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.