The FAQ’s below have been included for the interpretation and understanding of certain stated terms used within the APIV Scheme documentation.

Scheme Overview

What is the APIV Professional Standards Scheme?

The APIV Professional Standards Scheme (Scheme) is a scheme approved under the Professional Standards Act 2003 (Vic). The Scheme is recognised in all states and territories, under mutual recognition provisions in the respective professional standards legislation.

The Scheme operates to limit the liability of participating members of the APIV for claims made against them in respect of acts or omissions which occur:

  1. in the course of providing occupational services; and
  2. during the currency in the Scheme.

In order to obtain the benefit of the limited liability provided by the Scheme, participating members must meet certain compliance requirements including in relation to notification and holding minimum levels of professional indemnity insurance

What does the APIV Scheme not cover?

The Scheme does not apply to any liability arising out of acts or omissions in the course of providing services that do not involve the application of the APIV member’s occupational qualifications, training, skills etc. acquired as a CPV, CPV (P&M) or RPV.

How much does it cost to join and stay in the APIV Professional standards scheme?
  • New firm or Sole trader – the cost is $297 incl. GST per entity joining the APIV as either a Corporate, Sole Trader or individual.
  • Additional members – this membership is for an individual joining an existing APIV firm (Corporate Member). The annual fee will be on a pro-rata basis to bring the new individual member into line with the firms’ APIV renewal month.
  • Annual Renewals – Renewal fee is $242 incl. GST per APIV entity (corporate, Sole Trader and individual).
What does this mean in terms of Member’s liability (Monetary Cap.) and minimum PII indemnity coverage under the Scheme?

Members conducting Low Risk Valuation (LRV) work only benefit from,

  • A liability cap of $1M arising from any successful claim, provided the LRV work is undertaken after the LRV Amendment which became effective on 7 January 2020. effective.
  • Requiring a minimum PII policy indemnity coverage of $1M (or $1.5M depending on how your policy is structured).

Members conducting Category 1 and Categories 2, 3 and/or 4 work benefit form,

  • A liability cap of $1M arising from any successful claim against LRV, P&M and OOS work,
  • Category 1 valuations will have a liability cap based on the highest valuation assessment for the relevant valuation/assessment.

Members conducting Low-Risk Valuation (LRV) work benefit form,

  • A liability cap of $1M arising from any successful claim against LRV work, provided the LRV work is undertaken after the LRV Amendment which became effective on 7 January 2020.

Members undertaken valuations of plant, machinery and equipment (P&M) benefit from,

  • A liability cap of $1M arising from any successful claim against P&M work.

Members undertaken valuations of Other Occupational Service (OOS) benefit from,

  • A liability cap of $1M arising from any successful claim against OOS work.
What are APIV's Obligations?

Review and Monitor Members’ compliance with various obligations

The APIV administers the Scheme, and as part of discharging its administrative function, the APIV has to review and monitor Member’s compliance with the professional standards legislation requirements and the requirements of the APIV Scheme.

The APIV may review a Member or prospective Member’s compliance with the Scheme at the time of processing a new application or annual Membership renewal or may audit such compliance at any time. Any such review or audit is carried out by the APIV as a purely administrative function in its capacity as the administrator of the Scheme.

It is not the APIV’s role to advise the Member as to its compliance obligations and the APIV does not make any representation or warranty to Members as to whether or not they are compliant at any particular point of time. Ultimately, whether a Member has met all relevant compliance obligations under the Scheme, is a matter which will be determined by a Court in the context of the particular claim in respect of which the Member seeks to rely upon the Monetary Ceiling.

The APIV is required to closely monitor Members’ compliance for the purpose of reporting to the PSC about Scheme compliance including with respect to:

  • the requirement that Members comply with the APIV Insurance Standards, including the requirement that their professional indemnity insurance covers the full amount of their limited liability for valuations of real property;
  • the requirement that Members have sufficient business assets or insurance cover to reconcile compensation that may be awarded relevant to the ceiling of the liability limitation.  Compliance with insurance and business assets are a key part of the Scheme. The APIV “must monitor Members’ compliance with this fundamental aspect of participating in a Scheme – for example, as part of annual Membership renewal – and report to the Councils” […].  This compliance strategy aims to ensure that all participants in a scheme are adequately covered for their capped liability; and
  • API CPD requirements.

