Professional standards schemes

You can prepare for the new Scheme by conducting an eligibility self-assessment using our guidance tool (PDF) and find out more about your compulsory professional indemnity insurance requirements by watching our video below:

You can also register now for a complimentary 60-minute webinar on Thursday 12 December to learn more about the Scheme and your obligations.

What is the Scheme

The Scheme is not insurance, it’s a legal instrument that may limit civil claims to the level of professional indemnity insurance (PII) that public practitioners are required to hold in accordance with our By-Laws.  The Scheme’s objectives are to protect, improve and help consumers and professionals by preserving the viability of the accounting profession by continually encouraging improved professional standards.  

Scheme eligibility and exemptions

If you are a CPA Australia public practitioner, you should review your eligibility to participate in the new 2019-2024 Scheme using the Guidance Tool (PDF) or the current 2017-2019 Scheme using the Eligibility Tool (PDF) so that you understand your obligations and risk profile relating to civil claims.

If you are eligible to participate in the Scheme, it is compulsory unless you have an exemption, which you can apply for by completing a Scheme Exemption Application Form and sending it to: publicpractice@cpaaustralia.com.au.

Scheme obligations

If you are eligible to participate in the Scheme you must:

• Continue to display the notification of limited liability statement “Liability limited by a scheme approved under Professional Standards Legislation” in at least 8 point font Times New Roman.
• Continue to hold the correct amount of professional indemnity insurance (PII) suitable for the services you provide and your practice’s income in accordance with the By-laws (9.8) as explained in our short video above or read more about your options at public accounting insurance.
• Ensure your firm maintains a risk management framework informed by APES 325: Risk Management for Firms and learn how to use CPA Australia’s Risk Management Framework Tool by watching a short video
• Comply with CPA Australia’s Constitution, By-Laws, and all applicable APESB standards.
• Comply with the Quality Review Program and participate when selected.
• Undertake 120 hours of CPD to maintain your professional competencies, and
• Promptly advise CPA Australia at publicpractice@cpaaustralia.com.au, if a civil claim against you is likely to exceed the minimum insurance prescribed by the By-Laws.

Civil Claims

If you are notified of a claim against your PII you should:

• Identify the relevant Scheme according to the date the cause of action relates to.
• Identify whether you are eligible to participate in that Scheme, using the 2017-2019 Scheme Eligibility Tool (PDF) or the 2019-2024 Scheme Guidance Tool (PDF) and:
• if eligible, notify your insurer and/or legal counsel of your eligibility. 
  
• Promptly advise CPA Australia at publicpractice@cpaaustralia.com.au if the claim is likely to exceed the minimum insurance prescribed by the By-Laws.