LEGAL PROFESSION BILL 2006

AN ACT
to provide for admission to, and the regulation of, the legal profession, and for entities relating to the legal profession, and for other purposes

to provide for admission to, and the regulation of, the legal profession, and for entities relating to the legal profession, and for other purposes

1. Short title

2. Commencement

3. Main purposes of this Act

(b) to provide for the protection of consumers of legal services and the public generally;

4. Definitions

"ADI" means an authorised deposit-taking institution within the meaning of the Banking Act 1959 (Cth);

"Admission Board" means the Legal Practitioners Admission Board of the Northern Territory established by section 650;

"admission rules" means rules relating to the admission of persons to the legal profession and associated matters made under section 43;

(a) all accounts and records required under this Act or the regulations to be maintained by the practice or an associate or former associate of the practice;

(b) other records of the practice or an associate or former associate of the practice;

(i) to which the practice or an associate or former associate of the practice was or is a party; or

(ii) in which the practice or an associate or former associate of the practice has acted for a party;

"Australian practising certificate" means a local practising certificate or interstate practising certificate;

"Australian-registered foreign lawyer" means a locally-registered foreign lawyer or interstate-registered foreign lawyer;

"Australian trust account" means a local trust account or an interstate trust account;

(a) a local legal practitioner who holds a current local practising certificate to practise as or in the manner of a barrister; or

(b) an interstate legal practitioner who holds a current interstate practising certificate that entitles the practitioner to engage in legal practice only as or in the manner of a barrister;

"chief executive officer", of the Law Society, means the person occupying or holding the office of chief executive officer established by section 640;

(d) otherwise – includes a person to whom or for whom legal services are provided;

"Disciplinary Tribunal" means the Legal Practitioners Disciplinary Tribunal established by section 669;

"disqualified person" means any of the following persons whether the thing that has happened to the person happened before or after the commencement of this definition:

(a) a person whose name has (whether or not at his or her own request) been removed from an Australian roll and who has not subsequently been admitted or re-admitted to the legal profession under this Act or a corresponding law;

(b) a person whose Australian practising certificate has been suspended or cancelled under this Act or a corresponding law and who, because of the cancellation, is not an Australian legal practitioner or in relation to whom that suspension has not finished;

(c) a person who has been refused a renewal of an Australian practising certificate under this Act or a corresponding law and to whom an Australian practising certificate has not been granted at a later time;

(d) a person who is the subject of an order under this Act or a corresponding law prohibiting a law practice from employing or paying the person in connection with the relevant practice;

(e) a person who is the subject of an order under this Act or a corresponding law prohibiting an Australian legal practitioner from being a partner of the person in a business that includes the practitioner's practice;

(f) a person who is the subject of an order under section 140 or 165 or under provisions of a corresponding law that correspond to section 140 or 165;

(b) anything on which there are marks, figures, symbols or perforations having a meaning for persons qualified to interpret them; and

and a reference in this Act to a document (as so defined) includes a reference to:

(f) any copy, reproduction or duplicate of the document or any part of the document; and

"external territory" means a Territory of the Commonwealth (not being the Australian Capital Territory, the Jervis Bay Territory or the Northern Territory of Australia) for the government of which as a Territory provision is made by a Commonwealth Act;

"fee, gain or reward" includes any form of, and any expectation of, a fee, gain or reward;

"Fidelity Fund" means the Legal Practitioners Fidelity Fund established under section 385;

"foreign roll" means an official roll of lawyers (whether admitted, practising or otherwise) kept in a foreign country, but does not include a roll prescribed by the regulations or a kind of roll prescribed by the regulations;

"Funds Management Committee" means the Legal Practitioners Funds Management Committee established by section 659(1);

(a) is employed for at least 9 months in a law practice or as a government lawyer while completing a course of practical legal training; and

(b) in the course of the employment provides legal services under the supervision of an Australian lawyer;

"grant", of an interstate practising certificate, includes the issue of a practising certificate;

(c) for an associate of a law practice who is neither an Australian legal practitioner nor an Australian-registered foreign lawyer – section 8(4);

"inability", in relation to a person engaging in legal practice, means an inability arising wholly or principally from infirmity, injury or mental or physical illness;

"information notice" means a written notice to a person about a decision specifying:

(c) the rights of appeal available to the person in relation to the decision and the period within which the appeal must be made;

(a) a person who is an undischarged bankrupt within the meaning of the Bankruptcy Act 1966 (Cth) (or the corresponding provisions of the law of a foreign country or external territory); or

(b) a person who has executed a deed of arrangement under Part X of the Bankruptcy Act 1966 (Cth) (or the corresponding provisions of the law of a foreign country or external territory) if the terms of the deed have not been fully complied with; or

(c) a person whose creditors have accepted a composition under Part X of the Bankruptcy Act 1966 (Cth) (or the corresponding provisions of the law of a foreign country or external territory) if a final payment has not been made under that composition; or

(d) a person for whom a debt agreement has been made under Part IX of the Bankruptcy Act 1966 (Cth) (or the corresponding provisions of the law of a foreign country or external territory) if the debt agreement has not ended or has not been terminated; or

(e) a person who has executed a personal insolvency agreement under Part X of the Bankruptcy Act 1966 (Cth) (or the corresponding provisions of the law of a foreign country or external territory) but not if the agreement has been set aside or terminated or all of the obligations that the agreement created have been discharged;

"interstate practising certificate" means a current practising certificate granted under a corresponding law;

"interstate-registered foreign lawyer" means a person who is registered as a foreign lawyer under a corresponding law;

"interstate trust account" means a trust account maintained under a corresponding law;

(b) one or more Australian legal practitioners and one or more Australian-registered foreign lawyers;

"Law Society" means the Law Society Northern Territory established by section 635(1);

"legal costs" means amounts that a person has been or may be charged by, or is or may become liable to pay to, a law practice for the provision of legal services including disbursements but not including interest;

"legal practitioner director", in relation to an incorporated legal practice, see section 118;

"legal practitioner partner", in relation to a multi-disciplinary partnership, see section 118;

"legal profession rules" means rules relating to legal practice made under Part 8.1;

"legal services" means work done, or business transacted, in the ordinary course of legal practice;

"local practising certificate" means a practising certificate granted under this Act;

"locally-registered foreign lawyer" means a person who is registered as a foreign lawyer under this Act;

"managed investment scheme" has the same meaning as in Chapter 5C of the Corporations Act;

"Master" means the person holding or occupying the office of Master of the Supreme Court established by section 41A of the Supreme Court Act;

"member", of a managed investment scheme, for Part 2.7, see the Corporations Act;

"modifications" includes modifications by way of alteration, omission, addition and substitution;

"mortgage" means an instrument under which an interest in real property is charged, encumbered or transferred as security for the payment or repayment of money, and includes:

(a) an instrument of a kind prescribed by the regulations as being a mortgage; and

"mortgage financing" means facilitating a loan secured or intended to be secured by mortgage by:

but does not include providing legal service or preparing an instrument for the loan;

"personal injury", for Part 3.2, see section 3 of the Personal Injuries (Liabilities and Damages) Act;

"practical legal training" means either, or a combination of both, of the following:

(b) supervised legal training, whether involving articles of clerkship or otherwise;

"pre-admission event", in relation to an applicant for or holder of a local practising certificate, means a show cause event in relation to the applicant or holder before the applicant or holder was first admitted to the legal profession in this or another jurisdiction;

"prescribed mediator" means a person who, under the regulations, is permitted to conduct mediations of the type specified in the regulations;

"Register", for Part 4.13, means the Register of Disciplinary Action mentioned in section 541;

(i) if there is only one regulatory authority for the other jurisdiction – that regulatory authority, unless subparagraph (iii) applies; or

(ii) if there are separate regulatory authorities for the other jurisdiction for different branches of the legal profession or for persons who practise in a particular style of legal practice – the regulatory authority relevant to the branch or style concerned, unless subparagraph (iii) applies; or

(iii) if the regulations specify or provide for the determination of one or more regulatory authorities for the other jurisdiction either generally or for particular purposes – the regulatory authority or authorities specified or determination under the regulations;

(a) if the person is a company within the meaning of the Corporations Act – a related body corporate within the meaning of section 50 of that Act; or

"serious offence" means an offence (whether committed in or outside this jurisdiction) that is:

(a) an indictable offence against a law of the Commonwealth or any jurisdiction (whether or not the offence is or may be dealt with summarily); or

(b) an offence against a law of another jurisdiction that would be an indictable offence against a law of this jurisdiction if committed in this jurisdiction (whether or not the offence could be dealt with summarily if committed in this jurisdiction); or

(c) an offence against a law of a foreign country that would be an indictable offence against a law of the Commonwealth or this jurisdiction if committed in this jurisdiction (whether or not the offence could be dealt with summarily if committed in this jurisdiction);

(a) his or her becoming bankrupt or being served with notice of a creditor's petition presented to the Court under section 43 of the Bankruptcy Act 1966 (Cth); or

(b) his or her presentation (as a debtor) of a declaration to the Official Receiver under section 54A of the Bankruptcy Act 1966 (Cth) of his or her intention to present a debtor's petition or his or her presentation (as a debtor) of such a petition under section 55 of that Act; or

(c) his or her applying to take the benefit of any law for the relief of bankrupt or insolvent debtors, compounding with his or her creditors or made an assignment of his or her remuneration for their benefit; or

(ii) the offence was committed while the person was engaging in legal practice as an Australian legal practitioner or was practising foreign law as an Australian-registered foreign lawyer, as the case requires; or

(iii) other persons are prohibited from disclosing the identity of the offender;

"sole practitioner" means an Australian legal practitioner who engages in legal practice on his or her own account;

(a) a local legal practitioner who holds a current local practising certificate to practise as a barrister and solicitor or a solicitor; or

(b) an interstate legal practitioner who holds a current interstate practising certificate that does not restrict the practitioner to engage in legal practice only as or in the manner of a barrister;

"Statutory Supervisor" means the person holding or occupying the office of Statutory Supervisor established by section 678(1);

"supervised legal practice" means legal practice by a person who is an Australian legal practitioner:

(a) as an employee of, or other person working under supervision in, a law practice, where:

(i) at least one partner, legal practitioner director or other employee of the law practice is an Australian legal practitioner who holds an unrestricted practising certificate; and

(ii) the person engages in legal practice under the supervision of an Australian legal practitioner mentioned in subparagraph (i); or

(i) at least one other partner is an Australian legal practitioner who holds an unrestricted practising certificate; and

(ii) the person engages in legal practice under the supervision of an Australian legal practitioner referred to in subparagraph (i); or

"tax offence" means an offence under the Taxation Administration Act 1953 (Cth), whether committed in or outside this jurisdiction;

"trust property" means property entrusted to a law practice in the course of or in connection with the provision of legal services by the practice, but does not include trust money or money referred to in section 236;

"unrestricted practising certificate" means an Australian practising certificate that is not subject to any condition under this Act or a corresponding law requiring the holder to engage in supervised legal practice or restricting the holder to practise as or in the manner of a barrister;

5. Terms relating to lawyers

(a) an Australian lawyer is a person who is admitted to the legal profession under this Act or a corresponding law; and

(b) a local lawyer is a person who is admitted to the legal profession under this Act (whether or not the person is also admitted under a corresponding law); and

(c) an interstate lawyer is a person who is admitted to the legal profession under a corresponding law, but not under this Act.

6. Terms relating to legal practitioners

(a) an Australian legal practitioner is an Australian lawyer who holds a current local practising certificate or a current interstate practising certificate; and

(b) a local legal practitioner is an Australian lawyer who holds a current local practising certificate; and

(c) an interstate legal practitioner is an Australian lawyer who holds a current interstate practising certificate, but not a local practising certificate.

7. Terms relating to associates and principals of law practices

(i) a sole practitioner (in the case of a law practice constituted by the practitioner); or

(iii) a legal practitioner director in the law practice (in the case of an incorporated legal practice); or

(iv) a legal practitioner partner in the law practice (in the case of a multi-disciplinary partnership); or

(b) an agent of the law practice who is not an Australian legal practitioner; or

(d) an Australian-registered foreign lawyer who is a partner in the law practice; or

(e) a person (not being an Australian legal practitioner) who is a partner in a multi-disciplinary partnership; or

(f) an Australian-registered foreign lawyer who has a relationship with the law practice, being a relationship that is of a class prescribed by the regulations.

(a) a legal practitioner associate of a law practice is an associate of the practice who is an Australian legal practitioner; and

(b) a lay associate of a law practice is an associate of the practice who is not an Australian legal practitioner.

(3) For this Act, a principal of a law practice is an Australian legal practitioner who is:

(a) a sole practitioner (in the case of a law practice constituted by the practitioner); or

(d) a legal practitioner partner in the law practice (in the case of a multi-disciplinary partnership).

8. Home jurisdiction

(2) The home jurisdiction for an Australian legal practitioner is the jurisdiction in which the practitioner's only or most recent current Australian practising certificate was granted.

(3) The home jurisdiction for an Australian-registered foreign lawyer is the jurisdiction in which the lawyer's only or most recent current registration was granted.

(4) The home jurisdiction for an associate of a law practice who is neither an Australian legal practitioner nor an Australian-registered foreign lawyer is:

(a) where only one jurisdiction is the home jurisdiction for the only associate of the practice who is an Australian legal practitioner or for all the associates of the practice who are Australian legal practitioners – that jurisdiction; or

(b) where no one jurisdiction is the home jurisdiction for all the associates of the practice who are Australian legal practitioners:

(i) the jurisdiction in which the office is situated at which the associate performs most of the associate's duties for the law practice; or

(ii) if a jurisdiction cannot be determined under
subparagraph (i) – the jurisdiction in which the associate is enrolled under a law of the jurisdiction to vote at elections for the jurisdiction; or

(iii) if a jurisdiction cannot be determined under subparagraph (i) or (ii) – the jurisdiction decided in accordance with criteria specified or referred to in the regulations.

9. Admission to legal profession

(1) Admission to the legal profession is admission under this Act or a corresponding law by a Supreme Court as:

(2) However, admission to the legal profession does not include the grant of a practising certificate under this Act or a corresponding law.

10. Academic qualifications and legal training requirements

(1) Approved academic qualifications are academic qualifications approved, under the admission rules, for admission to the legal profession in this jurisdiction.

(2) Approved practical legal training requirements are legal training requirements approved, under the admission rules, for admission to the legal profession in this jurisdiction.

(3) Corresponding academic qualifications are academic qualifications that would qualify the person for admission to the legal profession in another jurisdiction if the Admission Board is satisfied substantially the same minimum criteria apply for the approval of academic qualifications for admission in the other jurisdiction as apply in this jurisdiction.

(4) Corresponding practical legal training requirements are legal training requirements that would qualify the person for admission to the legal profession in another jurisdiction if the Board is satisfied substantially the same minimum criteria apply for the approval of legal training requirements for admission in the other jurisdiction as apply in this jurisdiction.

(5) For this section, the Board may satisfy itself regarding the minimum criteria for the approval of academic qualifications, or legal training requirements, for admission in another jurisdiction by considering appropriate advice from an authority of the other jurisdiction that the criteria were established consistently with relevant agreed standards.

(6) Accordingly, the Board need not examine (in detail or at all) the content of courses of legal study or legal training requirements prescribed in the other jurisdiction.

(7) The regulations may identify or provide a way of identifying the agreed standards.

11. Suitability matters

(i) when not admitted, or not holding a practising certificate, as required under this Act or a previous law of this jurisdiction that corresponds to this Act or under a corresponding law; or

(ii) if admitted, in contravention of a condition on which admission was granted; or

(iii) if holding an Australian practising certificate, in contravention of a condition of the certificate or while the certificate was suspended;

(f) whether the person is currently subject to an unresolved complaint, investigation, charge or order under any of the following:

(i) this Act or a previous law of this jurisdiction that corresponds to this Act;

(i) is the subject of current disciplinary action, however expressed, in another profession or occupation in Australia or a foreign country; or

(ii) has been the subject of disciplinary action, however expressed, relating to another profession or occupation that involved a finding of guilt;

(i) a local roll, and has not since been restored to or entered on a local roll; or

(ii) an interstate roll, and has not since been restored to or entered on an interstate roll; or

(i) whether the person's right to engage in legal practice has been suspended or cancelled in Australia or a foreign country;

(j) whether the person has contravened, in Australia or a foreign country, a law about trust money or trust accounts;

(k) whether, under this Act, a law of the Commonwealth or a corresponding law, a supervisor, manager or receiver, however described, is or has been appointed in relation to any legal practice engaged in by the person;

(l) whether the person is or has been subject to an order, under this Act, a law of the Commonwealth or a corresponding law, disqualifying the person from being employed by, or a partner of, an Australian legal practitioner or from managing a corporation that is an incorporated legal practice;

(m) whether the person currently has a material inability to engage in legal practice.

(2) A matter is a suitability matter even if it happened before the commencement of this section.

12. Corresponding authorities

(b) when used in the context of a person or body having powers or functions under this Act (the "local authority"), a person or body having corresponding powers or functions under a corresponding law.

(2) Without limiting subsection (1)(b), if the powers or functions of the local authority relate to local lawyers or local legal practitioners generally or are limited to any particular class of local lawyers or local legal practitioners, a person or body having corresponding powers or functions under a corresponding law is a corresponding authority to the local authority.

(3) Subsection (2) applies regardless of whether the powers or functions relate to interstate lawyers or interstate legal practitioners generally or are limited to any particular class of interstate lawyers or interstate legal practitioners.

13. Corresponding disciplinary bodies

(a) a court or tribunal having powers or functions under a corresponding law that correspond to any of the powers and functions of the Disciplinary Tribunal; or

(i) its inherent jurisdiction or powers in relation to the control and discipline of any Australian lawyers; or

(ii) its jurisdiction or powers to make orders under a corresponding law of the other jurisdiction in relation to any Australian lawyers.

14. Corresponding laws and corresponding foreign laws

(a) a law of another jurisdiction that corresponds to the relevant provisions of this Act or, if a law of the other jurisdiction is declared by regulation to be a law that corresponds to this Act, the law declared for the other jurisdiction; or

(b) if the term is used in relation to a matter that happened before the commencement of the law of another jurisdiction that, under paragraph (a), is the corresponding law for the other jurisdiction, a previous law applying to legal practice in the other jurisdiction.

(a) a law of a foreign country that corresponds to the relevant provisions of this Act or, if a law of the foreign country is declared by regulation to be a law that corresponds to this Act, the law declared for the foreign country; or

(b) if the term is used in relation to a matter that happened before the commencement of the law of a foreign country that, under paragraph (a), is the corresponding law for the foreign country, a previous law applying to legal practice in the foreign country.

15. References to convictions for offences

(1) A reference in this Act to a conviction includes a finding of guilt, whether or not a conviction is recorded.

(2) Without limiting subsection (1), a reference to the quashing of a conviction for an offence includes a reference to the quashing of a finding of guilt in relation to the offence.

(3) However, a reference to the quashing of a conviction for an offence does not include a reference to the quashing of a conviction if a finding of guilt in relation to the offence remains unaffected.

16. Declared offences for Criminal Code

An offence against this Act is an offence to which Part IIAA of the Criminal Code applies.

Part IIAA of the Criminal Code states the general principles of criminal responsibility (including burdens of proof and general defences) and defines terms used for offences, for example, "conduct", "intention", "recklessness" and "strict liability".

17. Purposes of Part

(a) to protect the public interest in the proper administration of justice by ensuring legal work is carried out only by those who are properly qualified to do so;

(b) to protect consumers by ensuring persons carrying out legal work are entitled to do so.

18. Prohibition on engaging in legal practice when not entitled

(1) A person who is not an Australian legal practitioner must not engage in legal practice in this jurisdiction.

(2) Subsection (1) does not apply to engaging in legal practice of the following kinds:

(a) legal practice engaged in under the authority of a law of this jurisdiction or of the Commonwealth;

(b) legal practice engaged in by an incorporated legal practice in accordance with Part 2.6;

(e) carrying on business as a conveyancing agent or real estate agent under a licence under the Agents Licensing Act;

(f) preparing wills or administering estates in the course of employment in the office of the Public Trustee;

(3) It is a defence to a prosecution for an offence against subsection (1) if the defendant proves that the defendant did not engage in the legal practice for fee, gain or reward.

(4) A person is not entitled to recover any amount in respect of anything the person did in contravention of subsection (1).

(5) A person may recover from another person, as a debt due to the person, any amount the person paid to the other person in respect of anything the other person did in contravention of subsection (1).

(6) The regulations may make provision for or with respect to the application (with or without specified modifications) of provisions of this Act to persons engaged in legal practice of a kind referred to in subsection (2) other than paragraphs (a) and (b).

19. Prohibition on representing or advertising entitlement to engage in legal practice when not entitled

(1) A person who is not an Australian legal practitioner must not represent or advertise that the person is entitled to engage in legal practice.

(a) the person is a director, officer, employee or agent of a body corporate; and

(b) the person represents or advertises that the body corporate is entitled to engage in legal practice; and

(3) Subsections (1) and (2) do not apply to a representation or advertisement about being entitled to engage in legal practice of a kind referred to in section 18(2).

(4) A reference in this section to a person representing or advertising that the person or a body corporate is entitled to engage in legal practice includes a reference to the person doing anything that specifies or implies the person or body corporate is entitled to engage in legal practice.

20. Presumptions about taking or using name, title or description

(2) Subject to section 21, the regulations may specify the kind of persons who are entitled, and the circumstances in which they are entitled, to take or use that name, title or description to which this section applies.

(3) For section 19(1), the taking or using of a name, title or description to which this section applies by a person who is not entitled to take or use that name, title or description gives rise to a rebuttable presumption that the person represented the person is entitled to engage in legal practice.

(4) For section 19(2), the taking or using of a name, title or description to which this section applies by a person in relation to a body corporate, of which the person is a director, officer, employee or agent, gives rise to a rebuttable presumption the person represented the body corporate is entitled to engage in legal practice.

21. Appointment of Queen's Counsel or Senior Counsel

(1) The Chief Justice may appoint a local legal practitioner as a Queen's Counsel or Senior Counsel.

(3) The practitioner must pay the Territory the fee prescribed by the regulations.

"Queen's Counsel" means one of Her Majesty's Counsel for the Territory, and extends to King's Counsel if appropriate.

22. Schemes for specialist lawyers

(a) the Law Society from establishing a merit based scheme for recognising and naming specialist lawyers; or

(b) a lawyer who is named under the scheme as a particular type of specialist lawyer using that description.

23. Contravention of Part by Australian lawyers who are not legal practitioners

(1) A contravention of this Part by an Australian lawyer who is not an Australian legal practitioner is capable of constituting unsatisfactory professional conduct or professional misconduct.

(2) Nothing in this Part affects any liability that a person who is an Australian lawyer but not an Australian legal practitioner may have under Chapter 4 and the person may be punished for an offence under this Part as well as being dealt with under Chapter 4 in relation to the same matter.

24. Purposes of Part

(a) in the interests of the administration of justice and for the protection of consumers of legal services, to provide a system under which only applicants who have appropriate academic qualifications and practical legal training and who are otherwise fit and proper persons to be admitted are qualified for admission to the legal profession in this jurisdiction;

(b) to provide for the recognition of equivalent qualifications and training that make applicants eligible for admission to the legal profession in other jurisdictions.

25. Admission

(2) The Court may, after considering a recommendation of the Admission Board and any representations made by the Law Society, admit the person as a local lawyer if:

(ii) if the recommendation is made under section 29(2) – it is reasonable the person be admitted because the person has sufficient academic qualifications or sufficient relevant experience in legal practice or relevant service with an Agency; and

(b) the Court is satisfied the person is a fit and proper person to be admitted to the legal profession.

(a) to consider the application if it is not made in accordance with the admission rules; or

(b) to admit the person if the person has not complied with the admission rules.

26. Conditions of admission

(a) admit a person to the legal profession either unconditionally or on any conditions it considers appropriate; and

(b) vary or revoke any conditions on which a person is admitted to the legal profession under this Act.

If the Court admits a person on a recommendation of the Admission Board made under section 29(2), the Court may admit the person on the conditions relating to the obtaining of further academic qualifications or further legal training the Court considers appropriate.

(2) The Court may order the removal of a person's name from the local roll for a contravention of a condition.

27. Roll of persons admitted to legal profession

(1) A Registrar must maintain a roll of persons admitted to the legal profession under this Act (the "local roll").

(2) If a person is admitted under this Act, the person's name must be entered on the local roll under the admission rules.

(4) The person's admission under this Act takes effect when the person signs the local roll.

(5) A Registrar must give the Law Society the name, date of birth and date of admission of each person admitted under this Act as soon as practicable after the person has signed the local roll.

(6) A Registrar's functions under this section must be exercised by the Registrar or other person or body designated by the Chief Justice for the purpose.

28. Local lawyer is officer of Supreme Court

(1) A person becomes an officer of the Supreme Court on being admitted as a local lawyer under this Act.

(2) A person ceases to be an officer of the Court under subsection (1) if the person's name is removed from the local roll.

29. Eligibility for admission

(1) A person is eligible for admission to the legal profession under this Act only if:

(2) However, the Admission Board may recommend the Supreme Court admit a person even if the person does not satisfy the requirements of subsection (1)(b) or (c), or both of those requirements, if the Board is satisfied it is reasonable that the person be admitted because the person has sufficient academic qualifications or sufficient relevant experience in legal practice or relevant service with an Agency.

(3) The Board may recommend the person be admitted unconditionally or subject to conditions relating to the obtaining of further academic qualifications or further legal training.

30. Suitability for admission

(1) The Supreme Court or Admission Board must, in deciding if a person is a fit and proper person to be admitted to the legal profession under this Act, consider:

(a) each of the suitability matters in relation to the person to the extent a suitability matter is appropriate; and

(2) However, the Court or Board may consider a person to be a fit and proper person to be admitted to the legal profession under this Act despite a suitability matter because of the circumstances relating to the matter.

31. Early consideration of suitability

(1) A person may apply to the Admission Board for a declaration that matters disclosed by the person will not, without more, adversely affect an assessment by the Board as to whether the person is a fit and proper person to be admitted.

(2) The Board must consider the application and, subject to section 32, make the declaration sought or refuse to do so.

(3) If the Board makes the declaration it must give the Law Society a copy of the declaration.

32. Referral of matters to Supreme Court

(1) The Admission Board may refer the issue of whether or not an applicant is a fit and proper person to be admitted to the Supreme Court for decision if, in the Board's opinion, it would be appropriate for the Court to consider the issue.

(2) The Board also may refer to the Court an application for a declaration under section 31 if, in the Board's opinion, it would be appropriate for the Court to consider the application.

(3) The Court has the same powers as the Board to deal with an application referred to it under this section and its decision on an application is taken to be a decision of the Board.

(4) On a referral under this section, the Court may make the order or declaration it considers appropriate.

33. Binding effect of declaration or order

A declaration or order made under section 31(2) or 32(4) is binding on the Admission Board unless the applicant failed to make a full and fair disclosure of all matters relevant to the declaration sought.

34. Entitlement to be represented, heard and make representations

(1) The Admission Board must give notice under the admission rules to the Law Society of:

(a) to make written representations to the Board in relation to any matter under consideration by the Board under this Division; and

(3) The Board must give written notice to the Society of an application for admission.

(4) The Society is entitled to make written representations to the Supreme Court on an application for admission.

35. Admission Board to advise on application for admission

The role of the Admission Board is to advise the Supreme Court whether or not the Board considers:

(ii) a fit and proper person to be admitted, including having regard to all suitability matters in relation to the applicant to the extent appropriate; and

36. Compliance certificates

(1) This section applies if, after considering an application for admission to the legal profession under this Act, the Admission Board considers:

(b) the application conforms with the requirements of the admission rules and there are no grounds for refusing to give a certificate for the applicant.

(2) The Board must, within the time specified in or determined under the regulations, advise the Supreme Court to that effect by filing with a Registrar a certificate in the approved form (a "compliance certificate").

(4) If the Board refuses to give a compliance certificate for the applicant, the Board must, within the time specified in or determined under the regulations, give:

(5) If the Board does not comply with subsections (3) and (4), the Board is taken to have:

(b) given an information notice about the refusal at the end of the time specified in or determined under the admission rules for deciding the application.

37. Consideration of applicant's eligibility and suitability

(1) To help it consider whether or not an applicant is eligible for admission to the legal profession under this Act or is a fit and proper person to be admitted under this Act, the Admission Board may, by notice to the applicant, require:

(b) the applicant to cooperate with any inquiries by the Board that it considers appropriate.

(2) The applicant's failure to comply with the notice by the date specified in the notice, and in the way required by the notice, is a ground for refusing to give a compliance certificate for the applicant.

Under section 94, the Admission Board may obtain a police report about the applicant's criminal history. Also, under section 95, the Admission Board may require the applicant to undergo a health assessment.

38. Appeals

(1) An applicant for a declaration under section 31 may appeal to the Supreme Court against a decision of the Admission Board to refuse to make the declaration.

(2) An applicant for admission may appeal to the Court against a decision of the Board under section 36 to refuse to give a compliance certificate for the applicant.

(a) for an appeal under subsection (1) or (2) – within 28 days after the appellant receives the information notice for the decision; or

(b) for an appeal under subsection (3) – within 28 days after the decision is made.

(6) An appeal under this section must be by way of rehearing and fresh evidence or evidence in addition to or in substitution for the evidence before the Board may be given on the appeal.

(7) On hearing an appeal under this section, the Court may make the order or declaration it considers appropriate.

39. Mutual recognition local registration authority

For a Mutual Recognition Act, the Admission Board is the local registration authority for an application for registration under that Act so far as the application relates to the admission of a person to engage in legal practice in the Territory.

40. Certificate of admission

A Registrar must issue a certificate of admission to a person admitted as a local lawyer under this Part.

41. Parties to application

(1) The Admission Board is not a respondent to an application under this Part that is not made by it.

(2) However, the Board must give all documents and other things relevant to the application to the Supreme Court and any other person who, on application to the Court, is granted leave to be joined as a party to the application.

(3) In addition, the Court may appoint counsel to assist it in deciding an application under this Part.

42. Costs of application

(1) The Supreme Court may order the costs of counsel appointed by it to assist in an application under this Part, as certified by the Solicitor for the Territory, to be paid out of the Fidelity Fund.

(2) In addition, the Court may order the costs of the Law Society, as certified by the Solicitor for the Territory, to be paid out of the Fidelity Fund:

(b) if, under section 41, it is granted leave to be joined as a party to the application.

(3) However, the Court must not make an order under subsection (2) if it is satisfied the Society has acted unreasonably in relation to the appeal or application.

43. Admission rules

(1) The Judges appointed under section 32(1) of the Supreme Court Act who are not additional Judges, or a majority of them, may make rules, not inconsistent with this Act, for the admission of persons to the legal profession under this Act.

(ii) giving notice of the application to an entity or public notice of the application; and

(iii) the affidavits or certificates the applicant must provide with or for the application; and

(iv) the keeping and signing of the local roll and the particulars to be recorded on the roll; and

(b) admission requirements regarding, and the approval of, academic qualifications and practical legal training;

(d) the disclosure of matters that may affect consideration of the eligibility of an applicant for admission, or affect consideration of the question whether the applicant is a fit and proper person to be admitted, including convictions that must be disclosed and those that need not be disclosed;

(e) applications for admission under the trans-Tasman mutual recognition legislative scheme;

(f) the assessment of the qualifications and practical legal training of overseas qualified or trained applicants against the academic requirements and practical legal training requirements that apply to local applicants;

(g) the conferral of a right of objection to an applicant's admission on persons of appropriate standing;

(i) examinations in academic subjects of candidates for registration as students-at-law or of applicants for admission;

(ii) the assessment of applicants as to whether they are eligible for admission and are fit and proper persons to be admitted;

(k) authorising the Admission Board to exempt a person from the requirements of:

(i) section 29(1)(b) to the extent the person has engaged in relevant studies in a foreign country to the satisfaction of the Board; or

(ii) section 29(1)(c) to the extent the person has completed a period of relevant service with a government department or other government agency (including, for example, service in courts administration) to the satisfaction of the Board;

(3) Rules may provide for abridging, in specified circumstances, any period of practical legal training required by the rules.

(a) the Board must give the Law Society a copy of each application for admission under the rules; and

(b) the Society is entitled to object to an application for admission under the rules and to be heard on the hearing of the application.

(5) The rules must not require a person to satisfactorily complete before admission a period of supervised training that exceeds in length a period or periods equivalent to one full-time year as determined under the rules.

44. Purposes of Part

(a) to facilitate the national practice of law by ensuring Australian legal practitioners can engage in legal practice in this jurisdiction and to provide for the certification of Australian lawyers whether or not admitted in this jurisdiction;

(b) to provide a system for the granting and renewing of local practising certificates.

Division 2 – Legal practice in this jurisdiction by Australian legal practitioners

45. Entitlement of holder of Australian practising certificate to practise in this jurisdiction

An Australian legal practitioner is, subject to this Act, entitled to engage in legal practice in this jurisdiction.

46. Local practising certificates

(2) The regulations may prescribe the categories of local practising certificates.

(3) It is a statutory condition of a local practising certificate that the holder must not hold another local practising certificate, or an interstate practising certificate, that is in force during the currency of the first-mentioned local practising certificate.

47. Suitability to hold local practising certificate

(1) This section has effect for section 54 or another provision of this Act if the question of whether or not a person is a fit and proper person to hold a local practising certificate is relevant.

(2) The Law Society may, in considering whether or not a person is a fit and proper person to hold a local practising certificate, take into account any suitability matter relating to the person and any of the following, whether happening before or after the commencement of this section:

(a) whether the person obtained an Australian practising certificate because of incorrect or misleading information;

(b) whether the person has contravened a condition of an Australian practising certificate held by the person;

(c) whether the person has contravened this Act or a corresponding law or the regulations or legal profession rules under this Act or a corresponding law;

(ii) an order of a corresponding disciplinary body or of another court or tribunal of another jurisdiction exercising jurisdiction or powers by way of appeal or review of an order of a corresponding disciplinary body;

(i) whether the person has failed to pay a required contribution or levy to the Fidelity Fund; or

(ii) whether the person has contravened a requirement of, or imposed under, this Act about professional indemnity insurance; or

(iii) whether the person has failed to pay other costs or expenses for which the person is liable under this Act;

(3) A person may be considered a fit and proper person to hold a local practising certificate even though the person is within any of the categories of the matters referred to in subsection (2), if the Society considers the circumstances warrant the decision.

(4) A matter cannot be taken into account as a ground for refusing to grant or renew or for suspending or cancelling a local practising certificate if the matter was:

(a) disclosed in an application for admission to the legal profession in this or another jurisdiction; and

(b) decided by a Supreme Court or by the Admission Board or a corresponding authority not to be sufficient for refusing admission.

(5) Subsection (4) does not apply if later disclosures demonstrate the matter is part of a course of conduct that may warrant refusal, suspension or cancellation.

48. Duration of local practising certificate

(1) A local practising certificate granted under this Act is in force from the date specified in it until the end of the financial year in which it is granted, unless the certificate is sooner suspended or cancelled.

