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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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Professional Standards Council

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39Professional Standards Councils Annual Report 201112 99 per cent of members were complying with the IPAs requirement of maximum $10,000 excess or one per cent of fees 99 per cent of members are meeting the business assets requirement 53 per cent of members are now choosing to use the Cover of Excellence trademark, compared to 45 per cent in 2010. Trends in professional indemnity insurance Members of IPA reflect that there remains a tight market for PII for accountants. More members are seeking to add financial advice cover to their insurance and this is likely to increase in the future as a result of the Future of Financial Advice reforms. Insurance premiums as a percentage of fees were classified as follows: 64% <1% of fees 15% >1% but <2% of fees 12% >2% but <5% of fees 9% >5% of fees monitoring of claims Due to the low claims data and three separate unrelated issues it is not possible to develop meaningful corrective action. Although the level of claims remains the same from last year, the dollar amount of claims rose from $28,000 in 2010 to $835,000 (including legal costs) in 2011. This is still minimal compared to fees charged and no real conclusions can be drawn as the number of claims is small and statistically irrelevant. barristers new South Wales Bar Association The NSW Bar Associations (the Association) compliance report for 2011 was submitted to the Professional Standards Councils. Continuing professional development The Association conducts a mandatory CPD program to ensure the ongoing development of members and to manage future risks that may arise from a failure to update knowledge in key areas. As foreshadowed in last years report, the Hon. Dr KE Lindgren QC conducted a comprehensive review of all professional development activities at the end of 2010 and into 2011. Presented to the Bar Council in May 2011, the report is currently being analysed in detail by an education subcommittee and is not yet publicly available. The report was highly complimentary of the Bar Practice Course (BPC) and its administration. The report made only one recommendation in relation to the BPC, which was the training of coaches by the Australian Bar Associations Advocacy Training Council or the Australian Advocacy Institute. The Professional Development Department continues to survey all new readers during and at the completion of the course. In 2011, they conducted the reviews online, rather than in hard copy, which led to a higher participation rate. Complaints data In the 12 months to 30 June 2011, the NSW Legal Services Commissioner referred 49 conduct complaints to the NSW Bar Council for investigation. The Bar Council made a further six complaints. In addition, 50 investigations that had commenced prior to 1 July 2010, continued. The Bar Council finalised 62 complaint matters, 50 of which were dismissed. Trends in professional indemnity insurance The Association reported that there was a mix of increases and decreases in premiums charged in 2011, particularly by Aon (CGU), and where the fee bands were $300,000 and over. In Aons case, there was a decrease, which may be an indication that the fees charged the previous year were too high as that providers fees still remain higher than the other three providers, in some instances. The Association believes the cost of insurance is not prohibitive. monitoring of claims As reported last year, the number of claims made against barristers increased over the previous two years. Last year saw no significant increase. Commercial law and civil law remain the most common practice areas in which claims and notifications are made. c o m p lia n c e r e p o r t in g