The Professional Standards Council is anticipating the joining of the Financial Planning Association (FPA) and the Association of Financial Advisers (AFA) to its new indemnity scheme for professional bodies to cap liability and civil damages against financial services providers.

The AFA and FPA are tipped to be the first financial services bodies to join the Federal Government-supported scheme and complete the full application process set out by legislation.

Association members will be protected with a liability cap, which was established to keep professional indemnity cover affordable.

So far, no other financial services bodies have made moves to join the scheme, but several associations are known to be considering the issue.

The FPA and AFA are assessing potential benefits for members of the scheme, and applications will be reviewed after a formal decision is made by both boards.