(2) A local practising certificate renewed under this Act is in force until the end of the financial year following its previous period of currency, unless the certificate is sooner suspended or cancelled.

(3) If an application for the renewal of a local practising certificate has not been decided by the following 1 July, the certificate:

(a) continues in force on and from that 1 July until the Law Society renews or refuses to renew the certificate or the holder withdraws the application for renewal, unless the certificate is sooner cancelled or suspended; and

49. Local legal practitioner is officer of Supreme Court

(1) A person who is not already an officer of the Supreme Court becomes an officer of the Court on being granted a local practising certificate.

(2) A person ceases to be an officer of the Court under subsection (1) if the person ceases to hold a local practising certificate.

50. Who may apply for grant or renewal of local practising certificate

(1) An Australian lawyer may apply to the Law Society for the grant or renewal of a local practising certificate if eligible to do so under this section.

(2) An Australian lawyer is eligible to apply for the grant or renewal of a local practising certificate if the lawyer complies with any regulations and legal profession rules relating to eligibility for the practising certificate and if:

(a) in the case of a lawyer who is not an Australian legal practitioner at the time of making the application:

(i) the lawyer reasonably expects to be engaged in legal practice solely or principally in this jurisdiction during the currency of the certificate or renewal applied for; or

(ii) if subparagraph (i) does not apply to the lawyer or it is not reasonably practicable to decide whether it applies to the lawyer – the lawyer's place of residence in Australia is this jurisdiction or the lawyer does not have a place of residence in Australia; or

(b) in the case of a lawyer who is an Australian legal practitioner at the time of making the application:

(i) the jurisdiction in which the lawyer engages in legal practice solely or principally is this jurisdiction; or

(ii) the lawyer holds a current local practising certificate and engages in legal practice in another jurisdiction under an arrangement that is of a temporary nature; or

(iii) the lawyer reasonably expects to be engaged in legal practice solely or principally in this jurisdiction during the currency of the certificate or renewal applied for; or

(iv) if subparagraph (i), (ii) or (iii) does not apply to the lawyer or it is not reasonably practicable to decide whether subparagraph (i), (ii) or (iii) applies to the lawyer – the lawyer's place of residence in Australia is this jurisdiction or the lawyer does not have a place of residence in Australia.

(3) For subsection (2)(b), the jurisdiction in which an Australian lawyer engages in legal practice solely or principally is to be decided by reference to the lawyer's legal practice during the certificate period current at the time:

(b) in the case of a late application – the application should have been made.

(4) An Australian lawyer is not eligible to apply for the grant or renewal of a local practising certificate in respect of a financial year if the lawyer would also be the holder of another Australian practising certificate for that year, but this subsection does not limit the factors determining ineligibility to apply for the grant or renewal of a local practising certificate.

(5) An Australian lawyer must not apply for the grant or renewal of a local practising certificate if the lawyer is not eligible to make the application.

(a) engages in legal practice solely or principally in this jurisdiction during a financial year; and

(b) reasonably expects to engage in legal practice solely or principally in this jurisdiction in the following financial year;

must apply for the grant or renewal of a local practising certificate in respect of the following financial year.

(7) Subsection (6) does not apply to an interstate legal practitioner who applied for the grant or renewal of an interstate practising certificate on the basis that the practitioner reasonably expected to engage in legal practice solely or principally in this jurisdiction under an arrangement that is of a temporary nature.

(8) The exemption provided by subsection (7) ceases to operate at the end of the period prescribed by the regulations for this subsection.

(9) A reference in this section to engaging in legal practice principally in this or any other jurisdiction applies only to legal practice in Australia.

(10) Accordingly, an Australian lawyer who is engaged or expects to be engaged in legal practice principally in a foreign country is nevertheless eligible to apply for the grant or renewal of a local practising certificate if the lawyer otherwise meets the requirements of this section.

51. Making application and fees

(1) An application for the grant or renewal of a local practising certificate must be:

(2) On receipt of the application, the Law Society must pay the fee paid under subsection (1)(c) to the Funds Management Committee.

(3) The regulations may require the applicant to disclose matters that may affect the applicant's eligibility for the grant or renewal of a local practising certificate or the question whether the applicant is a fit and proper person to hold a local practising certificate.

(4) The regulations may indicate that particular kinds of matters previously disclosed in a particular way need not be disclosed for the current application.

(5) Without limiting subsection (3), the regulations may require the applicant to disclose details of, or details of the nature of, pre-admission events.

52. Timing of application for renewal of local practising certificate

(1) An application for the renewal of a local practising certificate must be made within:

(2) Those periods must be within the currency of the local practising certificate being sought to be renewed.

(3) The Law Society may reject an application for renewal made during the late fee period, and must reject an application for renewal made outside those periods unless the Society accepts the application under subsection (4).

(4) The Society may accept an application made within 6 months after that period (even after the expiry of the local practising certificate being sought to be renewed) if satisfied the delay was caused by reasons beyond the control of the applicant or other special circumstances exist warranting acceptance of the application.

(5) For an application accepted under subsection (4) after the expiry of the local practising certificate on 30 June in the year concerned, the certificate:

(a) is taken to have continued in force on and from the 1 July immediately following its expiry until the Society renews or refuses to renew the certificate or the holder withdraws the application for renewal, unless the certificate is sooner suspended or cancelled; and

53. Late fee

(1) Subsection (2) applies if an application for renewal of a local practising certificate is made during the late fee period prescribed by the regulations.

(2) Payment of the late fee may, if the Law Society considers it appropriate, be required as a condition of acceptance of the application.

54. Grant or renewal of local practising certificate

(1) The Law Society must consider an application that has been made for the grant or renewal of a local practising certificate and may:

(2) In granting or renewing the certificate, the Society may impose conditions mentioned in section 70.

(b) to grant or renew a local practising certificate if the applicant has not complied with the regulations in relation to the application.

(4) The Society must not grant a local practising certificate unless it is satisfied the applicant:

(5) The Society must not renew a local practising certificate if it is satisfied the applicant:

(6) The Society must not grant or renew a local practising certificate if the Society considers:

(a) the applicant's circumstances have changed since the application was made; and

(b) the applicant would, having regard to information that has come to the Society's attention, not have been eligible to make the application when the application is being considered.

(7) Without limiting another provision of this section, the Society may refuse to grant or renew a local practising certificate if:

(a) the applicant is required by this Act to contribute to the Fidelity Fund and the application is not accompanied by the contribution payable; or

(i) a sole practitioner (in the case of a law practice constituted by the practitioner); or

(iii) a legal practitioner director (in the case of an incorporated legal practice); or

(iv) a legal practitioner partner (in the case of a
multi-disciplinary partnership); or

(8) If the Society grants or renews a local practising certificate, the Society must, as soon as practicable, give the applicant:

the Society must, as soon as practicable, give the applicant an information notice.

Division 5 – Amendment, suspension or cancellation of local practising certificates

55. Application of Division

56. Grounds for amending, suspending or cancelling local practising certificate

Each of the following is a ground for amending, suspending or cancelling a local practising certificate:

(b) if the holder does not have, or no longer has, professional indemnity insurance that complies with this Act in relation to the certificate;

(c) if a condition of the certificate is that the holder is or has been limited to legal practice specified in the certificate – the holder is engaging in legal practice that the holder is not entitled to engage in under this Act.

57. Amending, suspending or cancelling local practising certificate

(1) If the Law Society believes a ground exists to amend, suspend or cancel a local practising certificate (the "proposed action"), the Society must give the holder a notice that:

(i) if the proposed action is to amend the certificate – specifies the proposed amendment; and

(ii) if the proposed action is to suspend the certificate – specifies the proposed suspension period; and

(d) invites the holder to make written representations to the Society, within a specified time of at least 7 days and not more than 28 days, as to why the proposed action should not be taken.

(2) If, after considering all written representations made within the specified time and, in its discretion, written representations made after the specified time, the Society still believes a ground exists to take the proposed action, the Society may:

(a) if the notice specified the proposed action was to amend the practising certificate – amend the certificate in the way specified or in a less onerous way the Society considers appropriate because of the representations; or

(b) if the notice specified the proposed action was to suspend the practising certificate for a specified period:

(i) suspend the certificate for a period no longer than the specified period; or

(ii) amend the certificate in a less onerous way the Society considers appropriate because of the representations; or

(iii) amend the certificate in a less onerous way the Society considers appropriate because of the representations.

(3) If the Society decides to amend, suspend or cancel the practising certificate, the Society must give the holder an information notice for the decision.

"amend", a certificate, means amend the certificate under section 70 during its currency, other than at the request of the holder of the certificate.

58. Operation of amendment, suspension or cancellation of local practising certificate

(1) This section applies if a decision is made to amend, suspend or cancel a local practising certificate under section 57.

(2) Subject to subsections (3) and (4), the amendment, suspension or cancellation of the practising certificate takes effect on the later of the following:

(3) If the practising certificate is amended, suspended or cancelled because the holder has been convicted of an offence:

(a) the Supreme Court may, on the application of the holder, order that the operation of the amendment, suspension or cancellation of the practising certificate be stayed until:

(ii) if an appeal is made against the conviction – the appeal is finally decided, lapses or otherwise ends; and

(b) the amendment, suspension or cancellation does not have effect during any period in relation to which the stay is in force.

(4) If the practising certificate is amended, suspended or cancelled because the holder has been convicted of an offence and the conviction is quashed:

(a) the amendment or suspension ceases to have effect when the conviction is quashed; or

(b) the cancellation ceases to have effect when the conviction is quashed and the certificate is restored as if it had merely been suspended.

59. Other ways of amending or cancelling local practising certificate

(1) The Law Society may amend or cancel a local practising certificate if the holder requests the Society to do so.

(4) The amendment or cancellation of a local practising certificate under this section is effected by written notice given to the holder.

60. Relationship of this Division with Chapter 4

Nothing in this Division prevents a complaint being made under Chapter 4 about a matter to which this Division relates.

Division 6 – Special powers in relation to local practising certificates – show cause events

61. Applicant for local practising certificate – show cause event

(b) a show cause event in relation to the person happened, whether before or after the commencement of this section, after the person was first admitted to the legal profession in this or another jurisdiction, however the admission was expressed at the time of the admission.

(2) As part of the application, the person must give to the Law Society a written statement under the regulations:

(b) explaining why, despite the show cause event, the applicant considers himself or herself to be a fit and proper person to hold a local practising certificate.

(3) However, the person need not provide a statement under subsection (2) if the person (as a previous applicant for a local practising certificate or as the holder of a local practising certificate previously in force) has previously provided to the Society:

explaining why, despite the show cause event, the person considers himself or herself to be a fit and proper person to hold a local practising certificate.

62. Holder of local practising certificate – show cause event

(1) This section applies to a show cause event that happens in relation to the holder of a local practising certificate.

(a) within 7 days after the happening of the event – notice, in the approved form, that the event happened;

(b) within 28 days after the happening of the event – a written statement explaining why, despite the show cause event, the person considers himself or herself to be a fit and proper person to hold a local practising certificate.

(3) If a written statement is provided after the 28 days mentioned in subsection (2)(b), the Society may accept the statement and take it into consideration.

63. Refusal, amendment, suspension or cancellation of local practising certificate – failure to show cause

(1) The Law Society may refuse to grant or renew, or may amend, suspend or cancel, a local practising certificate if the applicant or holder:

(a) is required by section 61 or 62 to provide a notice or written statement about a show cause event and has failed to provide a written statement under the requirement; or

(b) has provided a written statement under section 61 or 62 but, in the Society's opinion, the statement is not a genuine or reasonable attempt to show that the applicant or holder is a fit and proper person to hold a practising certificate; or

(c) has failed without reasonable excuse to comply with a requirement under Chapter 6 made in connection with an investigation of the show cause event concerned or has committed an offence under that Part in connection with any such investigation.

(2) For this section only, a written statement accepted by the Society under section 62(3) is taken to have been provided under section 62.

(3) The Society must give the applicant or holder an information notice for the decision to refuse to grant or renew, or to amend, suspend or cancel, the certificate.

64. Restriction on making further applications

(2) The Society may also decide the person is not entitled to apply for the grant of a local practising certificate for a specified period not exceeding 5 years.

(3) If the Society makes a decision under subsection (2), the Society must include the decision in the information notice required under section 63(3).

(4) A person in respect of whom a decision has been made under this section, or under a provision of a corresponding law, is not entitled to apply for the grant of a local practising certificate during the period specified in the decision.

65. Relationship of this Division with Part 4.6 and Chapter 6

(1) The Law Society has and may exercise powers under Part 4.6 and Chapter 6, in relation to a matter under this Division as if the matter were the subject of a complaint under Chapter 4.

(2) Accordingly, Part 4.6 and Chapter 6 apply (with the necessary modifications) in relation to a matter under this Division.

(3) Nothing in this Division prevents a complaint being made under Chapter 4 about a matter to which this Division relates.

Division 7 – Further provisions relating to local practising certificates

66. Immediate suspension of local practising certificate

(1) This section applies if the Law Society considers it necessary in the public interest to immediately suspend a local practising certificate on:

(a) any of the grounds on which the certificate could be suspended or cancelled under Division 5; or

(b) the ground of the happening of a show cause event in relation to the holder; or

(c) another ground that the Society considers warrants suspension of the local practising certificate in the public interest.

(2) This section applies whether or not any action has been taken or started under Division 5 or 6 in relation to the holder.

(3) The Society may, by written notice given to the holder, immediately suspend the practising certificate until the earlier of the following:

(a) the time at which the Society informs the holder of the Society's decision by notice under section 57;

(b) the end of the period of 56 days after the notice is given to the holder under this section.

(b) specify that the holder may make written representations to the Society about the suspension.

(5) The holder may make written representations to the Society about the suspension and the Society must consider the representations.

(6) The Society may revoke the suspension at any time, whether or not in response to any written representations made to it by the holder.

(7) This section does not prevent the Society from making a complaint under Chapter 4 about a matter to which this section relates.

(8) The suspension of a local practising certificate under this section does not affect any disciplinary processes in relation to matters arising before the suspension.

67. Surrender and cancellation of local practising certificate

(1) The holder of a local practising certificate may surrender the certificate to the Law Society.

68. Return of local practising certificate

(1) This section applies if a local practising certificate granted to an Australian legal practitioner:

(2) The Society may give the practitioner a notice requiring the practitioner to return the certificate to the Society in the way specified in the notice within a specified period of not less than 14 days.

(4) It is a defence to a prosecution for an offence against subsection (3) if the practitioner has a reasonable excuse.

(a) if the certificate is amended – give the practitioner the amended certificate or a replacement certificate as soon as practicable after the amendment is made; or

(b) if the certificate is replaced – give the practitioner the replacement certificate as soon as practicable after it is issued; or

(c) if the certificate is suspended and is still current at the end of the suspension period – give the practitioner the amended certificate or a replacement certificate as soon as practicable after the end of the suspension period.

69. Conditions generally

(d) any conditions imposed or varied by the Disciplinary Tribunal under section 71; and

(e) any conditions imposed under Chapter 4 or under provisions of a corresponding law that correspond to Chapter 4.

(2) If a condition is imposed, varied or revoked under this Act (other than a statutory condition) during the currency of the local practising certificate concerned, the certificate must be amended by the Society, or a new certificate must be issued by the Society, to reflect on its face the imposition, variation or revocation.

70. Conditions imposed by Law Society

(a) requiring the holder of the practising certificate to undertake and complete:

(d) restricting the holder to particular conditions concerning employment or supervision;

(e) requiring the holder to undergo counselling or medical treatment or to act in accordance with medical advice given to the holder;

(f) requiring the holder to use the services of an accountant or other financial specialist in connection with the holder's practice;

(g) requiring the holder to provide the Society with evidence as to any outstanding tax obligations of the holder and as to provision made by the holder to satisfy any such outstanding obligations;

(4) Subsection (3) does not limit the matters about which a condition may be imposed under this section.

(5) The Society must not impose a condition requiring the holder to undertake and complete specific legal education or training unless:

(a) the Society is satisfied it is reasonable to require the education or training to be undertaken having regard to:

(i) the nature or currency of the holder's academic studies, legal training or legal experience; or

(b) the condition is one that is imposed generally on holders of local practising certificates or any class of holders of local practising certificates.

A class of holders might comprise newly qualified lawyers or lawyers returning to legal practice after suspension or an extended break.

(7) If the Society imposes, varies or revokes a condition during the currency of the local practising certificate concerned, the imposition, variation or revocation takes effect when the holder has been notified of it or a later time specified by the Society.

(8) This section has effect subject to section 57 in relation to the imposition of a condition on a local practising certificate during its currency.

71. Imposition or variation of conditions pending criminal proceedings

(1) If a local legal practitioner has been charged with a relevant offence but the charge has not been decided, the Law Society may apply to the Disciplinary Tribunal for an order under this section.

(2) On the application, the Tribunal, if it considers it appropriate to do so having regard to the seriousness of the offence and to the public interest, may make either or both of the following orders:

(a) an order varying the conditions on the practitioner's local practising certificate;

(b) an order imposing further conditions on the practitioner's local practising certificate.

(b) if the practitioner is convicted of the offence – 28 days after the day of the conviction; or

(4) The Tribunal, on application by any party, may vary or revoke an order under this section at any time.

"relevant offence" means a serious offence or an offence that would have to be disclosed under the admission rules in relation to an application for admission to the legal profession under this Act.

72. Statutory condition regarding conditions imposed on interstate admission

It is a statutory condition of a local practising certificate that the holder must not contravene a condition that was imposed on the admission of the person to the legal profession under a corresponding law (with any variations of the condition made from time) and that is still in force.

73. Statutory condition regarding practice – general

(1) It is a statutory condition of a local practising certificate that the holder must engage in supervised legal practice only until the holder has completed:

(a) if the holder completed practical legal training principally under the supervision of an Australian lawyer (whether involving articles of clerkship, graduate clerk or otherwise) to qualify for admission to the legal profession in this or another jurisdiction – a period or periods equivalent to 18 months supervised legal practice after the day the holder's first practising certificate was granted; or

(b) if the holder completed other practical legal training to qualify for admission to the legal profession in this or another jurisdiction – a period or periods equivalent to 2 years supervised legal practice after the day the holder's first practising certificate was granted.

(2) For subsection (1), the period or periods must be worked out under the regulations.

(3) Subsection (1) has effect subject to any other conditions that relate to engaging in supervised legal practice after a period or periods referred to in that subsection.

(4) The Law Society may exempt a person or class of persons from the requirement for supervised legal practice under subsection (1) or may reduce a period referred to in that subsection for a person or class of persons, if satisfied the person or persons do not need to be supervised or need to be supervised only for a shorter period, having regard to:

(a) the length and nature of any legal practice previously engaged in by the person or persons; and

(b) the length and nature of any legal practice engaged in by the supervisors (if any) who previously supervised the legal practice engaged in by the person or persons.

(5) An exemption under subsection (4) may be given unconditionally or subject to the conditions the Society considers appropriate.

(b) employment by a complying community legal centre under the supervision of a supervising legal practitioner.

74. Statutory condition regarding practice as barrister

The regulations or legal profession rules may make provision for or with respect to prohibiting the holder of a local practising certificate as a barrister (but not a solicitor and barrister) from the following:

(b) holding office as a legal practitioner director of an incorporated legal practice.

75. Additional conditions on practising certificates of barristers

(1) The Law Society may, under section 70, impose conditions of the following kinds on the practising certificate of a barrister:

(a) a condition requiring the holder to undertake and complete to the Society's satisfaction a full-time component or other component of a reading program applicable to the holder and decided or approved by:

(i) read with a barrister of a specified class or description chosen by the holder (including a barrister chosen from a list of at least 10 barristers kept by the Society for the purpose) for a specified period; and

(ii) comply with the requirements that will enable the barrister, at the end of the specified period, to certify to the Society that the holder is fit to practise as a barrister without restriction.

(2) A condition of a kind mentioned in subsection (1) imposed on the practising certificate of a barrister may limit the barrister's practising rights until the condition is complied with.

(3) Subject to section 74, the Society may, under section 70, impose conditions of a kind mentioned in the section on a local practising certificate granted to a barrister (but not a solicitor and barrister).

(4) The Society may cancel or suspend a local practising certificate if the holder contravenes a condition of a kind mentioned in subsection (1) or (3).

(5) This section does not limit the Society's power under section 70 to impose conditions on a practising certificate.

76. Statutory condition regarding notice of offence

(1) It is a statutory condition of a local practising certificate that the holder of the certificate must give written notice to the Law Society that the holder has been:

(a) convicted of an offence that would have to be disclosed under the admission rules in relation to an application for admission to the legal profession under this Act; or

(3) The regulations, or legal profession rules if the regulations do not do so, may specify the person to whom or the address to which the notice is to be sent or delivered.

77. Conditions imposed by legal profession rules

(a) impose conditions on local practising certificates or any class of local practising certificates; or

(b) authorise conditions to be imposed on local practising certificates or any class of local practising certificates.

78. Compliance with conditions

The holder of a current local practising certificate must not contravene (in this jurisdiction or elsewhere) a condition to which the certificate is subject.

79. Requirement for interstate practising certificate and professional indemnity insurance

(1) An interstate legal practitioner is guilty of an offence if the practitioner:

(ii) represents or advertises that the practitioner is entitled to engage in legal practice in this jurisdiction; and

(ii) complies with the requirements prescribed by the regulations, being requirements that are no more onerous than the requirements for approved professional indemnity insurance.

(a) is employed by a corporation, other than an incorporated legal practice; and

(b) is engaged in legal practice in this jurisdiction only to the extent that the practitioner is engaging in government work; and

(c) has an indemnity or immunity (whether provided by law or governmental policy) that is applicable in respect of that legal practice.

(4) The regulations may require an interstate legal practitioner to disclose information about professional indemnity insurance to clients or prospective clients.

80. Extent of entitlement of interstate legal practitioner to practise in this jurisdiction

(1) This Part does not authorise an interstate legal practitioner to engage in legal practice in this jurisdiction to a greater extent than a local legal practitioner could be authorised under a local practising certificate.

(2) Also, an interstate legal practitioner's right to engage in legal practice in this jurisdiction:

(ii) any conditions imposed by or under the legal profession rules as referred to in that section; and

(i) the same as the practitioner's right to engage in legal practice in the practitioner's home jurisdiction; and

(ii) subject to any condition on the practitioner's right to engage in legal practice in that jurisdiction, including any conditions imposed on the practitioner's admission to the legal profession in this or another jurisdiction.

(3) If there is an inconsistency between conditions mentioned in subsection (2)(a) and conditions mentioned in subsection (2)(b), the conditions that are, in the opinion of the Society, more onerous prevail to the extent of the inconsistency.

(4) An interstate lawyer must not engage in legal practice in this jurisdiction in a manner not authorised by this Act or in contravention of any condition referred to in this section.

81. Additional conditions on practice of interstate legal practitioners

(1) The Law Society may, by written notice to an interstate legal practitioner engaged in legal practice in this jurisdiction, impose any condition on the practitioner's practice that it may impose under this Act on a local practising certificate.

(2) Also, an interstate legal practitioner's right to engage in legal practice in this jurisdiction is subject to any condition imposed by or under an applicable legal profession rule.

(3) Conditions imposed under or referred to in this section must not be more onerous than conditions applying to local legal practitioners.

(4) A notice under this section must include an information notice for the decision to impose a condition.

(5) An interstate legal practitioner must not contravene a condition imposed under this section.

82. Special provisions about interstate legal practitioner engaging in unsupervised legal practice in this jurisdiction

(1) An interstate legal practitioner must not engage in unsupervised legal practice in this jurisdiction unless:

(a) if the interstate legal practitioner completed practical legal training principally under the supervision of an Australian lawyer (whether involving articles of clerkship, graduate clerk or otherwise) to qualify for admission to the legal profession in this or another jurisdiction – the interstate legal practitioner has undertaken a period or periods equivalent to 18 months supervised legal practice after the day the practitioner's first practising certificate was granted; or

(b) if the interstate legal practitioner completed other practical legal training to qualify for admission to the legal profession in this or another jurisdiction – the interstate legal practitioner has undertaken a period or periods equivalent to 2 years supervised legal practice after the day the practitioner's first practising certificate was granted.

(b) a period of supervised legal practice in the practitioner's home jurisdiction must be worked out under the corresponding law for that jurisdiction.

(3) Subsection (1) does not apply if the practitioner is exempt from the requirement for supervised legal practice in the practitioner's home jurisdiction.

(4) Subsection (1) applies only to the extent of a shorter period if the required period of supervised legal practice has been reduced for the practitioner in the practitioner's home jurisdiction.

83. Interstate legal practitioner is officer of Supreme Court

An interstate legal practitioner engaged in legal practice in this jurisdiction has all the duties and obligations of an officer of the Supreme Court, and is subject to the jurisdiction and powers of the Court in respect of those duties and obligations.

84. Mutual recognition local registration authority

For a Mutual Recognition Act, the Law Society is the local registration authority for an application for registration under that Act so far as the application relates to an application for the issue of a practising certificate in the Territory.

85. Jurisdiction protocols

(1) The Law Society may enter into arrangements ("jurisdiction protocols") with regulatory authorities of other jurisdictions about deciding:

(a) the jurisdiction in which an Australian lawyer engages in legal practice principally or can reasonably expect to engage in legal practice principally; or

(b) the circumstances in which an arrangement under which an Australian legal practitioner practises in a jurisdiction:

(c) the circumstances in which an Australian legal practitioner can reasonably expect to engage in legal practice principally in a jurisdiction during the currency of an Australian practising certificate.

(2) For this Act, and to the extent a jurisdiction protocol is relevant, a matter referred to in subsection (1)(a), (b) or (c) must be decided in accordance with the protocol.

(3) The Society may enter into arrangements that amend, revoke or replace a jurisdiction protocol.

(4) A jurisdiction protocol does not have effect in this jurisdiction unless it is embodied or identified in the regulations.

86. Consideration and investigation of applicants or holders

(1) To help it consider whether or not to grant, renew, amend, suspend or cancel a local practising certificate, the Law Society may, by notice to the applicant or holder, require the applicant or holder:

(b) to cooperate with any inquiries by the Society that it considers appropriate.

(2) A contravention of a notice under subsection (1) by the date specified in the notice and in the way required by the notice is a ground for making an adverse decision in relation to the action being considered by the Society.

(3) Without limiting subsection (2), a contravention of a requirement for a medical examination may be accepted by the Society as evidence of the unfitness of the person to engage in legal practice.

87. Register of local practising certificates

(1) The Law Society must keep a register of the names of Australian lawyers to whom it grants local practising certificates.

(d) notice by the Society to other authorities of particulars contained in the register.

(3) The register must specify the conditions (if any) imposed on a local practising certificate in relation to engaging in legal practice.

(4) A condition imposed on a local practising certificate relating to infirmity, injury or mental or physical illness must not be specified on the register unless:

(6) The Society may publish, in the circumstances it considers appropriate, the names of persons kept on the register and any other information included in the register concerning the persons.

(7) The register must be available for inspection, without charge, at the Society's office during normal business hours.

88. Orders about conditions

(1) The Statutory Supervisor or Law Society may apply to the Supreme Court for an order that:

(a) a local legal practitioner not contravene a condition imposed under this Part; or

(b) an interstate legal practitioner not contravene a requirement of section 80(4).

(3) On hearing the application, the Court may make the order it considers appropriate.

89. Appeals

(1) An aggrieved person may appeal to the Supreme Court against any of the following decisions of the Law Society:

(a) a decision under section 54 or 63 to refuse to grant or renew a local practising certificate;

(b) a decision under section 54 to impose a condition on a local practising certificate;

(d) a decision under section 64 that the person is not entitled to apply for the grant of a local practising certificate for a specified period;

(e) a decision under section 81 to impose a condition on an interstate legal practitioner's right to engage in legal practice in this jurisdiction.

(2) An aggrieved person is the applicant for, or holder of, the practising certificate.

(3) The appeal must be started by filing a notice of appeal within 28 days after receiving the information notice for the decision.

(5) On hearing the appeal, the Court may make the order it considers appropriate.

(6) Except to the extent (if any) that may be ordered by the Court, the filing of an appeal does not stay the effect of the refusal, amendment, suspension or cancellation appealed against.

90. Government lawyers – general exemption from certain conditions

(1) A government lawyer's local practising certificate is not subject to conditions of the kind referred to in section 70(3)(a), (b) and (d) or 74, other than a condition relating to continuing legal education.

(2) However, a government lawyer's local practising certificate is not subject to a condition relating to continuing legal education if the lawyer holds an office prescribed by the regulations.

(3) Contributions and levies are not payable to the Fidelity Fund by or in relation to a government lawyer engaged in legal practice in the course of the lawyer's duties for the entity in relation to which the person is an employee.

(4) Without affecting subsections (1) and (2), this section does not prevent a government lawyer of another jurisdiction from being granted or holding a local practising certificate.

"government agency" means an entity, or class of entity, prescribed by the regulations;

"government lawyer" means an Australian lawyer, or a person eligible to be admitted as an Australian lawyer, employed by a government agency.

91. Government lawyers of other jurisdictions

(ii) making representations about engaging in legal practice in this jurisdiction; or

in relation to the performance of official duties or functions as a government employee of the other jurisdiction to the extent the lawyer is exempt from matters of the same kind under a law of the other jurisdiction.

(2) Contributions and levies are not payable to the Fidelity Fund by or in relation to a government lawyer of another jurisdiction in the lawyer's capacity as a government employee.

(3) Without affecting subsection (1), that subsection extends to prohibitions under section 79 relating to professional indemnity insurance.

(4) Without affecting subsections (1), (2) and (3), this section does not prevent a government lawyer of another jurisdiction from being granted or holding a local practising certificate.

"government agency", of another jurisdiction, means an entity, or class of entity, prescribed by the regulations;

"government lawyer" means an Australian lawyer, or a person eligible to be admitted as an Australian lawyer, employed by a government agency of another jurisdiction.

92. Main purpose of Part

The main purpose of this Part is to ensure police reports and health assessment reports may be obtained when this Act provides for the reports or assessments.

93. Definitions

"interstate registration" means registration under a corresponding law as a locally-registered foreign lawyer under that law;

"legal practice" includes the practice of foreign law in this jurisdiction by a foreign lawyer;

"local registration" means registration under this Act as a locally-registered foreign lawyer;

(b) for an applicant for the grant or renewal of a local practising certificate or local registration, for the holder of a local practising certificate or for a locally-registered foreign lawyer – the Law Society;

"suitability report" means a police report or health assessment report prepared under this Part or under provisions of a corresponding law, and includes a copy of a report or a part of a report or copy.

94. Relevant authority may ask for police report

(1) A relevant authority may ask the Commissioner of Police for a written report about a subject person's criminal history.

(b) ordinarily accessible to the Commissioner through arrangements with the police service of the Commonwealth or a State or another Territory.

(3) However, a relevant authority must not ask for a report about a local legal practitioner or locally-registered foreign lawyer unless the authority considers it appropriate.

(4) Subsection (3) applies to the relevant authority in relation to a local legal practitioner whether or not the practitioner is applying for the renewal of the local practising certificate or applying for another practising certificate.

(5) The Commissioner must give the report to the authority despite that part of the criminal history is a spent conviction as defined in the Criminal Records (Spent Convictions) Act.

95. Health assessment

(1) This section applies if a relevant authority believes a subject person may have a material inability that may make the person unsuitable to engage in legal practice in this jurisdiction.

(2) The relevant authority may require the subject person to undergo a health assessment by a person appointed by the relevant authority.

(3) If the relevant authority decides to require the health assessment, the authority must give the subject person an information notice for the decision to require the assessment that includes:

(a) the name and qualifications of the person appointed by the authority to conduct the assessment; and

(b) a specified date, and a specified time and place, for the assessment that must be reasonable having regard to the circumstances of the subject person as known to the authority.

(4) The specified date must be not earlier than 28 days after the information notice is given to the subject person.

(5) The subject person may appeal to the Supreme Court against the decision within 28 days after the day the information notice is given to the subject person.

(6) On hearing the appeal, the Court may make the order it considers appropriate.

96. Appointment of health assessor

(1) The relevant authority may appoint one or more appropriately qualified persons ("health assessors") to conduct all or part of a health assessment under this Division of a subject person.

(3) If the relevant authority considers the subject person's criminal history is relevant to the assessment, the authority may disclose the history to the health assessor despite that part of the criminal history is a spent conviction as defined in the Criminal Records (Spent Convictions) Act.

(4) Before appointing a person as a health assessor, the relevant authority must be satisfied the person does not have a personal or professional connection with the subject person that may prejudice the way in which the person conducts the assessment.

"appropriately qualified", for a medical practitioner or other person conducting a health assessment, includes having the qualifications, experience, skills or knowledge appropriate to conduct the assessment.

97. Health assessment report

(1) A health assessor conducting all or part of a health assessment of a subject person must prepare a report about the assessment (a "health assessment report").

(a) the health assessor's findings as to any material inability of the subject person and the extent, if any, to which the inability may make the person unsuitable to engage in legal practice; and

(b) if the health assessor finds the person has a material inability that may make the person unsuitable to engage in legal practice, the health assessor's recommendations, if any, as to a condition:

(i) the Supreme Court could impose on the person's admission under this Act as a legal practitioner that would make, or would be likely to make, the person suitable to engage in legal practice, despite the inability; or

(ii) the relevant authority could impose on the person's practising certificate or local registration that would make, or would be likely to make, the person suitable to engage in legal practice, despite the inability.

(3) The health assessor must give the health assessment report to the relevant authority and a copy to the subject person.

98. Payment for health assessment and report

The relevant authority that appoints a health assessor to conduct all or part of a health assessment is liable for the cost of the assessment conducted by, and the report prepared by, the health assessor.

99. Use of health assessment report

(1) A report about a subject person is not admissible in any proceedings and a person can not be compelled to produce the report or to give evidence about the report or its contents in any proceedings.

(a) proceedings relating to an application by the subject person for admission under this Act as a local practitioner, for local registration, for admission to the legal profession in another jurisdiction or for interstate registration; or

(b) proceedings on an appeal by the subject person against a decision of a relevant authority of this or another jurisdiction:

(3) Subsection (1) does not apply if the report is admitted or produced, or evidence about the report or its contents is given, in proceedings with the consent of:

"report" means a health assessment report prepared under this Division or under provisions of a corresponding law, and includes a copy of a report or a part of a report or copy.

100. Operation of this Part

(1) This Part does not authorise the Admission Board to seek a suitability report about:

(2) This Part does not authorise the Law Society to seek a suitability report about an applicant for admission.

PART 2.5 – INTER-JURISDICTIONAL PROVISIONS REGARDING ADMISSION AND PRACTISING CERTIFICATES

101. Purpose

The purpose of this Part is to provide a nationally consistent scheme for notices of and response to action taken by courts and other authorities in relation to the admission of persons to the legal profession and their right to engage in legal practice in Australia.

