Audit of mandatory disclosure statements

04/12/2019

Professional Standards Scheme

The Bar Association has completed its annual CPD / mandatory disclosure statement audit. Requests for records and sample documents were sent to 218 randomly selected members and the association welcomes the speedy and courteous responses.

Members covered by the Bar Association's Professional Standards Scheme are obliged to display the mandatory disclosure statement "Liability limited by a scheme approved under Professional Standards Legislation" on all documentation sent to existing and prospective clients – including instructing solicitors. This ensures that the scheme can be relied upon to protect against unlimited liability. A person covered by a scheme who does not use the disclosure statement as required is guilty of an offence (refer s33(2) of the Professional Standards Act 1994).

Clause 9 of the Professional Standards Regulation 2014 sets out the prescribed disclosure statement to be used, i.e. "Liability limited by a scheme approved under Professional Standards Legislation". The statement must be printed on a size not less than the face measurement of Times New Roman typeface in 8 point.

Ninety-nine percent (216) of members responded: in 162 instances (74.31%), the wording was fully compliant, while another 47 (21.56%) required a very minor typographical or grammatical correction. There were zero instances of non-compliance. The balance of respondents were unable to complete the audit because they had ceased practising, had a pressing health problem or were absent from chambers.

All barristers who hold a NSW practising certificate, who are a member of the Bar Association, and have approved professional indemnity insurance are covered by the New South Wales Bar Association’s Professional Standards Scheme, which limits their liability for damages to $1.5 million.

The Professional Standards Council published a guide on responsibilities of members to use the disclosure statement which can be viewed here.

Please check to ensure you are using the correct disclosure statement on all documents as required.

Should you have any queries regarding the Scheme, please contact Chris Winslow on ph 9229 1732 or e-mail cwinslow@nswbar.asn.au.

---