Limitation of liability scheme and what it means to clients
Liability limited by a scheme approved under Professional Standards Legislation other than for acts or omissions of financial services licensees.
CA ANZ limited liability scheme
As members of Chartered Accountants in Australia and New Zealand (CA ANZ), Vincents is a participant in a scheme that limits the liability of its members. The CA ANZ scheme came into effect on 8 October 2014 and is designed to limit the maximum liability for damages arising from an occupational liability claim against a member of the firm.
Effectively, the Scheme identifies participating members as being responsible professionals, subject to supervision and control by their professional body and provides that those members will have adequate resources to meet claims made against them to a specified limit.
Members participating in the Scheme are required to disclose that the liability of the member is limited by the Scheme on all documents that promote or advertise the person or person’s occupation, including official correspondence, given to a client or prospective client.
For more information on the scheme, contact the national office of Chartered Accountants in Australia and New Zealand (1300 137 322).
As a member of the CA ANZ, Vincents is committed to:
- Achieve and maintain the appropriate level and currency of professional qualifications and experience;
- Adhere to a prescribed code of ethics;
- Adopt CA ANZ pre-existing complaints and disciplinary procedures; and
- Maintain business assets and/or insurance to meet claims made against them of not less than the Limitation Amount.
Details of the limitation
The scheme will limit the liability for damages arising out of a cause of action for occupational liability (the “Limitation Amount”), which may be awarded against a person to whom the scheme applies as follows:
- The Limitation Amount shall be $2,000,000 where the engagement fee is less than or equal to $100,000
- Where the fee exceeds $100,000, the Limitation Amount shall be a determined as set out in the following table:
|Basis for liability caps||Category 1 Services
|Category 2 Services
|Where fee is >$100k but <$300K||$5 million||$5 million||$5 million|
|Where fee is >$300k but <$500k||$10 million||$10 million||$10 million|
|Where fee is >$500k||N/A||$20 million||$20 million|
|Where fee is >$500k but <$1 million||$20 million|
|Where fee is >$1 million but <$2.5 million||$50 million|
|Where fee is >$2.5 million||$75 million|
- These Limitation Amounts apply where the fee payable for the service to which the cause of action relates is a reasonable charge for the service provided or that has failed to be provided.