102. Definition

(a) removal of the person's name from a foreign roll for disciplinary reasons; or

(b) suspension or cancellation of, or refusal to renew, the person's right to engage in legal practice in a foreign country.

103. Other requirements not affected

Division 2 – Notices to be given by local authorities to interstate authorities

104. Official notice to other jurisdictions of applications for admission and associated matters

(1) This section applies if an application for admission to the legal profession is made under this Act.

(2) The Admission Board may give the corresponding authority for another jurisdiction written notice of any of the following (as relevant):

(b) the refusal to issue a compliance certificate in relation to the application;

(c) the withdrawal of the application after an inquiry is proposed or started in relation to the application or a suitability report is sought or obtained;

(d) the refusal of the Supreme Court to admit the applicant to the legal profession under this Act.

(3) The notice must specify the applicant's name and address as last known to the Board and may contain other relevant information.

105. Official notice to other jurisdictions of removals from local roll

(1) This section applies if a person's name is removed from the local roll, except if the removal occurs under section 111.

(2) A Registrar must, as soon as practicable, give written notice of the removal to:

106. Law Society to notify other jurisdictions of certain matters

(ii) suspends, cancels or refuses to renew an Australian lawyer's local practising certificate; or

(2) The Society must, as soon as practicable, give the corresponding authorities of other jurisdictions written notice of the action taken or the result of the appeal.

(5) The Society may give corresponding authorities written notice of a condition imposed on an Australian lawyer's local practising certificate.

107. Lawyer to give notice of removal in another jurisdiction

(3) This section does not apply if the name has been removed from an interstate roll under a provision that corresponds to section 111.

108. Lawyer to give notice of interstate orders

(b) an order is made under a corresponding law recommending that the person's name be removed from the local roll; and

(c) the person fails to give a Registrar written notice of the removal under section 110 as soon as practicable after the removal.

(ii) a local practising certificate not be granted to the person for a period; or

(c) the person fails to give a Registrar written notice of the order or decision under section 110 as soon as practicable after the removal.

109. Lawyer to give notice of foreign regulatory action

110. Provisions relating to requirement to give notice

A notice to be given under this Division by a local lawyer or local legal practitioner must:

(b) disclose full details of the action to which the notice relates, including the date on which that action was taken; and

Division 4 – Taking of action by local authorities in response to notices received

111. Peremptory removal of local lawyer's name from local roll following removal in another jurisdiction

(b) no order referred to in section 115(1)(a) is, at the time of the removal, in force in relation to it.

(3) The Registrar may, but need not, give the lawyer notice of the date on which the registrar proposes to remove the name from the local roll.

(4) The Registrar must, as soon as practicable, give the former local lawyer notice of the removal of the name from the local roll, unless notice of the date of the proposed removal was previously given.

(5) The name of the former local lawyer must, on his or her application to the Registrar or on the Registrar's own initiative, be restored to the local roll if the name is restored to the interstate roll.

(6) This section does not prevent the former local lawyer from afterwards applying for admission under Part 2.2.

112. Peremptory cancellation of local practising certificate following removal of name from interstate roll

(a) a person's name is removed from an interstate roll but the person remains an Australian lawyer; and

(2) The Law Society must cancel the local practising certificate as soon as practicable after receiving official written notice of the removal.

(3) The Society may, but need not, give the person notice of the date on which the Society proposes to cancel the local practising certificate.

(4) The Society must, as soon as practicable, give the person notice of the cancellation, unless notice of the date of the proposed cancellation was previously given.

(5) This section does not prevent the former local lawyer from afterwards applying for a local practising certificate.

113. Show cause procedure for removal of lawyer's name from local roll following foreign regulatory action

(b) no order mentioned in section 115(1)(a) is, at the time of the removal, in force in relation to it.

(2) The Society may serve on the lawyer a notice specifying that the Society will apply to the Supreme Court for an order that the lawyer's name be removed from the local roll unless the lawyer shows cause to the Society why the lawyer's name should not be removed.

(3) If the lawyer does not satisfy the Society that the lawyer's name should not be removed from the local roll, the Society may apply to the Court for an order that the lawyer's name be removed from the local roll.

(4) Before applying for an order that the lawyer's name be removed, the Society must afford the practitioner a reasonable opportunity to show cause why the lawyer's name should not be removed.

(5) The Court may, on application made under this section, order that the lawyer's name be removed from the local roll, or may refuse to do so.

(6) The lawyer is entitled to appear before and be heard by the Court at a hearing of an application under this section.

114. Show cause procedure for cancellation of local practising certificate following foreign regulatory action

(a) foreign regulatory action has been taken in relation to a local legal practitioner; and

(b) no order mentioned in section 115(1)(b) is, at the time the action was taken, in force in relation to the action taken.

(2) The Society may serve on the practitioner a notice specifying that the Society proposes to cancel the practitioner's local practising certificate unless the practitioner shows cause to the Society why the practitioner's practising certificate should not be cancelled.

(3) The Society must afford the practitioner a reasonable opportunity to show cause why the practitioner's practising certificate should not be cancelled.

(4) If the practitioner does not satisfy the Society that the practising certificate should not be cancelled, the Society may cancel the certificate.

(5) The Society must, as soon as practicable, give the practitioner an information notice for its decision to cancel the practising certificate.

(7) The appeal must be started by filing notice of appeal within 28 days after receiving the information notice.

(9) On hearing the appeal, the Court may make the order it considers appropriate.

115. Order for non-removal of name or non-cancellation of local practising certificate

(1) If an Australian lawyer reasonably expects that the lawyer's name will be removed from an interstate roll or that foreign regulatory action may be taken against the lawyer, the lawyer may apply to the Supreme Court for:

(a) an order that the lawyer's name not be removed from the local roll under section 111 or 113; or

(b) an order that the lawyer's local practising certificate not be cancelled under section 112 or 114;

(a) the lawyer's name is likely to be removed from the interstate roll or the foreign regulatory action is likely to be taken; and

(b) the reason for the removal of the name or the taking of the foreign regulatory action will not involve disciplinary action or the possibility of disciplinary action;

(3) An order under this section may be made subject to any conditions the Court considers appropriate and remains in force for the period specified in it.

(4) The Court may revoke an order made under this section and sections 111 to 114 (as relevant) then apply as if the lawyer's name were removed from the interstate roll when the revocation takes effect.

(5) Nothing in this section affects action being taken in relation to the lawyer under other provisions of this Act.

116. Local authority may give information to other local authorities

An authority of this jurisdiction that receives information from an authority of another jurisdiction under provisions of a corresponding law that correspond to this Part may give the information to other authorities of this jurisdiction that have powers or duties under this Act.

PART 2.6 – INCORPORATED LEGAL PRACTICES AND
MULTI-DISCIPLINARY PARTNERSHIPS

117. Purposes of Part

(a) to regulate the provision of legal services by corporations in this jurisdiction; and

(b) to regulate the provision of legal services in this jurisdiction in conjunction with the provision of other services (whether by a corporation or persons acting in partnership with each other).

118. Definitions

(b) any other body corporate, or body corporate of a kind, prescribed by the regulations;

(a) a company within the meaning of the Corporations Act – means a director as defined in section 9 of that Act; or

(b) any other body corporate, or body corporate of a kind, prescribed by the regulations – means a person specified or described in the regulations;

"legal practitioner director" means a director of an incorporated legal practice who is an Australian legal practitioner holding an unrestricted practising certificate;

"legal practitioner partner" means a partner of a multi-disciplinary partnership who is an Australian legal practitioner holding an unrestricted practising certificate;

(a) in relation to a company within the meaning of the Corporations Act – an officer as defined in section 9 of that Act; or

(b) in relation to any other body corporate, or body corporate of a kind, prescribed by the regulations – a person specified or described in the regulations;

"Regulator", for another jurisdiction, means the entity defined as the Regulator for that jurisdiction by the corresponding law of that jurisdiction or, if there is no such definition, the corresponding authority;

(a) in relation to a company within the meaning of the Corporations Act – a related body corporate within the meaning of section 50 of that Act; or

(b) in relation to any other body corporate, or body corporate of a kind, prescribed by the regulations – a person specified or described in the regulations.

119. Nature of incorporated legal practice

(1) An incorporated legal practice is a corporation that engages in legal practice in this jurisdiction, whether or not it also provides services that are not legal services.

(a) the corporation does not receive any fee, gain or reward for the legal services it provides; or

(b) the only legal services that the corporation provides are any or all of the following services:

(i) in-house legal services, namely, legal services provided to the corporation concerning a proceeding or transaction to which the corporation (or a related body corporate) is a party;

(ii) services that are not legally required to be provided by an Australian legal practitioner and that are provided by an officer or employee who is not an Australian legal practitioner; or

(3) The regulations may make provision for or with respect to the application (with or without specified modifications) of provisions of this Act to corporations that are not incorporated legal practices because of the operation of subsection (2).

(4) Nothing in this Part affects or applies to the provision by an incorporated legal practice of legal services in one or more other jurisdictions.

120. Non-legal services and businesses of incorporated legal practices

(1) An incorporated legal practice may provide any service and conduct any business that the corporation may lawfully provide or conduct, except as provided by this section.

(2) An incorporated legal practice (or a related body corporate) must not conduct a managed investment scheme.

(3) The regulations may prohibit an incorporated legal practice (or a related body corporate) from providing a service or conducting a business of a kind specified in the regulations.

121. Corporations eligible to be incorporated legal practice

(1) Any corporation is, subject to this Part, eligible to be an incorporated legal practice.

(2) This section does not authorise a corporation to provide legal services if the corporation is prohibited from doing so by any Act or law (whether of this jurisdiction, the Commonwealth or any other jurisdiction) under which it is incorporated or its affairs are regulated.

(3) An incorporated legal practice is not itself required to hold an Australian practising certificate.

122. Notice of intention to start providing legal services

(1) Before a corporation starts to engage in legal practice in this jurisdiction, the corporation must give the Law Society written notice, in the approved form, of its intention to do so.

(2) A corporation must not engage in legal practice in this jurisdiction if it is in default of this section under subsection (3).

(3) A corporation that fails to comply with subsection (1) is in default of this section until it gives the Society written notice, in the approved form, of:

(4) The giving of a notice under subsection (3) does not affect a corporation's liability under subsection (1) or (2).

(5) A corporation is not entitled to recover any amount for anything the corporation did in contravention of subsection (2).

(6) A person may recover from a corporation, as a debt due to the person, any amount the person paid to or at the direction of the corporation for anything the corporation did in contravention of subsection (2).

(8) This section does not apply to a corporation referred to in section 119(2)(a) to (e).

123. Prohibition on representations that corporation is incorporated legal practice

(1) A corporation must not represent or advertise it is an incorporated legal practice unless it has given notice under section 122.

(b) the person represents or advertises that the corporation is an incorporated legal practice; and

(4) It is a defence to a prosecution for an offence against subsection (3) if the person has a reasonable excuse.

(a) a corporation representing or advertising that the corporation is an incorporated legal practice; or

(b) a person representing or advertising that a corporation is an incorporated legal practice;

includes a reference to the corporation or person doing anything that specifies or implies that the corporation is entitled to engage in legal practice.

124. Notice of ceasing provision of legal services

(a) it ceases to engage in legal practice in this jurisdiction as an incorporated legal practice; and

(b) it fails to give the Law Society written notice in the approved form of that fact within the period prescribed by the regulations after the day it ceases to engage in legal practice in this jurisdiction as an incorporated legal practice.

(3) The regulations may make provision for or with respect to determining whether and when a corporation ceases to engage in legal practice in this jurisdiction.

125. Incorporated legal practice must have legal practitioner director

(1) An incorporated legal practice is required to have at least one legal practitioner director.

(2) Each legal practitioner director of an incorporated legal practice is, for this Act only, responsible for the management of the legal services provided in this jurisdiction by the incorporated legal practice.

(3) Each legal practitioner director of an incorporated legal practice must ensure appropriate management systems are implemented and maintained to enable the provision of legal services by the incorporated legal practice:

(a) in accordance with the professional obligations of Australian legal practitioners and other obligations imposed by or under this Act; and

(b) so that those obligations of Australian legal practitioners who are officers or employees of the practice are not affected by other officers or employees of the practice.

(4) If it ought reasonably to be apparent to a legal practitioner director of an incorporated legal practice that the provision of legal services by the practice will result in breaches of the professional obligations of Australian legal practitioners or other obligations imposed by or under this Act, the director must take all reasonable action available to the director to ensure:

(5) Nothing in this Part derogates from the obligations or liabilities of a director of an incorporated legal practice under any other law.

(6) The reference in subsection (1) to a legal practitioner director does not include a reference to a person who is not validly appointed as a director, but this subsection does not affect the meaning of the expression "legal practitioner director" in other provisions of this Act.

126. Obligations of legal practitioner director relating to misconduct

(1) Each of the following is capable of constituting unsatisfactory professional conduct or professional misconduct by a legal practitioner director:

(a) unsatisfactory professional conduct or professional misconduct of an Australian legal practitioner employed by the incorporated legal practice;

(b) conduct of any other director (not being an Australian legal practitioner) of the incorporated legal practice that adversely affects the provision of legal services by the practice;

(c) the unsuitability of any other director (not being an Australian legal practitioner) of the incorporated legal practice to be a director of a corporation that provides legal services.

(2) A legal practitioner director is not guilty of unsatisfactory professional conduct or professional misconduct under subsection (1) if the director establishes he or she took all reasonable steps to ensure:

(a) Australian legal practitioners employed by the incorporated legal practice did not engage in conduct or misconduct referred to in subsection (1)(a); or

(b) directors (not being Australian legal practitioners) of the incorporated legal practice did not engage in conduct referred to in subsection (1)(b); or

(c) unsuitable directors (not being Australian legal practitioners) of the incorporated legal practice were not appointed or holding office as referred to in subsection (1)(c);

(3) A legal practitioner director of an incorporated legal practice must ensure all reasonable action available to the legal practitioner director is taken to deal with any unsatisfactory professional conduct or professional misconduct of an Australian legal practitioner employed by the practice.

127. Incorporated legal practice without legal practitioner director

(1) An incorporated legal practice contravenes this subsection if it does not have any legal practitioner directors for a period exceeding 7 days.

(2) If an incorporated legal practice ceases to have any legal practitioner directors, the incorporated legal practice must notify the Law Society as soon as possible.

(3) An incorporated legal practice must not provide legal services in this jurisdiction during any period it is in default of director requirements under this section.

(4) An incorporated legal practice that contravenes subsection (1) is taken to be in default of director requirements under this section for the period from the end of the 7-day period until:

(b) a person is appointed under this section or a corresponding law in relation to the practice.

(5) The Society may, if it thinks it appropriate, appoint an Australian legal practitioner who is an employee of the incorporated legal practice or another person nominated by the Society, in the absence of a legal practitioner director, to exercise or perform the functions or duties conferred or imposed on a legal practitioner director under this Part.

(6) An Australian legal practitioner is not eligible to be appointed under this section unless the practitioner holds an unrestricted practising certificate.

(7) The appointment under this section of a person to exercise or perform functions or duties of a legal practitioner director does not, for any other purpose, confer or impose on the person any of the other functions or duties of a director of the incorporated legal practice.

(8) An incorporated legal practice does not contravene subsection (1) during any period during which a person holds an appointment under this section in relation to the practice.

(9) A reference in this section to a "legal practitioner director" does not include a reference to a person who is not validly appointed as a director, but this subsection does not affect the meaning of the expression "legal practitioner director" in other provisions of this Act.

128. Obligations and privileges of practitioners who are officers or employees

(1) An Australian legal practitioner who provides legal services on behalf of an incorporated legal practice in the capacity of an officer or employee of the practice:

(a) is not excused from compliance with professional obligations as an Australian legal practitioner, or any obligations as an Australian legal practitioner under any law; and

(b) does not lose the professional privileges of an Australian legal practitioner.

(2) For the purposes only of subsection (1), the professional obligations and professional privileges of a practitioner apply as if:

(a) where there are 2 or more legal practitioner directors of an incorporated legal practice – the practice were a partnership of the legal practitioner directors and the employees of the practice were employees of the legal practitioner directors; or

(b) where there is only one legal practitioner director of an incorporated legal practice – the practice were a sole practitioner and the employees of the practice were employees of the legal practitioner director.

(3) The law relating to client legal privilege (or other legal professional privilege) is not excluded or otherwise affected because an Australian legal practitioner is acting in the capacity of an officer or employee of an incorporated legal practice.

(4) The directors of an incorporated legal practice do not breach their duties as directors merely because legal services are provided pro bono by an Australian legal practitioner employed by the practice.

129. Conflicts of interest

(1) For the application of any law (including the common law) or legal profession rules relating to conflicts of interest to the conduct of an Australian legal practitioner who is:

the interests of the incorporated legal practice or any related body corporate are also taken to be those of the practitioner (in addition to any interests the practitioner has apart from this subsection).

(2) Legal profession rules may be made for or with respect to additional duties and obligations in connection with conflicts of interest arising out of the conduct of an incorporated legal practice.

Under section 128, an Australian legal practitioner who is an officer or employee of an incorporated legal practice must comply with the same professional obligations as other practitioners.

130. Disclosure obligations

(a) someone else (the "client") engages an incorporated legal practice to provide services (the "required services") that the client might reasonably assume to be legal services; and

(b) the practice provides services other than legal services in this jurisdiction; and

(ii) an employee of the practice who is an Australian legal practitioner and provides the required services on behalf of the practice; and

(d) the legal practitioner fails to ensure a disclosure, complying with the requirements of this section and the regulations made for this section, is made to the client about the required services.

(b) specifying whether or not all the legal services to be provided will be provided by an Australian legal practitioner; and

(c) if some or all of the legal services to be provided will not be provided by an Australian legal practitioner – identifying the services and indicating the status or qualifications of the person or persons who will provide the services; and

(d) specifying that this Act applies to the provision of legal services but not to the provision of the non-legal services.

(b) additional matters required to be disclosed in relation to the provision of legal services or non-legal services by an incorporated legal practice.

(4) Without limiting subsection (3), the additional matters may include the kind of services provided by the incorporated legal practice and whether the services are or are not covered by the insurance or other provisions of this Act.

(5) A disclosure under this section to a person about the provision of legal services may relate to the provision of legal services on one occasion or on more than one occasion or on an on-going basis.

131. Effect of non-disclosure of provision of certain services

(a) section 130 applies in relation to a service that is provided to a person who has engaged an incorporated legal practice to provide the service and that the person might reasonably assume to be a legal service; and

(b) a disclosure has not been made under that section in relation to the service.

(2) The standard of care owed by the incorporated legal practice in respect of the service is the standard that would be applicable if the service had been provided by an Australian legal practitioner.

132. Application of legal profession rules

Legal profession rules, so far as they apply to Australian legal practitioners, also apply to Australian legal practitioners who are officers or employees of an incorporated legal practice, unless the rules otherwise provide.

133. Requirements relating to advertising

(1) Any restriction imposed by or under this Act or any other Act, the regulations or legal profession rules in connection with advertising by Australian legal practitioners applies to advertising by an incorporated legal practice with respect to the provision of legal services.

(2) If a restriction referred to in subsection (1) is limited to a particular branch of the legal profession or for persons who practise in a particular style of legal practice, the restriction applies only to the extent that the incorporated legal practice carries on the business in that branch of the legal profession or in that style of legal practice.

(3) Any advertisement of the kind referred to in this section is, for disciplinary proceedings taken against an Australian legal practitioner, taken to have been authorised by each legal practitioner director of the incorporated legal practice.

(4) This section does not apply if the provision by which the restriction is imposed expressly excludes its application to incorporated legal practices.

134. Extension of vicarious liability relating to failure to account, pay or deliver and dishonesty to incorporated legal practices

(1) This section applies to any of the following proceedings (being proceedings based on the vicarious liability of an incorporated legal practice):

(a) civil proceedings relating to a failure to account for, pay or deliver money or property received by, or entrusted to, the practice (or to any officer or employee of the practice) in the course of the provision of legal services by the practice, being money or property under the direct or indirect control of the practice;

(b) civil proceedings for any other debt owed, or damages payable, to a client as a result of a dishonest act or omission by an Australian legal practitioner who is an employee of the practice in connection with the provision of legal services to the client.

(2) If the incorporated legal practice would not (but for this section) be vicariously liable for any acts or omissions of its officers and employees in those proceedings, but would be liable for those acts or omissions if the practice and those officers and employees were carrying on business in partnership, the practice is taken to be vicariously liable for those acts or omissions.

135. Sharing of receipts, revenue or other income

(1) Nothing in this Act prevents an Australian legal practitioner from sharing with an incorporated legal practice receipts, revenue or other income arising from the provision of legal services by the practitioner.

(2) This section does not extend to the sharing of receipts, revenue or other income in contravention of section 136 and has effect subject to section 74.

136. Disqualified persons

(1) An incorporated legal practice is guilty of an offence if a disqualified person:

(a) is an officer or employee of the incorporated legal practice (whether or not the person provides legal services) or is an officer or employee of a related body corporate; or

(b) is a partner of the incorporated legal practice in a business that includes the provision of legal services; or

(c) shares the receipts, revenue or other income arising from the provision of legal services by the incorporated legal practice; or

(d) is engaged or paid in connection with the provision of legal services by the incorporated legal practice.

(2) The failure of a legal practitioner director of an incorporated legal practice to ensure the practice complies with subsection (1) is capable of constituting unsatisfactory professional conduct or professional misconduct.

137. Audit of incorporated legal practice

(a) the compliance of an incorporated legal practice (and of its officers and employees) with the requirements of:

(ii) the regulations or legal profession rules, so far as they relate specifically to incorporated legal practices; and

(b) the management of the provision of legal services by the incorporated legal practice (including the supervision of officers and employees providing the services).

Section 125(3) requires legal practitioner directors to ensure appropriate management systems are implemented and maintained.

(2) The Society may, in writing, appoint a suitably qualified person to conduct an audit under this section.

(3) The appointment may be made generally, or in relation to a particular incorporated legal practice, or in relation to a particular audit.

(4) An audit may be conducted whether or not a complaint has been made against an Australian lawyer with respect to the provision of legal services by the incorporated legal practice.

(d) may be taken into account in connection with any disciplinary proceedings taken against legal practitioner directors or other persons or in connection with the grant, amendment, suspension or cancellation of Australian practising certificates.

138. Application of Chapter 6

139. Banning of incorporated legal practices

(1) The Supreme Court may, on the application of the Law Society, make an order disqualifying a corporation from providing legal services in this jurisdiction for the period the Court considers appropriate if satisfied:

(a) a ground for disqualifying the corporation under this section has been established; and

(2) An order under this section may, if the Court thinks it appropriate, be made:

(a) subject to conditions as to the conduct of the incorporated legal practice; or

(b) subject to conditions as to when or in what circumstances the order is to take effect; or

(3) Action may be taken against an incorporated legal practice on any of the following grounds:

(a) a legal practitioner director or an Australian legal practitioner who is an officer or employee of the corporation is found guilty of professional misconduct under a law of this jurisdiction or another jurisdiction;

(b) the Society is satisfied, after conducting an audit of the incorporated legal practice, that the incorporated legal practice has failed to implement satisfactory management and supervision of its provision of legal services;

(c) the incorporated legal practice (or a related body corporate) has contravened section 120 or the regulations made under that section;

(e) a person who is an officer of the incorporated legal practice and who is the subject of an order under:

(i) section 140 or under provisions of a corresponding law that correspond to that section; or

(ii) section 165 or under provisions of a corresponding law that correspond to that section;

(4) If a corporation is disqualified under this section, the Society must, as soon as practicable, notify the Regulator of every other jurisdiction.

(5) If a corporation is disqualified from providing legal services in another jurisdiction under a corresponding law, the Society may decide that the corporation is taken to be disqualified from providing legal services in this jurisdiction for the same period, but nothing in this subsection prevents the Society from instead applying for an order under this section.

(6) A corporation is guilty of an offence if it provides legal services in contravention of an order under this section.

(7) A corporation that is disqualified under this section ceases to be an incorporated legal practice.

(8) Conduct of an Australian legal practitioner who provides legal services on behalf of a corporation in the capacity of an officer or employee of the corporation is capable of constituting unsatisfactory professional conduct or professional misconduct where the practitioner ought reasonably to have known that the corporation is disqualified under this section.

(9) The regulations may make provision for or with respect to the publication and notification of orders made under this section, including notification of appropriate authorities of other jurisdictions.

140. Disqualification from managing incorporated legal practice

(1) The Supreme Court may, on the application of the Law Society, make an order disqualifying a person from managing a corporation that is an incorporated legal practice for the period the Court considers appropriate if satisfied:

(a) the person is a person who could be disqualified under section 206C, 206D, 206E or 206F of the Corporations Act from managing corporations; and

(2) The Court may, on the application of a person subject to a disqualification order under this section, revoke the order.

(3) A disqualification order made under this section has effect for the purposes only of this Act and does not affect the application or operation of the Corporations Act.

(4) The regulations may make provision for or with respect to the publication and notification of orders made under this section.

(5) A person who is disqualified from managing a corporation under provisions of a corresponding law that correspond to this section is taken to be disqualified from managing a corporation under this section.

141. Disclosure of information to ASIC

(1) This section applies if the Law Society, in connection with exercising powers or performing functions under this Act, acquired information concerning a corporation that is or was an incorporated legal practice.

(2) The Society may disclose to the Australian Securities and Investments Commission information concerning the corporation that is relevant to the Commission's functions.

(3) Information may be provided under subsection (2) despite any law relating to secrecy or confidentiality, including any provisions of this Act.

142. External administration proceedings under Corporations Act

(1) This section applies to proceedings in any court under Chapter 5 of the Corporations Act:

(a) relating to a corporation that is an externally-administered body corporate under that Act; or

(b) relating to a corporation becoming an externally-administered body corporate under that Act;

(2) The Law Society is entitled to intervene in the proceedings, unless the court decides the proceedings do not concern or affect the provision of legal services by the incorporated legal practice.

(3) The court may, when exercising its jurisdiction in the proceedings, have regard to the interests of the clients of the incorporated legal practice who have been or are to be provided with legal services by the practice.

(4) Subsection (3) does not authorise the court to make any decision that is contrary to a specific provision of the Corporations Act.

(5) The provisions of subsections (2) and (3) are declared to be Corporations legislation displacement provisions for section 5G of the Corporations Act in relation to the provisions of Chapter 5 of that Act.

Section 5G of the Corporations Act provides that if a Territory law declares a provision of a Territory law to be a Corporations legislation displacement provision, any provision of the Corporations legislation with which the Territory provision would otherwise be inconsistent does not apply to the extent necessary to avoid the inconsistency.

143. External administration proceedings under other legislation

(1) This section applies to proceedings for the external administration (however expressed) of an incorporated legal practice, but does not apply to proceedings to which section 142 applies.

(2) The Law Society is entitled to intervene in the proceedings, unless the court decides the proceedings do not concern or affect the provision of legal services by the incorporated legal practice.

(4) Subsection (3) does not authorise the court to make any decision that is contrary to a specific provision of any legislation applicable to the incorporated legal practice.

144. Incorporated legal practice subject to receivership under this Act and external administration under Corporations Act

(1) This section applies if an incorporated legal practice is the subject of both:

(2) The Chapter 5 receiver is under a duty to notify the Corporations Act administrator of the appointment of the Chapter 5 receiver, whether the appointment precedes, follows or is contemporaneous with the appointment of the Corporations Act administrator.

(3) The Chapter 5 receiver or the Corporations Act administrator (or both of them jointly) may apply to the Supreme Court for the resolution of issues arising from or in connection with the dual appointments and their respective powers, except where proceedings referred to in section 142 have been commenced.

(4) The Court may make the order it considers appropriate, and no liability attaches to the Chapter 5 receiver or Corporations Act administrator for any act or omission done by the receiver or administrator in good faith for carrying out or acting under the order.

(5) The Law Society is entitled to intervene in the proceedings, unless the Court decides the proceedings do not concern or affect the provision of legal services by the incorporated legal practice.

(6) The provisions of subsections (3) and (4) are declared to be Corporations legislation displacement provisions for section 5G of the Corporations Act in relation to the provisions of Chapter 5 of that Act.

(a) a receiver, receiver and manager, liquidator (including a provisional liquidator), controller, administrator or deed administrator appointed under the Corporations Act; or

145. Incorporated legal practice subject to receivership under this Act and external administration under other legislation

(1) This section applies if an incorporated legal practice is the subject of both:

(2) The Chapter 5 receiver is under a duty to notify the external administrator of the appointment of the Chapter 5 receiver, whether the appointment precedes, follows or is contemporaneous with the appointment of the external administrator.

(3) The Chapter 5 receiver or the external administrator (or both of them jointly) may apply to the Supreme Court for the resolution of issues arising from or in connection with the dual appointments and their respective powers.

(4) The Court may make the order it considers appropriate, and no liability attaches to the Chapter 5 receiver or external administrator for any act or omission done by the receiver or administrator in good faith for carrying out or acting under the order.

(5) The Law Society is entitled to intervene in the proceedings, unless the Court decides the proceedings do not concern or affect the provision of legal services by the incorporated legal practice.

(a) is appointed to exercise powers under other legislation (whether or not of this jurisdiction); and

146. Co-operation between courts

Courts of this jurisdiction may make arrangements for communicating and cooperating with other courts or tribunals in connection with the exercise of powers under this Part.

147. Relationship of Act to constitution of incorporated legal practice

The provisions of this Act that apply to an incorporated legal practice prevail, to the extent of any inconsistency, over the constitution or other constituent documents of the practice.

148. Relationship of Act to legislation establishing incorporated legal practice

(1) This section applies to a corporation that is established by or under a law (whether or not of this jurisdiction) and is an incorporated legal practice, but is not a company within the meaning of the Corporations Act.

(2) The provisions of this Act or the regulations that apply to an incorporated legal practice prevail, to the extent of any inconsistency, over provisions of the legislation by or under which the corporation is established or regulated that are specified or described in the regulations.

149. Relationship of Act to Corporations legislation

(1) The regulations may declare any provision of this Act that relates to an incorporated legal practice to be a Corporations legislation displacement provision for section 5G of the Corporations Act.

(2) The regulations may declare any matter relating to an incorporated legal practice that is prohibited, required, authorised or permitted by or under this Act to be an excluded matter for section 5F of the Corporations Act in relation to:

150. Undue influence

(a) the person causes or induces another person to contravene this Act or his or her professional obligations as an Australian legal practitioner; and

(ii) another Australian legal practitioner who provides legal services on behalf of an incorporated legal practice.

151. Nature of multi-disciplinary partnership

(1) A multi-disciplinary partnership is a partnership between one or more Australian legal practitioners and one or more other persons who are not Australian legal practitioners, where the business of the partnership includes the provision of legal services in this jurisdiction as well as other services.

(2) However, a partnership consisting only of one or more Australian legal practitioners and one or more Australian-registered foreign lawyers is not a multi-disciplinary partnership.

(3) Nothing in this Part affects or applies to the provision by a multi-disciplinary partnership of legal services in one or more other jurisdictions.

152. Conduct of multi-disciplinary partnerships

(1) An Australian legal practitioner may be in partnership with a person who is not an Australian legal practitioner, where the business of the partnership includes the provision of legal services.

(2) Subsection (1) does not prevent an Australian legal practitioner from being in partnership with a person who is not an Australian legal practitioner, where the business of the partnership does not include the provision of legal services.

(3) The regulations may prohibit an Australian legal practitioner from being in partnership with a person providing a service or conducting a business of a kind specified in the regulations, where the business of the partnership includes the provision of legal services.

153. Notice of intention to start practice in multi-disciplinary partnership

(a) the person is a legal practitioner partner of a multi-disciplinary partnership; and

(b) the person starts to provide legal services in this jurisdiction as a member of the partnership; and

(c) the person has not given the Law Society written notice, in the approved form, of the person's intention to start providing legal services.

154. General obligations of legal practitioner partners

(1) Each legal practitioner partner of a multi-disciplinary partnership is, for the purposes only of this Act, responsible for the management of the legal services provided in this jurisdiction by the partnership.

(2) Each legal practitioner partner must ensure appropriate management systems are implemented and maintained to enable the provision of legal services by the multi-disciplinary partnership:

(a) in accordance with the professional obligations of Australian legal practitioners and the other obligations imposed by this Act; and

(b) so that the professional obligations of legal practitioner partners and employees who are Australian legal practitioners are not affected by other partners and employees of the partnership.

155. Obligations of legal practitioner partner relating to misconduct

(1) Each of the following is capable of constituting unsatisfactory professional conduct or professional misconduct by a legal practitioner partner:

(a) unsatisfactory professional conduct or professional misconduct of an Australian legal practitioner employed by the multi-disciplinary partnership;

(b) conduct of any other partner (not being an Australian legal practitioner) of the multi-disciplinary partnership that adversely affects the provision of legal services by the partnership;

(c) the unsuitability of any other partner (not being an Australian legal practitioner) of the multi-disciplinary partnership to be a member of a partnership that provides legal services.

(2) A legal practitioner partner of a multi-disciplinary partnership must ensure all reasonable action available to the legal practitioner partner is taken to deal with any unsatisfactory professional conduct or professional misconduct of an Australian legal practitioner employed by the partnership.

156. Actions of partner who is not Australian legal practitioner

A partner of a multi-disciplinary partnership who is not an Australian legal practitioner does not contravene a provision of this Act merely because of any of the following:

(a) the partner is a member of a partnership where the business of the partnership includes the provision of legal services;

(b) the partner receives any fee, gain or reward for business of the partnership that is the business of an Australian legal practitioner;

(c) the partner holds out, advertises or represents himself or herself as a member of a partnership where the business of the partnership includes the provision of legal services;

(d) the partner shares with any other partner the receipts of business of the partnership that is the business of an Australian legal practitioner;

unless the provision expressly applies to a partner of a multi-disciplinary partnership who is not an Australian legal practitioner.

157. Obligations and privileges of practitioners who are partners or employees

(1) An Australian legal practitioner who provides legal services in the capacity of a partner or an employee of a multi-disciplinary partnership:

(a) is not excused from compliance with professional obligations as an Australian legal practitioner, or any other obligations as an Australian legal practitioner under any law; and

(b) does not lose the professional privileges of an Australian legal practitioner.

(2) The law relating to client legal privilege (or other legal professional privilege) is not excluded or otherwise affected because an Australian legal practitioner is acting in the capacity of a partner or an employee of a
multi-disciplinary partnership.

158. Conflicts of interest

(1) For the application of any law (including the common law) or legal profession rules relating to conflicts of interest to the conduct of an Australian legal practitioner who is:

the interests of the partnership or any partner of the multi-disciplinary partnership are also taken to be those of the practitioner concerned (in addition to any interests that the practitioner has apart from this subsection).

(2) Legal profession rules may be made for or with respect to additional duties and obligations in connection with conflicts of interest arising out of the conduct of a multi-disciplinary partnership.

Under section 157, an Australian legal practitioner who is a partner of an multi-disciplinary partnership must comply with the same professional obligations as other practitioners.

