Professional Standards Scheme

Public practitioners can take part in the Professional Standards Scheme (Scheme) if they conduct public accounting services, hold a CPA or FCPA designation and have a current limited or full public practice certificate. The Scheme may impose a limited liability cap to a civil claim relating to the provision of public accounting services if there is no contrary legislative impediment. 

You can find out more about the Scheme and your obligations by watching our Understanding the Scheme webinar recording on YouTube. 

What is the Scheme?

The Scheme isn't insurance. It’s a legal instrument that may limit civil claims to the level of professional indemnity insurance (PII) public practitioners are required to hold in 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're a CPA Australia public practitioner, you should review your eligibility to participate in the current 2019-2025 Scheme using the Guidance Tool. This will help you understand your obligations and risk profile relating to civil claims.

Unless you have an exemption, participation in the scheme is compulsory if you meet the eligibility criteria.

You can apply for an exemption by completing a Scheme Exemption Application Form and sending it to: [email protected].

Scheme obligations

If you're eligible to participate in the Scheme you need to:

• 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 on all promotional material as suggested by the Professional Standards Council
• Continue to hold the correct amount of PII suitable for the services you provide and your practice’s income (By-Laws (9.8)) as explained in our short video below or read more about public accounting insurance options
• Ensure your practice maintains a risk management framework informed by APES 325: Risk Management for Firms
• Comply with CPA Australia’s Constitution, By-Laws, and all applicable APESB standards
• Comply with the CPA Australia Best Practice Program and participate when selected
• Undertake 120 hours of CPD to maintain your professional competencies, and
• Promptly advise CPA Australia at [email protected], if a civil claim against you is likely to exceed the minimum insurance prescribed by the By-Laws.

Civil claims

If you're notified of a claim against your PII you should:

• Notify your broker or insurer.
• Identify the relevant Scheme according to the date of the cause of action in table 1 below.
• Identify whether you are eligible to participate in a Scheme — the 2019-2025 Scheme Guidance Tool or the Chubb Policy run-off policy (table 2 below) — and if eligible, notify your insurer and/or legal counsel of your eligibility.
• Promptly advise us at [email protected] if the claim is likely to exceed the minimum insurance prescribed by the By-Laws.

Table 1 – Professional Standards Schemes: effective dates