SCA (NSW) PROFESSIONAL STANDARDS SCHEME

What is the Professional Standards Scheme?

Under the Professional Standards Act 1994 (NSW), vocational associations can apply to the Professional Standards Councils to have a unique piece of legislation passed by the State Government to formally recognise that vocational association as being professional.

A Professional Standards Scheme (“PSS”) sets the conditions of a vocational association so it can self-regulate its members to protect consumers in exchange for limiting the civil liability that a member of the PSS can be held liable for by a consumer.

Professional Standards Councils promote professional standards and states to:

• Protect consumers. We demand high levels of professional standards and practices from those that participate in Professional Standards Schemes. We expect associations within our regulated communities to make sure their members uphold these standards through education and guidance, monitoring and enforcement, and other measures. This plays an important role in protecting consumers.
• Improve professional standards. We work closely with associations to develop self-regulation initiatives. We support research, develop policies and guidelines, and promote debate and change to improve professional standards and conduct.
• Help associations. By approving and administering Professional Standards Schemes, we can work with associations to strengthen and improve professionalism within associations and promote self-regulation while protecting consumers. In return, professionals that take part in an approved Professional Standards Scheme have their civil liability limited.

Since our inception over 40 years ago, our association has strived for its members to be recognised as professionals.

The minutes of the Inaugural Meeting of the pre-cursor to ISTM (The Institute of Strata Title Management) in 1978 stated: “The objects of the association should be designed to further professional strata management as opposed to general strata management”. The cornerstones of our application to become a PSS were to improve consumer protection and to increase the professionalism of strata managers in NSW.

No – the PSS only applies to SCA (NSW) strata manager members servicing clients in NSW.

In time other States will be encouraged to apply for their own PSS using the intellectual property and experience gained by SCA (NSW).

There is a cost to SCA (NSW), and this will be passed along to strata management company members on a cost-neutral basis. Costs will be charged on a per staff member basis.

There have been changes in the SCA (NSW) Secretariat to support the administration of our PSS. This includes a Professional Compliance Manager, an Education Manager, and a Relationship Manager. SCA (NSW) is in a strong financial position through many years of diligent financial management.

It is expected that the annual administration costs of the scheme to SCA (NSW) will be approximately $150,000.

• Improved professional standards.
• Better regulated communities.
• More accountability industry-wide.
• Further CPD requirements ensuring better educated and engaged staff.
• Improved systems and processes for businesses.
• Further support for SCA (NSW) members with more resources available.
• A more streamlined approach for clients.
• Improved client experience.
• Limited civil liability for businesses and individuals.

Currently, a strata manager and the company they work for have unlimited civil liability.

The PSS limits civil liability to $750,000. This means that if a member is litigated for professional negligence, the courts cannot award a judgment, in most circumstances, above this figure.

The reality is that over the past 10 years, there have been very few claims against strata managers. NSW Fair Trading requires a strata management company to have a minimum of $1M in Professional Liability Insurance. But this is insurance, not a cap on liability.

It is based on actuary advice and review by the Professional Standards Councils. It is enshrined in the SCA (NSW) Scheme Instrument which is gazetted by the Government.

Yes – these are unchanged, however, please refer below for additional CPD requirements under the Scheme.

The scheme applies to all SCA (NSW) strata manager members. If a strata manager does not wish to have the protection of the PSS, then they cannot be a member of SCA (NSW).

Yes. SCA (NSW) Continuing Professional Development policy is an integral part of a Professional framework.

Currently, the CPD requirements set by NSW Fair Trading are:

• Class 1 Agents (Licensee in Charge Professional Strata Manager): 9 hours including 3 hours of Compulsory, 3 hours of Elective, and 3 hours of Business Skills topics.
• Class 2 Agents (Professional Strata Manager): 6 hours made of 3 hours of Compulsory topics, 3 hours of Elective topics.
• Assistant Agents (Associate Professional Strata Manager): required to complete 3 modules of the Certificate IV in Strata Community Management (CPP 40516) as part of their CPD requirements each year for a maximum term of 4 years.

Under our PSS, the CPD requirements effectively double. This is necessary to show the Professional Standards Councils that SCA (NSW) members are doing more than the minimum required to maintain a licence. This means the total CPD hours per licence class will be:

• Class 1 Agents (Licensee in Charge Professional Strata Manager): 18 hours per year.
• Class 2 Agents (Professional Strata Manager): 12 hours per year.
• Assistant Agents (Associate Professional Strata Manager): 6 hours per year, including the above course requirements.

However, what is included in CPD hours under the PSS is expanded to be much broader than current CPD requirements. For example, all SCA (NSW)-accredited training (which may include in-house training), attendance at SCA conferences, SCA (NSW) webinars, participation in SCA (NSW) sub-committees, etc. will all count towards the new CPD requirements.

Yes. SCA (NSW) will seek information from all members regularly to ensure compliance with the PSS requirements. This will include:

• Number of lots
• Number of buildings
• Number and name of staff members
• Any liability claims
• CPD reporting
• Compliance with the Code of Ethics

Absolutely YES!

The PSS requires that member data is kept confidential from other members. The SCA (NSW) Secretariat will securely manage the member database. The data is not accessible to Board Directors and other SCA (NSW) members.

Yes, this includes Hon Kevin Anderson MP, Rose Webb Dep Sec Better Regulation Division and Commissioner Fair Trading, and David Chandler OAM NSW Building Commissioner. It is in line with the Government’s desire to improve confidence in strata living.

Members of the strata management chapter, personally and their corporate companies who service clients in NSW.

There are only 17 PSS in Australia and there is no other property services association.

1. Association of Consulting Surveyors National (ACSN)
2. Australian Computer Society (ACS)
3. Australian Property Institute Valuers Limited (APIV)
4. Bar Association of Queensland
5. Chartered Accountants Australia and New Zealand (CA ANZ)
6. CPA Australia
7. Institute of Public Accountants (IPA)
8. Law Institute of Victoria
9. Law Society of NSW
10. Law Society of South Australia
11. Law Society of Western Australia
12. New South Wales Bar Association (NSW Bar)
13. Queensland Law Society
14. RICS Valuers Limited
15. South Australian Bar Association (SA Bar)
16. Victorian Bar Association
17. Western Australian Bar Association (WABA)

It is necessary to change the Constitution to meet the requirements of the PSS.

Yes.

Most managers already run professional businesses, with well-trained staff and sound business practices and procedures. For these businesses, there will be little day-to-day change.

For some businesses that can improve processes, training, and procedures, there will be changes that they will need to implement to meet the PSS requirements. The advantage is that these changes will improve their businesses and reduce their risks.

Your business and team will have a higher expectation of professionalism placed on them. As an example, businesses will need a formal complaint handling procedure and record keeping.

SCA (NSW) will help businesses understand what the requirements are under the PSS and share resources to help them meet those requirements.

SCA (NSW) has marketing materials available to help companies inform their clients and potential clients that they are a member of a PSS and how consumers benefit from the Scheme.

All official communication to clients MUST note the ‘Limited Liability of the PSS. This will include agendas, minutes, levies, email signatures, letterheads, etc. The clause is available via the SCA (NSW) member portal. 

SCA (NSW) has developed resources to help members identify where they can improve processes and procedures.

You can contact:

• SCA (NSW) via phone on 02 9492 8200 or via email
• Professional Standards Councils via email