159. Disclosure obligations

(a) someone else (the "client") engages a multi-disciplinary partnership to provide services (the "required services") that the client might reasonably assume to be legal services; and

(ii) an employee of the partnership who is an Australian legal practitioner and provides the required services on behalf of the partnership; and

(c) the legal practitioner fails to ensure a disclosure, complying with the requirements of this section and regulations made for this section, is made to the client in relation to the provision of the required services.

(b) specifying whether or not all the legal services to be provided will be provided by an Australian legal practitioner; and

(c) if some or all of the legal services to be provided will not be provided by an Australian legal practitioner – identifying those services and indicating the status or qualifications of the person or persons who will provide the services; and

(d) specifying that this Act applies to the provision of legal services but not to the provision of the non-legal services.

(3) The regulations may make provision for or with respect to any of the following:

(b) additional matters required to be disclosed in connection with the provision of legal services or non-legal services by a
multi-disciplinary partnership.

(4) Without limiting subsection (3), the additional matters may include the kind of services provided by the multi-disciplinary partnership and whether the services are or are not covered by the insurance or other provisions of this Act.

160. Effect of non-disclosure of provision of certain services

(a) section 159 applies in relation to a service that is provided to a person who has engaged a multi-disciplinary partnership to provide the service and that the person might reasonably assume to be a legal service; and

(b) a disclosure has not been made under that section in relation to the service.

(2) The standard of care owed by the multi-disciplinary partnership in respect of the service is the standard that would be applicable if the service had been provided by an Australian legal practitioner.

161. Application of legal profession rules

Legal profession rules, so far as they apply to Australian legal practitioners, also apply to Australian legal practitioners who are legal practitioner partners or employees of a multi-disciplinary partnership, unless the rules otherwise provide.

162. Requirements relating to advertising

(1) Any restriction imposed by or under this Act or any other Act, the regulations or legal profession rules in connection with advertising by Australian legal practitioners applies to advertising by a multi-disciplinary partnership with respect to the provision of legal services.

(2) If a restriction referred to in subsection (1) is limited to a particular branch of the legal profession or for persons who practise in a particular style of legal practice, the restriction applies only to the extent that the multi-disciplinary partnership carries on the business of the relevant class of Australian legal practitioners.

(3) An advertisement of the kind referred to in this section is, for disciplinary proceedings taken against an Australian legal practitioner, taken to have been authorised by each legal practitioner partner of the multi-disciplinary partnership.

(4) This section does not apply if the provision by which the restriction is imposed expressly excludes its applications to multi-disciplinary partnerships.

163. Sharing of receipts, revenue or other income

(1) Nothing in this Act prevents a legal practitioner partner, or an Australian legal practitioner who is an employee of a multi-disciplinary partnership, from sharing receipts, revenue or other income arising from the provision of legal services by the partner or practitioner with a partner or partners who are not Australian legal practitioners.

(2) This section does not extend to the sharing of receipts, revenue or other income in contravention of section 164 and has effect subject to section 74.

164. Disqualified persons

A legal practitioner partner of a multi-disciplinary partnership is guilty of an offence if the partner knowingly:

(b) shares with a disqualified person the receipts, revenue or other income arising from the provision of legal services by the partnership; or

165. Prohibition on partnerships with certain partners who are not Australian legal practitioners

(2) On application by the Law Society, the Supreme Court may make an order prohibiting any Australian legal practitioner from being a partner, in a business that includes the provision of legal services, of a specified person to whom this section applies if:

(a) the Court is satisfied the person is not a fit and proper person to be a partner; or

(b) the Court is satisfied the person has been guilty of conduct that, if the person were an Australian legal practitioner, would have constituted unsatisfactory professional conduct or professional misconduct; or

(c) in the case of a corporation – the Court is satisfied the corporation has been disqualified from providing legal services in this jurisdiction or there are grounds for disqualifying the corporation from providing legal services in this jurisdiction.

(3) An order made under this section may be revoked by the Court on application by the Society or by the person against whom the order was made.

(4) The death of an Australian legal practitioner does not prevent an application being made for, or the making of, an order under this section in relation to a person who was a partner of the practitioner.

(5) The regulations may make provision for or with respect to the publication and notification of orders made under this section.

166. Undue influence

(a) the person causes or induces another person to contravene this Act or his or her professional obligations as an Australian legal practitioner; and

(ii) another Australian legal practitioner who is an employee of a multi-disciplinary partnership and provides legal services.

167. Obligations of individual practitioners not affected

Except as provided by this Part, nothing in this Part affects any obligation imposed on:

(a) a legal practitioner director or an Australian legal practitioner who is an employee of an incorporated legal practice; or

(b) a legal practitioner partner or an Australian legal practitioner who is an employee of a multi-disciplinary partnership;

under this Act or any other Act in his or her capacity as an Australian legal practitioner.

168. Regulations

(1) The regulations may make provision for or with respect to any of the following matters:

(a) the legal services provided by incorporated legal practices or legal practitioner partners or employees of multi-disciplinary partnerships;

(b) other services provided by incorporated legal practices or legal practitioner partners or employees of multi-disciplinary partnerships in circumstances where a conflict of interest relating to the provision of legal services may arise.

(2) A regulation prevails over any inconsistent provision of the legal profession rules.

(3) A regulation may provide that a breach of the regulations is capable of constituting unsatisfactory professional conduct or professional misconduct:

(a) in the case of an incorporated legal practice – by a legal practitioner director, or by an Australian legal practitioner responsible for the breach, or both; or

(b) in the case of a multi-disciplinary partnership – by a legal practitioner partner, or by an Australian legal practitioner responsible for the breach, or both.

169. Purpose

The purpose of this Part is to encourage and facilitate the internationalisation of legal services and the legal services sector by providing a framework for the regulation of the practice of foreign law in this jurisdiction by foreign lawyers as a recognised aspect of legal practice in this jurisdiction.

170. Definitions

"foreign law practice" means a partnership or corporate entity that is entitled to engage in legal practice in a foreign country;

"foreign registration authority" means an entity in a foreign country having the function, conferred by the law of the foreign country, of registering persons to engage in legal practice in the country;

"local registration certificate" means a registration certificate given under this Part;

"overseas-registered foreign lawyer" means an individual who is properly registered to engage in legal practice in a foreign country by the foreign registration authority for the country;

"practise foreign law" means doing work, or transacting business, in this jurisdiction concerning foreign law, being work or business of a kind that, if it concerned the law of this jurisdiction, would ordinarily be done or transacted by an Australian legal practitioner;

"registered", when used in connection with a foreign country, means having all necessary licences, approvals, admissions, certificates or other forms of authorisation (including practising certificates) required by or under legislation for engaging in legal practice in the country.

171. Part does not apply to Australian legal practitioners

(1) This Part does not apply to an Australian legal practitioner (including an Australian legal practitioner who is also an overseas-registered foreign lawyer).

(2) Accordingly, nothing in this Part requires or enables an Australian legal practitioner (including an Australian legal practitioner who is also an overseas-registered foreign lawyer) to be registered as a foreign lawyer under this Act in order to practise foreign law in this jurisdiction.

172. Requirement for registration

(i) practises foreign law in this jurisdiction for one or more periods that do not in aggregate exceed 90 days in any period of 12 months; or

(ii) is subject to a restriction imposed under the Migration Act 1958 (Cth) that has the effect of limiting the period during which work may be done, or business transacted, in Australia by the person; and

(i) does not maintain an office for practising foreign law in this jurisdiction; or

173. Entitlement of Australian-registered foreign lawyer to practise in this jurisdiction

An Australian-registered foreign lawyer is, subject to this Act, entitled to practise foreign law in this jurisdiction.

174. Scope of practice

(1) An Australian-registered foreign lawyer may provide only the following legal services in this jurisdiction:

(a) doing work, or transacting business, concerning the law of a foreign country where the lawyer is registered by the foreign registration authority for the country;

(b) legal services (including appearances) in relation to arbitration proceedings of a kind prescribed by the regulations;

(c) legal services (including appearances) in relation to proceedings before bodies other than courts, being proceedings in which the body concerned is not required to apply the rules of evidence and in which knowledge of the foreign law of a country referred to in paragraph (a) is essential;

(d) legal services for conciliation, mediation and other forms of consensual dispute resolution of a kind prescribed by the regulations.

(2) Nothing in this Act authorises an Australian-registered foreign lawyer to appear in any court (except on the lawyer's own behalf) or to practise Australian law in this jurisdiction.

(3) Despite subsection (2), an Australian-registered foreign lawyer may advise on the effect of an Australian law if:

(a) the giving of advice on Australian law is necessarily incidental to the practice of foreign law; and

(b) the advice is expressly based on advice given on the Australian law by an Australian legal practitioner who is not an employee of the foreign lawyer.

175. Form of practice

(1) An Australian-registered foreign lawyer may (subject to any conditions attaching to the foreign lawyer's registration) practise foreign law:

(b) in partnership with one or more Australian-registered foreign lawyers or one or more Australian legal practitioners, or both, in circumstances where, if the Australian-registered foreign lawyer were an Australian legal practitioner, the partnership would be permitted under a law of this jurisdiction; or

(c) as a director or employee of an incorporated legal practice or a partner or employee of a multi-disciplinary partnership that is permitted by a law of this jurisdiction; or

(d) as an employee of an Australian legal practitioner or law firm in circumstances where, if the Australian-registered foreign lawyer were an Australian legal practitioner, the employment would be permitted under a law of this jurisdiction; or

(2) An affiliation referred to in subsection (1)(b) to (e) does not entitle the Australian-registered foreign lawyer to practise Australian law in this jurisdiction.

176. Application of Australian professional ethical and practice standards

(1) An Australian-registered foreign lawyer must not engage in any conduct in practising foreign law that would, if the conduct were engaged in by an Australian legal practitioner in practising Australian law in this jurisdiction, be capable of constituting professional misconduct or unsatisfactory professional conduct.

(b) was an Australian-registered foreign lawyer when the relevant conduct allegedly occurred, but is no longer an Australian-registered foreign lawyer (in which case Chapter 4 applies as if the person were an Australian-registered foreign lawyer);

and so applies as if references in Chapter 4 to an Australian legal practitioner were references to a person of that kind.

(3) The regulations may make provision for or with respect to the application (with or without modifications) of the provisions of Chapter 4 for this section.

(4) Without limiting the matters that may be taken into account in deciding whether a person should be disciplined for a contravention of subsection (1), the following matters may be taken into account:

(a) whether the conduct of the person was consistent with the standard of professional conduct of the legal profession in any foreign country where the person is registered;

(b) whether the person contravened the subsection intentionally or without reasonable excuse.

(5) Without limiting any other provision of this section or the orders that may be made under Chapter 4 as applied by this section, the following orders may be made under that Chapter as applied by this section:

(a) an order that a person's registration under this Act as a foreign lawyer be cancelled;

(b) an order that a person's registration under a corresponding law as a foreign lawyer be cancelled.

177. Designation

(1) An Australian-registered foreign lawyer may use only the following designations:

(b) a title or business name the lawyer is authorised by law to use in a foreign country where the lawyer is registered by a foreign registration authority;

(c) subject to this section, the name of a foreign law practice with which the lawyer is affiliated or associated (whether as a partner, director, employee or otherwise);

(d) if the lawyer is a principal of any law practice in Australia whose principals include both one or more Australian-registered foreign lawyers and one or more Australian legal practitioners – a description of the practice that includes reference to both Australian legal practitioners and Australian-registered foreign lawyers (for example, "Solicitors and locally-registered foreign lawyers" or "Australian solicitors and US attorneys").

(2) An Australian-registered foreign lawyer who is a principal of a foreign law practice may use the practice's name in or in connection with practising foreign law in this jurisdiction only if:

(a) the lawyer indicates, on the lawyer's letterhead or any other document used in this jurisdiction to identify the lawyer as an overseas-registered foreign lawyer, that the foreign law practice practises only foreign law in this jurisdiction; and

(b) the lawyer has provided the Law Society with acceptable evidence that the lawyer is a principal of the foreign law practice.

(3) An Australian-registered foreign lawyer who is a principal of a foreign law practice may use the name of the practice as referred to in this section whether or not other principals of the practice are Australian-registered foreign lawyers.

(4) This section does not authorise the use of a name or other designation that contravenes any requirements of the law of this jurisdiction concerning the use of business names or that is likely to lead to any confusion with the name of any established domestic law practice or foreign law practice in this jurisdiction.

178. Letterhead and other identifying documents

(1) An Australian-registered foreign lawyer must indicate, in each public document distributed by the lawyer in connection with the lawyer's practice of foreign law, the fact that the lawyer is an Australian-registered foreign lawyer and is restricted to the practice of foreign law.

(2) Subsection (1) is satisfied if the lawyer includes in the public document the words:

(3) An Australian-registered foreign lawyer may (but need not) include any or all of the following on any public document:

(a) an indication of all foreign countries in which the lawyer is registered to engage in legal practice;

(b) a description of himself or herself, and any law practice with which the lawyer is affiliated or associated, in any of the ways designated in section 177.

"public document" includes any business letter, statement of account, invoice, business card and promotional and advertising material.

179. Advertising

(1) An Australian-registered foreign lawyer is required to comply with any advertising restrictions imposed by the Law Society or by law on legal practice engaged in by an Australian legal practitioner that are relevant to the practice of law engaged in this jurisdiction.

(2) Without limiting subsection (1), an Australian-registered foreign lawyer must not advertise (or use any description on the lawyer's letterhead or any other document used in this jurisdiction to identify the lawyer as a lawyer) in any way that:

(ii) suggesting that the Australian-registered foreign lawyer is an Australian legal practitioner; or

180. Foreign lawyer employing Australian legal practitioner

(1) An Australian-registered foreign lawyer may employ one or more Australian legal practitioners.

(2) Employment of an Australian legal practitioner does not entitle an Australian-registered foreign lawyer to practise Australian law in this jurisdiction.

(3) An Australian legal practitioner employed by an Australian-registered foreign lawyer may practise foreign law.

(4) An Australian legal practitioner employed by an Australian-registered foreign lawyer must not:

(a) provide advice on Australian law to, or for use by, the Australian-registered foreign lawyer; or

(b) otherwise practise Australian law in this jurisdiction in the course of that employment.

(5) Subsection (4) does not apply to an Australian legal practitioner employed by a law firm a partner of which is an Australian-registered foreign lawyer, if at least one other partner is an Australian legal practitioner.

(6) Any period of employment of an Australian legal practitioner by an Australian-registered foreign lawyer cannot be used to satisfy a requirement imposed by a condition on a local practising certificate to complete a period of supervised legal practice.

181. Trust money and trust accounts

(1) The provisions of Part 3.1, and any other provisions of this Act, relating to requirements for trust money and trust accounts, apply (subject to this section) to Australian-registered foreign lawyers in the same way as they apply to law practices and Australian legal practitioners.

(2) In this section, a reference to money is not limited to a reference to money in this jurisdiction.

(3) The regulations may make provision with respect to the application (with or without modification) of the provisions of this Act relating to trust money and trust accounts for this section.

182. Professional Indemnity insurance

(1) An Australian-registered foreign lawyer must, at all times while practising foreign law in this jurisdiction, comply with one of the following:

(a) the foreign lawyer must have professional indemnity insurance that conforms with the requirements for professional indemnity insurance applicable for Australian legal practitioners in any jurisdiction;

(b) if the foreign lawyer does not have professional indemnity insurance that complies with paragraph (a) – the foreign lawyer:

(i) must have professional indemnity insurance that covers the practice of foreign law in this jurisdiction and that complies with the relevant requirements of a foreign law or foreign registration authority; and

(ii) if the insurance is for less than $1.5 million (inclusive of defence costs) – must provide a disclosure statement to each client disclosing the level of cover;

(c) if the foreign lawyer does not have professional indemnity insurance that complies with paragraph (a) or (b) – the foreign lawyer must provide a disclosure statement to each client specifying the lawyer does not have complying professional indemnity insurance.

(2) A disclosure statement must be made in writing before, or as soon as practicable after, the foreign lawyer is retained in the matter.

(3) A disclosure statement provided to a person before the foreign lawyer is retained in a matter is taken to be provided to the person as a client for this section.

(4) A disclosure statement is not valid unless it is given in accordance with, and otherwise complies with, any applicable requirements of the regulations.

183. Fidelity cover

The regulations may provide that provisions of Part 3.5 apply to classes of Australian-registered foreign lawyers prescribed by the regulations and so apply with any modifications specified in the regulations.

184. Local registration of foreign lawyers

Overseas-registered foreign lawyers may be registered as foreign lawyers under this Act.

185. Duration of registration

(1) Registration as a foreign lawyer granted under this Act is in force from the day specified in the local registration certificate until the end of the financial year in which it is granted, unless the registration is sooner suspended or cancelled.

(2) Registration as a foreign lawyer renewed under this Act is in force until the end of the financial year following its previous period of currency, unless the registration is sooner suspended or cancelled.

(3) If an application for the renewal of registration as a foreign lawyer has not been decided by the following 1 July, the registration:

(a) continues in force on and from that 1 July until the Law Society renews or refuses to renew the registration or the holder withdraws the application for renewal, unless the registration is sooner suspended or cancelled; and

186. Locally-registered foreign lawyer is not officer of Supreme Court

187. Application for grant or renewal of registration

An overseas-registered foreign lawyer may apply to the Law Society for the grant or renewal of registration as a foreign lawyer under this Act.

188. Manner of application

(1) An application for the grant or renewal of registration as a foreign lawyer must be:

(3) The fees must not be greater than the maximum fees for a local practising certificate.

(4) The Society may also require the applicant to pay any reasonable costs and expenses incurred by the Society in considering the application, including (for example) costs and expenses of making inquiries and obtaining information or documents about whether the applicant meets the criteria for registration.

(5) The fees and costs must not include any component for compulsory membership of any professional association.

(a) matters that may affect the Society's consideration of the application for the grant or renewal of registration; and

(b) particulars of any offences for which the applicant has been convicted in Australia or a foreign country, whether before or after the commencement of this section.

(7) The approved form may indicate that convictions of a particular kind need not be disclosed for the purposes of the current application.

(8) The approved form may indicate that specified kinds of matters or particulars previously disclosed in a particular manner need not be disclosed for the purposes of the current application.

189. Requirements regarding applications for grant or renewal of registration

(1) An application for grant of registration must specify the applicant's educational and professional qualifications.

(a) specify that the applicant is registered to engage in legal practice by one or more specified foreign registration authorities in one or more foreign countries; and

(c) specify that the applicant is not the subject of disciplinary proceedings in Australia or a foreign country (including any preliminary investigations or action that might lead to disciplinary proceedings) in the applicant's capacity as:

(d) specify whether the applicant has been convicted of an offence in Australia or a foreign country and if so:

(e) specify that the applicant's registration is not cancelled or currently suspended in any place as a result of any disciplinary action in Australia or a foreign country; and

(i) that the applicant is not otherwise personally prohibited from engaging in legal practice in any place or bound by any undertaking not to engage in legal practice in any place; and

(ii) whether or not the applicant is subject to any special conditions in engaging in legal practice in any place;

as a result of criminal, civil or disciplinary proceedings in Australia or a foreign country; and

(g) specify any special conditions imposed in Australia or a foreign country as a restriction on legal practice engaged in by the applicant or any undertaking given by the applicant restricting the applicant's practice of law; and

(h) give consent to the making of inquiries of, and the exchange of information with, any foreign registration authorities the Law Society considers appropriate regarding the applicant's activities in engaging in legal practice in the places concerned or otherwise regarding matters relevant to the application; and

(i) specify which of the paragraphs of section 182(1) the applicant proposes to rely on and be accompanied by supporting proof of the relevant matters; and

(j) provide the information or be accompanied by the other information or documents (or both) that is specified in the application form or in material accompanying the application form as provided by the Society.

(3) The application must (if the Society so requires) be accompanied by an original instrument, or a copy of an original instrument, from each foreign registration authority specified in the application that:

(b) verifies the applicant's registration by the authority to engage in legal practice in the foreign country concerned and the date of registration; and

(c) describes anything done by the applicant in engaging in legal practice in that foreign country of which the authority is aware and that, in the opinion of the authority, has had or is likely to have had an adverse effect on the applicant's professional standing within the legal profession of that place.

(4) The applicant must (if the Society so requires) certify in the application that the accompanying instrument is the original or a complete and accurate copy of the original.

(5) The Society may require the applicant to verify the statements in the application by statutory declaration or by other proof acceptable to the Society.

(6) If the accompanying instrument is not in English, it must be accompanied by a translation in English that is authenticated or certified to the satisfaction of the Society.

190. Grant or renewal of registration

(1) The Law Society must consider an application that has been made for the grant or renewal of registration as a foreign lawyer and may:

(2) The Society may, when granting or renewing registration, impose conditions as referred to in section 210.

(3) If the Society grants or renews registration, it must, as soon as practicable, give the applicant a registration certificate or a notice of renewal.

(b) imposes a condition of the registration and the applicant does not agree to the condition;

the Society must, as soon as practicable, give the applicant an information notice.

(5) A notice of renewal may be in the form of a new registration certificate or any other form the Society considers appropriate.

191. Requirement to grant or renew registration if criteria satisfied

(1) The Law Society must grant an application for registration as a foreign lawyer if the Society:

(a) is satisfied the applicant is registered to engage in legal practice in one or more foreign countries and is not an Australian legal practitioner; and

(b) considers an effective system exists for regulating engaging in legal practice in one or more of the foreign countries; and

(c) considers the applicant is not, as a result of criminal, civil or disciplinary proceedings in any of the foreign countries, subject to:

(i) any special conditions in engaging in legal practice in any of the foreign countries; or

(ii) any undertakings concerning engaging in legal practice in any of the foreign countries;

(d) is satisfied the applicant demonstrates an intention to commence practising foreign law in this jurisdiction within a reasonable period if registration were to be granted;

(2) The Society must grant an application for renewal of a person's registration, unless the Society refuses renewal under this Part.

(3) Residence or domicile in this jurisdiction is not to be a prerequisite for or a factor in entitlement to the grant or renewal of registration.

192. Refusal to grant or renew registration

(a) the application is not accompanied by, or does not contain, the information required by this Part or prescribed by the regulations; or

(c) the applicant has contravened an order of the Disciplinary Tribunal or a corresponding disciplinary body, including but not limited to an order to pay any fine or costs; or

(d) the applicant has contravened an order of a regulatory authority of any jurisdiction to pay any fine or costs; or

(e) the applicant has failed to comply with a requirement under this Act to pay a contribution to, or levy for, the Fidelity Fund; or

(f) the applicant has contravened a requirement of or made under this Act about professional indemnity insurance; or

(g) the applicant has failed to pay any expenses of receivership payable under this Act; or

(h) the applicant's foreign legal practice is in receivership (however described).

(3) The Society may refuse to grant or renew registration if an authority of another jurisdiction has under a corresponding law:

(4) The Society may refuse to grant registration if it is satisfied the applicant is not a fit and proper person to be registered after considering:

(a) the nature of any offence for which the applicant has been convicted in Australia or a foreign country, whether before or after the commencement of this section; and

(5) The Society may refuse to renew registration if it is satisfied the applicant is not a fit and proper person to continue to be registered after considering:

(a) the nature of any offence for which the applicant has been convicted in Australia or a foreign country, whether before or after the commencement of this section, other than an offence disclosed in a previous application to the Society; and

(6) The Society may refuse to grant or renew registration on any ground on which registration could be suspended or cancelled.

(7) If the Society refuses to grant or renew registration, the Society must, as soon as practicable, give the applicant an information notice.

Division 6 – Amendment, suspension or cancellation of local registration

193. Application of this Division

194. Grounds for amending, suspending or cancelling registration

(1) Each of the following is a ground for amending, suspending or cancelling a person's registration as a foreign lawyer:

(a) the registration was obtained because of incorrect or misleading information;

(d) the person becomes the subject of disciplinary proceedings in Australia or a foreign country (including any preliminary investigations or action that might lead to disciplinary proceedings) in the person's capacity as:

(e) the person is a party in pending criminal or civil proceedings in Australia or a foreign country, or is convicted of an offence, that is likely to result in disciplinary action being taken against the person;

(f) the person's registration is cancelled or currently suspended in any place because of disciplinary action in Australia or a foreign country;

(2) Subsection (1) does not limit the grounds on which conditions may be imposed on registration as a foreign lawyer under section 210.

195. Amending, suspending or cancelling registration

(1) If the Law Society considers reasonable grounds exist to amend, suspend or cancel a person's registration by it as a foreign lawyer (the "action"), the Society must give the person a notice that:

(i) if the proposed action is to amend the registration in any way – specifies the proposed amendment; and

(ii) if the proposed action is to suspend the registration – specifies the proposed suspension period; and

(d) invites the person to make written representations to the Society, within a specified time not less than 7 days and not more than 28 days, as to why the action proposed should not be taken.

(2) If, after considering all written representations made within the specified time, the Society still believes grounds exist to take the action, the Society may:

(a) if the notice specified the action proposed was to amend the registration – amend the registration in the way specified or in another way the Society considers appropriate in the light of the representations; or

(b) if the notice specified the action proposed was to suspend the registration for a specified period – suspend the registration for a period no longer than the specified period; or

(iii) amend the registration in a less onerous way the Society considers appropriate because of the representations.

(3) The Society may, at its discretion, consider representations made after the specified time.

(5) If the Society amends, suspends or cancels the registration, the Society must give the person an information notice.

"amend", registration, means amend the registration by imposing a condition under section 216 during its currency, otherwise than at the request of the foreign lawyer concerned.

196. Operation of amendment, suspension or cancellation of registration

(1) This section applies if a decision is made to amend, suspend or cancel a person's registration under section 195.

(2) Subject to subsections (3) and (4), the amendment, suspension or cancellation of the registration takes effect on the later of the following:

(3) If the registration is amended, suspended or cancelled because the person has been convicted of an offence:

(a) the Supreme Court may, on the application of the person, order that the operation of the amendment, suspension or cancellation of the registration be stayed until:

(ii) if an appeal is made against the conviction – the appeal is finally decided, lapses or otherwise ends; and

(b) the amendment, suspension or cancellation does not have effect during any period in relation to which the stay is in force.

(4) If the registration is amended, suspended or cancelled because the person has been convicted of an offence and the conviction is quashed:

(a) the amendment or suspension ceases to have effect when the conviction is quashed; or

(b) the cancellation ceases to have effect when the conviction is quashed and the registration is restored as if it had merely been suspended.

197. Other ways of amending or cancelling registration

(1) The Law Society may amend or cancel the registration of a locally-registered foreign lawyer if the lawyer requests the Society to do so.

(2) The Society may amend the registration of a locally-registered foreign lawyer:

(3) The amendment or cancellation of a registration under this section must be effected by written notice given to the foreign lawyer.

198. Relationship of this Division with Chapter 4

Nothing in this Division prevents a complaint being made under Chapter 4 about a matter to which this Division relates.

Division 7 – Special powers in relation to local registration – show cause events

199. Applicant for local registration – show cause event

(a) a person is applying for registration as a foreign lawyer under this Act; and

(b) a show cause event in relation to the person happened, whether before or after the commencement of this section, after the person first became an overseas-registered foreign lawyer.

(2) As part of the application, the person must give the Law Society a written statement, in accordance with the regulations:

(b) explaining why, despite the show cause event, the applicant considers himself or herself to be a fit and proper person to be a locally-registered foreign lawyer.

(3) However, the person need not provide a statement under subsection (2) if the person has previously provided to the Society a statement under this section, or a notice and statement under section 200, explaining why, despite the show cause event, the person considers himself or herself to be a fit and proper person to be a locally-registered foreign lawyer.

200. Locally-registered foreign lawyer – show cause event

(1) This section applies to a show cause event that happens in relation to a locally-registered foreign lawyer.

(2) The locally-registered foreign lawyer must provide to the Law Society both of the following:

(a) within 7 days after the happening of the event – notice, in the approved form, that the event happened;

(3) If a written statement is provided after the 28 days mentioned in subsection (2)(b), the Society may accept the statement and take it into consideration.

201. Refusal, amendment, suspension or cancellation of local registration – failure to show cause

(1) The Law Society may refuse to grant or renew, or may amend, suspend or cancel, local registration if the applicant for registration or the locally-registered foreign lawyer:

(a) is required by section 199 or 200 to give a written statement relating to a matter and has failed to comply with the requirement; or

(b) has given a written statement under section 199 or 200 but the Society does not consider the applicant or foreign lawyer has shown in the statement that, despite the show cause event concerned, the applicant or lawyer is a fit and proper person to be a locally-registered foreign lawyer.

(2) For this section only, a written statement accepted by the Society under section 200(3) is taken to have been given under section 200.

(3) The Society must give the applicant or foreign lawyer an information notice for the decision to refuse to grant or renew, or to suspend or cancel, the registration.

202. Restriction on making further applications

(1) If the Law Society decides under this Division to cancel a person's registration, the Society may also decide that the person is not entitled to apply for registration under this Part for a specified period (being a period not exceeding 5 years).

(2) A person for whom a decision has been made under this section, or under a provision of a corresponding law that corresponds to this section, is not entitled to apply for registration under this Part during the period specified in the decision.

(3) As soon as practicable after making a decision under this section, the Society must give the person an information notice for the decision.

203. Relationship of this Division with Part 4.6 and Chapter 6

(1) The Law Society has and may exercise powers under Part 4.6 and Chapter 6, in relation to a matter under this Division, as if the matter were the subject of a complaint under Chapter 4.

(2) Accordingly, the provisions of Part 4.6 and Chapter 6 apply (with the necessary modifications) in relation to a matter under this Division.

(3) Nothing in this Division prevents a complaint being made under Chapter 4 about a matter to which this Division relates.

204. Immediate suspension of registration

(1) This section applies, despite sections 195 and 196 if the Law Society considers it necessary in the public interest to immediately suspend a person's registration as a foreign lawyer.

(2) The Society may, by written notice given to the person, immediately suspend the registration until the earlier of the following:

(a) the time at which the Society informs the person of the Society's decision by notice under section 195;

(b) the end of the period of 56 days after the notice is given to the person under this section.

(b) specify that the person may make written representations to the Society about the suspension.

(4) The person may make written representations to the Society about the suspension, and the Society must consider the representations.

(5) The Society may revoke the suspension at any time, whether or not in response to any written representations made to it by the person.

205. Surrender of local registration certificate and cancellation of registration

(1) A person registered as a foreign lawyer under this Part may surrender the local registration certificate to the Law Society.

206. Automatic cancellation of registration on grant of practising certificate

A person's registration as a foreign lawyer under this Part is taken to be cancelled if the person becomes an Australian legal practitioner.

207. Suspension or cancellation of registration not to affect disciplinary processes

The suspension or cancellation of a person's registration as a foreign lawyer under this Part does not affect any disciplinary processes in relation to matters arising before the suspension or cancellation.

208. Return of local registration certificate on amendment, suspension or cancellation of registration

(1) This section applies if a person's registration under this Part as a foreign lawyer is amended, suspended or cancelled.

(2) The Law Society may give the person a notice requiring the person to return the certificate to the Society in the way specified in the notice within a specified period of not less than 14 days.

(4) It is a defence to a prosecution for an offence against subsection (3) if the person has a reasonable excuse.

(6) If the certificate is amended, the Society must return the certificate to the person as soon as practicable after amending it.

209. Conditions generally

(d) any conditions imposed under Chapter 4 or under provisions of a corresponding law that correspond to Chapter 4.

210. Conditions imposed by Law Society

(a) any matter in relation to which a condition could be imposed on a local practising certificate;

(4) The Society must not impose a condition under subsection (3)(a) that is more onerous than a condition that would be imposed on a local practising certificate of a local legal practitioner in the same or similar circumstances.

211. Imposition or variation of conditions pending criminal proceedings

(1) If a person registered as a foreign lawyer under this Part has been charged with a relevant offence but the charge has not been decided, the Law Society may apply to the Disciplinary Tribunal for an order under this section.

(2) On an application under subsection (1), the Tribunal, if it considers it appropriate to do so having regard to the seriousness of the offence and to the public interest, may make either or both of the following orders:

(b) if the practitioner is convicted of the offence – 28 days after the day of the conviction; or

(4) The Tribunal, on application by any party, may vary or revoke an order under this section at any time.

"relevant offence" means a serious offence or an offence that would have to be disclosed under the admission rules in relation to an application for admission to the legal profession under this Act.

212. Statutory condition regarding notice of offence

(1) It is a statutory condition of registration as a foreign lawyer that the lawyer:

(i) convicted of an offence that would have to be disclosed in relation to an application for registration as a foreign lawyer under this Act; or

(b) the person to whom or the address to which the notice is to be sent or delivered.

213. Conditions imposed by legal profession rules

(a) impose conditions on the registration of foreign lawyers or any class of foreign lawyers; or

(b) authorise conditions to be imposed on the registration of foreign lawyers or any class of foreign lawyers.

214. Compliance with conditions

A locally-registered foreign lawyer must not contravene a condition to which the registration is subject.

215. Extent of entitlement of interstate-registered foreign lawyer to practise in this jurisdiction

(1) This Part does not authorise an interstate-registered foreign lawyer to practise foreign law in this jurisdiction to a greater extent than a locally-registered foreign lawyer could be authorised under a local registration certificate.

(2) Also, an interstate-registered foreign lawyer's right to practise foreign law in this jurisdiction:

(ii) any conditions imposed by or under the legal profession rules as referred to in that section; and

(b) is, to the greatest practicable extent and with all necessary modifications:

(i) the same as the interstate-registered foreign lawyer's right to practise foreign law in the lawyer's home jurisdiction; and

(ii) subject to any condition on the interstate-registered foreign lawyer's right to practise foreign law in that jurisdiction.

(4) An interstate-registered foreign lawyer must not practise foreign law in this jurisdiction in a way not authorised by this Act or in contravention of any condition referred to in this section.

216. Additional conditions on practice of interstate-registered foreign lawyers

(1) The Law Society may, by written notice to an interstate-registered foreign lawyer practising foreign law in this jurisdiction, impose any condition on the interstate-registered foreign lawyer's practice that it may impose under this Act in relation to a locally-registered foreign lawyer.

(2) Also, an interstate-registered foreign lawyer's right to practise foreign law in this jurisdiction is subject to any condition imposed by or under an applicable legal profession rule.

(3) Conditions imposed under or referred to in this section must not be more onerous than conditions applying to locally-registered foreign lawyers in the same or similar circumstances.

(4) A notice under this section must include an information notice for the decision to impose a condition.

217. Consideration and investigation of applicants and locally-registered foreign lawyers

(1) To help it consider whether or not to grant, renew, suspend or cancel registration under this Part, or impose conditions on a person's registration under this Part, the Law Society may, by notice to the applicant or locally-registered foreign lawyer, require the applicant or lawyer:

(2) A failure to comply with the notice by the date specified in the notice and in the way required by the notice is a ground for making an adverse decision in relation to the action being considered by the Society.

218. Register of locally-registered foreign lawyers

(1) The Law Society must keep a register of the names of locally-registered foreign lawyers.

