Professional Standards Scheme update
The Professional Standards Council (PSC) commenced the public notification process for CPA Australia’s proposed new Professional Standards Scheme on 27 September 2017.
Managing the gap in the PSC limited liability scheme
CPA Australia’s current PSC limited liability scheme expired on 7 October 2017. Our application for a new Scheme has been lodged and was approved for public notification on 27 September 2017. There will, however, be a gap before the new scheme commences.
To support members in the interim, CPA Australia has arranged a group Member's Professional Indemnity Excess Insurance Policy for public practice certificate holders, effective 8 October 2017. This is at no additional cost to you.
Minimum professional indemnity insurance (PII) requirements under CPA Australia’s By-Laws:
- the policy must be underwritten by an APRA-authorised general insurer or insurers
- minimum of $2 million in PII cover for members in Australia and NZ$1 million for members located in New Zealand
- provision for one or more automatic reinstatements following a claim
- provision for an excess for each and every claim
- cover for losses arising out of dishonesty (fidelity cover)
- indemnity for all of the Public Accounting Services that you provide
- retroactive date no later than seven years before the beginning of the period of insurance
- cover for everyone affiliated with the practice
- cover for defence costs in addition to the minimum limit
- provision for run-off cover for a period of not less than seven years.
A detailed explanation of the requirements can be found in Managing your risks with insurance (PDF).
CPA Professional indemnity insurance offer
PII is mandatory for all CPA Australia Public Practice Certificate holders, as well as other members providing public, honorary or private accounting services, whether paid or unpaid.
PII for members earning over $10,000 in gross fees per calendar year.
PII for members earning less than $10,000 in gross fees per calendar year and performing private accounting services as an individual.
PII for members providing pro bono or voluntary accounting services in the community.
Find out more
1300 73 73 73
Fenton Green & co.
1300 760 123 (within Australia)
+61 3 8625 3333 (outside of Australia)