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Members
Council members
Association members
Occupational Associations
Outlined below are the basic obligations of an occupational association with a Cover of Excellence® scheme. All these issues are set out in more detail in the Councils' compliance program "A Framework for Compliance under Professional Standards Legislation".
Disclosure: Associations must educate their members who participate in schemes of their obligations regarding disclosure. They must report any non-compliance with the disclosure policy to the Councils, as well as the unauthorised use of the disclosure statement.
Use of the Cover of Excellence® logo: The Councils authorise members of associations who participate in schemes to use the trademark under licence, a condition being that it is used within the terms of the licence. Associations must monitor compliance with the trademark requirements and report non-compliance.
Payment of annual fees: Associations are required to pay annual fees to the Councils and provide an annual independent audit certificate. The certificate assists the Councils in monitoring the accuracy of payments.
Risk Management: Associations are required to report to Councils annually on their risk management activities, based on the 5-year plan they provided as part of the application for a scheme. The deadline for reporting is 31 March each year.
Association Members
To be covered by a Cover of Excellence® scheme, you must be a member of an occupational association with an existing scheme. Please note: schemes may not apply to all members of that association.
If you are unsure whether your association administers a current scheme and/or if you are covered by it, you should contact your association directly.
IMPORTANT INFORMATION FOR CURRENT SCHEME PARTICIPANTS
If you are a participant in a scheme, you must clearly disclose on your business documents that your liability is limited.
You should be able to tell your client what the cap is on your liability and who to direct and client comments and complaints to. Contact your occupational association directly for more information.
You also have certain obligations when using the Cover of Excellence® logo and in the payment of annual fees.
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Disclosure of limited liability
Requirement to disclose
The professional standards legislation requires participants in Cover of Excellence® schemes to disclose their limited liability status. The suggested statement is:
"Liability limited by a scheme approved under Professional Standards Legislation."
Generally, disclosure should appear on all documents given to clients or prospective clients to promote or advertise the scheme or the member's occupation.
| Documents disclosure should appear: | Documents not requiring disclosure: |
- documents (written advice, plans, drawings, specifications and other) produced for clients not accompanied by another document containing a disclosure statement;
- email;
- fax cover sheets;
- letterheads and letters signed by the company or on its behalf;
- memorandum of fees and invoices not accompanied by another document containing a disclosure statement; and
- newsletters and other publications.
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- advertisements in print media, directory listings and similar forms of promotion or advertising; and
- business cards.
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Consequences of non-disclosure
Non-disclosure is an offence under the professional standards legislation. The maximum penalty for failure to disclose is $20,000. In the NT, Queensland, Tasmania and Victoria, a scheme does not limit the liability of a person (the professional) to another person (the client) if, at no stage before the time at which the act or omission giving rise to the cause of action concerned occurred, did the professional -
(a) give, or cause to be given to the client a document that carried a disclosure statement; or
(b) otherwise inform the client, whether orally or in writing, that the professional's liability was limited.
Prescribed form of disclosure
The jurisdictions which have regulations prescribing a form of statement all use the words: "Liability limited by a scheme approved under Professional Standards Legislation." The statement must be printed in a size equal or greater than the face measurement of Times New Roman typeface in 8 point.
An alternative statement of disclosure may be used. However, the Councils recommend using the prescribed form to avoid the risk of committing an offence regarding inappropriate or non-disclosure. |
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