The Annual Compliance Self-Declaration, whereby Members self-declare compliance with the Scheme requirements is designed to check compliance with this requirement by Scheme Members at the time of Membership renewal.  The APIV may also audit any Member in relation to its compliance with the Scheme. (Random Compliance Audit)

 

Collect certain data from Members and Report to PSC

Pursuant to the professional standards legislation, the APIV must collect data and report to the PSC on:

  • notifications/claims received by Members, including:
    • the source of the data (i.e., from Members, from insurance industry, etc);
    • the number and the dollar amount of the claims;
    • the types of claims, causes of claims and demographic information; and
    • identification of trends and conclusions that may be drawn from the claims data.
  • complaints and discipline of Members, including:
    • an analysis of the trends in complaints; and
    • the relationship between claims, complaints and continuing education of Members.
  • cost and availability of insurance for the current year;
  • all notifications/claims at or approaching the Member’s respective monetary ceiling (immediately upon receipt of notification from a Member);
    • outcome of the annual compliance audit; and
    • all breaches of professional standards legislation or APIV Scheme requirements by Members.

The APIV collects this data from Members through the Complaints/Claims and Notifications form and the Compulsory Annual Compliance Questionnaire (declaration), which must be completed by each professional indemnity insurance policy holder upon renewal of their APIV Membership.

This information is collected by the APIV from Members principally to provide aggregated and unidentifiable data to the PSC.  Where appropriate, this information may also be used to identify key risk areas for the purpose of providing educational material to Members and to generally improve the standard of APIV’s Member services

Who must join the scheme or obtain an exemption?

The API Membership Policy states that API members who hold one of the following certifications must join and participate in the Scheme unless exempted by the APIV Board:

  1. Certified Practising Valuer,
  2. Certified Practising Valuer (Plant & Machinery), or
  3. Residential Property Valuer.

The employer of any individual APIV member who is a Scheme member must also join the Scheme to gain the benefit of the Scheme.

What information does the APIV report to the Professional Standards Councils?

As the government body that approves all professional standards schemes, all information collected by the APIV is collated and reported on to the PSC. When reporting to the PSC all data/information is de-identified (unless requested not to be).

Scheme Operation

Who is a participating member?

A participating member is a natural person who is a Member of the API who:

  1. is eligible to be a member of the APIV because they hold one of the following certifications:
    1. Certified Practising Valuer,
    2. Certified Practising Valuer (Plant & Machinery), or
    3. Residential Property Valuer; and
  1. has applied for and been granted membership of the APIV.

A participating member also includes a firm (including a company or partnership) which:

  1. is eligible to be an APIV member because it employs or contracts to a person who is eligible to be an APIV member; and
  2. has applied for and been granted membership of the APIV.

A person or firm who or which is a Member of the API and eligible to be a member of the APIV must become a member of the APIV unless they have been granted an exemption from that requirement by the APIV Board.

What services does the APIV Scheme apply to?

The Scheme applies all types of ‘Occupational Services’ carried out by a Scheme member by application of the qualifications, training, skills, practices, disciplines, specialisations, standards, guidelines and experience of a CPV, CPV(P&M) or RPV.

This includes:

  1. ‘Valuation of Real Property’;
  2. ’Valuation of Plant & Machinery’; and
  3. ‘Other Occupational Services’.

Valuation of Real Property’ is defined as any valuation of any right, interest, or benefit related to the ownership, occupation or use of real property, including land and all things that are a natural part of the land as well as any improvements to the land (but excluding plant, machinery, and equipment) expressed as an Assessed Value.

Valuation of Plant and Machinery’ mean any valuation of any right, interest or benefit related to the ownership, possession or use of chattel(s), including plant, machinery, or equipment, expressed as an Assessed Value.

Other Occupational Services’ is defined as any ‘Occupational Services’ other than ‘Valuation of Real Property’ or ‘Valuation of Plant and Machinery’. It includes a wide range of other consultancy services including market commentary, feasibility reports, land use assessments and housing supply analyses.

How does the APIV monitor member’s obligations?

