The Professional Standards Council (PSC) has approved CPA Australia’s application for a new PSS. It is currently going through the formalities of gazettal in all states and territories, including Tasmania for the first time.
Members have been without capped liability coverage since October 7, because of the PSC’s reservations with CPA Australia Advice and the corporate governance issues which have engulfed the association in 2017.
However, the scheme will not include what the PSC describes as “financial services activities,” and will exclude members who are acting as an authorised representative of an AFSL, except a limited licensee.
As with the previous scheme, it will not apply to members who themselves hold an AFSL.
Therefore, not all members with a public practitioner certificate (PPC) will be covered, and should assure their risk-management framework and insurance coverage is structured accordingly.
“We will be in further consultation with the PSC to see if we can broaden coverage of the scheme,” said CPA chair Peter Wilson in an address to members this week.
“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,” he said.
Members who are covered by the new scheme will need to update their stationery and disclosure statements, and any other client-facing documentation, by the commencement of the scheme in their jurisdiction. Note that some states, like NSW, will have the scheme effective from tomorrow.