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Annual Report 2011/2012 Professional Standards Councils



Annual Report 2011/2012 Professional Standards Councils

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Tabled paper 112


Tabled Papers for 12th Assembly 2012 - 2016; Tabled Papers; ParliamentNT






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Tabled papers

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Professional Standards Council

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26 Professional Standards Councils Annual Report 2011-12 A u S tR A li A n C A P it A l te R R it o R y | n e w S o u th w A le S | n o R th e R n t e R R it o R y | Q u e e n S lA n d | S o u th A u S tR A li A | t A S m A n iA | V iC to R iA | w e S te R n A u S tR A li A The bALANCe beTWeeN LIMITed LIAbILITy ANd CONSuMer prOTeCTION The Councils are responsible for determining the limitation of liability for each occupational association participating in Cover of Excellence schemes. To do so, the Councils consider the nature of the work being done by members of the association, the risks inherent in such work, and the positions of persons likely to be affected by a cap on liability. The Councils consider the 10-year retrospective history of claims made against members of the association, together with the prospective risk management plans of the association. They also obtain independent actuarial advice as to the likelihood of future claims exceeding the proposed cap. The intention is to find a cap on liability that provides an appropriate level of consumer protection, relative to the risks associated with the service being provided. IMpLeMeNTATION Of ASSOCIATIONS rISk MANAgeMeNT pLANS Associations applying for a Cover of Excellence scheme must demonstrate that they have the organisational capacity to implement risk management strategies, and also to administer the associations scheme for the benefit of consumer protection. Once a scheme is approved, associations must report against their risk management plans annually to Councils, for the duration of the scheme, consistent with ongoing statutory compliance requirements. These reports provide information about the mechanisms used by the associations to improve the professional standards of individual practitioners, including the monitoring of compliance by members, through methods such as member surveys and audits. hOW dO Cover of exCellenCe SCheMeS heLp prOTeCT CONSuMerS? The work of the Councils helps protect consumers by assisting and encouraging occupational associations to improve and promote professional standards. Additionally, members of associations who participate in Cover of Excellence schemes must hold sufficient PII (and/or other assets) to meet any civil claims at the level of their limit of liability under the scheme. Therefore, consumers have recourse to reasonable compensation for economic loss in the event of a claim. Members of an association can use the Cover of Excellence trademark once the Councils have approved the associations scheme and gazetted it in the relevant State or Territory. Each scheme has a maximum duration of five years. If the association wishes its members to continue to be covered by a scheme, they must submit a new application. The five-year limit allows associations to review the most current economic landscape, to understand any environmental shift within which professionals are now working, and to use the latest developments in risk management plans for professional services.

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