(a) specify the conditions (if any) imposed on a foreign lawyer's registration; and

(4) The register must be available for inspection, without charge, at the Society's office during normal business hours.

219. Publication of information about locally-registered foreign lawyers

The Law Society may publish, in circumstances that it considers appropriate, the names of persons registered by it as foreign lawyers under this Part and any relevant particulars concerning those persons.

220. Supreme Court orders about conditions

(1) The Law Society may apply to the Supreme Court for an order or injunction that an Australian-registered foreign lawyer not contravene a condition imposed under this Part.

(3) On hearing the application, the Court may make the order it considers appropriate.

221. Exemption by Law Society

(1) The Law Society may exempt an Australian-registered foreign lawyer or class of Australian-registered foreign lawyers from compliance with:

(b) a specified rule or part of a rule that would otherwise apply to the foreign lawyer or class of foreign lawyers.

(2) An exemption may be granted unconditionally or subject to conditions specified in writing.

(3) The Society may revoke or vary any conditions imposed under this section or impose new conditions.

222. Membership of professional association

An Australian-registered foreign lawyer is not required to join (but may, if eligible, join) any professional association.

223. Refund of fees

(1) The regulations may provide for the refund of a portion of a fee paid in relation to registration as a foreign lawyer if it is suspended or cancelled during its currency.

(b) the amount of the refund or the way in which the amount of the refund must be decided.

224. Appeals

(1) An aggrieved person may appeal to the Supreme Court against any of the following decisions of the Law Society:

(a) a decision under section 190, 192 or 201 to refuse to grant or renew the registration of a person as a foreign lawyer;

(b) a decision under section 190 to impose a condition on the registration of a person as a foreign lawyer;

(c) a decision under section 216 to impose a condition on an interstate-registered foreign lawyer's practice in this jurisdiction;

(d) a decision under section 202 that the person is not entitled to apply for registration under this Part for a specified period;

(e) a decision under section 195, 201 or 204 to amend, suspend or cancel a person's registration as a foreign lawyer.

(b) the locally-registered foreign lawyer or interstate-registered foreign lawyer concerned.

(3) The appeal must be started by filing a notice of appeal within 28 days after receiving the information notice for the decision.

(5) On hearing the appeal, the Court may make the order it considers appropriate.

(6) Except to the extent (if any) that may be ordered by the Court, the filing of an appeal does not stay the effect of the refusal, amendment, suspension or cancellation appealed against.

225. Purpose of Part

The purpose of this Part is to facilitate the provision of legal services by non-profit bodies corporate for community purposes.

226. Definitions

"engage" means to use the services of, whether or not for reward or remuneration;

227. Complying community legal centre

(a) it is funded or expected to be funded to a significant level by donations or grants from government, charitable or other organisations; and

(b) it holds itself out as providing legal services mentioned in paragraph (c), whether or not they are the only services it provides; and

(i) to persons or organisations lacking the financial means to obtain privately funded legal services; or

(ii) to persons or organisations in relation to a legal matter that is expected to raise issues of public interest or to be of general concern to disadvantaged groups in the community; or

(iii) to persons or organisations having a special need because of their location or the nature of the legal matter; or

(d) it employs, or under an approval given under section 229, temporarily engages, a qualified legal practitioner who is responsible for the provision of the legal services (the "supervising legal practitioner"); and

(e) it has given the Society the information and fee prescribed by the regulations.

228. Qualifications of supervising legal practitioner

(1) A legal practitioner is qualified as the supervising legal practitioner of a complying community legal centre if the practitioner is an Australian legal practitioner who holds an unrestricted practising certificate.

(2) A complying community legal centre is not prevented from employing or temporarily engaging as the supervising legal practitioner a person who:

229. Temporary engagement of supervising legal practitioner

(1) A complying community legal centre may apply to the Law Society for approval to temporarily engage the legal practitioner named in the application to be the centre's supervising legal practitioner.

(a) the practitioner is an Australian legal practitioner who holds an unrestricted practising certificate; and

(b) it is not practicable for the centre to employ a supervising legal practitioner; and

(d) the benefits of the temporary engagement to the centre's clients or potential clients will outweigh the disadvantage that would be caused to the clients if the centre were unable to provide legal services.

(4) The centre may apply to the Society for further approvals under this section.

(5) If the Society refuses to give an approval under this section it must, as soon as practicable:

(7) The Supervisor may revoke the decision and approve the application only if satisfied it is in the public interest to do so.

(8) If the Supervisor revokes the decision and approves the application, the Supervisor must:

230. Notice of change in supervising legal practitioner

(1) A complying community legal centre must give written notice to the Law Society of the name of, and of any change in, the supervising legal practitioner employed or engaged by it.

231. Application of Parts 3.1, 3.4, 3.5 and Chapters 5, 6 and 9

(1) Subject to subsection (2) and the regulations, Parts 3.1, 3.4 and 3.5 and Chapters 5, 6 and 9 (the "applied provisions") apply (with the necessary modifications) in relation to a complying community legal centre as if:

(a) a reference in the applied provisions to a law practice were a reference to a complying community legal centre; and

(b) the supervising legal practitioner of the centre were the principal of the practice.

(2) In addition, a complying community legal centre must not operate a trust account under Part 3.1 unless the centre's supervising legal practitioner is a signatory to the account.

(3) For subsection (1), the following provisions also apply in relation to the application of the applied provisions:

232. Provision of legal services

(1) A complying community legal centre does not contravene this Act merely because:

(a) it employs, or otherwise uses the services of, Australian legal practitioners to provide legal services to members of the public; or

(b) it has a contractual relationship with a member of the public to whom the legal services are provided or receives any fee, gain or reward for providing the legal services; or

(c) it shares with an Australian legal practitioner employed or otherwise used by it to provide the legal services receipts, revenue or other income arising from the business of the centre of a kind usually conducted by an Australian legal practitioner; or

(d) it adopts or uses the word "legal" or a name, title or description to which section 20 applies (or a related term) in its name or any registered business name under which it provides legal services to members of the public.

(a) the application (with any modifications prescribed by the regulations) of a provision of this Act to a complying community legal centre; and

(4) The regulations may provide that a breach of the regulations is capable of being unsatisfactory professional conduct or professional misconduct by an Australian legal practitioner responsible for the breach.

(5) A provision of the legal profession rules that applies to an Australian legal practitioner also applies to an Australian legal practitioner who is an officer or employee of, or whose services are used by, a complying community legal centre, unless the rules otherwise provide.

233. Entitlement to costs in proceedings

(1) For the making or enforcement of an order for costs, or deciding an entitlement to costs, in a proceeding before a court or tribunal to which an assisted person is a party, the person is taken to be liable to pay:

(a) the ordinary professional costs of the legal services provided to the person or in connection with the proceeding; and

(b) disbursements and out-of-pocket expenses incurred in connection with the provision of the services.

"assisted person" means a person to whom legal services are provided by a complying community legal centre.

234. Purposes of Part

(a) to ensure trust money is held by law practices in a way that protects the interests of persons for whom money is held, both inside and outside this jurisdiction;

(b) to minimise compliance requirements for law practices that provide legal services within and outside this jurisdiction;

(c) to ensure the Law Society can work effectively with corresponding authorities in other jurisdictions in relation to the regulation of trust money and trust accounts.

235. Interpretation

"approved trust account" means a trust account approved under section 278 by the Law Society;

"controlled money" means money received or held by a law practice in respect of which the practice has a written direction to deposit the money in an account (other than a general trust account) over which the practice has or will have exclusive control;

"controlled money account" means an account maintained by a law practice with an ADI for the holding of controlled money received by the practice;

"external examination" means an external examination under Division 3, Subdivision 2 of a law practice's trust records;

"external examiner" means a person holding an appointment as an external examiner under Division 3, Subdivision 2;

"general trust account" means an approved trust account maintained by a law practice for the holding of trust money received by the practice, other than controlled money or transit money;

"investigation" means an investigation under Division 3, Subdivision 1 of the affairs of a law practice;

"investigator" means a person holding an appointment as an investigator under Division 3, Subdivision 1;

"permanent form", in relation to a trust record, means printed or, on request, capable of being printed, in English on paper or other material;

"transit money" means money received by a law practice subject to instructions to pay or deliver it to a third party, other than an associate of the practice;

"trust account" means an account maintained by a law practice with an approved ADI to hold trust money;

"trust money" means money entrusted to a law practice in the course of or in connection with the provision of legal services by the practice, and includes:

(a) money received by the practice on account of legal costs in advance of providing the services; and

(d) money received by the practice, that is the subject of a power, exercisable by the practice or an associate of the practice, to deal with the money for or on behalf of another person;

(o) written directions, authorities or other documents required to be kept under this Act;

(p) supporting information required to be kept under the regulations in relation to powers to deal with trust money.

(2) A reference in this Part to a law practice's trust account or trust records includes a reference to an associate's trust account or trust records.

(3) A reference in this Part to a power given to a law practice or an associate of the practice to deal with money for or on behalf of another person is a reference to a power given to the practice or associate that is exercisable by:

(b) an associate of the practice alone (otherwise than in a private and personal capacity); or

(c) the practice or an associate of the practice jointly or severally, or jointly and severally, with either or both of the following:

(ii) the person, or one or more nominees of the person, for whom or on whose behalf the money may or is to be dealt with under the power.

236. Money involved in financial services or investments

(1) Money that is entrusted to or held by a law practice for or in connection with the following is not trust money for this Act:

(a) a financial service provided by the practice or an associate of the practice in circumstances where the practice or associate is required to hold an Australian financial services licence covering the provision of the service (whether or not such a licence is held at any relevant time);

(b) a financial service provided by the practice or an associate of the practice in circumstances where the practice or associate provides the service as a representative of another person who carries on a financial services business (whether or not the practice or associate is an authorised representative at any relevant time).

(2) Without limiting subsection (1), money that is entrusted to or held by a law practice for or in connection with a managed investment scheme, or mortgage financing, undertaken by the practice is not trust money for this Act.

(3) Without limiting subsections (1) and (2), money that is entrusted to or held by a law practice for investment purposes, whether on its own account or as agent, is not trust money for this Act, unless:

(ii) primarily in connection with the provision of legal services to or at the direction of the client; and

(ii) for the ancillary purpose of maintaining or enhancing the value of the money or property pending completion of the matter or further stages of the matter or pending payment or delivery of the money or property to or at the direction of the client.

237. Determinations about status of money

(1) This section applies to money received by a law practice if the Law Society considers there is doubt or a dispute as to whether the money is trust money.

(4) While a determination under this section is in force that money is trust money, the money is taken to be trust money for this Act.

(5) While a determination under this section is in force that money is not trust money, the money is taken not to be trust money for this Act.

(6) This section has effect subject to a decision of a court made in relation to the money concerned.

238. Application of Part to law practices and trust money

(1) This Part applies to the following law practices in respect of trust money received by them in this jurisdiction:

(a) a law practice that has an office in this jurisdiction, whether or not the practice has an office in another jurisdiction;

(2) This Part applies to the following law practices in respect of trust money received by them in another jurisdiction:

(a) a law practice that has an office in this jurisdiction and in no other jurisdiction;

(b) a law practice that has an office in this jurisdiction and in one or more other jurisdictions but not in the jurisdiction in which the trust money was received, unless the money is dealt with under the corresponding law of another jurisdiction.

(b) prescribed law practices or classes of law practices in prescribed circumstances; or

(4) A reference in this section to having an office in a jurisdiction is a reference to having, or engaging in legal practice from, an office or business address in the jurisdiction.

239. Trust money protocols

(1) The Law Society may enter into arrangements ("trust money protocols") with corresponding authorities about any or all of the following:

(b) sharing information about whether, and (if so) how, trust money is being dealt with under this Act or a corresponding law.

(2) For this Act, to the extent a trust money protocol is relevant, the jurisdiction where a law practice receives trust money must be decided in accordance with the protocol.

(3) The Society may enter into arrangements that amend, revoke or replace a trust money protocol.

(4) A trust money protocol does not have effect in this jurisdiction unless it is embodied or identified in the regulations.

240. When money is received

(b) the practice obtains possession or control of it indirectly as a result of its delivery to an associate of the practice; or

(c) the practice, or an associate of the practice (otherwise than in a private and personal capacity), is given a power to deal with the money for or on behalf of another person.

(2) For this Act, a law practice or associate is taken to have received money if the money is available to the practice or associate by means of an instrument or another way of authorising an ADI to credit or debit an amount to an account with the ADI, including, for example, an electronic funds transfer, credit card transaction or telegraphic transfer.

241. Discharge by legal practitioner associate of obligations of law practice

(1) The following actions, if taken by a legal practitioner associate of a law practice on behalf of the practice in relation to trust money received by the practice, discharge the corresponding obligations of the practice in relation to the money:

(2) If the legal practitioner associate maintains a trust account in relation to trust money received by the law practice, the provisions of this Part and the regulations made for this Part apply to the associate in the same way as they apply to a law practice.

(3) Subsection (1) does not apply to the extent the associate is prevented by the regulations from taking any action referred to in that subsection.

242. Liability of principals of law practice

(1) A provision of this Part or the regulations made for this Part expressed as imposing an obligation on a law practice imposes the same obligation on the principals of the law practice jointly and severally, but discharge of the practice's obligation also discharges the corresponding obligation imposed on the principals.

(2) References in this Part or the regulations made for this Part to a law practice include references to the principals of the law practice.

243. Former practices, principals and associates

This Part applies in relation to former law practices and former principals and associates of law practices in relation to conduct occurring while they were respectively law practices, principals and associates in the same way as it applies to law practices, principals and associates, and so applies with any necessary modifications.

244. Barristers receiving money on behalf of other persons

(1) A barrister must not, in the course of practising as a barrister, receive money on behalf of another person unless authorised under this section.

(3) For subsection (2), the regulations may apply to barristers any of the provisions of this Part or make other provision relating to the matter.

245. Maintenance of general trust account

(1) A law practice that receives trust money to which this Part applies must maintain a general trust account in this jurisdiction.

(2) A law practice that is required to maintain a general trust account in this jurisdiction must establish and maintain the account under the regulations.

(3) Subsection (1) does not apply to a law practice in respect of any period during which the practice receives or holds only either or both of the following:

(4) If a law practice that is an Australian legal practitioner who is a sole practitioner, or an incorporated legal practice, contravenes subsection (1) or (2), the practitioner or practice is guilty of an offence.

(5) If a law practice that is a law firm or multi-disciplinary partnership contravenes subsection (1) or (2), each principal of the practice is guilty of an offence.

(7) Subject to any requirements of the regulations, a requirement of this section for a law practice to maintain, or establish and maintain, a general trust account in this jurisdiction does not prevent the practice from maintaining, or establishing and maintaining, more than one general trust account in this jurisdiction, whether during the same or different periods.

(8) Without limiting the other provisions of this section, the regulations may provide that a law practice must not close a general trust account except as permitted by the regulations, either generally or in any circumstances prescribed by the regulations.

246. Certain trust money to be deposited in general trust account

(1) As soon as practicable after receiving trust money, a law practice must deposit the money in a general trust account of the practice.

(a) the practice has a written direction by an appropriate person to deal with it otherwise than by depositing it in the account; or

(d) the money is the subject of a power given to the practice or an associate of the practice to deal with the money for or on behalf of another person.

(3) A law practice that has received money that is the subject of a written direction mentioned in subsection (2)(a) must deal with the money in accordance with the direction:

(4) The law practice must keep a written direction mentioned in subsection (2)(a) for the period prescribed by the regulations.

(5) If a law practice that is an Australian legal practitioner who is a sole practitioner, or an incorporated legal practice, contravenes subsection (1), (3) or (4), the practitioner or practice is guilty of an offence.

(6) If a law practice that is a law firm or multi-disciplinary partnership contravenes subsection (1), (3) or (4), each principal of the practice is guilty of an offence.

(8) A person is an appropriate person for this section if the person is legally entitled to give the law practice directions in respect of dealings with the trust money.

247. Holding, disbursing and accounting for trust money

(a) hold trust money deposited in a general trust account of the practice exclusively for the person on whose behalf it is received; and

(b) disburse the trust money only in accordance with a direction given by the person.

(2) Subsection (1) applies subject to an order of a court of competent jurisdiction or as authorised by law.

(3) The law practice must account for the trust money as required by the regulations.

(4) If a law practice that is an Australian legal practitioner who is a sole practitioner, or an incorporated legal practice, contravenes subsection (1) or (3), the practitioner or practice is guilty of an offence.

(5) If a law practice that is a law firm or multi-disciplinary partnership contravenes subsection (1) or (3), each principal of the practice is guilty of an offence.

248. Controlled money

(1) As soon as practicable after receiving controlled money, a law practice must deposit the money in the account specified in the written direction relating to the money.

(2) The law practice must hold controlled money deposited in a controlled money account under subsection (1) exclusively for the person on whose behalf it was received.

(3) The law practice must not disburse the controlled money deposited in a controlled money account under subsection (1) except in accordance with:

(b) a later written direction given by or on behalf of the person on whose behalf the money was received.

(4) The law practice must maintain the controlled money account, and account for the controlled money, as required by the regulations.

(5) The law practice must keep a written direction mentioned in this section for the period prescribed by the regulations.

(6) The law practice must ensure the controlled money account is used for the deposit of controlled money received on behalf of the person referred to in subsection (2), and not for the deposit of controlled money received on behalf of any other person, except to the extent the regulations otherwise permit.

(7) Subsection (3) applies subject to an order of a court of competent jurisdiction or as authorised by law.

(8) If a law practice that is an Australian legal practitioner who is a sole practitioner, or an incorporated legal practice, contravenes subsection (1), (2), (3), (4), (5) or (6), the practitioner or practice is guilty of an offence.

(9) If a law practice that is a law firm or multi-disciplinary partnership contravenes subsection (1), (2), (3), (4), (5) or (6), each principal of the practice is guilty of an offence.

(10) An offence against subsection (8) or (9) is an offence of strict liability.

249. Transit money

(1) A law practice that has received transit money must pay or deliver the money as required by the instructions relating to the money:

(3) Subsections (1) and (2) do not apply to trust money if section 251 applies to the money.

(5) If a law practice that is a law firm or multi-disciplinary partnership contravenes subsection (1) or (2), each principal of the practice is guilty of an offence.

250. Trust money subject to specific powers

(1) A law practice must ensure trust money that is the subject of a power given to the practice or an associate of the practice is dealt with by the practice or associate only in accordance with the power relating to the money.

(2) The law practice must account for the money in the way prescribed by the regulations.

(3) Subsections (1) and (2) do not apply to trust money if section 251 applies to the money.

(5) If a law practice that is a law firm or multi-disciplinary partnership contravenes subsection (1) or (2), each principal of the practice is guilty of an offence.

251. Trust money received in form of cash

(1) A law practice must deposit general trust money received in the form of cash in a general trust account of the practice.

(2) If the law practice has a written direction by an appropriate person to deal with general trust money received in the form of cash otherwise than by first depositing it in a general trust account of the practice:

(a) the practice must nevertheless deposit the money in a general trust account of the practice under subsection (1); and

(b) afterwards, the practice must deal with the money in accordance with any applicable terms of the direction so far as those terms are not inconsistent with paragraph (a).

(3) A law practice must deposit controlled money received in the form of cash in a controlled money account under section 248.

(4) A law practice must deposit transit money received in the form of cash in a general trust account of the law practice concerned before the money is otherwise dealt with in accordance with the instructions relating to the money.

(5) A law practice must deposit trust money that is received in the form of cash and is the subject of a power in a general trust account (or a controlled money account in the case of controlled money) of the practice before the money is otherwise dealt with in accordance with the power.

(6) This section has effect despite anything to the contrary in any relevant direction, instruction or power.

(7) If a law practice that is an Australian legal practitioner who is a sole practitioner, or an incorporated legal practice, contravenes subsection (1), (2), (3), (4) or (5), the practitioner or practice is guilty of an offence.

(8) If a law practice that is a law firm or multi-disciplinary partnership contravenes subsection (1), (2), (3), (4) or (5), each principal of the practice is guilty of an offence.

"appropriate person", in relation to trust money, means a person who is legally entitled to give the law practice concerned directions in respect of dealings with the money;

252. Protection of trust money

(1) Money standing to the credit of a trust account maintained by a law practice is not available for the payment of debts of the practice or any of its associates.

(2) Money standing to the credit of a trust account maintained by a law practice is not liable to be attached or taken in execution for satisfying a judgment against the practice or any of its associates.

(3) This section does not apply to money to which a law practice or associate is entitled.

253. Intermixing money

(2) Subsection (1) does not apply in relation to the mixing of trust money with other money if:

(a) the Law Society has authorised the mixing of the trust money with other money to the extent to which it is mixed; and

(b) the law practice has complied with any conditions imposed on the authorisation by the Society.

(3) If a law practice that is an Australian legal practitioner who is a sole practitioner, or an incorporated legal practice, contravenes subsection (1), the practitioner or practice is guilty of an offence.

(4) If a law practice that is a law firm or multi-disciplinary partnership contravenes subsection (1), each principal of the practice is guilty of an offence.

254. Dealing with trust money – legal costs and unclaimed money

(1) A law practice may do any of the following, in relation to trust money held in a general trust account or controlled money account of the practice for a person:

(a) exercise a lien, including a general retaining lien, for the amount of legal costs reasonably due and owing by the person to the practice;

(b) withdraw money for payment to the practice's account for legal costs owing to the practice if the relevant procedures or requirements prescribed by this Act are complied with;

(c) after deducting any legal costs properly owing to the practice, deal with the balance as an unclaimed amount under section 259.

(2) Subsection (1) applies despite any other provision of this Part but has effect subject to Part 3.3.

255. Deficiency in trust account

(1) An Australian legal practitioner is guilty of an offence if the practitioner causes:

(2) It is a defence to a prosecution for an offence against subsection (1) if the practitioner has a reasonable excuse.

"account", in relation to an Australian legal practitioner, includes an account of the practitioner or of the law practice of which the practitioner is an associate;

"deficiency" in a trust account or trust ledger account includes the
non-inclusion or exclusion of the whole or any part of an amount that is required to be included in the account.

256. Reporting certain irregularities and suspected irregularities

(b) the practitioner becomes aware that there is an irregularity in any of the practice's trust accounts or trust ledger accounts; and

(c) the practitioner fails, as soon as practicable after becoming aware of the irregularity, to give written notice of the irregularity to:

(ii) if a corresponding authority is responsible for the regulation of the accounts concerned – the corresponding authority.

(a) the practitioner believes on reasonable grounds that there is an irregularity in relation to the receipt, recording or disbursement of any trust money received by a law practice; and

(ii) if a corresponding authority is responsible for the regulation of the accounts relating to the trust money concerned – the corresponding authority.

(3) The validity of a requirement imposed on an Australian legal practitioner under subsection (1) or (2) is not affected, and the practitioner is not excused from complying with subsection (1) or (2), on the ground that giving the notice may tend to incriminate the practitioner.

(4) An Australian legal practitioner is not liable for any loss or damage suffered by another person as a result of the practitioner's compliance with subsection (1) or (2).

257. Keeping trust records

(1) A law practice must keep in permanent form trust records in relation to trust money received by the practice.

(b) in a way that at all times discloses the true position in relation to trust money received for or on behalf of any person; and

(3) If a law practice that is an Australian legal practitioner who is a sole practitioner, or an incorporated legal practice, contravenes subsection (1) or (2), the practitioner or practice is guilty of an offence.

(4) If a law practice that is a law firm or multi-disciplinary partnership contravenes subsection (1) or (2), each principal of the practice is guilty of an offence.

258. False names

(1) A law practice must not knowingly receive money or record receipt of money in the practice's trust records under a false name.

(2) If a person on whose behalf trust money is received by a law practice is commonly known by more than one name, the practice must ensure the practice's trust records record all names by which the person is known.

(4) If a law practice that is a law firm or multi-disciplinary partnership contravenes subsection (1) or (2), each principal of the practice is guilty of an offence.

259. Unclaimed trust money

(1) If an amount of trust money held by a law practice has become an unclaimed amount, the practice must:

(a) within one month after the amount becomes an unclaimed amount, pay the amount to the Funds Management Committee; and

(b) within 7 days after payment, give the Committee the information the Committee requires in relation to the amount and the person on whose behalf the amount was held by the practice.

(a) the amount has been held by the practice for a period of at least 2 years and during that period the practice has had no knowledge of the existence or the address of the person on whose behalf the amount is held; or

(4) If a law practice that is a law firm or multi-disciplinary partnership contravenes subsection (1), each principal of the practice is guilty of an offence.

(5) On payment of the amount to the Committee under subsection (1), the practice is relieved from any further liability in relation to the unclaimed amount.

260. When Funds Management Committee may pay unclaimed amount

(1) A person who claims to be entitled to an amount paid to the Funds Management Committee under section 259(1) may apply to the Committee for payment of the amount.

(2) Also, the Committee may, with the written approval of the Statutory Supervisor, use any unclaimed amount to find any person entitled to it.

(3) Payment of an unclaimed amount to a person who has satisfied the Committee as to the person's entitlement to it:

(a) discharges the Territory and the Committee from any liability in relation to the amount; and

(b) does not discharge the person from any liability to another person who establishes a right to the amount.

(4) The Committee may require any person to give information the person has, or can obtain, about:

(a) the entitlement of another person to an unclaimed amount paid to the Committee under this section; and

(b) in purported compliance with the requirement, gives information to the Committee knowing the information:

(ii) omits anything without which the information is misleading in a material particular.

(6) If the Committee refuses an application made under subsection (1), the Committee must give the applicant an information notice for the decision.

261. Appeal against decision to refuse claim for unclaimed amount

(1) A person who is dissatisfied with a decision of the Funds Management Committee to refuse the person's application under section 260(1) may appeal to the Supreme Court against the decision.

(2) The appeal must be started by filing notice of appeal within 28 days after receiving the information notice.

(4) If the Court is satisfied the person is entitled to the amount claimed or part of it, it must make an order declaring the person to be so entitled.

(5) On receipt by the Committee of an office copy of an order under subsection (4), the Committee must pay the person the amount specified in the order out of the Fidelity Fund.

262. Appointment of investigators

(1) The Law Society may appoint a suitably qualified person to investigate the affairs or specified affairs of a law practice.

(2) The appointment may be made generally or for the law practice specified in the instrument of appointment.

263. Investigations

(1) The instrument of appointment may authorise the investigator to conduct either or both of the following:

(b) investigations in relation to particular allegations or suspicions regarding trust money, trust property, trust accounts or any other aspect of the affairs of a law practice.

(a) to ascertain whether the law practice has complied with or is complying with the requirements of this Part and the regulations under this Part; and

(3) However, subsection (2) does not limit the scope of the investigation or the powers of the investigator.

264. Application of Chapter 6

265. Investigator's report

As soon as practicable after completing the investigation, the investigator must give a written report of the investigation to the Law Society.

266. Confidentiality by investigator

(a) discloses information in an investigator's report or acquired in carrying out an investigation ("protected information") to someone else; or

(b) does something that discloses protected information to someone else and is reckless about whether:

(b) necessary for properly conducting the investigation and making the report of the investigation; or

267. When costs of investigation are debt

(a) an investigator specifies in a report of an investigation there is evidence that a breach of this Act has been committed or that fraud or defalcation has been committed; and

(b) the Law Society is satisfied the breach is intentional or of a substantial nature.

(2) The Society may decide that the whole or part of the costs of carrying out the investigation is payable to the Society and may specify the amount payable.

(3) The amount specified is a debt owing to the Society by the law practice whose affairs are under investigation.

(4) The Society must, before seeking to recover the amount payable, give the law practice an information notice for the Society's decision and the amount specified as being payable.

268. Designation of external examiners

(1) The Law Society may, in writing, designate persons ("designated persons") as being eligible to be appointed as external examiners.

(3) A person appointed as an external examiner may, with the Society's approval, appoint an assistant.

269. Designation and appointment of associates as external examiners

(1) The Law Society may designate an associate of a law practice under this Subdivision only if the Society is satisfied it is appropriate to do so.

(2) However, an associate of a law practice cannot be appointed as an external examiner under this Subdivision to examine the practice's trust records.

270. Trust records to be externally examined

(1) A law practice must, at least once in each financial year, have its trust records externally examined by an external examiner appointed under the regulations.

(2) If a law practice that is an Australian legal practitioner who is a sole practitioner, or an incorporated legal practice, contravenes subsection (1), the practitioner or practice is guilty of an offence.

(3) If a law practice that is a law firm or multi-disciplinary partnership contravenes subsection (1), each principal of the practice is guilty of an offence.

(4) The Law Society may appoint an external examiner to examine a law practice's trust records if the Society is not satisfied:

(a) the law practice has had its trust records externally examined as required by this section; or

(b) an external examination of the practice's trust records has been carried out under the regulations.

(5) Without limiting section 287, this section has effect subject to any exemptions provided by or given under the regulations from the requirement to have trust records examined as otherwise required by this section.

271. Final examination of trust records

(2) The law practice must appoint an external examiner to examine the practice's trust records:

(a) in relation to the period since an external examination was last conducted; and

(b) afterwards, in relation to each period comprising a completed period of 12 months or any remaining partly completed period, during which the practice continued to hold trust money.

(a) a report of each examination under subsection (2) within 60 days after the end of the period to which the examination relates; and

(b) a statutory declaration in the approved form within 60 days after ceasing to hold trust money.

(4) The law practice must ensure that, within 12 months after the law practice ceases to be authorised to receive trust money or ceases to engage in legal practice in this jurisdiction:

(a) any general trust account maintained by the law practice in this jurisdiction is closed; and

(b) trust money held in any such account is dealt with as required by this Act (such as by being disbursed in accordance with a direction given by the person on whose behalf it was received).

(5) If a law practice that is an Australian legal practitioner who is a sole practitioner, or an incorporated legal practice, contravenes subsection (2) or (4), the practitioner or practice is guilty of an offence.

(6) If a law practice that is a law firm or multi-disciplinary partnership contravenes subsection (2) or (4), each principal of the practice is guilty of an offence.

(7) If a law practice that is an Australian legal practitioner who is a sole practitioner, or an incorporated legal practice, contravenes subsection (3), the practitioner or practice is guilty of an offence.

(8) If a law practice that is a law firm or multi-disciplinary partnership contravenes subsection (3), each principal of the practice is guilty of an offence.

(9) If an Australian legal practitioner dies, the practitioner's legal personal representative must comply with this section as if the representative were the practitioner.

272. Examination of affairs in connection with examination of trust records

(1) An external examiner appointed to examine a law practice's trust records may examine the affairs of the practice for and in connection with an examination of the trust records.

(2) If the law practice is an incorporated legal practice or
multi-disciplinary partnership, the reference in subsection (1) to the affairs of the law practice extends to the affairs of the incorporated legal practice or
multi-disciplinary partnership or of an associate, so far as they are relevant to trust money, trust records and associated matters.

(3) A reference in this Subdivision and Chapter 6 to trust records includes a reference to the affairs of a law practice that may be examined under this section for and in connection with an examination of the practice's trust records.

273. Carrying out examination

(2) Subject to Chapter 5, an external examination of trust records must be carried out in accordance with the regulations.

(3) Without limiting subsection (2), the regulations may provide for any of the following:

(a) the standards to be adopted and the procedures to be followed by external examiners;

274. External examiner's report

As soon as practicable after completing an external examination, an external examiner must give a written report of the examination to the Law Society.

275. Confidentiality of external examiner

(a) discloses information in an examiner's report or acquired in carrying out an examination ("protected information") to someone else; or

(b) does something that discloses protected information to someone else and is reckless about whether:

(a) necessary for properly conducting the examination and making the report of the examination; or

(b) to an investigator or supervisor, manager or receiver appointed under this Act; or

(c) if the law practice is an incorporated law practice – to a receiver, receiver and manager, liquidator (including a provisional liquidator), controller, administrator or deed of administrator appointed for the practice under the Corporations Act; or

276. Law practice liable for costs of examination

(1) A law practice whose trust accounts have been externally examined must pay the costs of the examination.

(2) If the Law Society appointed the external examiner to carry out the examination, the Society may specify the amount payable as the costs of the examination and the specified amount is a debt payable to it by the law practice.

(3) The Society must, before seeking to recover the amount payable, give the law practice an information notice for the Society's decision and the amount specified as being payable.

277. Appeals

(1) A law practice may appeal to the Supreme Court against a decision of the Law Society:

(a) under section 267 as to the amount of the costs of carrying out an investigation payable by the law practice; or

(b) under section 276 as to the amount of the costs of the examination and payable by the law practice .

(2) The appeal must be started by filing notice of appeal within 28 days after receiving the information notice.

(4) On hearing the appeal, the Court may make the order it considers appropriate.

278. Approval of ADIs and general trust accounts

(2) The Society may approve trust accounts only if the interest paid on the accounts is at or above:

(b) if a rate is not decided under paragraph (a) – the rate agreed between the ADI and the Society.

(3) The Society may impose conditions of the kind prescribed by the regulations on an approval under this section when the approval is given or during the currency of the approval.

279. ADI not subject to certain obligations and liabilities

(1) An ADI at which a trust account is maintained by a law practice must pay interest on the account to the Funds Management Committee.

(a) is not under any obligation to control or supervise transactions in relation to the account or to see to the application of money disbursed from the account; and

(b) does not have, in relation to any liability of the law practice to the ADI, any recourse or right (whether by way of set-off counterclaim, charge or otherwise) against money in the account.

(3) Subsection (2) does not relieve an ADI from any liability to which it is subject apart from this Act.

280. Reports, records and information

(c) the ADI fails to report the deficiency to the Law Society as soon as practicable after becoming aware of the deficiency.

(b) the ADI has reason to believe that an offence has been committed in relation to the account; and

(3) An ADI must give the Law Society a report about a trust account in accordance with the regulations.

(b) an investigator or external examiner produces to the ADI evidence of the appointment of the investigator or external examiner in relation to the law practice; and

(i) to produce for inspection or copying by the investigator or external examiner any records relating to the trust account or trust money deposited in the trust account; or

(ii) to give the investigator or external examiner full details of any transactions relating to the trust account or trust money; and

(6) Subsections (1) to (4) apply despite any law or duty of confidence to the contrary.

(7) An ADI or an officer or employee of an ADI is not liable to any action for any loss or damage suffered by another person as a result of:

281. Statutory deposits

(1) The regulations may require a law practice to pay amounts out of a general trust account of the practice into an ADI account maintained by the entity prescribed by the regulations (the "statutory deposit holder").

(2) Without limiting subsection (1), the regulations may provide for any of the following:

(3) For subsection (2)(c), the regulations may require the ADI to pay interest to the statutory deposit holder.

282. Status and repayment of deposited money

(1) Money paid under section 281 into an ADI account maintained by the statutory deposit holder:

(a) is held by the statutory deposit holder in trust for the law practice depositing the money; and

(3) Until repaid, money deposited under section 281 may be invested by the statutory deposit holder under Part I of the Trustee Act as if the money were trust funds.