As the administrator of the APIV Scheme, the APIV is required to discharge its compliance obligations to the PSC.  The APIV does this by checking the compliance obligations of Scheme members through the annual membership renewal process and random audits.

How does the APIV monitor member’s obligations?

As the administrator of the APIV Scheme, the APIV is required to discharge its compliance obligations to the PSC. The APIV does this by checking the compliance obligations of Scheme members through the annual membership renewal process and random audits.

What compliance obligations do an APIV member have?

Scheme members are responsible to determine their compliance obligations and to ensure that they comply with all relevant legal and Scheme requirements.

A member who is a participant in the Scheme must, at all times, observe and comply with the following obligations:

  • the APIV Scheme Instrument.
  • the APIV Insurance Standards under the APIV Scheme, including the maintenance of a compliant PII Policy, sufficient business/liquid assets and the requirement to take out run-off cover for a prescribed number of years.
  • the Supervision Guidelines accompanying the APIV Scheme.
  • the disclosure requirements relating to limitation of liability pursuant to the Professional Standards Legislation; and
  • the requirements of the Professional Standards Councils (PSC) and the Professional Standards Legislation, including but not limited to:
    • completion of Professional Standards Legislation based questionnaires.
    • full participation in APIV random Compliance Audit.
    • notifying within a reasonable time frame of any new notification, claim or settlement of an existing claim.
    • updating within a reasonable time frame of any existing notification or claim.
    • immediately advising the APIV when a notification or claim approaches or exceeds 50% of the Monetary Ceiling for the professional services undertaken.
    • notifying and updating the APIV of new and existing complaints and disciplinary matters relating to professional services; and
    • providing APIV with PII policy information, data, and any other evidence of Scheme compliance, as requested by the APIV
What does an APIV exemption mean and what categories are there?

There are four (4) categories where an exemption would be granted to an API Member.

  1. Non-Practising Valuer – requires Statutory Declaration.
    1. The individual retains and maintains their CPV, CPV (P&M) or RPV certification with the API but do not conduct any real property valuations or valuations of plant, machinery and equipment.
  2. Authorised Deposit Taking Institution employee – requires a signed letter from department head on company letterhead.
    1. The individual is an employee of Authorised Deposit Taking Institution (ADI) and only provides valuation services for the ADIs internal risk/review purposes.
  3. 100% non-recourse government contracts – requires Statutory Declaration.
    1. The API derives 100% of their income from a Commonwealth / State Government / Local Government type contract which includes as a condition of engagement that the professional services are provided on a non-recourse basis.
  4. Government Employee – requires a signed letter from department head on letterhead.
    1. The API member works exclusively as an employee of the Commonwealth / State Government / Local Government and only proves valuations services for the Commonwealth / State Government / Local Government’s internal purposes.

Being granted an exemption means an API member is exempt from participating in the APIV Scheme.

The APIV Board are also able to approve a departure from a specific Scheme requirement for a Scheme member.

Why is disclosure required?

In all jurisdictions, where a person’s liability is limited under legislation, all documents (including electronic communications) that promote or advertise the person or the person’s occupation and are given by that person to a client or prospective client (excluding business cards) must contain a standard statement disclosing that the person’s liability is limited under the respective legislation.

The Regulations suggest the following disclosure statement for our Members:

“Liability limited by a Scheme approved under Professional Standards Legislation.”

 

Under Victorian, Queensland and Northern Territory legislation, a Scheme does not limit the liability of a Member if the required disclosure is not provided by the Member.

If your firm operates in South Australia, the relevant legislation requires the disclosure statement to also appear on your firm’s website. However, the Professional Standards Councils (‘PSC‘) believe that to provide a higher standard of consumer protection, it is prudent for the limited liability disclosure to also be made on websites in other States and Territories.

Further information on disclosure obligations can be found on both the API’s and the PSC’s websites, detailed below.

PSC Disclosure Requirements

We recommend that you seek independent legal advice if you are not sure of how and where to disclose your limited liability.

What are the Consequences of non-disclosure

Non-disclosure is an offence under the professional standards legislation carrying a penalty in all states.  For example, currently, in NSW, the penalty is $5,500. In WA and the ACT, it is $5,000, and in SA, it is a maximum of $20,000.

