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Requirements for Disclosure of Limited Liability
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Professional Standards legislation (PSL) in each state and territory requires disclosure on all documents given by a participating member of a scheme to a client or prospective client that liability is limited. In Victoria, Queensland and the Northern Territory a member’s liability will not be limited if this disclosure is not made. In other states failure to comply with this requirement is an offence carrying a penalty which is commonly $5,000.

Current Disclosure 
Does the disclosure of my limitation of liability need to be on all documents I produce? 
Disclosure need not be made on business cards 
Does the disclosure statement need to be included in any advertisements (such as a Yellow Pages advertisement or websites) that I may place? 
Multiple jurisdictions 
Does the disclosure statement need to be included in foreign jurisdictions?
 
 
Current Disclosure 
The form of disclosure prescribed by Regulation in NSW, WA, SA and Queensland and recommended in other states is as follows:
Liability limited by a scheme approved under Professional Standards Legislation
The Professional Standards Council has issued a Policy Statement on Disclosure of Limited Liability. This document provides guidance in relation to disclosure issues primarily related to NSW but applicable to other states and territories. The following is taken from this Policy Statement. 
 
The disclosure statement must be printed in a size not less than the face measurement of Times New Roman typeface in 8 point. 
 
The disclosure should:
  • be sufficiently prominent on a practitioner's business documents so that there is a reasonable prospect it will come to the attention of the intended audience - generally on the facing page of the document and in a type size that is easily legible 
  • be included in digital communication formats such as a practitioner's email to clients and prospective clients. 
  • appear on brochures and similar promotional material of the practitioner, but need not appear in advertisements in print media, directory listing or similar forms of promotion or advertising.  
  • appear on websites that promote or advertise the services of the firm.
Members should also be aware that contravention of the Act's requirements in respect of providing notification of limitation of liability carries a penalty which is commonly of $5,500. 
 
Members covered by the scheme can optionally also make use of the PSC's Cover of Excellence logo. Further details on the Cover of Excellence(tm) logo are available here. 
 
Does the disclosure of my limitation of liability need to be on all documents I produce? 
 
Members in Victoria, Queensland and the Northern Territory must bear in mind the consequences of not including the disclosure statement on stationery.  
 
The PSC is not empowered to assist in determining exactly which documents need to include the disclosure statement.  
 
The PSC has advised however, that the important test is that you must provide adequate disclosure of the fact of your liability status to clients and prospective clients. A subjective assessment has to be made as to what constitutes adequate disclosure and what materials constitute documents used in the promotion or advertising of your profession. 
 
It is not envisaged, however, that the disclosure be printed on every page of output that you produce. 
 
As a minimum, the disclosure should appear on:
  • letterhead, and letters signed etc by the practice or on its behalf 
  • fax cover sheets  
  • documents such as written advice, with compliments slips and other documents produced by the practitioner for clients where those documents are not accompanied by a letter or other document on which appears a disclosure statement when given to a client  
  • newsletters and other publications 
  • official correspondence ordinarily used by the person in the performance of the person's occupation. 
  • letters signed etc by the practice or on its behalf  
  • memorandum of fees and invoices not accompanied by a letter or other document on which appears a disclosure statement when given to a client, and  
  • email, particularly where the transmission may be interpreted as an official document 
  • websites via which services are delivered to clients (by e commerce) or which are used to promote or advertise the services of the firm.
Disclosure need not be made on business cards.  
 
You will need to exercise your judgement regarding those outputs and documents produced in the course of your business on which you should include the disclosure notice. Foremost in making this assessment should be the need to ensure that adequate disclosure of your limited liability status is provided to clients. 
 
You should be particularly alert to this need where documents are produced using computer software and the disclosure cannot be included on the document because of software limitations. Disclosure, in these circumstances, could be achieved by covering letter, “with compliments” or use of rubber stamp, as appropriate. 
 
You should also consider including the disclosure notice on any documents you produce and issue that may be used by, or distributed to, persons other than the client or reprinted in a form or on other stationery. 
 
Members should also be aware that contravention of the Act's requirements in respect of providing notification of limitation of liability carries a penalty which varies by state but is commonly $5,000 and, in the event of a claim against them, may lose the limitation that would otherwise be provided. 
 
For further information visit the Professional Standards Council Website and view their disclosure policy. 
 
Does the disclosure statement need to be included in any advertisements (such as a Yellow Pages advertisement or websites) that I may place? 
 
The PSC disclosure policy provides that disclosure need not appear in:
  • advertising in print media, directory listings and similar forms of promotion or advertising 
  • websites serving as an electronic brochure (see further discussion below).
A form of disclosure on some electronic transmissions may be warranted, particularly where the transmission may be interpreted by a client or prospective client as an official document. The disclosure should be included in the digital communication formats such as a practitioner's email to clients and prospective clients. The disclosure must be clearly legible. 
 
Where a website is only promotional material or similar it is not necessary to include a disclosure. Where a website delivers services to clients or prospective clients by ecommerce, a disclosure should be made. 
 
Multiple Jurisdictions 
 
The PSC Policy Statement provides the following guidance in relation to disclosure where a participating member of the scheme practices in their own state and in another jurisdiction where a scheme is not in place. Members must ensure disclosure is made where work is carried out in a jurisdiction where his/her liability is limited under a scheme. 
 
The options presented by the PSC Policy Statement are:
  1. Have multiple sets of letterhead, or 
  2. Stamp the disclosure statement on communications to clients in cases where a Scheme applies in the jurisdiction where the work is carried out, or 
  3. Include a statement on all communications to clients to the effect that liability is limited by a Scheme approved under professional standards legislation in respect of matters arising within their jurisdiction.
These options would also apply to practices where letterhead is used by offices both in the state where a scheme is in operation as well as states where there is no scheme in place. 
 
Does the disclosure statement need to be included in foreign jurisdiction? 
 
PSC advice concerning foreign jurisdiction is that where a person is subject to a Scheme they must include a disclosure statement on their business documents. They should do so irrespective of the jurisdiction in which the service is provided. A report or other document should include a disclosure statement, where the report or other document is not provided under cover of official correspondence that includes a disclosure statement. 
 
For further information visit the Professional Standards Council website. 
or contact our Professional Standards Team.