283. Restrictions on receipt of trust money

(1) A law practice (other than an incorporated legal practice) must not receive trust money unless a principal holds an Australian practising certificate authorising the receipt of trust money.

(2) If a law practice that is an Australian legal practitioner who is a sole practitioner contravenes subsection (1), the practitioner is guilty of an offence.

(3) If a law practice that is a law firm or multi-disciplinary partnership contravenes subsection (1), each principal of the practice is guilty of an offence.

(a) at least one legal practitioner director of the practice holds an Australian practising certificate authorising the receipt of trust money; or

(b) a person is holding an appointment under section 127 in relation to the practice and the person holds an Australian practising certificate authorising the receipt of trust money; or

so long as there was, immediately before the start of that period, at least one legal practitioner director of the practice who held an Australian practising certificate authorising the receipt of trust money.

(5) An offence against subsection (2), (3) or (4) is an offence of strict liability.

284. Application of Part to incorporated legal practices and
multi-disciplinary partnerships

(1) The obligations imposed on law practices by this Part, and any other provisions of this Act relating to trust money and trust accounts, apply to an incorporated legal practice or multi-disciplinary partnership only in connection with legal services provided by the practice or partnership.

(2) The regulations may provide that specified provisions of this Part, and any other provisions of this Act relating to trust money and trust accounts:

(a) do not apply to incorporated legal practices or multi-disciplinary partnerships or both; or

285. Disclosure to clients – money not received as trust money

(1) If money entrusted to a law practice is or becomes non-trust money, the practice must, in accordance with this section and the regulations, give written notice to the person who entrusted the money to the practice that:

(a) the money is not treated as trust money for this Act and is not subject to any supervision, investigation or audit requirements of this Act; and

(b) a claim against the Fidelity Fund under this Act cannot be made in relation to the money.

(a) the money was entrusted to the law practice – if the money was non-trust money when it was entrusted to the practice; or

(b) the money becomes non-trust money – if the money was trust money when it was entrusted to the practice.

(3) The regulations may make provision for or with respect to the way in which the notice must be given and the contents of it.

(4) If a law practice that is an Australian legal practitioner who is a sole practitioner, or an incorporated legal practice, contravenes subsection (1), the practitioner or practice is guilty of an offence.

(5) If a law practice that is a law firm or multi-disciplinary partnership contravenes subsection (1), each principal of the practice is guilty of an offence.

"non-trust money" means money that is not trust money for this Act because of section 236 or because of a determination under section 237.

286. Disclosure of accounts used to hold money entrusted to legal practitioners

(1) A law practice must, in accordance with the regulations, give notice to the Law Society of the details required by the regulations of each account maintained at an ADI in which the practice or any legal practitioner associate of the practice holds money entrusted to the practice or legal practitioner associate.

(2) Subsection (1) applies whether or not the money is trust money and whether or not section 236 or 237 applies to the money.

(4) If a law practice that is a law firm or multi-disciplinary partnership contravenes subsection (1), each principal of the practice is guilty of an offence.

287. Regulations

(1) The regulations may make provision for or with respect to any matter to which this Part relates, including for or with respect to the following:

(a) the establishment, maintenance and closure of general trust accounts and controlled money accounts;

(b) the way of receiving, depositing, withdrawing, making records about and otherwise dealing with and accounting for trust money;

(c) the notification to the Law Society of information relating directly or indirectly to matters to which this Part relates, including information about any of the following:

(ii) the proposed or actual termination of a law practice that holds trust money;

(iii) the proposed or actual termination of engaging in legal practice in this jurisdiction by a law practice that holds trust money;

(iv) the proposed or actual restructuring of the business of a law practice so that it no longer holds or no longer will hold trust money;

(e) providing exemptions, or providing for the giving of exemptions, from all or any specified requirements of this Part.

(2) Without limiting subsection (1)(a) and (b), the regulations may provide for any of the following:

(d) the establishment and keeping of registers of powers and estates where trust money is involved;

288. Application of Part

(1) This Part does not apply in relation to the following advertisements and publications:

(a) an advertisement or publication published by an Australian legal practitioner about making a claim or engaging an Australian legal practitioner for making a claim;

(b) an advertisement or publication made for educating people about the content of the law or their rights, liabilities and duties under the law;

(c) an advertisement or publication made for identifying people who are entitled to become parties to a class action specified in the advertisement or publication;

(e) an advertisement or publication made by the Northern Territory Legal Aid Commission in relation to the Contingency Legal Aid Fund established by section 44 of the Legal Aid Act;

(f) an advertisement or publication made for confirming the existence of a contractual relationship between an Australian legal practitioner and another entity under which the practitioner is to provide legal services for personal injury claims;

(2) In addition, this Part does not apply in relation to statements made by any of the following persons about making, or engaging an Australian legal practitioner for making, a claim:

(a) a person holding an office (whether in or outside the Territory) in the course of carrying out the functions of the office;

289. Definitions

"claim" means a claim for compensation or damages under an Act or other law for a personal injury;

"hospital" includes a nursing home, community health facility, medical centre, physiotherapist's rooms, dentist's surgery, hostel and any other premises occupied or used in relation to:

(a) receiving, examining, caring for or treating a person who is injured, sick or mentally ill; or

(b) providing a service for maintaining, improving or restoring a person's health and wellbeing;

"personal injury", see section 3 of the Personal Injuries (Liabilities and Damages) Act;

(a) a person who may be entitled to make a claim because the person suffers or may suffer a personal injury arising out of an incident; or

(b) another person who has or may be entitled to make a claim in relation to a person mentioned in paragraph (a);

(a) a bonus, commission, cash payment, deduction, discount, rebate, remission or other valuable consideration; and

290. Restriction on advertising in relation to personal injury claims

(2) Subsection (1) does not apply if an Australian legal practitioner or a person acting for an Australian legal practitioner advertises legal services for making claims for personal injuries by a complying statement.

(3) A complying statement is a statement that is published under section 291 and specifies only the following:

(iii) another legal practitioner or another legal practitioner's law practice by whom the legal practitioner or person is employed or engaged;

(b) details about any area of speciality of a legal practitioner or law practice mentioned in paragraph (a).

(4) In addition, subsection (1) does not apply if the statement is published under the legal profession rules.

291. Permitted methods of advertising

(1) A statement under section 290 must be published in one of the following ways:

(b) publication on the Internet of an electronic version of an edition of a newspaper if:

(i) the statement is reproduced as published in the hard copy edition of the newspaper; and

(c) publication on the Internet as part of the contents of a directory or database that is published or maintained independently of the legal practitioner;

(d) public exhibition of the statement in, on, over or under a building, vehicle or place or in the air in view of a person on a public place other than exhibition of the statement in or on a hospital;

(e) display of the statement on a printed document gratuitously sent or delivered to anyone or thrown or left on a vehicle or on premises occupied by anyone, other than display on a printed document gratuitously sent or delivered to a hospital, left in a hospital or left on a vehicle in the vicinity of a hospital;

(f) display of the statement on a printed document given to a person as a receipt or record for a transaction.

(2) For subsection (1)(b), an edition of a newspaper, or a directory or database published on the Internet, is published or maintained independently of a legal practitioner only if:

(a) it is not published or maintained by the legal practitioner, another legal practitioner in the same law practice as the legal practitioner or an employee employed or engaged by the legal practitioner or law practice; and

(b) it is published or maintained by a person in the ordinary course of conducting the person's business or affairs.

292. Prohibition against touting for potential claimants

(a) is at the scene of an incident, or at a hospital after an incident, at or from which another person allegedly suffers or suffered a personal injury; and

(b) solicits or induces a potential claimant involved in the incident to make a claim.

A police officer, medical practitioner, nurse, hospital worker, ambulance officer, emergency services officer or tow truck operator.

(i) obtains information about an incident at or from which a person allegedly suffered a personal injury; or

(ii) has contact with a potential claimant that substantially arises because of an incident at or from which a person allegedly suffered a personal injury; and

(b) solicits or induces a potential claimant involved in the incident to make a claim.

(3) Subsections (1) and (2) do not apply to a person (the "discloser") who discloses the name or address of another person involved in an incident to a legal practitioner if:

(a) the discloser is a client of the practitioner or a law practice of which the practitioner is a member for the purpose of making a claim or exercising a legal right arising out of the incident; and

(b) in the circumstances, it is reasonable for the discloser to think the discloser may be entitled to make a claim or exercise a legal right mentioned in paragraph (a); and

(4) Also, subsections (1) and (2) do not apply if the disclosure is not likely to result in a potential claimant involved in the incident being solicited or induced to make a claim.

(a) if the law practice is constituted by an Australian legal practitioner who is a sole practitioner – the practitioner; or

(b) if the law practice is a law firm – each partner, and each employee of the law firm, who is a legal practitioner; or

(c) if the law practice is an incorporated legal practice – each legal practitioner director and each employee of the incorporated legal practice who is a legal practitioner; or

(d) if the law practice is a multi-disciplinary partnership – each legal practitioner partner and each employee of the
multi-disciplinary partnership who is a legal practitioner.

293. Prohibition against paying or touting for potential claimants

(a) reward another person for soliciting or inducing a potential claimant to make a claim; or

(b) seek a reward for soliciting or inducing a potential claimant to make a claim.

(a) if the person is not a legal practitioner or person acting for a legal practitioner – the person advertises or advertised, in the ordinary course of conducting the person's business as an advertiser or publisher, legal services about claims; or

(b) if the person is a legal practitioner or person acting for a legal practitioner – the person charges or charged a potential claimant a fee for legal services provided to the potential claimant as part of making a claim.

294. Purposes of Part

(a) to provide for law practices to make disclosures to clients and prospective clients regarding legal costs;

(b) to regulate the making of costs agreements in relation to legal services, including conditional costs agreements;

(d) to provide a mechanism for the assessment of legal costs and the setting aside of certain costs agreements.

295. Interpretation

"conditional costs agreement" means a costs agreement that provides that the payment of some or all of the legal costs is conditional on the successful outcome of the matter to which the costs relate, as referred to in section 318, but does not include a costs agreement to the extent to which section 320(1) applies;

"costs assessor" means a person appointed as a costs assessor under section 366;

"fixed costs provisions" means a determination, scale, arrangement or other provision fixing the costs or maximum costs of any legal services that is made by or under legislation;

"itemised bill" means a bill that specifies in detail how the legal costs are made up in a way that would allow them to be assessed under Division 8;

"litigious matter" means a matter that involves, or is likely to involve, the issue of proceedings in a court or tribunal;

"lump sum bill" means a bill that describes the legal services to which it relates and specifies the total amount of the legal costs;

"public authority" means an authority or body (whether a body corporate or not) established or incorporated for a public purpose by a law of a jurisdiction or of the Commonwealth, and includes a body corporate incorporated under a law of a jurisdiction or of the Commonwealth in which a jurisdiction or the Commonwealth has a controlling interest;

"sophisticated client" means a client to whom, because of section 306(1)(c) or (d), disclosure under section 303 or 304(1) is or was not required;

"uplift fee" means additional legal costs (excluding disbursements) payable under a costs agreement on the successful outcome of the matter to which the agreement relates.

(a) for a person who was a sole practitioner when the legal services concerned were provided:

(iii) the trustee or administrator of the estate of the former sole practitioner; and

(i) the persons who were the partners of a former law firm or multi-disciplinary partnership when the legal services concerned were provided; and

(ii) for a law firm or multi-disciplinary partnership if there has been a change of partners since the legal services concerned were provided – subject to any other applicable arrangements, the firm or partnership as currently constituted; and

(iv) the receiver of a law practice or former law practice appointed under this Act; and

296. Terms relating to third party payers

(a) a person is a third party payer, in relation to a client of a law practice, if the person is not the client and:

(i) is under a legal obligation to pay all or any of a part of a bill for legal costs for legal services provided to the client; or

(ii) being under that obligation, has already paid all or a part of the legal costs; and

(b) a third party payer is an associated third party payer if the legal obligation referred to in paragraph (a) is owed to the law practice, whether or not it is also owed to the client or another person; and

(c) a third party payer is a non-associated third party payer if the legal obligation referred to in paragraph (a) is owed to the client or another person but not the law practice.

(2) The legal obligation referred to in subsection (1) can arise by or under contract or legislation or otherwise.

(3) A law practice that retains another law practice on behalf of a client is not on that account a third party payer in relation to that client.

297. Application of Part – first instructions rule

This Part applies to a matter if the client first instructs the law practice in relation to the matter in this jurisdiction.

298. Part also applies by agreement or at client's election

(ii) it is not possible to decide the jurisdiction in which the client first instructs the law practice in relation to the matter; and

(i) the legal services are or will be provided wholly or primarily in this jurisdiction; or

(i) the client accepts, in writing or by other conduct, a written offer to enter into an agreement under subsection (2)(a) in respect of the matter; or

(ii) the client gives a notice under subsection (2)(b) in respect of the matter.

(a) accept, in writing or by other conduct, a written offer that complies with subsection (3) to enter into a written agreement with the law practice that this Part is to apply to the matter; or

(b) notify the law practice in writing that the client requires this Part to apply to the matter.

(a) that it is an offer to enter into an agreement that this Part is to apply to the matter; and

(4) A notification has no effect for subsection (2)(b) if it is given after the period of 28 days after the law practice discloses to the client (under a corresponding law) information about the client's right to make a notification of that kind but nothing in this subsection prevents an agreement referred to in subsection (2)(a) from coming into effect at any time.

299. Displacement of Part

(1) This section applies if this Part applies to a matter by the operation of section 297 or 298.

(i) the legal services are or will be provided wholly or primarily in another jurisdiction; or

(i) the client enters under the corresponding law of the other jurisdiction into an agreement with the law practice that the corresponding provisions of the corresponding law apply to the matter; or

(ii) the client notifies under the corresponding law of the other jurisdiction (and within the time allowed by the corresponding law) to the law practice in writing that the client requires the corresponding provisions of the corresponding law to apply to the matter.

(3) Nothing in this section prevents the application of this Part to the matter by means of a later agreement or notice under section 298.

300. How and where client first instructs law practice

A client first instructs a law practice in relation to a matter in a particular jurisdiction if the law practice first receives instructions from or on behalf of the client in relation to the matter in that jurisdiction, whether in person or by post, telephone, fax, email or other form of communication.

301. When does matter have substantial connection with this jurisdiction

The regulations may prescribe the circumstances in which, or the rules to be used to decide whether, a matter has or does not have a substantial connection with this jurisdiction for this Part.

302. What happens when different laws apply to matter

(1) This section applies if this Part applies to a matter for a period and a corresponding law applies for another period.

(2) If this Part applied to a matter for a period and a corresponding law applies to the matter afterwards, this Part continues to apply in respect of legal costs (if any) incurred while this Part applied to the matter.

(3) If a corresponding law applied to a matter for a period and this Part applies to the matter afterwards, this Part does not apply in respect of legal costs (if any) incurred while the corresponding law applied to the matter, so long as the corresponding law continues to apply in respect of those costs.

(a) the client may enter into a written agreement with the law practice that the cost assessment provisions of this Part are to apply in respect of all legal costs incurred in relation to the matter, and Division 8 accordingly applies in respect of those legal costs; or

(b) if the client enters into a written agreement with the law practice that the cost assessment provisions of a corresponding law are to apply in respect of all legal costs incurred in relation to the matter, Division 8 accordingly does not apply in respect of those legal costs.

(5) A written agreement referred to in subsection (4) need not be signed by the client but in that case the client's acceptance must be communicated to the law practice by fax, email or some other written form.

(6) If a corresponding law applied to a matter for a period and this Part applies to the matter afterwards, this Part does not require disclosure of any matters to the extent that they have already been disclosed under a corresponding law.

303. Disclosure of costs to clients

(a) the basis on which legal costs will be calculated, including whether a fixed costs provision applies to any of the legal costs; and

(iii) request an itemised bill within 30 days after receipt of a lump sum bill; and

(iv) be notified under section 310 of any substantial change to the matters disclosed under this section; and

(ii) an explanation of the major variables that will affect the calculation of those costs; and

(e) the rate of interest (if any) that the law practice charges on overdue legal costs, whether that rate is a specific rate of interest or is a benchmark rate of interest (as referred to in subsection (2)); and

(i) the range of costs that may be recovered if the client is successful in the litigation; and

(ii) the range of costs the client may be ordered to pay if the client is unsuccessful; and

(h) details of the person whom the client may contact to discuss the legal costs; and

(i) the following avenues that are open to the client in the event of a dispute in relation to legal costs:

(j) any time limits that apply to the taking of any action referred to in paragraph (i); and

(k) that the law of this jurisdiction applies to legal costs in relation to the matter; and

(i) to accept under a corresponding law a written offer to enter into an agreement with the law practice that the corresponding provisions of the corresponding law apply to the matter; or

(ii) to notify under a corresponding law (and within the time allowed by the corresponding law) to the law practice in writing that the client requires the corresponding provisions of the corresponding law to apply to the matter.

(2) For subsection (1)(e), a benchmark rate of interest is a rate of interest for the time being equal to or calculated by reference to a rate of interest that is specified or decided from time to time by an ADI or another body or organisation, or by or under other legislation, and that is publicly available.

(3) The regulations may make provision for or with respect to the use of benchmark rates of interest, and in particular for or with respect to permitting, regulating or preventing the use of particular benchmark rates or particular kinds of benchmark rates.

(a) a statement that an order by a court for the payment of costs in favour of the client will not necessarily cover the whole of the client's legal costs; and

(b) if applicable, a statement that disbursements may be payable by the client even if the client enters into a conditional costs agreement.

(5) A law practice may disclose any or all of the details referred to in subsection (1)(b)(i) to (iii), (g), (i), (j) and (l) in or to the effect of the form prescribed by the regulations, and if it does so the practice is taken to have complied with this section in relation to the details so disclosed.

304. Disclosure if another law practice is to be retained

(1) If a law practice intends to retain another law practice on behalf of a client, the first law practice must disclose to the client the details specified in section 303(1)(a), (c) and (d) in relation to the other law practice, in addition to any information required to be disclosed to the client under section 303.

(2) A law practice retained or to be retained on behalf of a client by another law practice is not required to make disclosure to the client under section 303, but must disclose to the other law practice the information necessary for the other law practice to comply with subsection (1).

(3) This section does not apply if the first law practice ceases to act for the client in the matter when the other law practice is retained.

If a barrister is retained by a firm of solicitors on behalf of a client of the firm, the barrister must disclose to the firm details of the barrister's legal costs and billing arrangements, and the firm must disclose those details to the client. The barrister is not required to make a disclosure directly to the client.

305. How and when must disclosure be made to client

(1) Disclosure under section 303 must be made in writing before, or as soon as practicable after, the law practice is retained in the matter.

(2) Disclosure under section 304(1) must be made in writing before, or as soon as practicable after, the other law practice is retained.

(3) Disclosure made to a person before the law practice is retained in a matter is taken to be disclosure to the person as a client for sections 303 and 304.

306. Exceptions to requirement for disclosure

(1) Disclosure under section 303 or 304(1) is not required to be made in any of the following circumstances:

(a) if the total legal costs in the matter, excluding disbursements, are not likely to exceed $1 500 (exclusive of GST) or the amount prescribed by the regulations (whichever is higher);

(i) the client has received one or more disclosures under section 303 or 304(1) from the law practice in the previous 12 months; and

(iii) a principal of the law practice decides on reasonable grounds that, having regard to the nature of the previous disclosures and the relevant circumstances, the further disclosure is not warranted;

(ii) a public company, a subsidiary of a public company, a large proprietary company, a foreign company, a subsidiary of a foreign company or a registered Australian body (each within the meaning of the Corporations Act); or

(iv) a liquidator, administrator or receiver (as respectively referred to in that Act); or

(v) a partnership that carries on the business of providing professional services if the partnership consists of more than 20 members or if the partnership would be a large proprietary company (within the meaning of that Act) if it were a company; or

(vi) a proprietary company (within the meaning of that Act) formed for carrying out a joint venture, if any shareholder of the company is a person to whom disclosure of costs is not required; or

(vii) unincorporated group of participants in a joint venture, if any member of the group is a person to whom disclosure of costs is not required and if any other members of the group who are not such persons have indicated that they waive their right to disclosure; or

(viii) a local government council constituted under a law of a jurisdiction or the Commonwealth; or

(ix) a minister of the Crown in right of a jurisdiction or the Commonwealth acting in his or her capacity as such, or a government department or public authority of a jurisdiction or the Commonwealth;

(d) if the legal costs or the basis on which they will be calculated have or has been agreed as a result of a tender process;

(e) if the client will not be required to pay the legal costs or they will not otherwise be recovered by the law practice, including, for example, if the law practice acts in the matter on a pro bono basis;

(2) Despite subsection (1)(a), if a law practice becomes aware that the total legal costs are likely to exceed $1 500 (exclusive of GST) or the amount prescribed by the regulations (whichever is higher), the law practice must disclose the matters in section 303 or 304 to the client as soon as practicable.

(3) A law practice must ensure a written record of a principal's decision that further disclosure is not warranted as mentioned in subsection (1)(b) is made and kept with the files relating to the matter concerned.

(4) The reaching of a decision referred to in subsection (3) otherwise than on reasonable grounds is capable of constituting unsatisfactory professional conduct or professional misconduct on the part of the principal.

(b) to obtain reasonable information from the law practice in relation to any of the matters specified in section 303; or

307. Additional disclosure – settlement of litigious matters

(1) If a law practice negotiates the settlement of a litigious matter on behalf of a client, the law practice must disclose to the client, before the settlement is executed:

(a) a reasonable estimate of the amount of legal costs payable by the client if the matter is settled (including any legal costs of another party that the client is to pay); and

(b) a reasonable estimate of any contributions towards those costs likely to be received from another party.

(2) A law practice retained on behalf of a client by another law practice is not required to make a disclosure to the client under subsection (1), if the other law practice makes the disclosure to the client before the settlement is executed.

308. Additional disclosure – uplift fees

(1) If a costs agreement involves an uplift fee, the law practice must, before entering the agreement, disclose to the client in writing:

(2) A law practice is not required to make a disclosure under subsection (1) to a sophisticated client.

309. Form of disclosure

(b) may be in a language other than English if the client is more familiar with that language.

(2) If the law practice is aware that the client is unable to read, the law practice must arrange for the information required to be given to a client under this Division to be conveyed orally to the client in addition to providing the written disclosure.

310. Ongoing obligation to disclose

A law practice must, in writing, disclose to a client any substantial change to anything included in a disclosure already made under this Division as soon as is reasonably practicable after the law practice becomes aware of that change.

311. Effect of failure to disclose

(1) If a law practice does not disclose to a client or an associated third party payer anything required by this Division to be disclosed, the client or associated third party payer (as the case may be) need not pay the legal costs unless they have been assessed under Division 8.

Under section 350, the costs of an assessment in these circumstances are generally payable by the law practice.

(2) A law practice that does not disclose to a client or an associated third party payer anything required by this Division to be disclosed may not maintain proceedings against the client or associated third party payer (as the case may be) for the recovery of legal costs unless the costs have been assessed under Division 8.

(3) If a law practice does not disclose to a client or an associated third party payer anything required by this Division to be disclosed and the client or associated third party payer has entered a costs agreement with the law practice, the client or associated third party payer may also apply under section 323 for the costs agreement to be set aside.

(4) If a law practice does not disclose to a client or an associated third party payer anything required by this Division to be disclosed, then, on an assessment of the relevant legal costs, the amount of the costs may be reduced by an amount considered by the costs assessor to be proportionate to the seriousness of the failure to disclose.

(5) If a law practice retains another law practice on behalf of a client and the first law practice fails to disclose something to the client solely because the retained law practice failed to disclose relevant information to the first law practice as required by section 304(2), then subsections (1) to (4):

(a) do not apply to the legal costs owing to the first law practice on account of legal services provided by it, to the extent that the
non-disclosure by the first law practice was caused by the failure of the retained law practice to disclose the relevant information; and

(6) In a matter involving both a client and an associated third party payer where disclosure has been made to one of them but not the other:

(a) subsection (1) does not affect the liability of the one to whom disclosure was made to pay the legal costs; and

(b) subsection (2) does not prevent proceedings being maintained against the one to whom the disclosure was made for the recovery of those legal costs.

(7) Failure by a law practice to comply with this Division is capable of constituting unsatisfactory professional conduct or professional misconduct on the part of any Australian legal practitioner or Australian-registered foreign lawyer involved in the failure.

312. Progress reports

(a) a written report of the progress of the matter in which the law practice is retained; and

(b) a written report of the legal costs incurred by the client to date, or since the last bill (if any), in the matter.

(2) A law practice may charge a client a reasonable amount for a report under subsection (1)(a) but must not charge a client for a report under subsection (1)(b).

(3) A law practice retained on behalf of a client by another law practice is not required to give a report to the client under subsection (1), but must disclose to the other law practice any information necessary for the other law practice to comply with that subsection.

(4) Subsection (3) does not apply if the other law practice ceases to act for the client in the matter when the law practice is retained.

313. Disclosure to associated third party payers

(1) If a law practice is required to make a disclosure to a client of the practice under this Division, the practice must, under subsections (2) and (3), also make the same disclosure to any associated third party payer for the client, but only to the extent that the details or matters disclosed are relevant to the associated third party payer and relate to costs that are payable by the associated third party payer in respect of legal services provided to the client.

(a) at the time the disclosure to the client is required under this Division; or

(b) if the law practice only afterwards becomes aware of the legal obligation of the associated third party payer to pay legal costs of the client – as soon as practicable after the practice became aware of the obligation.

(3) Section 309 applies to a disclosure to an associated third party payer under subsection (1) in the same way as it applies to a client.

(4) An associated third party payer for a client of a law practice has the same right to obtain reports under section 312 of legal costs incurred by the client, but only to the extent that the costs are payable by the associated third party payer in respect of legal services provided to the client, and the law practice must comply with that section accordingly.

314. On what basis legal costs are recoverable

(b) if paragraph (a) does not apply, under a costs agreement made under Division 5 or the corresponding provisions of a corresponding law; or

See section 341(2) for the criteria to be applied on a costs assessment to decide whether legal costs are fair and reasonable.

315. Security for legal costs

A law practice may take reasonable security from a client for legal costs (including security for the payment of interest on unpaid legal costs) and may refuse or cease to act for a client who does not provide reasonable security.

316. Interest on unpaid legal costs

(1) A law practice may charge interest on unpaid legal costs if the costs are unpaid for at least 30 days after the practice has given a bill for the costs under this Part.

(2) A law practice may also charge interest on unpaid legal costs in accordance with a costs agreement.

(3) A law practice must not charge interest under subsection (1) or (2) on unpaid legal costs unless the bill for those costs contains a statement that interest is payable and of the rate of interest.

(4) A law practice may not charge interest under this section or under a costs agreement at a rate that exceeds the rate prescribed by the regulations.

317. Making costs agreements

(b) between a client and a law practice retained on behalf of the client by another law practice; or

(3) A costs agreement may consist of a written offer in accordance with subsection (4) that is accepted in writing or by other conduct.

(5) Except as provided by section 343, a costs agreement cannot provide that the legal costs to which it relates are not subject to costs assessment under Division 8.

If it attempts to do so, the costs agreement will be void – see section 322(1).

(6) A reference in section 323 and in any prescribed provisions of this Part to a client is, in relation to a costs agreement that is entered into between a law practice and an associated third party payer as referred to in subsection (1)(d) and to which a client of the law practice is not a party, a reference to the associated third party payer.

318. Conditional costs agreements

(1) A costs agreement may provide that the payment of some or all of the legal costs is conditional on the successful outcome of the matter to which those costs relate.

(2) A conditional costs agreement may relate to any matter, except a matter that involves:

(a) must set out the circumstances that constitute the successful outcome of the matter to which it relates; and

(b) may provide for disbursements to be paid irrespective of the outcome of the matter; and

(d) must contain a statement that the client has been informed of the client's right to seek independent legal advice before entering into the agreement; and

(e) must contain a cooling-off period of not less than 5 clear business days during which the client, by written notice, may terminate the agreement.

(4) Subsection (3)(c)(iii), (d) and (e) do not apply to a conditional costs agreement made under section 317(1)(c).

(5) Subsection (3)(c)(iii), (d) and (e) do not apply to a conditional costs agreement made with a sophisticated client.

(6) If a client terminates an agreement within the period mentioned in subsection (3)(e), the law practice:

(a) may recover only those legal costs in respect of legal services performed for the client before that termination that were performed on the instructions of the client and with the client's knowledge that the legal service s would b e performed during that period ; and

319. Conditional costs agreements involving uplift fees

(1) A conditional costs agreement may provide for the payment of additional legal costs (excluding disbursements) on the successful outcome of the matter to which the agreement relates.

(2) The basis of calculation of the uplift fee must be separately identified in the agreement.

(3) An estimate of the uplift fee must be specified in the agreement or, if that is not reasonably practicable, a range of estimates of the uplift fee and an explanation of the major variables that will affect the calculation of the uplift fee.

(4) If a conditional costs agreement relates to a litigious matter, the premium must not exceed the percentage prescribed by the regulations of the legal costs (excluding disbursements) otherwise payable.

(5) A law practice must not enter into a costs agreement in contravention of this section.

(6) If a law practice that is an Australian legal practitioner who is a sole practitioner, or an incorporated legal practice, contravenes subsection (5), the practitioner or practice is guilty of an offence.

(7) If a law practice that is a law firm or multi-disciplinary partnership contravenes subsection (5), each principal of the practice is guilty of an offence.

320. Contingency fees prohibited

(1) A law practice must not enter into a costs agreement under which the amount payable to the law practice, or any part of that amount, is calculated by reference to the amount of any award or settlement or the value of any property that may be recovered in any proceedings to which the agreement relates.

(2) Subsection (1) does not apply to the extent the costs agreement adopts an applicable fixed costs provision.

(4) If a law practice that is a law firm or multi-disciplinary partnership contravenes subsection (1), each principal of the practice is guilty of an offence.

321. Effect of costs agreement

Subject to this Division and Division 8, a costs agreement may be enforced in the same way as any other contract.

322. Certain costs agreements void

(1) A costs agreement that contravenes, or is entered into in contravention of, any provision of this Division is void.

(2) Subject to this section and Division 8, legal costs under a void costs agreement are recoverable as set out in section 314(b) or (c).

(3) However, a law practice is not entitled to recover any amount in excess of the amount that the law practice would have been entitled to recover if the costs agreement had not been void and must repay any excess amount received.

(4) A law practice that has entered into a costs agreement in contravention of section 319 is not entitled to recover the whole or any part of the uplift fee and must repay the amount received in respect of the uplift fee to the person from whom it was received.

(5) A law practice that has entered into a costs agreement in contravention of section 320 is not entitled to recover any amount in respect of the provision of legal services in the matter to which the costs agreement related and must repay any amount received in respect of those services to the person from whom it was received.

(6) If a law practice does not repay an amount required by subsection (3), (4) or (5) to be repaid, the person entitled to be repaid may recover the amount from the law practice as a debt in a court of competent jurisdiction.

323. Setting aside costs agreements

(1) On application by a client, the costs assessor may order that a costs agreement be set aside if satisfied the agreement is not fair or reasonable.

(2) In determining whether or not a costs agreement is fair or reasonable, and without limiting the matters to which the assessor can have regard, the assessor may have regard to any or all of the following matters:

(a) whether the client was induced to enter into the agreement by the fraud or misrepresentation of the law practice or of any representative of the law practice;

(b) whether any Australian legal practitioner or Australian-registered foreign lawyer acting on behalf of the law practice has been found guilty of unsatisfactory professional conduct or professional misconduct in relation to the provision of legal services to which the agreement relates;

(d) the circumstances and conduct of the parties before and when the agreement was made;

(e) the circumstances and the conduct of the parties in the matters after the agreement was made;

(f) whether and how the agreement addresses the effect on costs of matters and changed circumstances that might foreseeably arise and affect the extent and nature of legal services provided under the agreement;

(g) whether and how billing under the agreement addresses changed circumstances affecting the extent and nature of legal services provided under the agreement the time at which the agreement was made.

(3) The assessor may adjourn the hearing of an application under this section pending the completion of any investigation of or determination on any charge in relation to the conduct of any Australian legal practitioner or Australian-registered foreign lawyer.

(4) If the assessor orders that a costs agreement be set aside, the assessor may make an order in relation to the payment of legal costs the subject of the agreement.

(5) In making an order under subsection (4), the assessor must determine the fair and reasonable legal costs in relation to the work to which the agreement related, taking into account:

(a) the seriousness of the conduct of the law practice or any Australian legal practitioner or Australian-registered foreign lawyer acting on its behalf; and

(6) In making an order under subsection (4), the assessor may not order the payment of an amount in excess of the amount that the law practice would have been entitled to recover if the costs agreement had not been set aside.

(7) For subsection (5), the assessor may have regard to any or all of the following matters:

(a) whether the law practice and any Australian legal practitioner or Australian-registered foreign lawyer acting on its behalf complied with any relevant legislation or legal profession rules;

(b) any disclosures made by the law practice under Division 3, or the failure to make any disclosures required under that Division;

(ii) the skills of the law practice or of any Australian legal practitioner or Australian-registered foreign lawyer acting on its behalf;

(d) the skill, labour and responsibility displayed on the part of the Australian legal practitioner or Australian-registered foreign lawyer responsible for the matter;

(e) the retainer and whether the work done was within the scope of the retainer;

(9) The assessor may order the payment of the costs of and incidental to determining an application under this section.

(10) A costs assessor must ensure an order or determination under this section is accompanied by a statement of the reasons for the order or determination.

Section 352 provides a party to a costs agreement may apply to a Registrar for a review of the determination.

"client" means a person to whom or for whom legal services are or have been provided.

324. Legal costs cannot be recovered unless bill has been served

(1) A law practice must not start legal proceedings to recover legal costs from a person until at least 30 days after the law practice has given a bill to the person under sections 325 and 326.

(2) A court of competent jurisdiction may make an order authorising a law practice to start legal proceedings against a person sooner if satisfied:

(a) the law practice has given a bill to the person under sections 325 and 326; and

(3) A court or tribunal before which any proceedings are brought in contravention of subsection (1) must stay those proceedings on the application of a party, or on its own initiative.

(4) This section applies whether or not the legal costs are the subject of a costs agreement.

325. Bills

(2) A bill must be signed on behalf of a law practice by an Australian legal practitioner or an employee of the law practice.

(3) It is sufficient compliance with subsection (2) if a letter signed on behalf of a law practice by an Australian legal practitioner or an employee of the law practice is attached to, or enclosed with, the bill.

(4) A bill or letter is taken to have been signed by a law practice that is an incorporated legal practice if it has the practice's seal affixed to it or is signed by a legal practitioner director of the practice or an officer or employee of the practice who is an Australian legal practitioner.

(i) the usual or last known business or residential address of the person or agent; or

with a person on the premises who is apparently at least 16 years old and apparently employed or residing there.

(6) A reference in subsection (5) to any method of giving a bill to a person includes a reference to arranging for the bill to be given to that person by that method (for example, by delivery by courier).