Furthermore, in some jurisdictions, a participating Member will not be able to rely on the APIV Scheme to limit his or her liability if, before the time at which the act or omission giving rise to the cause of action occurred, the participating Member did not –

  1. give, or cause to be given to the client a document that carried a disclosure statement; or
  2. otherwise inform the client, whether orally or in writing, that the participating Member’s liability was limited.
How does the Scheme set the monetary ceiling?

The applicable monetary ceiling under the Scheme is determined according to the service type which gives rise to the claim against the member. In the case of Real Property Valuation Services (other than Low-Risk Valuations) it also depends upon the Assessed Value set out in the member’s valuation report.

The applicable monetary ceiling in respect of each service type is set out on our APIV Capping & Excess Information page.

Reporting certain matters to APIV

Members are required to report to the APIV:

  • cost and availability of insurance for the current year requirements.
  • compliance with the API CPD requirements (via Annual Compulsory Compliance Questionnaire and random Audit).
  • all notifications, claims, settlements and complaints received by the Member.

Pursuant to clause 10.4.1 of the APIV Constitution, ‘Members must promptly notify the Compliance Manager about every civil or criminal claim, complaint, accusation, charge, notification or settlement involving a Member and must keep the Compliance Manager informed about the outcome’.

As part of the APIV Scheme Membership, Members are required to:

  • report to the APIV all notifications/claims/settlements of claims/complaints and disciplinary actions throughout the year as necessary;
  • immediately advise the APIV when a notification or claim approaches the Scheme cap; and
  • update the APIV throughout the year as necessary on the status and progress of all notifications/claims/settlements of claims/complaints and disciplinary actions reported to the APIV in the past 12 months.

The professional standards legislation also requires the APIV to monitor and analyse notifications and claims made against its Members for occupational liability and to adopt appropriate risk management strategies.

What are APIV disclosure requirements?

Participating Members are required to disclose that their liability is limited under professional standards legislation on all business documents (other than business cards). This is a legislative requirement under each of the applicable Professional Standards Acts. Failure to comply with these disclosure requirements is a breach, and an offence, under the professional standards legislation. A relevant breach of this compliance requirement will mean that the participating member will not obtain the benefit of the limitation of liability provided by the Scheme.

You can read the full disclosure requirements here: Disclosure Requirement

Using the disclosure statement when a firm or individual is not an APIV member is false and misleading action towards the client or consumer.

What are the consequences of non-compliance with the Scheme?
  • Breaches the APIV membership policy.
  • No ability to cap liability under the Scheme if a claim arises.
  • Noted and reported as non-compliant to the API and APIV Boards.
  • Noted and reported as non-compliant to the Professional Standards Councils (the governing government body).
  • Termination from the APIV scheme, putting the member in breach of the API membership policy.
  • The individual’s CPV or RPV certification under the API may be impacted.
What does the random audit consist of?

The random audit is done in accordance with the APIV’s monitoring requirements. This is different to the annual self-declaration as the APIV is required to sight compliance obligations such as disclosure requirements, PII requirements and educational requirements to name a few.

What are Low-Risk Valuations (LVR)?

Low-Risk Valuations have been determined to hold significantly less risk than other types of Real Property Valuation. They are capped at $1m.

The Scheme provides ten (10) Low-risk categories:

  1. Valuation of Real Property undertaken in the capacity as an arbitrator.
  2. Valuation of Real Property undertaken for the purpose of asset means testing.
  3. Expert Determination.
  4. Expert Evidence Valuation.
  5. Financial Reporting Valuation.
  6. Government Valuation.
  7. Insurance Valuation.
  8. Assessment of any unit entitlement in respect of any subdivision, strata title, company title (or similar) property.
  9. Valuation of Real Property undertaken for the purpose of determining a rate, tax, duty or levy that applies in respect of the property, including but not limited to any council rates, Good & Service Tax or stamp duty.
  10. Valuation of Real Property undertaken for Resumption purposes.

APIV Professional Indemnity Insurance Standards

What is Professional Indemnity Insurance Policy?

