The Professional Standards Act - A New Approach to Dealing with Professional Liability

The Professional Standards Act responds to the growing problem of professional liability by introducing a mechanism whereby professional associations can have schemes approved. Those schemes include a cap on liability; a requirement for compulsory insurance; the development of risk management strategies; and the establishment of a complaints and disciplinary system. The Act is also designed to support and develop the concept of self-regulation by the members of occupational associations who provide services to the community by providing them with those tools. It implicitly accepts that self-regulation is preferable to statutory regulation and that self-regulation serves the interest of the community and of the providers of services. The Act arose from a review of professional liability commenced in 1988. The Attorney General's Department produced an Issues Paper, released in September 1989, which outlined in detail the extent of the problem. This was widely circulated and an extensive number of comment were received.