(7) Despite anything in subsections (2) to (6), a bill may be given to a client electronically if the client request it be given electronically.

"agent", of a person, means an agent, law practice or Australian legal practitioner who has authority to accept service of legal process for the person.

326. Notice of client's rights

(a) the following avenues that are open to the client in the event of a dispute in relation to legal costs:

(b) other avenues available under rules of a court or tribunal that are open to the client in the event of a dispute in relation to legal costs; and

(3) A law practice may provide the written statement referred to in subsection (1) in or to the effect of the form prescribed by the regulations for this subsection, and if it does so the practice is taken to have complied with this section in relation to the statement.

327. Request for itemised bill

(1) If a bill is given by a law practice in the form of a lump sum bill, any person who is entitled to apply for an assessment of the legal costs to which the bill relates may request the law practice to give the person an itemised bill.

(2) The law practice must comply with the request within 21 days after the date on which the request is made.

(3) If the person making the request is liable to pay only a part of the legal costs to which the bill relates, the request for an itemised bill may only be made in relation to those costs that the person is liable to pay.

(4) Subject to subsection (5), a law practice must not start legal proceedings to recover legal costs from a person who has been given a lump sum bill until at least 30 days after the date on which the person is given the bill.

(5) If the person makes a request for an itemised bill under this section, the law practice must not start legal proceedings to recover the legal costs from the person until at least 30 days after complying with the request.

(6) A law practice is not entitled to charge a person for the preparation of an itemised bill requested under this section.

(7) Section 325(2) and (5) apply to the giving of an itemised bill under this section.

328. Interim bills

(1) A law practice may give a person an interim bill covering part only of the legal services the law practice was retained to provide.

(2) Legal costs that are the subject of an interim bill may be assessed under Division 8, either at the time of the interim bill or at the time of the final bill, whether or not the interim bill has previously been assessed or paid.

329. Definitions

"client" means a person to whom or for whom legal services are or have been provided;

"costs dispute" means a dispute between a client and an Australian legal practitioner concerning a bill, and includes a dispute over an amount claimed to be payable under a costs agreement.

330. Referral for mediation

(1) A client who is given a bill may refer a costs dispute about the bill to the Statutory Supervisor for mediation if the amount in dispute is less than $10 000.

(2) A Registrar may refer a costs dispute about a bill to the Supervisor for mediation if the amount in dispute is less than $10 000.

(3) A Registrar may, by written notice, require the client and the Australian legal practitioner concerned to enter into a process of mediation if the amount in dispute is less than $5 000.

(4) A costs dispute about a bill may be referred under this section at any time before an application for an assessment of the whole or part of a bill is accepted by a Registrar.

(5) Mediation is not limited to formal mediation procedures and extends to encompass preliminary assistance in dispute resolution, including the giving of informal advice designed to ensure:

(b) there is full and open communication between the parties concerning the dispute.

331. Definition

"client" means a person to whom or for whom legal services are or have been provided.

332. Application by clients or third party payers for costs assessment

(1) A client may apply to a costs assessor for an assessment of the whole or any part of legal costs.

(2) A third party payer may apply to a costs assessor for an assessment of the whole or any part of legal costs payable by the third party payer.

(3) An application for a costs assessor may be made even if the legal costs have been wholly or partly paid.

(4) If any legal costs have been paid without a bill, the client or third party payer may nevertheless apply for a costs assessment.

(5) An application by a client or third party payer for a costs assessment under this section must be made within 12 months after:

(a) the bill was given or the request for payment was made to the client or third party payer; or

(b) third party payer who would be a sophisticated client if the third party payer were a client of the law practice concerned;

may be dealt with by the costs assessor if the Supreme Court, on application by the assessor or the client or third party payer who made the application for assessment, determines, after having regard to the delay and the reasons for the delay, that it is just and fair for the application for assessment to be dealt with after the 12 month period.

(7) If the third party payer is a non-associated third party payer, the law practice must provide the third party payer, on the written request of the third party payer, with sufficient information to allow the third party payer to consider making, and if thought fit to make, an application for a costs assessment under this section.

(i) the client from making one or more applications for assessment under this section in relation to costs for which the client is solely liable; and

(ii) the associated third party payer from making one or more applications for assessment under this section in relation to costs for which the associated third party payer is solely liable;

and those applications may be made by them at the same time or at different times and may be dealt with jointly or separately; and

(i) may participate in the costs assessment process where the other of them makes an application for assessment under this section in relation to costs for which they are both liable; and

(ii) is taken to be a party to the assessment and is bound by the assessment; and

(i) must participate in the costs assessment process where an application is made under this section by the associated third party payer in the same way as the practice must participate in the process where an application is made under this section by a client; and

(9) If there is a non-associated third party payer for a client of a law practice:

(i) the client from making one or more applications for assessment under this section in relation to costs for which the client is liable; and

(ii) the non-associated third party payer from making one or more applications for assessment under this section in relation to costs for which the non-associated third party payer is liable;

and those applications may be made by them at the same time or at different times but must be dealt with separately; and

(i) may participate in the costs assessment process where the non-associated third party payer makes an application under this section in relation to the legal costs for which the
non-associated third party payer is liable; and

(ii) is taken to be a party to the assessment and is bound by the assessment; and

(d) despite any other provision of this Division, the assessment of the costs payable by the non-associated third party payer does not affect the amount of legal costs payable by the client to the law practice.

333. Application for costs assessment by law practice retaining another law practice

(1) A law practice that retains another law practice to act for a client may apply to a costs assessor for an assessment of the whole or any part of the legal costs to which a bill given by the other law practice under Division 6 relates.

(2) If any legal costs have been paid without a bill, the law practice may nevertheless apply for a costs assessment.

(3) An application for a costs assessment may be made even if the legal costs have been wholly or partly paid.

(5) An application cannot be made under this section if there is a costs agreement between the client and the other law practice.

334. Application for costs assessment by law practice giving bill

(1) A law practice that has given a bill under Division 6 may apply to a costs assessor for an assessment of the whole or any part of the legal costs to which the bill relates.

(2) If any legal costs have been paid without a bill, the law practice may nevertheless apply for a costs assessment.

(3) An application for a costs assessment may be made even if the legal costs have been wholly or partly paid.

(4) An application may not be made under this section unless at least 30 days have passed since:

335. How to make an application for costs assessment

(b) subject to subsection (4), must be accompanied by the fee prescribed by the regulations or determined under the regulations.

(2) The application must authorise a costs assessor to have access to, and to inspect, all documents of the applicant that are held by the applicant, or by any law practice, Australian legal practitioner or Australian-registered foreign lawyer concerned, in relation to the matter to which the application relates.

(3) The application must contain a statement by the applicant that there is no reasonable prospect of settlement of the matter by mediation.

(4) A costs assessor may waive or postpone payment of the application fee either wholly or in part if satisfied the applicant is in such circumstances that payment of the fee would result in serious hardship to the applicant or the applicant's dependants.

(5) A costs assessor may refund the application fee either wholly or in part if satisfied it is appropriate because the application is not proceeded with.

336. Consequences of application

(a) the assessment must take place without any money being paid into court on account of the legal costs the subject of the application; and

(b) the law practice must not start any proceedings to recover the legal costs until the assessment has been completed.

337. Persons to be notified of application

(1) A costs assessor must give a copy of an application for costs assessment to any law practice or client concerned or any other person whom the assessor considers it appropriate to notify.

338. Procedure on assessment

If, after proper notice that a costs assessment will take place, a party to the assessment does not attend, the costs assessor may proceed with the assessment in the absence of the party.

339. Assessment of complying costs agreements

(1) A costs assessor must assess any disputed costs that are subject to a costs agreement by reference to the provisions of the costs agreement if:

(a) a relevant provision of the costs agreement specifies the amount, or a rate or other means for calculating the amount, of the costs; and

(d) Division 5 precludes the law practice concerned from recovering the amount of the costs; or

(2) The costs assessor is not required to initiate an examination of the matters referred to in subsection (1)(c) and (d).

340. Costs fixed by other legislation

An assessment of costs fixed by a provision of an Act or statutory instrument must be made in accordance with the provision.

341. Criteria for costs assessment

(1) In conducting an assessment of legal costs, the costs assessor must consider:

(a) whether or not it was reasonable to carry out the work to which the legal costs relate; and

(c) the fairness and reasonableness of the amount of legal costs in relation to the work except to the extent that section 339 or 340 applies to any disputed costs.

(2) In considering what is a fair and reasonable amount of legal costs, the assessor may have regard to any or all of the following matters:

(a) whether the law practice and any Australian legal practitioner or Australian-registered foreign lawyer acting on its behalf complied with this Act;

(ii) the skills of the law practice or of any Australian legal practitioner or Australian-registered foreign lawyer acting on its behalf;

(d) the skill, labour and responsibility displayed on the part of the Australian legal practitioner or Australian-registered foreign lawyer responsible for the matter;

(e) the retainer and whether the work done was within the scope of the retainer;

(h) the place where, and circumstances in which, the legal services were provided;

(3) In conducting an assessment of legal costs payable by a
non-associated third party payer, the costs assessor must also consider whether it is fair and reasonable in the circumstances for the non-associated third party payer to be charged the amount claimed.

342. Legal costs subject to consumer dispute not subject to assessment

Despite anything to the contrary in this Part, legal costs that are or have been the subject of a consumer dispute may not be the subject of a costs assessment under this Division.

343. Contracting out of Division by sophisticated client

A sophisticated client of a law practice, or an associated third party payer who would be a sophisticated client if the third party payer were a client of the law practice concerned, may contract out of this Division.

344. Determination of costs assessment

(1) A costs assessor must determine an application for a costs assessment relating to a bill by:

(b) if the assessor is satisfied the disputed costs are unfair or unreasonable – by substituting for the amount of the costs an amount that, in the assessor's opinion, is a fair and reasonable amount.

(2) Any amount substituted for the amount of the costs may include an allowance for any fee paid or payable for the application by the applicant.

(3) A costs assessor may not determine that any part of a bill that is not the subject of an application is unfair or unreasonable.

345. Certificate of determination

(1) On making a determination of costs, a costs assessor must issue to each party a certificate that specifies the determination.

(2) A costs assessor may issue more than one certificate in relation to an application for costs assessment.

(3) The certificates may be issued at the same time or at different stages of the assessment process.

(4) However, a certificate must not specify the costs of the costs assessment as defined in section 346.

(5) If the amount of costs has been paid, the amount (if any) by which the amount paid exceeds the amount specified in a certificate may be recovered as a debt in a court of competent jurisdiction.

(a) the certificate is, on the filing of the certificate in a court of competent jurisdiction taken to be a judgment of the court for the amount of unpaid costs; and

(b) the rate of any interest payable in relation to the amount of costs is the rate of interest in the court.

(7) If the costs of the costs assessor are payable by a party to the assessment as mentioned in section 346, the assessor may refuse to issue a certificate relating to the determination until the costs of the assessor have been paid.

(a) in relation to a certificate issued before the completion of the assessment process under subsection (3); or

346. Recovery of costs of costs assessment

(1) This section applies to the costs of a costs assessment in relation to costs to which section 311 applies.

(2) A costs assessor must, subject to this section, determine the costs of the costs assessment.

(3) The costs of the costs assessment are payable by the law practice that provided the legal services concerned.

(4) The assessor may refer to the Supreme Court a question of law relating to the costs assessment.

(5) The Court may make the order it considers appropriate concerning the costs of the costs assessment.

(6) On making a determination, an assessor may issue to each party a certificate that specifies the costs of the costs assessment.

(7) If the application for a costs assessment has been dealt with by more than one costs assessor, a certificate issued can specify the costs of another costs assessor.

(8) The certificate is, on the filing of the certificate in a court of competent jurisdiction taken to be a judgment of the court for the amount of unpaid costs.

"costs of the costs assessment" means the costs incurred by the costs assessor or a Registrar in the course of a costs assessment under this Division, and includes the costs related to the remuneration of the assessor.

347. Reasons for determination

(1) A costs assessor must ensure a certificate issued under section 345 or 346 specifying the assessor's determination is accompanied by:

348. Correction of error in determination

(1) At any time after making a determination, a costs assessor may, for correcting an inadvertent error in the determination:

(a) make a new determination in substitution for the previous determination; and

(b) issue a certificate under section 345 or 346 specifying the new determination.

(2) The certificate replaces any certificate specifying the previous determination of the costs assessor that has already been issued by the assessor.

(3) On the filing of the replacement certificate in a court of competent jurisdiction, any judgment that is taken to have been effected by the filing of the previously issued certificate is varied accordingly.

349. Determination final

A costs assessor's determination of an application is binding on all parties to the application and no appeal or other assessment lies in relation to the determination, except as provided by this Division.

350. Costs of costs assessment

(2) Unless the costs assessor otherwise orders and subject to subsection (3) the law practice to which the costs are payable or were paid must pay the costs of the costs assessment if:

(b) the assessor is satisfied the law practice failed to comply with Division 3.

(3) Unless the costs assessor otherwise orders and subject to subsection (4) if the law practice is not, under subsection (2), liable to pay the costs of the assessment, the costs of the assessment must be paid by the party ordered by the assessor to pay those costs.

(4) The assessor may refer to the Supreme Court a question of law relating to the costs assessment.

(5) The Court may make the order it considers appropriate concerning the costs of the costs assessment.

351. Definition

"reviewer", for the review of a determination of a costs assessor or a costs assessor's determination of the costs of a costs assessment, means:

(a) if the costs assessor is the Master or is appointed by the Law Society – the Supreme Court; or

(b) if the costs assessor (other than the Master) is appointed by the Chief Justice – the Master or a Registrar; or

(b) if the costs assessor is appointed by the Chief Magistrate – a Judicial Registrar under the Local Court Act.

352. Application by party for review of determination

(1) A party to a costs assessment who is dissatisfied with a determination of a costs assessor may apply to the reviewer for a review of the determination.

(a) be made within 28 days after the issue of the certificate under section 345 or 346 specifying the determination or within the further time the reviewer allows; and

(3) The reviewer may waive or postpone payment of the fee either wholly or in part if satisfied the applicant is in such circumstances that payment of the fee would result in serious hardship to the applicant or applicant's dependants.

(4) The reviewer may refund the fee paid under this section either wholly or in part if satisfied it is appropriate because the application is not proceeded with.

(5) The applicant must ensure notice of the application is given to the other parties to the assessment at least 7 days before the application is made or as prescribed by the regulations.

353. Reviewer may review determination of costs of costs assessment

(1) The reviewer may, within 30 days after the issue of a certificate under section 346(6) specifying the costs of a costs assessment determined by a costs assessor, decide to review that determination.

(2) The reviewer must ensure notice of the reviewer's decision is given to the parties to the proposed review at least 7 days before conducting the review or as prescribed by the regulations.

354. Conduct of review

(b) set aside the assessor's determination and substitute the determination in relation to the costs assessment, in the reviewer's opinion, should have been made by the assessor who made the determination the subject of the review.

(a) has, in relation to the application for assessment, all the functions of a costs assessor under this Part; and

(b) must determine the application, subject to this Subdivision and the regulations, in the way a costs assessor would be required to determine an application for a costs assessment.

(3) However, the assessment must be conducted on the evidence that was received by the costs assessor who made the determination the subject of the assessment.

(b) receive any fresh evidence or evidence in addition to or in substitution for the evidence received by the costs assessor.

(5) The reviewer may decide the amount of fair and reasonable costs is the amount agreed to by the parties to the review if during the course of the review the parties notify the reviewer they have agreed on the amount of the costs.

355. Relevant documents to be produced

(1) The reviewer may, by written notice, require a costs assessor, a law practice or another person (such as an applicant or an associate of a law practice) to produce to the reviewer any document in his or her possession relating to an assessment of costs by a costs assessor.

(2) If a person fails, without reasonable excuse, to comply with a notice under this section, the reviewer may decline to deal with an application for review or may continue to deal with it on the basis of the information provided.

(3) A costs assessor must retain in the assessor's possession any document relating to a costs assessment (other than a document that is returned to a party to the assessment) until whichever of the following happens first:

(a) the period of 12 months has elapsed since the issue of a certificate under section 345 specifying the determination of the costs assessor;

(b) the assessor receives a notice under subsection (1) in relation to the document.

(4) A law practice or associate of a law practice must retain in his or her possession any document relating to a costs assessment that is returned to the practice or associate by the costs assessor until whichever of the following happens first:

(a) the period of 12 months has elapsed since the issue of a certificate under section 345 specifying the determination of the assessor;

(b) the practice or associate receives a notice under subsection (1) in relation to the document.

(5) A contravention of this section by an Australian legal practitioner is capable of being professional misconduct.

356. Effect of review on costs assessor's determination

(a) under section 352, a party applies for a review of a determination of a costs assessor; or

(b) under section 353, the reviewer decides to review a costs assessor's determination of the costs of a costs assessment.

(2) On the making of the application or decision, the operation of the determination is suspended.

357. Certificate as to determination

(1) On making a determination in relation to an application for review of a costs assessment under this Subdivision, the reviewer must issue each party with a certificate specifying the determination.

(2) However, the certificate may not specify the costs of the review as defined in section 358.

Section 358 requires the reviewer to issue a separate certificate specifying the costs of the review. That section also makes provision for the effect of such a certificate.

(3) If the reviewer sets aside the determination of the costs assessor, the following provisions apply:

(a) if the amount of costs has already been paid, the amount (if any) by which the amount paid exceeds the amount specified in the reviewer's determination may be recovered as a debt in a court of competent jurisdiction;

(i) a certificate is, on the filing of the certificate in a court of competent jurisdiction taken to be a judgment of that court for the amount of unpaid costs; and

(ii) the rate of any interest payable for that amount of costs is the rate of interest in the court;

(ii) any judgment that is taken to have been effected in relation to the certificate also ceases to have effect; and

(iii) any enforcement action taken in relation to the judgment must be reversed.

(4) If the reviewer sets aside the costs assessor's determination, any amount substituted by the reviewer may include an allowance for:

(b) any amount paid or payable for the costs of the assessor by a party to the assessment.

(5) If the costs of the review are payable by a person as required by section 358, the reviewer must advise the parties that the certificate will be available to the parties on payment of the costs of the review.

(6) Subsection (5) does not apply in the circumstances prescribed by the regulations.

358. Recovery of costs of review

(1) A reviewer who conducts a review of a costs assessor's determination under this Subdivision must determine the costs of the review.

(2) The reviewer may, subject to this section, determine by whom and to what extent the costs must be paid.

(3) The reviewer must require the applicant party to pay the costs of the review if the reviewer:

(4) The reviewer must require the applicant party to pay the costs of the review if:

(d) the reviewer's determination increases or decreases the total costs payable (as assessed by the assessor) by an amount that is less than 15% (or another percentage prescribed by the regulations) of the total costs payable as assessed by the assessor.

(a) require any party to the assessment that is reviewed to pay the costs of the review; or

(b) determine that the costs of the review must be shared between the parties in the way the reviewer considers appropriate.

(6) The reviewer must issue to each party, a certificate specifying the reviewer's determination under this section.

(7) The certificate is, on filing of the certificate in a court of competent jurisdiction taken to be a judgment of the court for the amount of unpaid costs of the review.

"costs", of a review under this Subdivision, means the costs incurred by the reviewer in the course of the review.

359. Reasons for determination

(1) The reviewer must ensure a certificate issued under section 357 or 358 specifying the reviewer's determination is accompanied by:

360. Correction of error in determination

(1) At any time after making a determination on a review of a costs assessor's determination under this Subdivision, the reviewer may, for correcting an inadvertent error in the determination:

(a) make a new determination in substitution for the previous determination; and

(b) issue a certificate under section 357 or 358 specifying the new determination.

(2) The certificate replaces any certificate specifying the previous determination of the reviewer that has already been issued by the reviewer.

361. Appeal against determination or decision

(1) A reviewer's determination of an application for review of a costs assessor's determination is binding on all parties to the assessment the subject of a review and no appeal or other review lies in relation to the determination.

(2) However, if the reviewer is a Registrar, Subdivision 6 applies in relation to a determination or decision of the Registrar under this Subdivision as if references to a costs assessor were references to the Registrar.

362. Appeal against decision of costs assessor as to matter of law

(1) A party to an application for a costs assessment who is dissatisfied with a decision of a costs assessor as to a matter of law arising in the proceedings to determine the application may, in accordance with the rules of the Supreme Court, appeal to the Court against the decision.

(2) After deciding the question the subject of the appeal, the Court may, unless it affirms the costs assessor's decision:

(a) make the determination in relation to the application as, in its opinion, should have been made by the assessor; or

(b) remit its decision on the question to the assessor and order the assessor to re-determine the application.

(3) On a re-determination of an application, fresh evidence, or evidence in addition to or in substitution for the evidence received at the original proceedings, may be given.

363. Appeal against determination of costs assessor by leave

(1) A party to an application for a costs assessment relating to a bill may, in accordance with the rules of the Supreme Court, seek leave of the Court to appeal to the Court against the determination of the application made by a costs assessor.

(2) A party to an application for a costs assessment relating to costs payable as a result of an order made by a court or tribunal may, in accordance with the rules of the court or tribunal, seek leave of the court or tribunal to appeal to the court or tribunal against the determination of the application made by a costs assessor.

(3) The Supreme Court or court or tribunal may, in accordance with its rules, grant leave to appeal and may hear and decide the appeal.

(4) An appeal must be by way of a new hearing and fresh evidence, or evidence in addition to or in substitution for the evidence received at the original proceedings, may be given.

(5) After deciding the questions the subject of the appeal, the Supreme Court or court or tribunal may, unless it affirms the costs assessor's determination, make the determination in relation to the application as, in its opinion, should have been made by the assessor.

364. Effect of appeal on application

(1) If a party to an application for a costs assessment has appealed against a determination or decision of a costs assessor, either the costs assessor or the court or tribunal to which the appeal is made may suspend, until the appeal is decided, the operation of the determination or decision.

(2) The costs assessor or the court or tribunal may end a suspension made by the assessor.

365. Assessor can be party to appeal

A costs assessor can be made a party to any appeal against a determination or decision of the assessor only by the Supreme Court.

366. Costs assessors

(1) The Chief Justice, Chief Magistrate or Law Society may appoint persons to be costs assessors for this Act.

(2) A costs assessor may exercise the powers and perform the functions conferred on costs assessors under this Act or any other Act in relation to the costs for providing legal services.

(3) However, a costs assessor's powers and functions may be limited by the regulations or the instrument of appointment.

The Chief Magistrate may, by an instrument of appointment, limit a costs assessor's powers and functions to legal costs relating to a proceeding within the jurisdictional limit of the Local Court or a court or tribunal constituted by a magistrate.

(4) A person is not eligible to be appointed as a costs assessor unless the person is an Australian legal practitioner of at least 5 years' standing.

(5) A costs assessor holds office for the period (not exceeding 3 years) as may be specified in the instrument of appointment of the assessor, but is eligible (if otherwise qualified) for re-appointment.

(6) A costs assessor may, with the consent of the Judge or magistrate who appointed the assessor, continue in office after the expiry of the assessor's term of office for making a determination in relation to, or otherwise completing, any application for costs assessment that was referred to the assessor before the expiry of the assessor's term of office.

(7) A costs assessor is entitled to be paid the remuneration (including travelling and allowances) the Attorney-General from time to time determines for costs assessors.

(8) A costs assessor is not an officer of the Supreme Court when acting as a costs assessor.

(9) Proceedings relating to anything done or omitted to be done by the Chief Justice or Chief Magistrate in relation to the appointment or removal of a costs assessor (including conditions of appointment and any other incidental matters) may only be started against the Territory.

367. Vacancy in office of cost assessor

(c) becomes bankrupt, applies to take the benefit of any law for the relief of bankrupt or insolvent debtors, compounds with his or her creditors or makes an assignment of his or her remuneration for their benefit; or

(e) is convicted in the Territory of an offence that is punishable by imprisonment for 12 months or more or is convicted elsewhere than in the Territory of an offence that, if committed in the Territory, would be an offence so punishable; or

(2) A costs assessor may be removed from office by the Judge or magistrate who appointed the assessor.

368. Confidentiality

(a) discloses information acquired in connection with the exercise of the assessor's functions ("protected information") to someone else; or

(b) does something that discloses protected information to someone else and is reckless about whether:

(a) in connection with the exercise of the functions or the administration or execution of this Act; or

(b) for any legal proceedings arising out of this Act or of any report of any such proceedings; or

(c) for information relating to an Australian legal practitioner or other person – with the consent of the practitioner or other person; or

369. Protection from liability

(2) The person is not civilly or criminally liable for an act done or omitted to be done in good faith for the administration of this Part.

(3) Subsection (2) does not affect any liability the Territory would, apart from that subsection, have for the act or omission.

370. Referral for disciplinary action

(1) If, on a costs assessment or review, the costs assessor considers the legal costs charged by a law practice are grossly excessive, the assessor must refer the matter to the Law Society.

(2) If the costs assessor considers a costs assessment raises another matter that may amount to unsatisfactory professional conduct or professional misconduct on the part of an Australian legal practitioner or Australian-registered foreign lawyer, the assessor must refer the matter to the Society.

(3) On a reference under subsection (1) or (2), the Supervisor must consider whether disciplinary action should be taken against an Australian legal practitioner or Australian-registered foreign lawyer.

371. Application of Part to incorporated legal practices and multi-disciplinary partnerships

(a) do not apply to incorporated legal practices or multi-disciplinary partnerships or both of them; or

372. Imputed acts, omission or knowledge

(ii) an Australian-registered foreign lawyer (except for section 319(4) or for any provision of this Part prescribed for this section);

in the course of acting on behalf of a law practice is taken to have been done or omitted by, to or in relation to the law practice; and

(b) without limiting paragraph (a), the law practice is taken to become or be aware of, or to have a belief as to, any matter if:

(ii) an Australian-registered foreign lawyer (except for section 319(4) or for any provision of this Part prescribed for this section);

becomes or is aware of, or has a belief as to, the matter in the course of acting on behalf of the law practice.

373. Definition

"approved", for professional indemnity insurance, means a policy of professional indemnity insurance provided under an agreement or arrangement mentioned in section 378.

374. Purpose

The purpose of this Part is to ensure each Australian legal practitioner engaged in legal practice in this jurisdiction has approved professional indemnity insurance.

375. Exemptions

(1) The regulations may exempt an Australian legal practitioner or class of legal practitioner from the requirement to be insured under this Act.

(2) The Law Society may, subject to the regulations and legal profession rules, exempt an Australian legal practitioner or class of legal practitioner from the requirement to be insured under this Act on the grounds the Society considers sufficient.

376. Law practice required to insure

(1) Before starting to engage in legal practice in this jurisdiction, a law practice must obtain approved professional indemnity insurance.

(2) At all times while a law practice is engaged in legal practice in this jurisdiction, the law practice must maintain approved professional indemnity insurance.

(b) each Australian legal practitioner who is or was a principal or employee of the law practice in relation to its legal practice.

377. Professional indemnity insurance requirements

Professional indemnity insurance cover must comply with the requirements prescribed by the regulations.

378. Professional indemnity insurance scheme

(1) The Law Society may enter into an agreement or arrangement with an insurer or another person, whether carrying on business in this jurisdiction or not, for the operation of a scheme to provide professional indemnity insurance to law practices.

(2) Professional indemnity insurance provided under the agreement or arrangement must be in accordance with terms and conditions approved by the Society either generally or in relation to specific matters.

379. Giving information to Law Society for insurance

(1) For providing professional indemnity insurance, the chief executive officer of the Law Society may, by written notice, require a law practice to give the chief executive officer or an insurer or other person with whom an agreement or arrangement is entered under section 378 specified information within a specified reasonable time about:

(d) any claims made against the law practice in relation to any alleged civil liability arising from:

(ii) the administration of any trust or deceased estate of which the law practice is, or formerly was, a trustee, executor or administrator; or

(2) If a law practice that is an Australian legal practitioner who is a sole practitioner, or an incorporated legal practice, fails to comply with the requirement, the practitioner or practice is guilty of an offence.

(3) If a law practice that is a law firm or multi-disciplinary partnership fails to comply with the requirement, each principal of the practice is guilty of an offence.

(4) It is a defence to a prosecution for an offence against subsection (2) or (3) if the practitioner, practice or principal has a reasonable excuse.

(5) The chief executive officer of the Society is guilty of an offence if the chief executive officer:

(a) discloses information given under subsection (1) ("protected information") to someone else; or

(b) does something that discloses protected information to someone else and is reckless about whether:

(a) necessary for arranging professional indemnity insurance to law practices; or

(b) to an insurer or other person with whom an agreement or arrangement is entered under section 378; or

(f) to the extent the disclosure is reasonably required to enable the enforcement or investigation of the criminal law.

380. Continuing obligation for professional indemnity insurance

(b) becomes aware that the practitioner will not be covered by approved professional indemnity insurance; and

(c) fails to give the Law Society written notice of that fact in the approved form as soon as practicable after becoming aware of that fact.

381. Purpose

The purpose of this Part is to establish and maintain a fund to provide a source of compensation for defaults by law practices arising from or constituted by acts or omissions of associates.

382. Definitions

(b) for another jurisdiction – the provisions of the corresponding law of that jurisdiction that correspond to those sections;

"concerted interstate default" means a default of a law practice that arises from an act or omission:

(b) parts of which were committed by different associates of the practice or different combinations of associates of the practice;

if this jurisdiction is the relevant jurisdiction for at least one of the associates and another jurisdiction is the relevant jurisdiction for at least one of the associates;

(a) a failure of the practice to pay or deliver trust money or trust property that was received by the practice in the course of legal practice by the practice, if the failure arises from an act or omission of an associate that involves dishonesty; or

(b) a fraudulent dealing with trust property that was received by the practice in the course of legal practice by the practice, where the fraudulent dealing arises from or is constituted by an act or omission of an associate that involves dishonesty;

(a) the amount of trust money, or the value of trust property, that is not paid or delivered; or

(b) the amount of money that a person loses or is deprived of, or the loss of value of trust property, as a result of a fraudulent dealing;

383. Time of default

(1) This section applies for the purpose of determining which jurisdiction's law applies in relation to a default.

(2) The default is taken to have occurred when the act or omission giving rise to or constituting the default occurred.

(3) An omission is taken to have occurred on the day on or by which the act not performed ought reasonably to have been performed or on such other day as is decided in accordance with the regulations.

384. Application of this Part

This Part does not apply to a default of a law practice consisting of a barrister.

385. Establishment of Fidelity Fund

The Funds Management Committee must establish and maintain a Legal Practitioners Fidelity Fund.

386. Financial management of Fidelity Fund

The Funds Management Committee must manage the Fidelity Fund in a way that, as far as practicable, ensures it is sufficient to meet ascertained and contingent liabilities for defaults to which this Part applies without needing to impose a levy under Division 3.

387. Directions about prudential management of Fidelity Fund

(1) Subject to section 386, the Attorney-General may give the Funds Management Committee a direction about the prudential management of the Fidelity Fund.

(2) Without limiting subsection (1), a direction may be made about the following:

388. Determinations about funding from Fidelity Fund

(1) The Attorney-General may determine the payment of an amount from the Fidelity Fund for funding:

(a) for the Law Society, Admission Board, Disciplinary Tribunal, Funds Management Committee and Statutory Supervisor ("regulatory authorities") for their costs and expenses of administering this Act; or

(b) the sufficiency of the Fidelity Fund to meet ascertained and contingent liabilities for defaults to which this Part applies without a levy being imposed under Division 3.

(3) In addition, a determination for funding for regulatory authorities may be made only in accordance with the regulations.

(4) Also, determinations for the Law Society for a financial year must not be less than the total amount paid in the previous financial year for the grant or renewal of local practising certificates.

(5) For subsection (2)(a), the Committee must at least once in each financial year, and may at other times the Committee considers appropriate, make a recommendation to the Attorney-General about the payment of amounts from the Fidelity Fund for funding regulatory authorities.

(6) The Attorney-General must give the Committee written notice of a determination.

(b) to advance the collection, assessment and dissemination to the community of information relating to the law;

(d) to improve the quality, standard and effectiveness of legal services available to the community;

(e) to protect any members of the community using or seeking to use legal services.

389. Payments into and out of Fidelity Fund

(d) interest on trust accounts paid under this Act to the Funds Management Committee;

390. Insurance

(1) The Funds Management Committee may arrange with an insurer for the insurance of the Fidelity Fund.

(2) Without limiting subsection (1), the Committee may arrange for the insurance of the Fund against particular claims or particular classes of claims.

(3) The proceeds paid under a policy of insurance against particular claims or particular classes of claims must be paid into the Fund and a claimant is not entitled to have direct recourse to the proceeds or any part of them.

(4) No liability (including liability in defamation) is incurred by a protected person in relation to anything done or omitted to be done in good faith for arranging for the insurance of the Fund.

391. Borrowing

The Funds Management Committee cannot borrow money for the purposes of the Fidelity Fund.

392. Deciding annual contribution

(1) Before 31 May in each year, the Funds Management Committee must decide the amount of contribution each local legal practitioner who is a member of a class of legal practitioner prescribed by the regulations is required to pay for the Fidelity Fund for the period of 12 months starting on the next following 1 July.

(2) The amount of the contribution must not exceed the amount prescribed by the regulations.

(3) In deciding the amount, the Committee must have regard to the advice of an actuary engaged by the Committee to advise it on the appropriate provision to be made for ascertained and contingent liabilities of the Fund.

(4) As soon as practicable after making the decision, the Committee must give notice of the amount:

393. Payment of annual contributions

(1) A local legal practitioner who is a member of a class of practitioner mentioned in section 392(1) must, before 1 July in each year, pay to the Funds Management Committee the contribution prescribed by the regulations for the Fidelity Fund for the period of 12 months beginning on that date.

(2) If a legal practitioner applies for a practising certificate for a period of less than 12 months, the practitioner must, in relation to the period, pay to the Committee a contribution that bears to the prescribed contribution the same proportion as the period bears to a year.

(3) If an interstate legal practitioner gives notice of starting to engage in legal practice in this jurisdiction, the practitioner must, for the period the practice is established, pay to the Committee a contribution that bears to the prescribed contribution the same proportion as the period bears to a year.

(4) If a lawyer is registered as a locally-registered foreign lawyer the lawyer must, for the period of registration, pay to the Committee a contribution that bears to the prescribed contribution the same proportion as the period bears to a year.

394. Imposition of levy

(1) If the Funds Management Committee considers the Fidelity Fund is not sufficient to satisfy ascertained and contingent liabilities, the Committee may impose a levy for payment into the Fund by a date decided by it.

(2) The amount of the levy must not exceed the amount prescribed by the regulations.

(3) The levy must be paid to the Committee by each local legal practitioner who at that date mentioned in subsection (1) is a member of a class of practitioner prescribed by the regulations.

(4) As soon as practicable after making the decision, the Committee must give notice of the amount of the levy and the date on which it must be paid:

395. Provisions about payment of contribution or levy

(a) a legal practitioner is eligible to be a member of more than one class of legal practitioner mentioned in section 392(1) or 394(3); and

(b) the amount of the contribution or levy payable by members of each of the classes is different; and

(c) the legal practitioner wishes to claim membership of one of the classes other than the one for which members must pay the highest contribution or levy.