A professional indemnity policy (PI Policy) is a contract of insurance by which an insurer agrees to indemnify a insured professional for its liability to third parties in respect of claims made arising out of an act or omission in the course of the provision of professional services.

Professional indemnity insurance policies:

  1. are generally written on a claims made basis, which means the policy responds to claims made during the policy period (even though the act or omission which gave rise to the claim may have occurred in a prior period);
  2. limit the amount of any indemnity to an agreed ‘Sum Insured’
  3. also indemnify the insured for ‘Defence Costs’ (legal and other costs incurred by the insured in defending the claim);
  4. require the insured to pay the first part of any loss – which is known as an ‘excess’ or ‘deductible’;
  5. contain a range of additional covers or extensions;
  6. need to be ‘renewed’ at the end of the policy period (usually annually) in order to maintain continuity of cover.
What are the APIV Professional Indemnity Insurance Standards?

The APIV Insurance Standards is a document that forms part of the APIV Scheme. It contains a set of minimum requirements (Standards) with which Participating Members are required to comply in order to gain the benefit of the Limitation of Liability provided by the Scheme.

The APIV Insurance Standards document also contains:

  1. Advisory Statements which the APIV encourages Participating Members to adopt but which do not have the status of Standards for the purpose of application of the Professional Standards Legislation.
  2. Permissive Statements which identify insurance arrangements which a Participating Member may adopt and which, if adopted, will not place the Participating Member in breach of the APIV Insurance Standards.
What is the minimum 'Sum Insured' required?

The minimum Sum Insured required will depend upon the circumstances of each individual participating member. However, in no case can the Sum Insured be less than $1 million.

Where a proceeding is brought against a person who was a Participating Member at the time of the act or omission giving rise to the Occupational Liability, such person must have the benefit of a PI Policy with a Sum Insured not less than:

  1. where the act or omission giving rise to the claim occurred during the currency of the Scheme, the amount of the applicable monetary ceiling (calculated as per the table on page 4); or
  2. where the act or omission giving rise to the claim occurred during the currency of a previous APIV scheme of which the member was a participating member, the applicable monetary ceiling set out in that prior scheme.

As such, participating members, when selecting a Sum Insured, will need to have regard to both:

  • claims which may arise from real property valuations carried out prior to which the (generally higher) limits of liability under the 2010 or 2016 APIV Scheme will apply; and
  • claims which may arise from real property valuations, plant & machinery valuations or other occupational services to which the (generally lower) limits of liability under the 2021 APIV Scheme will apply.

Note: The minimum Sum Insured requirement under the 2010 and 2016 APIV Professional Indemnity Insurance Standards will apply to claims arising from acts or omissions occurring during the currency of those schemes. Members should obtain advice from a specialist insurance broker in selecting an appropriate sum insured having regard to the above requirements.

What cover do I need for Defence Costs?

Insurance policies are generally issued on either a ‘costs in addition’ (where a separate limit of indemnity for Defence Costs is provided in addition to the Sum Insured) or ‘costs inclusive’ basis (where the Defence Costs cover is included in the Sum Insured).

Where the PI Policy is ‘costs inclusive’ basis, the Sum Insured obtained must exceed the above minimum Sum Insured requirement by at least $500,000. Where the PI Policy provides cost-in-addition cover such cover must be not less than $500,000.

What is the Maximum Excess permitted?

The maximum excess is calculated on the valuation firm’s annual fees as follows:

Annual Firm Fees Maximum Excess
$0 – $349,999 $40,000
$350,000 to $499,999 $60,000
$500,000 to $999,999 $80,000
$1,000,000 to $1,999,999 $100,000
$2,000.000 to 9,999,999 $150,000
$10M+ $250,000

 

Do I need Run-off Cover?

Where automatic run-off cover is not reasonably available (which is currently the case), members must arrange and maintain run-off cover for a period of 7 years following cessation of the insured professional business. Participating members should consult with their insurance broker a to the availability of automatic run-off cover when renewing their PI policies.

Scheme Compliance Obligations

What are APIV disclosure requirements?

APIV Scheme members are required to disclose that their liability is limit under professional standards legislation in line with the PSC disclosure requirements. Failure to comply with the disclosure requirements is a breach and may be an offence under professional standards legislation.

