What are the Professional Standards Councils (Councils)?
The Councils are independent statutory decision-makers established for each State and Territory who work collectively to promote consumer protection, improve professional standards, and encourage and assist occupational associations to achieve these ends.
The Councils work together as a single body to administer professional standards legislation.
The statutory objects of professional standards legislation are:
- to facilitate the improvement of occupational standards of professionals and others, and
- to protect the consumers of the services provided by professionals and others; and
- to enable the creation of professional standards schemes to limit the civil liability of professionals and others.
Professional standards schemes are the statutory instruments by which obligations are imposed on associations and their members.
If approved, a professional standards scheme limits occupational liability (with some exceptions) for members covered by a scheme to appropriate amounts, based on the nature and level of claims and the need to protect consumers.
Approved schemes currently apply across a range of professions. Current and historic scheme documents are here: https://https://psc-test.bridgestaging.app/professional-standards-schemes.
No. Professional standards legislation explicitly excludes protection for certain types of liability – including where wrongdoing is involved.
For example, the Professional Standards Act 1994 (NSW) (section 5) provides that the Act does not apply to limit liability for damages arising from:
- the death or personal injury of a person
- a breach of trust
- fraud or dishonesty.
In short, professional standards schemes do not‘protect’ a person from being sued for any loss arising from an act or omission which is dishonest or breaches a trust. Such acts remove a person’s protection for liability for damage arising from their conduct.
A professional standards scheme does not confer any status or standing on an occupation or an association.
A professional standards scheme is intended to assist associations which want to continuously improve the standards of their members – whether in traditional professions or other occupational groups.
Different industry sector associations have different levels of sophistication, resourcing and regulatory experience. A scheme can help associations to improve the standards of their members, particularly in relation to understanding ethical conduct. This process may be broadly referred to as improving professionalism or ‘professionalisation’. But this does not mean that a particular occupation has the same standing as another occupation.
The Councils do not have complaint-handling or enforcement functions in relation to complaints against individual service providers (other than notification of limitation of liability, referred to below). We cannot intervene to resolve individual complaints or disputes.
However, consumers can contact the Councils if they believe there are systemic issues with an occupational associations risk management processes (which may include complaints systems[HC1] ). These may assist in the Councils’ decision-making and monitoring functions.
[HC1]Only suggested to link the two paragraphs. But not necessary for inclusion.
Any person whose occupational liability is limited under a professional standards scheme must notify clients or prospective clients of the limitation.
Professional standards legislation requires that all documents given (or caused to be given) by a person whose liability is limited under a scheme to a client or prospective client, including correspondence, must carry a statement to that effect. [HC1]
The statement is prescribed by regulation as follows:
Liability limited by a scheme approved under professional standards legislation.
Failure to notify of the limitation of liability is an offence.
See for example section 33 of the Professional Standards Act 1994 (NSW) and clause 9 of the Professional Standards Regulation 2024 (NSW).
[HC1]Not in all jurisdictions but in some. But not entirely necessary given example of NSW below.
In determining the limitation of liability under a scheme, the Councils must have regard to:
- the number and amount of claims made against persons within the occupational association concerned, and
- the need to adequately protect consumers.
This is done as part of the application process. If a scheme is approved, the Councils then monitor ongoing claims data as part of association annual reporting.