Professional Indemnity Insurance requirements for CPA
After a review of Professional Indemnity Insurance requirements for Chartered Practicing Accountants, the CPA has released more details of the recommendations on the CPA website
• The minimum PII cover to be held by a Member will be $2 million (higher PII requirements apply for practices of more than 20 principals or where fee income for the prior year is more than $10 million). Refer to the Professional standards scheme fact sheet (PDF) for all categories
• The new scheme includes coverage of services provided by members with a PPC holding a Limited Australian Financial Services Licence*
• To simplify the scheme, monetary caps have been introduced to replace the previous fee multiplier used to determine upper caps on specific services such as insolvency and audit
• Scheme coverage is provided for all Members who hold a PPC* and may extend to all approved practice entities owned, managed or controlled by Members who hold a current PPC to the extent of any occupational liability arising from the Member’s act or omission and as otherwise covered by the legislation
*The CPA Australia scheme applies to individual members in mainland Australia who hold a CPA Australia Public Practice Certificate (PPC) or Limited Practice Certificate (LPC) and includes services provided by that member as an Authorised Representative or representative of an Australian Financial Services Licence (AFSL) holder or services provided by holders of a Limited AFSL. The CPA Australia schemes do not cover services provided by members who directly hold an Australian Financial Services Licence (AFSL); services provided by members who do not hold a PPC or LPC; or services provided by PPC or LPC holders who are based in Tasmania.
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