Disclosure Requirement

Using the disclosure statement when a firm or individual is not an APIV member is false and misleading action towards the client or consumer.

What other compliance obligations does an APIV member have?

Participating Members are responsible to determine their compliance obligations and to ensure that they comply with all relevant legal and Scheme requirements.

A Participating Member must, at all times, observe and comply with the following obligations:

  1. the APIV Scheme Instrument.
  2. the APIV Insurance Standards under the APIV Scheme, including the maintenance of a compliant PII Policy, sufficient business/liquid assets and the requirement to take out run-off cover for a prescribed number of years.
  3. the Supervision Guidelines accompanying the APIV Scheme.
  4. the disclosure requirements relating to limitation of liability pursuant to the Professional Standards Legislation; and
  5. the requirements of the Professional Standards Councils (PSC) and the Professional Standards Legislation, including but not limited to:
    1. completion of Professional Standards Legislation based questionnaires.
    2. full participation in APIV random Compliance Audit.
    3. notifying within a reasonable time frame of any new notification, claim or settlement of an existing claim.
    4. updating within a reasonable time frame of any existing notification or claim.
    5. immediately advising the APIV when a notification or claim approaches or exceeds 50% of the Monetary Ceiling for the professional services undertaken.
    6. notifying and updating the APIV of new and existing complaints and disciplinary matters relating to professional services; and
    7. providing APIV with PII policy information, data, and any other evidence of Scheme compliance, as requested by the APIV.
What are the consequences of non-compliance with the Scheme?
  • Breaches the APIV membership policy.
  • No ability to capability under the Scheme if a claim arises.
  • Noted and reported as non-compliant to the API and APIV Boards.
  • Noted and reported as non-compliant to the Professional Standards Councils (the governing government body).
  • Termination from the APIV Scheme, putting the member in breach of the API membership policy.
  • The individuals CPV or RPV certification under the API may be impacted.
Accuracy of information provided to the APIV

Members must ensure that they do not provide incomplete, misleading or inaccurate information to the APIV in connection with the Scheme including in the Compulsory Annual Compliance Questionnaire (declaration), the Claims and Notifications Form or in connection with any audit. The APIV will use this information for the purposes of reporting to the PSC annually and it is an offence to mislead Parliament. Giving false or misleading information to the APIV, and in turn to the PSC and the Ministers, is a serious offence. See, for example, section 307B of the Crimes Act 1900 (NSW) and similar provisions in other States.

What obligations does Contractors have?

In order to obtain the full benefit of the APIV Scheme, APIV Members must ensure that all eligible employees, including contractors, are also Members of the APIV. However, contractors are only required to pay a single APIV Membership fee, regardless of the number of contracts they may hold with other APIV members. For example, a contractor may be a Member under the ‘banner’ of a corporate APIV Member they contract under, or alternatively, be an APIV member in their own right.

Where a Member works as a contractor for multiple firms with different applicable Monetary Ceilings and/or PI Insurance coverage, there may be a risk of not being able to plead the Scheme to cap the Member’s liability in the event of a claim. Please contact the APIV if you would like further information on this.

Discontinuation of Cover of Excellence ® Trademark and Star Device

The licence granted by the PSC to Members with respect to the use of the Cover of Excellence® trademark and Star Device was discontinued on the expiration of the previous Scheme on 31st August 2016.

Members who were not using the Cover of Excellence® trademark and Star Device prior to 31st August 2016 should not use it.

Members who were using the Cover of Excellence® trademark and Star Device prior to 31st August 2016 must ensure that the trademark and Star Device have been removed from all electronic and hardcopy business materials, including letter templates, invoices, emails and websites.

Consequences of failing to cease the use of the Cover of Excellence® trademark and Star Device

Failure to remove the Cover of Excellence® trademark and Star Device is a breach of trademark on the Member’s part, which can be enforced by the PSC.

Membership

Who must join the Scheme or obtain an exemption?

The API Membership Policy states that API Members who undertake valuations and hold one of the following certifications must join and participate in the Scheme, unless exempted by the APIV Board:

  • Certified Practising Valuer,
  • Certified Practising Valuer (Plant & Machinery), or
  • Residential Property Valuer.

