CPA Australia Professional Standards Scheme progresses to public notification
On 12 April 2019, the Professional Standards Councils (PSC) considered CPA Australia’s application for a five-year Professional Standards Scheme (Scheme). We are pleased to advise that the PSC has progressed our proposed Scheme instrument for public notification. While this is not final approval of our application it is a significant milestone in our Scheme application. The proposed Scheme was notified in the press on 17 April 2019 and the Scheme instrument was open for public comment for 28 days, closing on 15 May 2019. You can still read the public notification documents below.
The PSC will consider comments received on our proposed Scheme instrument and our application at its next meeting on 21 June 2019. If the PSC 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 December 2019.
Public notification documents
The Scheme for public practitioners
The CPA Australia Ltd Professional Standards (Accountants) Scheme (PDF) (Scheme) for public practitioners who do not hold a full Australian Financial Services licence (AFS licence), and are not a representative of a full AFS licence holder (including associated as an employee, director or related body corporate), puts a cap on the amount of participant's civil liability. The Scheme will be in place until 23 December 2019 and CPA Australia is currently working on a new Scheme application to replace it.
The Scheme enhances the status of the accounting profession and opens up dialogue between participants, CPA Australia and the regulators, enabling us to work together on risk identification and management to improve the profession and public interest protection outcomes.
You can assess your eligibility to participate in the Scheme by using the self-assessment eligibility tool (PDF).
If you are eligible, CPA Australia will pay the annual fee on your behalf by deriving your eligibility from your member profile, so it's important to keep it up-to-date. You should also continue to monitor your eligibility throughout the year and advise CPA Australia if your circumstances change.
Scheme commencement dates can be found below.
If you are ineligible to participate in the Scheme, you can also use the self-assessment eligibility tool (PDF) to check whether you may be covered by the Chubb Elite Excess Professional Indemnity Insurance Policy (Master Policy) (PDF), which may boost your limited liability cover in some circumstances.
Scheme participant obligations
If you are eligible to participate, you must:
- ensure your firm maintains a risk management framework, informed by APES 325: Risk Management for Firms
- continue to monitor your risk management strategies
- maintain the required minimum level of professional indemnity insurance (PII), which can be identified using the self-assessment eligibility tool (PDF) or by consulting CPA Australia's By-Laws Part 9: Public Accounting Services
- notify CPA Australia and the Professional Standards Councils (PSC) if a legal claim is made against you that may reach the cap
- ensure the disclosure statement: "Liability limited by a scheme approved under Professional Standards Legislation" is displayed in at least eight point Times New Roman font (in any legible colour) on professional collateral including business websites, letters of engagement, advice to clients, newsletters, publications and promotional material, business letterhead, tax invoices and receipts, fax cover sheets and 'With Compliments' slips.
Resources
CPA Australia Professional Standards Scheme commencement dates
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State or territory
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Scheme commencement date
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NSW
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23 December 2017
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WA
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30 December 2017
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QLD
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1 January 2018
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ACT
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1 January 2018
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NT
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18 January 2018
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SA
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24 January 2018
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TAS
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21 February 2018
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VIC
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19 March 2018
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