On 28 February 2025, the Professional Standards Council of New South Wales, acting in conjunction with the Councils of each other Australian State and Territory, approved an application from Chartered Accountants Australia and New Zealand (CA ANZ) for a new professional standards scheme.
The scheme will be in force from 13 July 2025 for a period of 5 years, unless extended. This is the sixth scheme approved for CA ANZ or its predecessors in NSW for national operation. (This excludes separate schemes previously approved concurrently in other states to give national effect to the scheme before the introduction of mutual recognition provisions.)
In approving the scheme, the Councils had regard to the matters set out in section 10 of the Professional Standards Act 1994 (NSW), including:
- all comments and submissions provided to the Councils in response to public notification of the scheme
- the position of persons who may be affected by limiting the occupational liability of members of CA ANZ
- the nature and level of claims relating to occupational liability made against members of CA ANZ
- the risk management strategies of CA ANZ, and the means by which those strategies are intended to be implemented
- the cost and availability of insurance against occupational liability for members of CA ANZ, and
- the standards determined by CA ANZ in respect of insurance policies for members.
In considering the above matters, the Councils had regard to emergent risks to integrity and professional standards in the accounting and consulting sector in recent years. These have given rise to significant concern among members of the public and the profession, and include:
- systemic cheating on examinations at KPMG Australia
- disclosure of confidential information regarding proposed tax laws for commercial gain at PwC Australia
- integrity and professional standards in general at the ‘big four’ accounting and consulting firms, and
- scope of audit quality oversight.
These matters have been extensively examined in the public domain by Parliamentary inquiries over the past two years.
The Councils share community concerns regarding the risks to professional standards and industry integrity demonstrated by these matters. In approving the scheme, the Councils had regard to actions CA ANZ has taken, and continues to take, to address these risks. The Councils also note the extensive regulatory reforms proposed or underway in the sector.
The Councils will continue to monitor the effect of the measures taken by CA ANZ, government regulatory developments and emerging risks in the sector.
Having had regard to the above matters, the Councils consider that it remains appropriate for participants in the CA ANZ scheme, and the clients they serve, to receive the benefits of a professional standards scheme. These include improving professional standards and placing downward pressure on insurance costs, through effective risk management, continuing professional development, and complaints and disciplinary systems.