Occupational associations with professional standards schemes are required to continuously improve the standards of members by implementing robust regulatory systems and detailed risk management strategies designed to protect the consumer. The legislation requires those who are subject to a professional standards scheme to hold sufficient professional indemnity insurance cover and/or business assets to protect consumers in the event a successful claim is made.
To maximise the benefit of the professional standards schemes for consumers and ensure consumers have consistent, accurate and clear information available to them, occupational associations must have appropriate systems and records of which members are scheme participants and the applicable monetary ceiling on professional liability. Specifically, such systems and records should include reliable, transparent, and accessible policies, procedures, and registers for managing exemptions and discretionary caps. The basis, consideration, and reasons for the occupational association’s governing body’s approval of a discretionary cap or exemption should be contained within these documents.
A report released by the Professional Standards Councils in 2022 shows that professional standards schemes help improve risk management in the professions, which is to the benefit of Australian consumers, scheme participants and insurers. You can get your copy of the report here.