These regulations are the Lawyers and Conveyancers Act (Lawyers: Fidelity Fund) Regulations 2008.

These regulations come into force on 1 August 2008.

(1) In these regulations, unless the context otherwise requires,—

(2) Any term that is defined in the Act and used, but not defined in these regulations, has the meaning given in the Act.

The Law Society may in writing delegate (either generally or specifically) to any person or body any functions, duties, and powers of the Law Society under these regulations.

For the purpose of section 304(a) of the Act, the Lawyers' Fidelity Fund is established.

(1) The Law Society must take appropriate steps to maintain and manage the Fidelity Fund.

(2) The Law Society must prepare, in respect of each financial year, an annual budget for the Fidelity Fund.

The Law Society may pay out of the Fidelity Fund the costs of establishing, maintaining, managing, and administering the Fidelity Fund.

The Law Society may make such insurance arrangements in relation to the Fidelity Fund as it considers appropriate.

The Law Society may invest any money held in the Fidelity Fund in any manner it considers appropriate and prudent.

(1) The minimum size at which the Fidelity Fund is to be maintained in any financial year in order to be held out as a protection to clients of lawyers is the lesser of—

• (a) 10% of the sum of all contributions from lawyers—

  • (i) received or expected to be received during that year; and

  • (ii) received in respect of the 4 immediately preceding financial years:

• (b) $250,000.

(2) To avoid doubt, in subclause (1)(a), contributions does not include any extraordinary levies required under section 314 of the Act.

The maximum amount that may be paid out of the Fidelity Fund to an individual claimant by way of compensation is $100,000.

(1) A notice of claim against the Fidelity Fund required under section 324(3) of the Act must—

• (a) be in form 1 of the Schedule; and

• (b) be signed by the claimant or a person authorised to sign on the claimant's behalf; and

• (c) contain full particulars of—

  • (i) the matters giving rise to the claim; and

  • (ii) the amount of the claim.

(2) The Law Society may require the notice of claim to be accompanied by a statutory declaration in form 2 of the Schedule signed by the claimant or a person authorised to sign on the claimant's behalf.

(3) The Law Society may, as it thinks fit, allow for any variations in, or dispense with, any form required under this regulation.

(1) The Law Society must consider and deal with a claim with all reasonable expedition consistent with the nature of the claim and the surrounding circumstances.

(2) In order to facilitate or assist the consideration of a claim, the Law Society may, as it thinks fit, do all or any of the following:

• (a) make or cause to be made any inquiries or obtain any reports that it thinks fit concerning the claim or concerning any other claim or possible claims relating to the lawyer or other person in respect of whose acts the claim is made:

• (b) request that the claimant, or any person having actual knowledge of the matter, verify by statutory declaration any statement, fact, or other matter relating to the claim:

• (c) request that the claimant produce as exhibits to a declaration or otherwise all deeds, documents, and any other material of any nature or description relating to the claim:

• (d) request that the claimant appear before any person appointed by the Law Society in respect of any matter relating to the claim.

The Law Society must ensure that the accounts of the Fidelity Fund are audited annually by a chartered accountant appointed for the purpose by the Council of the Law Society.