The employer of any individual APIV member who is a Scheme member must also join the Scheme to gain the benefit of the Scheme.

The Scheme operates on a ‘one-in, all in’ basis, hence firms and their employees/sub-contractors, who are eligible for APIV membership, and are covered under the valuation firm’s professional indemnity insurance (PII) policy, must join the Scheme to gain the benefit of the Scheme.

What are the benefits of being an APIV Scheme Member?

Enhanced consumer protection

  • Risk management strategies based on claims, complaints, audit outcomes and analysis
  • Higher level of standards and quality reports
  • Enhanced professional risk profile for members
  • Complaint culture within membership
  • Stakeholder engagement and education
  • Risk management strategies based on claims, complaints, audit outcomes and analysis

Member benefits

  • Capped liability in the event of a successful claim
  • Recognition as a profession by Professional Standards Council (PSC)s
  • External recognition and preferential treatment to non-PSS members (e.g. Government contracts, insurers)
  • Enhanced professional risk profile
  • Mitigation of personal liability
How do I apply to join a firm and staff to the APIV scheme and how long does it take to process an application?
  1. Complete the New APIV Membership Application for Professional Standards Scheme Membership
  2. Have an active and APIV compliant professional indemnity insurance policy
  3. Email the completed application form and the following supporting documents to [email protected].
    1. PII Certificate of currency
    2. PII Policy wording or schedule

If all documents are provided and there are no compliance issues or questions the review and approval process will take one to two days.  If compliance issues are found the APIV team will contact the applicant in relation to these and how to rectify it.

Can I join the Scheme if I am the only Eligible Member at my firm?

Yes, you can complete the application form on behalf of your firm, but this must be signed by a Director or authorized person that can sign the firm up to become an APIV member (as the firm must be a member of the scheme as well).

How soon should a Corporate Member notify the APIV of an individual APIV member leaving the firm and where is the form?

The APIV should be notified within a week of an employee or contractor who is an individual Scheme member leaving the firm.  Failure to not notify may affect the former employee or sub-contractors’ chance of joining the Scheme under a different firm.

Resignation Form

How soon should a Corporate Member notify the APIV of a new individual APIV member to join to the firms Scheme member list and where is the required form?

The APIV should be notified before or on the day that the new individual member starts with the firm. Due to regulatory reporting requirements and payments, the APIV are unable to backdate a members’ start date.

Additional Member Form

Does a member need to have more than one APIV membership?

No. The APIV only require each eligible API Member to have a single APIV membership at a time. In saying this, if an individual is conducting valuation work for more than one entity, they will need to ensure that the individual is listed under their PII policy.

If an individual leaves the entity/firm where their APIV membership sits, the APIV membership does not transfer to next place of employment. The API Member must rejoin the APIV Scheme under the new firm/entity before conducting any applicable valuation work.

When should a Scheme member notify the APIV about a Notification or Claim and where is the required form?

The APIV should be notified within a week after the member notifies their insurance company of any claim or potential claim (notification).

APIV-Claims/Notification-Form

How does the APIV monitor member’s obligations?

As the administrator of the APIV Scheme, the APIV is required to discharge its compliance obligations to the PSC.  The APIV does this by checking the compliance obligations of Scheme members through the annual membership renewal process and random audits.

In what circumstances can an API member who is eligible to become an APIV member obtain an exemption?

An API Member, who is eligible to become an APIV member is required by the API Membership Rules to become an APIV Member unless that API member has applied to the APIV Board for an exemption and the APIV Board has granted that exemption.

There are four (4) categories where the APIV Board will grant an exemption to an API Member.

  1. Non-Practising Valuer – requires Statutory Declaration.
    1. The individual retains and maintains their CPV, CPV (P&M) or RPV certification with the API but do not conduct any real property valuations or valuations of plant, machinery and equipment.
  2. Authorised Deposit-Taking Institution employee – requires a signed letter from department head on company letterhead.
    1. The individual is an employee of Authorised Deposit-Taking Institution (ADI) and only provides valuation services for the ADIs internal risk/review purposes.
  3. 100% non-recourse government contracts – requires Statutory Declaration and Evidence.
    1. The API derives 100% of their income from a Commonwealth / State Government / Local Government type contract which includes as a condition of engagement that the professional services are provided on a non-recourse basis.
  4. Government Employee – requires a signed letter from department head on letterhead.
    1. The API member works exclusively as an employee of the Commonwealth / State Government / Local Government and only proves valuations services for the Commonwealth / State Government / Local Government’s internal purposes.

