Members of CPA Australia will lose the benefit of protection under the Liability Scheme for CPA Accountants from 7 October 2017 when the CPA Professional Standards Scheme renewal expires.
This is because the NSW Government is examining whether the financial services offered by CPA Australia could hinder the discipline of its members in relation to compliance. This means that from 7 October 2017 CPA Accountants will need to be mindful of their levels of professional indemnity insurance until a new scheme can replace the existing one.
The current liability scheme provides members of CPA Australia with limited liability provisions that restrict the amount that can be claimed in law suits by clients. Issues will occur if a CPA member is sued for malpractice in the interval between the scheme expiring and when its replacement is created. There may be no limitation on the liability of a CPA Accountant.
CPA members must also replace all their letterheads and documents from 7 October 2017 to remove the statutory disclosure statement. Otherwise, they may be in breach of the Australian Consumer Law.