>>>Click here for current schemes
| Cover of Excellence® schemes are a statutory innovation. They require occupational associations to improve their professional standards and protect consumers by implementing robust risk management strategies and adhering to professional indemnity insurance standards. It rewards such practices by limiting the occupational liability of members of occupational associations. |
Who can apply for a scheme?
What are the steps leading up to a scheme being in force?
What considerations do the Councils take into account before approving a scheme?
Are the schemes enforceable under Commonwealth laws?
Are the schemes enforceable under the laws of Australian states or territories?
What are the current schemes in force?
What obligations do schemes impose on occupational associations?
What obligations do schemes impose on individual members of occupational organisations?
Who can apply for a scheme?
Only occupational associations can apply for a scheme under professional standards legislation. Individuals cannot apply for a scheme.
What are the steps leading up to a scheme being in force?
Step 1: The occupational association ("association") obtains and discusses the Application Guidelines with the Office of the Professional Standards Councils (OPSC). The association completes and submits the scheme application, together with the application fee, to the OPSC.
The OPSC reviews the application to ensure that all legislative criteria are addressed. The association may subsequently be asked to provide additional information, or amend its application.
Step 2: The OPSC forwards the scheme to the relevant Professional Standards Council ("the Council") for consideration. The Council may seek external actuarial and legal advice to assist in its deliberations. If the Council does not seek external advice at this stage, it may do so later.
The Council may require the association to amend its proposed scheme, or may proceed to the next stage.
Step 3: The Council notifies the public that the scheme has been applied for, by advertisement in the relevant jurisdiction's widest circulating newspaper/s. Public notification allows affected or interested parties to comment or make a submission on the proposed scheme. The length of public notification is either three or four weeks, depending on the jurisdiction, and it ends at the close of business on the final day.
Step 4: The Council reviews any comments or submissions made against the existing analysis of the scheme application. The Council will then approve or reject the scheme application.
If the scheme is approved, it is recommended to the Minister or Attorney General of that jurisdiction for gazettal. A scheme is not in force until gazetted.
If the scheme is rejected, the only recourse available to the association is to re-apply. Should the association wish to do so, it must submit a new application and fee.
Step 5: The Minister or Attorney General will consider the scheme and may conduct further investigations. The Minister or Attorney General will then authorise, or not authorise, the scheme for gazettal.
If the scheme is authorised, it will commence on the date of gazettal or according to the formula under the relevant professional standards legislation.
If the scheme is not authorised, the only recourse available to the association is to re-apply. Should the association wish to do so, it must submit a new application and fee.
The Supreme Court can void or disallow any authorised scheme.
Are the schemes enforceable under Commonwealth laws?
The Commonwealth Government has a mechanism for recognising (and exempting) schemes under the Trade Practices Act, the Corporations Act, and the Australian Securities and Investment Commission Act. This mechanism is called prescription. Members of associations who participate in schemes that have been prescribed will have their limited liability recognised under these Commonwealth laws.
The OPSC informs the Commonwealth Treasury when an association indicates it will seek prescription, on approval by the Council of their scheme.
The decision whether or not to allow prescription is completely at the discretion of the Commonwealth Treasury. A scheme gazetted and in force in an Australian state or territory will not automatically be accepted for Commonwealth prescription.
Are the schemes enforceable under the laws of other Australian states or territories?
Mutual recognition provisions are in place in professional standards legislation in all states and territories except Tasmania. These provisions allow for the recognition of schemes across jurisdictions. Tasmania is party to an in-principle agreement to progress the matter of mutual recognition through its parliament.
What considerations do the Councils take into account before approving a scheme?
The Councils are required by legislation to consider:
- comments and submissions in response to the public notification
- the position of persons who may be affected by the limited liability
- the nature and level of claims against the association
- the risk management strategies of the association and the means of implementing these strategies
- the association's standards of insurance and,
- the cost and availability of insurance.
>>>For links to legislation
What are the current schemes in force?
The following list shows, by jurisdiction, where there are currently schemes in force [
] or in the application process [
]. Click on the name of the association for relevant scheme documents.
What obligations do schemes impose on Occupational Associations?
The basic obligations of an association under a Cover of Excellence® Scheme are outlined below. All of these matters are described in detail in the Council’s publication “A Framework for Compliance under Professional Standards Legislation”. For a copy of this publication, see "Publications, policies and tabled documents".
Disclosure
Associations must educate their members, who are covered by schemes, as to their obligations to disclose their limited liability. They must report to the Council any non-compliance with the disclosure statement, as well as the unauthorised use of the disclosure statement. For more information, view the information on limited liability disclosure.
Use of Cover of Excellence® Symbol
The Council authorises members of occupational associations, who are covered by schemes, to use the trademark under licence, a condition of which is that it is used within the terms of the licence (including that the trademark is displayed in accordance with the Style Guide). Associations must monitor compliance with the trademark requirements and report any non-compliance to the Council.
Payment of Annual Fees
Associations are required to pay annual fees to the Council and provide an annual independent audit certificate, verifying the membership. The audit certificate assists the Council in monitoring the accuracy of payments. For more information, view the Council’s "Policy on Payment of Annual Fees".
Risk Management Reports and Plans
Associations are required to report to the Council annually on their risk management activities, based on the five-year risk management plan submitted by the association as part of its application for a scheme. This report is due no later than 31 March each year. It must refer to the implementation, monitoring and effect of the risk management strategies for the previous calendar year, together with a forward plan that details any changes made or proposed for the coming 12 months.
Claims Information
Associations must report on the number, amount and nature of claims, together with the cost and availability of insurance, for the current year. The association should also comment on the anticipated costs and availability of insurance for its members for the next reporting period.
The Councils are aware that associations may experience difficulty in obtaining claims information from the insurance industry. If no data are available, associations are advised to source this information directly from their members – for example, as part of the association’s annual membership renewal process.
Claims information received by the Councils will be anonymised in their Annual Reports. Any data that the Councils release publicly to satisfy their statutory functions or to demonstrate scheme effectiveness or otherwise will be arranged as far as possible to maintain commercial confidentiality.
What obligations do schemes impose on individual members of an Occupational Association?
Outlined below are the obligations of members of associations who are covered by of a Cover of Excellence® Scheme.
Disclosure
Members of associations are required under professional standards legislation to disclose their limited liability status in all documents given to a client, or a prospective client, that promote or advertise their occupation. It is an offence not to disclose. For more detail, view the information on limited liability disclosure.
Use of the Cover of Excellence® Symbol
Use of the Cover of Excellence® symbol signifies to the client that the professional is part of an association which has a scheme approved by the Professional Standards Councils. However, the Cover of Excellence® symbol does not replace the requirement for disclosure to be provided to clients. The Cover of Excellence® logo is not used to disclose the restrictions of limited liability, but rather to indicate that the professional is part of a scheme which strives for higher excellence and quality service.
The use of logo must conform to prescribed placement, colour and size requirements. This information is provided by the OPSC to the designated Scheme Administrator of the association, to be distributed to all members who are covered by the scheme. For further information, please contact your association's Scheme Administrator.
General terms and conditions governing the use of Cover of Excellence® trademark
The Professional Standards Councils reserve the right to vary and/or add terms and conditions as the Councils in their absolute discretion deem fit. For more information, contact the OPSC.