Being granted an exemption means an API Member is exempt from participating in the APIV Scheme.

The APIV also has some limited exemption and approval powers in relation to the requirements of the APIV Insurance Standards.

What does the annual renewal consist of?

Each year all member firms or sole traders must complete an annual renewal which consists of:

  • Self-declaration survey with question relating to;
    • PII limit,
    • PII premiums
    • Valuation types/purposes (volumes) undertaken in the previous calendar year
    • Claims/notifications information
  • Invoice payment ($242 GST incl. per APIV entity)
What does the random audit consist of?

The random audit is done in accordance with the APIV’s monitoring requirements. This is different to the annual self-declaration as the APIV is required to sight compliance obligations such as, disclosure requirements, PII requirements and educational requirement to name a few.

How much does it cost to join and stay in the APIV Professional standards Scheme?
  • New firm or Sole trader – the cost is $297 incl. GST per entity joining the APIV as either a Corporate, Sole Trader or individual.
  • Additional members – this membership is for an individual joining an existing APIV firm (Corporate Member). The annual fee will be on a pro-rata basis to bring the new individual member into line with the firms APIV renewal month.
  • Annual Renewals – Renewal fee is $242 incl. GST per APIV entity (corporate, Sole Trader and individual)
What information is reported to the Professional Standards Councils?

As the government body that approves all professional standards schemes all information collected by the APIV is collated and reported on to the PSC. When reporting to the PSC all data/information is de-identified (unless requested not to be).

How to apply to join a firm and staff to the APIV Scheme and how long does it take to process an application?
  1. Complete the New APIV Membership Application for Professional Standards Scheme Membership
  2. Have an active and APIV compliant professional indemnity insurance policy
  3. Email the completed application form and the following supporting documents to [email protected] .
    1. PII Certificate of currency
    2. PII Policy wording or schedule

If all documents are provided and there are no compliance issues or questions the review and approval process will take one to two days.  If compliance issues are found the APIV team will contact the applicant in relation to these and how to rectify it.

What low-risk valuation services categories are there?

Low Risk Valuation Services Categories (Definitions)

  • Valuation of Real Property undertaken in the capacity as an arbitrator
  • Valuation of Real Property undertaken for the purpose of asset means testing.
  • Expert Determination.
  • Expert Evidence Valuation.
  • Financial Reporting Valuation.
  • Government Valuation.
  • Insurance Valuation.
  • Assessment of any unit (or lot) entitlement in respect of any subdivision, strata title, company title (or similar) property.
  • Valuation of Real Property undertaken for the purpose of determining a rate, tax, duty, or levy that applies in respect of the property including but not limited to any council rates, Good & Service Tax or stamp duty
  • Valuation of Real Property undertaken for Resumption purposes.
What are the categories of Scheme membership?

Category 1 – Valuation of Real Property (excluding Low Risk Valuations).

Category 2 – Valuation of Real Property which are Low Risk Valuations and therefore excluded from Category 1.

Category 3 – All Valuations of Plant & Machinery (regardless of purpose or client).

For the avoidance of doubt an ‘insurance assessment means any assessment of the cost of replacement of destructive items of chattels including plant, machinery & equipment undertaken for the purpose of advising on the insurable value of such property in connection with the entry into, or proposed entry into, a contract of insurance.

Category 4 – any other professional services undertaken by members not encompassed within Categories 1, 2 or 3.

What does the annual renewal consist of?

Each year all member firms or sole traders must complete an annual renewal which consists of:

  • Self-declaration survey with questions relating to;
    • PII limit,
    • PII premiums
    • Valuation types/purposes (volumes) undertaken in the previous calendar year
    • Claims/notifications information
  • Invoice payment ($242 GST incl. per APIV entity)

Broker / Insurance

Coming soon…