Professional Standards Scheme Legislation Amendment Regulation 2012 (No. 1)

Overview

The Professional Standards Scheme Legislation Amendment Regulation 2012 (No. 1) was introduced to correct and enhance the existing regulatory framework concerning professional standards schemes in Australia. Enacted by the Parliamentary Secretary to the Treasurer, this regulation aimed to address inaccuracies in the naming of specific professional standards schemes within the Australian Securities and Investments Commission Regulations 2001, Corporations Regulations 2001, and Competition and Consumer Regulations 2010. The regulation was designed to ensure that these schemes, namely the Victorian Bar Professional Standards Scheme and the Law Institute of Victoria Limited Scheme, are correctly identified and prescribed, thereby providing clarity and consistency in the application of federal occupational liability laws in relation to financial services and market misconduct. By aligning the titles of these schemes with the relevant federal regulations, the legislation seeks to harmonise the approach to professional standards across federal and state jurisdictions, ultimately supporting the broader policy objective of protecting consumers while appropriately limiting the liability of professionals.

Scope and Application

The Professional Standards Scheme Legislation Amendment Regulation 2012 (No. 1) amends the Australian Securities and Investments Commission Regulations 2001, Corporations Regulations 2001, and Competition and Consumer Regulations 2010 to formally recognise the Victorian Bar Professional Standards Scheme and the Law Institute of Victoria Limited Scheme. This recognition serves to limit the occupational liability of members of these schemes in relation to actions for contravention of specific sections of the Australian Securities and Investments Commission Act 2001, Corporations Act 2001, and Competition and Consumer Act 2010. The schemes will apply to members of the Victorian Bar and the Law Institute of Victoria, effectively governing their professional conduct and limiting their liability in a manner consistent with the Professional Standards Act 2003 (VIC). The Regulation corrects previous oversights by accurately naming these schemes in the relevant regulations and comes into effect on 1 November 2012. The compatibility statement indicates that this instrument does not impact upon any human rights, ensuring alignment with recognised international human rights standards.

Key Provisions

The key provisions of the Professional Standards Scheme Legislation Amendment Regulation 2012 (No. 1) are set out in sections 3, 4 and 5, which prescribe the Victorian Bar Professional Standards Scheme and the Law Institute of Victoria Limited Scheme under the Australian Securities and Investments Commission Regulations 2001 and the Corporations Regulations 2001. Section 3 corrects the titles of these schemes under the Competition and Consumer Regulations 2010. These regulations aim to limit the occupational liability of members of the schemes, in the same way that the Professional Standards Act 2003 (VIC) limits occupational liability. This is achieved by prescribing these professional standards schemes under federal legislation, thus limiting the occupational liability of members of these schemes in relation to actions for contravention of section 12DA of the ASIC Act or section 1041H of the Corps Act. The Regulation imposes obligations and requirements on the parties and entities it governs. Specifically, it requires the schemes to adhere to certain standards and procedures to ensure the protection of consumers of professional services. This includes compulsory insurance cover and complaints procedures, which are necessary to maintain appropriate protection for consumers of professional services. The schemes must also comply with the requirements set out in the ASIC Act, the Corps Act, and the CCA, as well as any relevant state legislation. Failure to comply with the obligations and requirements of the Regulation may result in offences, penalties, or civil/criminal consequences. However, the text does not specify the exact nature of these consequences or the maximum penalties that may be imposed. It is important to note that the Regulation is compatible with human rights as it does not raise any human rights issues, as stated in the Statement of Compatibility with Human Rights. This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. The Legislative Instrument does not engage any of the applicable rights or freedoms, and thus does not raise any human rights issues.