazettal. The NSW Scheme is to be gazetted on 22 December 2017 and will be effective the following day. Please refer to the PSC website (psc.gov.au) for details of other states and territories.
CPA Australia has been working closely with the PSC on our application for a new Scheme since January 2017.
Post the public notification process in September and October, the PSC Board advised it required an amendment to the Scheme in order to recommend its approval.
In practical terms, with the required amendment, the Scheme will not apply to Members who either themselves hold an unlimited Australian financial services licence (this was also the case with the previous Scheme) or are “Representatives” of a person or company which does.
This Scheme will therefore not apply to all PPC Holders. PPC Holders must read the Member Guidance Note to ascertain how the details of the new Scheme relate to their individual circumstances.
It is the responsibility of every PPC Holder to make this self-assessment, ensure their risk management framework is up to date and that their insurance coverage is based on this framework.
We respect that the PSC is reflecting changes in the regulatory environment. We also note that CPA Australia is the first professional accounting body to apply for a new Scheme since the removal of the accountants’ exemption on 1 July 2016.
We will be in further consultation with the PSC to see if we can broaden coverage of the Scheme. All PPC Holders will continue to be covered by the group Member’s Professional Indemnity Excess Insurance Policy. CPA Australia previously arranged to support members in public practice for those services covered by the Policy. View the full details of the policy.
The commencement of the new Scheme will require members that are covered to include appropriate disclosure statements on engagement letters, stationery and other documentation from the date of commencement of the scheme in the jurisdiction relevant to the PPC holder.
FAQs are available to assist members with any questions you may have. For additional materials to support you in the administrative transition to the new Scheme, refer to the Member Guidance Note.
Peter Wilson AM FCPA
President and Chairman
All CPA Australia Public Practitioners must ensure that consumers' interests are protected. Members are required under CPA Australia's By-Laws to:
- Hold minimum levels of prescribed Professional Indemnity Insurance (PII) that mirror the current Scheme minimum caps.
This provides confidence that compensation is available, so if anything goes wrong, you know our members have insurance.
In addition, CPA Australia arranged a group Member's Professional Indemnity Excess Insurance Policy to support members in public practice effective 8 October 2017. The policy continues to be in place. For consumers this means consumer protection over and above the minimum amounts of PII that a CPA Australia Public Practitioner must maintain.
- Comply with Professional and Ethical Standards prescribed by the Accounting Professional and Ethical Standards Board (APESB)
Professional and ethical standards are fundamental to the reputation of CPA Australia and ensure consistency of practice and confidence for Australian businesses. We set high professional standards via our regulation and oversight programs.
The APESB is an independent national body which sets the code of ethics and professional standards with which our members must comply.
- Maintaining Professional Competencies. Keeping Up to Date
Our members are committed to life-long learnings and required to complete 120 hours of Continuing Professional Development (CPD) each triennium.
Our professional development programs ensure our members maintain the knowledge and skills relevant to the services they provide.
- Monitor Compliance
Through our Quality Review Program we monitor members’ compliance with the application of standards and regulations.
We provide oversight via a Quality Control Program and maintain a Complaints and Discipline program. So if you believe that a member you’ve dealt with has acted unprofessionally or breached their professional standards, you can make a complaint.
For further information on the consumer benefits of a professional standards scheme visit: psc.gov.au/consumer-information.