(2) The legal practitioner must give the Funds Management Committee a statutory declaration specifying the class to which the legal practitioner claims membership.

(3) If the legal practitioner does not give the Committee a statutory declaration under subsection (2) when paying a contribution or levy:

(a) the practitioner is taken to be a member of the class to which the practitioner is eligible to be a member and for which members must pay the highest contribution or levy; and

(4) The Committee may, in a special case, allow a legal practitioner further time in which to pay a contribution or levy or part of it.

(5) If a legal practitioner does not pay the amount of a contribution or levy payable by the practitioner by the date it is required to be paid or, if the Committee allows the practitioner further time to pay under subsection (4), within the further time allowed:

(a) the amount of the unpaid contribution or levy is a debt owing to the Committee by the practitioner; and

(b) the Committee must, as soon as practicable, give written notice to the Law Society of the practitioner's failure.

396. Relevant jurisdiction

(1) The relevant jurisdiction for an associate of a law practice whose act or omission (whether alone or with one or more other associates of the practice) gives rise to or constitutes a default of the practice is to be decided under this section.

(2) In the case of a default involving trust money received in Australia (whether or not it was paid into an Australian trust account), the relevant jurisdiction for the associate is:

(a) if the trust money was paid into an Australian trust account and if the associate (whether alone or with a co-signatory) was authorised to withdraw any or all of the trust money from the only or last Australian trust account in which the trust money was held before the default – the jurisdiction under whose law that trust account was maintained; or

(3) In the case of a default involving trust money received outside Australia and paid into an Australian trust account, the relevant jurisdiction for the associate is:

(a) if the associate (whether alone or with a co-signatory) was authorised to withdraw any or all of the trust money from the only or last Australian trust account in which the trust money was held before the default – the jurisdiction under whose law that trust account was maintained; or

(4) In the case of a default involving trust property received in Australia, or received outside Australia and brought to Australia, the relevant jurisdiction for the associate is the associate's home jurisdiction.

Section 423 provides that the Law Society may treat the default as consisting of 2 or more defaults for determining the liability of the Fidelity Fund.

397. Defaults to which this Part applies

(1) This Part applies to a default of a law practice arising from or constituted by an act or omission of one or more associates of the practice, where this jurisdiction is the relevant jurisdiction for the only associate or one or more of associates involved.

(3) It is immaterial that the act or omission giving rise to or constituting a default does not constitute a crime or other offence under the law of this or any other jurisdiction or of the Commonwealth or that proceedings have not been commenced or concluded in relation to a crime or other offence of that kind.

398. Defaults relating to financial services or investments

(1) This Part does not apply to a default of a law practice to the extent that the default occurs in relation to money or property that is entrusted to or held by the practice for or in connection with:

(2) Without limiting subsection (1), this Part does not apply to a default of a law practice to the extent that the default occurs in relation to money or property that is entrusted to or held by the practice for or in connection with a managed investment scheme, or mortgage financing, undertaken by the practice.

(3) Without limiting subsections (1) and (2), this Part does not apply to a default of a law practice to the extent that the default occurs in relation to money or property that is entrusted to or held by the practice for investment purposes, whether on its own account or as agent, unless:

(ii) primarily in connection with the provision of legal services to or at the direction of the client; and

399. Claims about defaults

(1) A person who suffers pecuniary loss because of a default to which this Part applies may make a claim against the Fidelity Fund to the Law Society about the default.

(3) The Society may require the person who makes a claim to do either or both of the following:

(a) to give further information about the claim or any dispute to which the claim relates;

(4) The Society must investigate a claim made to it, including the default to which it relates, and may do so in any way it considers appropriate.

400. Time limit for making claims

(1) Subject to section 402, a claim does not lie against the Fidelity Fund unless the prospective claimant notifies the Law Society of the default concerned:

(a) within 6 months after the prospective claimant becomes aware of the default; or

(2) The Court or Society may allow a further period if satisfied it would be appropriate to do so in a particular case having regard to matters the Court or Society considers relevant.

401. Advertisements

(1) If the Law Society considers there has been, or may have been, a default by a law practice, it may publish either or both of the following:

(b) a notice that invites claims about the default and fixes a final date after which claims relating to the default cannot be made.

(a) at least 3 months later than the date of the first or only publication of the notice; and

(4) The Society may give information to persons making inquiries in response to a notice published under this section.

(5) Apart from extending the period during which claims can be made under this Part (if relevant), publication of a notice under this section does not confer any entitlements in relation to any claim or the default to which it relates or provide any grounds affecting the determination of any claim.

(6) The publication in good faith of a notice under this section, or the provision of information in good faith under this section, does not subject a protected person to any liability (including liability in defamation).

(d) a member of staff of or a person acting at the direction of any person or entity referred to in this definition.

402. Time limit for making claims following advertisement

(1) This section applies if the Law Society publishes a notice under section 401 fixing a final date after which claims relating to a default cannot be made.

even though the claim would have been barred under section 400 had the notice not been published.

403. Claims not affected by certain matters

(1) A claim may be made about a law practice's default despite a change in the status of the practice or the associate concerned after the occurrence of the act or omission giving rise to or constituting the default.

(2) A claim that has been made is not affected by a later change in the status of the practice or associate.

(a) for a partnership – a change in the membership or staffing or the dissolution of the practice; and

(b) for an incorporated legal practice – a change in the directorship or staffing or the winding-up or dissolution of the practice; and

(c) for an associate who was an Australian legal practitioner – the fact that the associate has ceased to practise or to hold an Australian practising certificate; and

404. Advance payments

(1) The Law Society may, at its absolute discretion, make payments to a claimant in advance of the determination of a claim if satisfied:

(2) Any payments made in advance must be taken into account when the claim is determined.

(3) Payments under this section must be made by the Funds Management Committee from the Fidelity Fund.

(4) If the claim is disallowed, the amounts paid under this section are recoverable by the Committee as a debt due to the Fund.

(5) If the claim is allowed but the amount payable is less than the amount paid under this section, the excess paid under this section is recoverable by the Committee as a debt due to the Fund.

405. Law Society may determine claim

(1) The Law Society may determine a claim by wholly or partly allowing or disallowing it.

(2) The Society may disallow a claim to the extent the claim does not relate to a default for which the Fidelity Fund is liable.

(3) The Society may wholly or partly disallow a claim, or reduce a claim, to the extent:

(a) the claimant knowingly assisted in or contributed towards, or was a party or accessory to, the act or omission giving rise to the claim; or

(c) the conduct of the transaction with the law practice in relation to which the claim is made was illegal and the claimant knew or ought reasonably to have known of that illegality; or

(d) proper and usual records were not brought into existence during the conduct of the transaction, or were destroyed and the claimant knew or ought reasonably to have known that records of that kind would not be kept or would be destroyed; or

(e) the claimant has unreasonably refused to disclose information or documents to or cooperate with:

(ii) any other authority (including, for example, an investigative or prosecuting authority);

(4) Subsections (2) and (3) do not limit the Society's power to disallow a claim on any other ground.

(5) Without limiting subsection (2) or (3), the Society may reduce the amount otherwise payable on a claim to the extent the Society considers appropriate:

(a) if satisfied the claimant assisted in or contributed towards, or was a party or accessory to, the act or omission giving rise to the claim; or

(b) if satisfied the claimant unreasonably failed to mitigate losses arising from the act or omission giving rise to the claim; or

406. Maximum amount allowable

(1) The amount payable in relation to a default must not exceed the pecuniary loss resulting from the default.

(2) This section does not apply to costs or interest payable under section 407 or 408.

407. Costs

(1) If the Law Society wholly or partly allows a claim, the Society must order payment of the claimant's reasonable legal costs involved in making and proving the claim unless the Society considers special circumstances exist warranting a reduction in the amount of costs or a determination that no amount should be paid for costs.

(2) If the Society wholly disallows a claim, the Society may order payment of the whole or part of the claimant's reasonable legal costs involved in making and attempting to prove the claim if the Society considers it is appropriate to make the order.

408. Interest

(1) In determining the amount of pecuniary loss resulting from a default, the Law Society must add interest on the amount payable (excluding interest) unless the Society considers special circumstances exist warranting a reduction in the amount of interest or warranting a determination that no amount should be paid by way of interest.

(2) The interest must be calculated from the date on which the claim was made to the date the Society notifies the claimant that the claim has been allowed at the rate specified in or determined under the regulations.

(3) To the extent regulations are not in force for subsection (2), interest must be calculated at the rate of 5%.

409. Reduction of claim because of other benefits

(1) A person is not entitled to recover from the Fidelity Fund any amount equal to amounts or to the value of other benefits:

(b) that have already been determined and are payable to or receivable by the person; or

(d) that (in the Society's opinion) might, but for neglect or failure on the person's part, have been paid or payable to or received or receivable by the person;

(2) The Society may, at its absolute discretion, pay to a person the whole or part of an amount referred to in subsection (1)(c) if satisfied payment is warranted to alleviate hardship, but nothing in this subsection affects section 411.

410. Subrogation

(1) On payment of a claim from the Fidelity Fund, the Law Society is subrogated to the rights and remedies of the claimant against any person in relation to the default to which the claim relates.

(2) Without limiting subsection (1), that subsection extends to a right or remedy against:

(b) the person authorised to administer the estate of the associate in relation to whom the claim is made and who is deceased or an insolvent under administration.

(3) Subsection (1) does not apply to a right or remedy against an associate if, had the associate been a claimant in relation to the default, the claim would not be disallowable on any of the grounds set out in section 405(3).

(4) The Society may exercise its rights and remedies under this section in its own name or in the name of the claimant.

(5) If the Society brings proceedings under this section in the name of the claimant, it must indemnify the claimant against any costs awarded against the claimant in the proceedings.

(6) The Society may exercise its rights and remedies under this section even though any limitation periods under this Part have expired.

(7) The Society must pay into the Fund any money recovered in exercising its rights and remedies under this section.

411. Repayment of certain amounts

(b) receives or recovers from another source or sources a payment on account of the pecuniary loss; and

(c) there is a surplus after deducting the amount of the pecuniary loss from the total amount received or recovered by the claimant from both or all sources;

(2) However, the amount payable by the claimant cannot exceed the amount the claimant received from the Fund in relation to the claim.

412. Notice of delay in making decision

(1) If the Law Society considers a claim is not likely to be determined within 12 months after it was made, the Society must give written notice to the claimant that the claim is not likely to be determined within that period.

413. Notice of decision

(1) The Law Society must, as soon as practicable, give written notice to the claimant about any decision it makes about the claim.

(b) a decision of the Society to reduce the amount allowed in relation to a claim.

414. Appeal against decision on claim

(1) A claimant may appeal to the Supreme Court against a decision of the Law Society:

(2) However, an appeal does not lie against a decision of the Society to limit the amount payable, or to decline to pay an amount, under the capping and sufficiency provisions of this jurisdiction.

(3) An appeal must be started by filing notice of appeal within 28 days after receiving the information notice for the decision.

(a) the appellant must establish that the whole or part of the amount sought to be recovered from the Fidelity Fund is not reasonably available from other sources, unless the Society waives that requirement; and

(b) the Court may, on application by the Society, stay the appeal pending further action being taken to seek recovery of the whole or part of that amount from other sources.

(b) if satisfied the reasons for varying or setting aside the Society's decision are sufficiently cogent to warrant doing so:

(ii) set aside the decision and make a decision in substitution for the decision set aside; or

(iii) set aside the decision and remit the matter for reconsideration by the Society in accordance with any directions or recommendations of the Court.

(9) However, an order for costs must not be made on an appeal under this section unless the Court is satisfied an order for costs should be made in the interests of justice.

415. Appeal against failure to determine claim

(1) A claimant may appeal to the Supreme Court against a failure of the Law Society to determine a claim after 12 months after the claim was made.

(2) An appeal against a failure to determine a claim must be started by filing notice of appeal at any time after the period of 12 months after the claim was made and while the failure continues.

(b) the Court may, on application by the Society, stay the appeal pending further action being taken to seek recovery of the whole or part of that amount from other sources.

(i) giving directions to the Society for the expeditious determination of the matter; and

(ii) if the Court is satisfied there has been unreasonable delay – ordering that interest be paid at a specified rate that is higher than the rate applicable under section 408, until further order or the determination for the claim; and

(iii) if the Court is satisfied there has not been unreasonable delay – ordering that, if delay continues in circumstances of a specified kind, interest be paid for a specified period at a specified rate that is higher than the rate applicable under section 408, until further order or the determination for the claim; or

(6) However, an order for costs must not be made on an appeal under this section unless the Court is satisfied an order for costs should be made in the interests of justice.

416. Court proceedings

(a) evidence of any admission or confession by, or other evidence that would be admissible against, an Australian legal practitioner or other person in relation to an act or omission giving rise to a claim is admissible to prove the act or omission despite the fact that the practitioner or other person is not a defendant in, or a party to, the proceedings; and

(b) any defence that would have been available to the practitioner or other person is available to the Law Society.

417. Payments for defaults

(1) The Fidelity Fund must be applied by the Funds Management Committee for compensating claimants in relation to claims allowed under this Part for defaults to which this Part applies.

(2) An amount payable from the Fund in relation to a claim is payable to the claimant or to another person at the claimant's direction.

418. Caps on payments

(a) the maximum amounts, or the method of calculating maximum amounts, that may be paid from the Fidelity Fund in relation to individual claims or classes of individual claims;

(b) the maximum aggregate amount, or the method of calculating maximum aggregate amount, that may be paid from the Fund in relation to all claims made in relation to individual law practices or classes of law practices.

(2) Amounts must not be paid from the Fund that exceed the amounts fixed, or calculated by a method fixed, under subsection (1).

(3) Payments from the Fund in accordance with the requirements of subsection (2) are made in full and final settlement of the claims concerned.

(4) Despite subsection (2), the Funds Management Committee may authorise payment of a larger amount if satisfied it would be reasonable to do so after taking into account:

(5) No proceedings can be brought, by way of appeal or otherwise, to require the payment of a larger amount or to require the Committee to consider payment of a larger amount.

419. Sufficiency of Fidelity Fund

(1) If the Funds Management Committee is of the opinion that the Fidelity Fund is likely to be insufficient to meet the Fund's ascertained and contingent liabilities, the Committee may do any or all of the following:

(a) postpone all payments relating to all or any class of claims out of the Fund;

(c) make partial payments of the amounts of one or more allowed claims out of the Fund with payment of the balance being a charge on the Fund;

(d) make partial payments of the amounts of 2 or more allowed claims out of the Fund on a pro rata basis, with payment of the balance ceasing to be a liability of the Fund.

(2) In deciding whether to do any or all of the things mentioned in subsection (1), the Committee must:

(b) have regard to hardship if relevant information is known to the Committee; and

(a) the balance specified in the declaration ceases to be a liability of the Fund; and

(b) the Committee may (but need not) at any time revoke the declaration in relation to either the whole or a specified part of the balance and the balance or that part of the balance again becomes a liability of the Fund.

(4) A decision of the Committee made under this section is final and not subject to appeal or review.

420. Claims by law practices or associates about defaults

(1) This section applies to a default of a law practice arising from or constituted by an act or omission of an associate of the practice.

(2) A claim may be made under section 399 by another associate of the law practice if the associate suffers pecuniary loss because of the default.

(3) A claim may be made under section 399 by the law practice if the practice is an incorporated legal practice and it suffers pecuniary loss because of the default.

421. Claims by law practices or associates about notional defaults

(1) This section applies if a default of a law practice arising from or constituted by an act or omission of an associate of the practice was avoided, remedied or reduced by a financial contribution made by the practice or by one or more other associates.

(2) The default, to the extent that it was avoided, remedied or reduced, is referred to in this section as a notional default.

(3) This Part applies to a notional default in the same way as it applies to other defaults of law practices, but only the law practice or the other associate or associates concerned are eligible to make claims about the notional default.

422. Concerted interstate defaults

(1) The Law Society may treat a concerted interstate default as if the default consisted of 2 or more separate defaults:

(a) one of which is a default to which this Part applies, where this jurisdiction is the relevant jurisdiction for one or more of the associates involved; and

(b) the other or others of which are defaults to which this Part does not apply, where another jurisdiction or jurisdictions are the relevant jurisdictions for one or more of the associates involved.

(2) The Society may treat a claim about a concerted interstate default as if the claim consisted of:

(3) A claim about a concerted interstate default is to be assessed on the basis that the fidelity funds of the relevant jurisdictions involved are to contribute:

(a) in equal shares in respect of the default, regardless of the number of associates involved in each of those jurisdictions, and disregarding the capping and sufficiency provisions of those jurisdictions; or

(b) in other shares as agreed by the Society and the corresponding authority or authorities involved.

(4) Subsection (3) does not affect the application of the capping and sufficiency requirements of this jurisdiction in respect of the amount payable from the Fidelity Fund after the claim has been assessed.

423. Defaults involving interstate elements where committed by one associate only

(1) This section applies to a default of a law practice arising from or constituted by an act or omission that was committed by only one associate of the practice, where the default involves more than one of the cases referred to in section 396(2) to (4).

(2) The Law Society may treat the default to which this section applies as if the default consisted of 2 or more separate defaults:

(a) one of which is a default to which this Part applies, where this jurisdiction is the relevant jurisdiction; and

(b) the other or others of which are defaults to which this Part does not apply, where another jurisdiction or jurisdictions are the relevant jurisdictions.

(3) The Society may treat a claim about the default to which this section applies as if the claim consisted of:

(4) A claim about a default to which this section applies is to be assessed on the basis that the fidelity funds of the relevant jurisdictions involved are to contribute:

(a) in equal shares in respect of the default and disregarding the capping and sufficiency provisions of those jurisdictions; or

(b) in other shares as agreed by the Society and the corresponding authority or authorities involved.

(5) Subsection (4) does not affect the application of the capping and sufficiency requirements of this jurisdiction in respect of the amount payable from the Fidelity Fund after the claim has been assessed.

424. Fidelity protocols

(1) The regulations may authorise the Law Society and the Funds Management Committee to enter into arrangements ("fidelity protocols") with corresponding authorities for or with respect to matters to which this Part relates.

(2) Without limiting subsection (1), the regulations may authorise the making of a fidelity protocol that provides that the Society or Committee is taken to have:

(a) requested a corresponding authority to act as agent of the Society or Committee in specified classes of cases; or

(b) agreed to act as agent of a corresponding authority in specified classes of cases.

(a) provide for the amendment, revocation or replacement of a fidelity protocol; or

(b) provide that a fidelity protocol does or specified classes of fidelity protocols do not have effect in this jurisdiction unless approved in accordance with the regulations.

425. Forwarding of claims

(1) If a claim is made to the Law Society about a default that appears to be a default to which a corresponding law applies, the Society must forward the claim or a copy of it to a corresponding authority of the jurisdiction concerned.

(2) If a claim is made to a corresponding authority about a default that appears to be a default to which this Part applies and the claim or a copy of it is forwarded under a corresponding law to the Society by the corresponding authority, the claim is taken:

(b) to have been so made when the claim was received by the corresponding authority.

426. Investigation of defaults to which this Part applies

(1) This section applies if a default appears to be a default to which this Part applies and to have:

(2) The Law Society may request a corresponding authority or corresponding authorities to act as agent or agents for the Society, for processing or investigating a claim about the default or aspects of the claim.

427. Investigation of defaults to which corresponding law applies

(1) This section applies if a default appears to be a default to which a corresponding law applies and to have:

(2) The Law Society may act as agent of a corresponding authority, if requested to do so by the corresponding authority, for processing or investigating a claim about the default or aspects of the claim.

(3) If the Society agrees to act as agent of a corresponding authority under subsection (2), the Society may exercise any of its powers or functions in relation to processing or investigating the claim or aspects of the claim as if the claim had been made under this Part.

428. Investigation of concerted interstate defaults and other defaults involving interstate elements

(1) This section applies if either of the following defaults appear to have occurred:

(3) The Society may act as agent of a corresponding authority, if requested to do so by the corresponding authority, for processing or investigating a claim about the default or aspects of the claim.

(4) If the Society agrees to act as agent of a corresponding authority under subsection (3), the Society may exercise any of its powers or functions in relation to processing or investigating the claim or aspects of the claim as if the claim had been made entirely under this Part.

429. Recommendations by Law Society to corresponding authorities

If the Law Society is acting as agent of a corresponding authority in relation to a claim made under a corresponding law, the Society may make recommendations about the decision the corresponding authority might make about the claim.

430. Recommendations to and decisions by Law Society after receiving recommendations from corresponding authority

(1) If a corresponding authority makes recommendations about the decision the Law Society might make about a claim in relation to which the corresponding authority was acting as its agent, the Society may:

(a) make its decision about the claim in conformity with the recommendations, whether with or without further consideration, investigation or inquiry; or

(2) A corresponding authority cannot, as agent of the Society, make a decision about the claim under Division 5.

431. Request to another jurisdiction to investigate aspects of claim

(1) The Law Society may request a corresponding authority to arrange for the investigation of any aspect of a claim being dealt with by the Society and to provide a report on the result of the investigation.

(b) a person or entity authorised by the corresponding authority to conduct the investigation;

may be used and taken into consideration by the Society in the course of dealing with the claim under this Part.

432. Request from another jurisdiction to investigate aspects of claim

(1) This section applies in relation to a request received by the Law Society from a corresponding authority to arrange for the investigation of any aspect of a claim being dealt with under a corresponding law.

(3) The provisions of this Part relating to the investigation of a claim apply, with any necessary adaptations, in relation to the investigation of the relevant aspect of the claim that is the subject of the request.

(4) The Society must provide a report on the result of the investigation to the corresponding authority.

433. Cooperation with other authorities

(1) When dealing with a claim under this Part involving a law practice or an Australian legal practitioner, the Law Society may consult and cooperate with another person or body who or which has powers under the corresponding law of another jurisdiction in relation to the practice or practitioner.

(2) For subsection (1), the Society and the other person or body may exchange information concerning the claim.

434. Interstate legal practitioner becoming authorised to withdraw from local trust account

(1) An interstate legal practitioner who (whether alone or with a
co-signatory) becomes authorised to withdraw money from a local trust account must:

(a) give notice to the Law Society of the authorisation in accordance with the regulations; and

(2) Without limiting subsection (1), the regulations may determine or provide for the determination of any or all of the following:

(a) the way in which the notice must be made and the information or material that must be included in or to accompany the notice;

(b) the amount of the contributions, their frequency and the way in which they must be made.

435. Application of Part to incorporated legal practices

(1) The regulations may provide that specified provisions of this Part, and any other provisions of this Act relating to the Fidelity Fund, do not apply to incorporated legal practices or apply to them with specified modifications.

(2) For the application of the provisions of this Part, and any other provisions of this Act relating to the Fund, to an incorporated legal practice, a reference in those provisions to a default of a law practice extends to a default of an incorporated legal practice, but only if it occurs in connection with the provision of legal services.

(3) Nothing in this section affects any obligation of an Australian legal practitioner who is an officer or employee of an incorporated legal practice to comply with the provisions of this Act relating to the Fund.

(4) An incorporated legal practice is required to make payments to or on account of the Fund under this Act as if it were an Australian lawyer applying for or holding a local practising certificate.

(5) The incorporated legal practice must not engage in legal practice in this jurisdiction if any payment is not made by the due date and while the practice remains in default of subsection (4).

(6) The Law Society may suspend the local practising certificate of a legal practitioner director of the practice if any payment is not made by the due date.

(7) The amounts payable to the Fund by an incorporated legal practice may be determined by reference to the total number of Australian legal practitioners employed by the practice and other relevant matters.

436. Application of Part to multi-disciplinary partnerships

(1) The regulations may provide that specified provisions of this Part, and any other provisions of this Act relating to the Fidelity Fund, do not apply to multi-disciplinary partnerships or apply to them with specified modifications.

(2) For the application of the provisions of this Part, and any other provisions of this Act relating to the Fund, to a multi-disciplinary partnership, a reference in those provisions to a default of a law practice extends to a default of a multi-disciplinary partnership or a partner or employee of a multi-disciplinary partnership, whether or not any person involved is an Australian legal practitioner, but only if it occurs in connection with the provision of legal services.

(3) Nothing in this section affects any obligation of an Australian legal practitioner who is a partner or employee of a multi-disciplinary partnership to comply with the provisions of this Act relating to the Fund.

(4) The amounts payable to the Fund by the legal practitioner partners of a multi-disciplinary partnership may be determined by reference to the total number of Australian legal practitioners employed by the partnership and other relevant matters.

437. Application of Part to Australian lawyers whose practising certificates have lapsed

(a) an Australian lawyer is not an Australian legal practitioner because the lawyer's Australian practising certificate has lapsed; and

(b) the lawyer was a sole practitioner immediately before the certificate lapsed.

(a) the certificate has been suspended or cancelled under this Act or a corresponding law; or

(b) the lawyer's application for the grant or renewal of an Australian practising certificate has been refused under this Act or a corresponding law and the lawyer would be an Australian legal practitioner had it been granted.

(3) For the other provisions of this Part, the practising certificate is taken not to have lapsed and accordingly the lawyer is taken to continue to be an Australian legal practitioner.

(b) when the period of 6 months after the practising certificate actually lapsed expires;

(c) if the lawyer's application for the grant or renewal of an Australian practising certificate is refused under this Act or a corresponding law.

438. Definitions

"ASIC exemption" means an exemption from the Corporations Act given by ASIC under that Act;

"borrower" means a person who borrows from a lender or contributor money that is secured by a mortgage;

(a) receives the legal practitioner's advice about investment in a regulated mortgage or managed investment scheme; or

(b) gives the legal practitioner instructions to use money for a regulated mortgage or managed investment scheme;

"contributor" means a person who lends, or proposes to lend, money that is secured by a contributory mortgage arranged by a legal practitioner;

"contributory mortgage" means a mortgage to secure money lent by 2 or more contributors as tenants in common or joint tenants, whether or not the mortgagee is a person who holds the mortgage in trust for or on behalf of those contributors;

(b) a trustee company as defined in the Companies (Trustees and Personal Representatives) Act; or

"lender" means a person who lends, or proposes to lend, a borrower money that is secured by a mortgage;

"regulated mortgage" means a mortgage (including a contributory mortgage) other than:

(b) a mortgage under which the lender or contributors nominate the borrower, but only if the borrower is not a person introduced to the lender or contributors by the legal practitioner who acts for the lender or contributors or by:

(iii) a person engaged by the legal practitioner for the purpose of introducing the borrower to the lender or contributors; or

"run-out mortgage" means a regulated mortgage created before the application date that is not:

(b) a mortgage that forms part of a managed investment scheme that is required to be operated by a responsible entity under the Corporations Act (as modified by any ASIC exemption or the regulations under that Act);

"Territory regulated mortgage practice" means a legal practitioner's practice in relation to which a nomination made under section 442 is in force.

439. Associate of a legal practitioner

(a) a partner of the legal practitioner, whether or not the partner is a legal practitioner; or

(c) a corporation, or a member of a corporation, partnership, syndicate or joint venture, in which the legal practitioner or a person mentioned in paragraph (a), (b) or (e) has a beneficial interest; or

(e) a person who bears a prescribed relationship to the legal practitioner or to a person mentioned in paragraphs (a) to (d); or

(f) a corporation that (if the legal practitioner or a person mentioned in paragraphs (a) to (e) were, or is, a corporation) would be, or is, a subsidiary of the legal practitioner or person as defined in the Corporations Act; or

(g) a person prescribed by the regulations as an associate of the legal practitioner.

(2) For subsection (1)(e), a person bears a prescribed relationship to a legal practitioner or other person if the relationship is that of:

440. Territory regulated mortgage

A regulated mortgage is a Territory regulated mortgage, in relation to a legal practitioner, if:

(a) the legal practitioner's practice is a Territory regulated mortgage practice; and

(b) the regulated mortgage does not form part of a managed investment scheme or, if it does form part of a managed investment scheme, the managed investment scheme is not required to be operated by a responsible entity under the Corporations Act (as modified by any ASIC exemption or the regulations under that Act).

441. Conduct of mortgage practices

(1) A legal practitioner must not, in the practitioner's capacity as legal practitioner for a lender or contributor, negotiate the making of or act in relation to a regulated mortgage unless:

(2) A legal practitioner must not, in the practitioner's capacity as legal practitioner for a lender or contributor, negotiate the making of or act in relation to a regulated mortgage except under:

(a) the Corporations Act, or that Act as modified by any ASIC exemption or the regulations under that Act; and

(3) A legal practitioner must not, in the practitioner's capacity as legal practitioner for a lender or contributor, negotiate the making of or act in relation to a regulated mortgage that forms part of a managed investment scheme unless the legal practitioner complies with any ASIC exemption that applies to managed investment schemes that:

(4) Subsection (3) applies even if the regulated mortgage forms part of a managed investment scheme that has no more than 20 members.

(5) Subsection (3) does not apply if the managed investment scheme is operated by a responsible entity.

(6) A legal practitioner who knows an associate has contravened a requirement mentioned in subsection (1), (2) or (3) must give written notice to the Society of that fact within 21 days after becoming aware of the contravention.

442. Nomination of practice as Territory mortgage practice

(1) This section applies if a legal practitioner who, in the practitioner's capacity as legal practitioner for a lender or contributor:

(2) The legal practitioner may, by written notice given to the Law Society, nominate the practitioner's practice as a Territory regulated mortgage practice.

(3) The nomination may, with the Society's approval, be made for a legal practitioner by another legal practitioner (for example, by a legal practitioner on behalf of members of a firm of legal practitioners).

(4) The nomination of the practice takes effect on the date the notice is given to the Society.

(5) The nomination ceases to be in force, in relation to a legal practitioner, if:

(a) the practitioner revokes the nomination by written notice given to the Society; or

443. Requirement to notify Law Society of Territory regulated mortgages

(a) in the practitioner's capacity as legal practitioner for a lender or contributor, negotiates the making of or acts in relation to a Territory regulated mortgage; and

(b) fails to give the Law Society written notice of that fact as required by the regulations.

444. Legal practitioner to have fidelity cover in relation to regulated mortgages

(1) A legal practitioner who, in the practitioner's capacity as legal practitioner for a lender or contributor, negotiates the making of or acts in relation to a regulated mortgage must ensure an approved policy of fidelity insurance is in force in relation to the practitioner for the purpose of compensating persons who suffer pecuniary loss because of any dishonest failure to pay money payable under the mortgage.

(2) A policy of fidelity insurance is an approved policy of fidelity insurance if:

(a) the Law Society is satisfied the terms of the policy comply with agreed national standards for fidelity insurance for legal practitioners; and

(b) the policy is not to expire before the expiration of the local practising certificate or interstate practising certificate of the legal practitioner to whom the policy relates; and

(c) the insurer and the terms of the policy have been approved by the Attorney-General by written order given to the Society; and

(a) the practitioner, in the practitioner's capacity as legal practitioner for a lender or contributor, negotiates the making of or acts in relation to a regulated mortgage; and

(b) an approved policy of fidelity insurance is not in force in relation to the practitioner under this section.

(4) A contravention of this section does not limit the operation of section 445.

(5) This section does not apply in relation to any regulated mortgage forming part of a managed investment scheme operated by a responsible entity.

445. Limited claim against Fidelity Fund in relation to regulated mortgage

(1) A lender or contributor under a regulated mortgage to which section 444 applies is not entitled to apply for compensation from the Fidelity Fund for pecuniary loss he or she suffers because of a dishonest failure by the legal practitioner acting for the lender or contributor to pay money payable under the mortgage.

(2) Subsection (1) does not apply if the legal practitioner acting for the lender or contributor contravenes section 444.

(a) must be dealt with by the Funds Management Committee as if the legal practitioner had taken out and maintained an approved policy of fidelity insurance under section 444; and

(b) is subject to the same restrictions, including the amount of compensation payable, as would have applied under that approved policy of fidelity insurance.

446. Notice of insurance arrangements for regulated mortgage

(1) If a client entrusts money to a legal practitioner and the money, or part of the money, is proposed to be advanced to a borrower for a regulated mortgage, the practitioner must, within 7 days after the money is entrusted to the practitioner, give the client written notice:

(b) including details of the policy of fidelity insurance mentioned in section 444.

(2) The legal practitioner must not advance any of the money to a borrower for a regulated mortgage unless:

(b) after having been given the notice, the client has given the practitioner specific written authority to advance the money for the mortgage.

(3) A contravention of this section does not limit the operation of section 445.

(4) This section does not apply in relation to a regulated mortgage forming part of a managed investment scheme operated by a responsible entity.

447. Failure to obtain fidelity insurance for regulated mortgage

(1) The Law Society must not grant or renew a practising certificate to an Australian lawyer who is or will be required to comply with section 444 unless it is satisfied:

(a) there is, or will be, in force in relation to the lawyer an approved policy of fidelity insurance under that section; and

(b) the policy is, or will be, in force in relation to the lawyer during the currency of the lawyer's practising certificate.

(2) The Society must suspend the local practising certificate of a legal practitioner who is required to comply with section 444 if it is not satisfied:

(a) there is in force in relation to the practitioner an approved policy of fidelity insurance under that section; and

(b) the policy is in force in relation to the practitioner during the currency of the practitioner's practising certificate.

(3) If an interstate legal practitioner is required to comply with section 444 and the Society is not satisfied there is in force in relation to the practitioner an approved policy of fidelity insurance under that section, the Society must:

(a) suspend that practitioner's entitlement under Part 2.3 to practise in the Territory while the failure continues; and

(b) ask the corresponding authority in the jurisdiction in which the practitioner has his or her sole or principal place of legal practice to suspend the practitioner's interstate practising certificate until the Society notifies the corresponding authority the practitioner is complying with section 444.

448. Involvement of legal practitioners in managed investment schemes

(a) carrying out any legal services in connection with a managed investment scheme operated by a responsible entity; or

(b) having an interest in such a managed investment scheme or in the responsible entity for such a scheme.

(2) However, if a client entrusts, or proposes to entrust, money to a legal practitioner to be invested in a managed investment scheme operated by a responsible entity and the practitioner has a prescribed interest in the scheme, the practitioner must give the client written notice advising the client:

(b) the operation of the scheme does not form part of the practitioner's practice; and

(4) The legal practitioner must not advance the money entrusted to the practitioner to the responsible entity for the scheme or to another person unless the client has been given the notice.

(5) A legal practitioner who knows an associate has contravened a requirement mentioned in this section must give written notice to the Law Society of that fact within 21 days after becoming aware of the contravention.

(6) A contravention of this section does not limit the operation of section 449.

(7) For this section, a legal practitioner has a prescribed interest in a managed investment scheme if:

(a) the practitioner, or an associate of the practitioner, is a director of or concerned in the management of the responsible entity for the scheme; or

(b) the practitioner, or an associate of the practitioner, is a shareholder in the responsible entity for the scheme; or

(c) the practitioner, or an associate of the practitioner, is taken to be an agent of the responsible entity under Chapter 5C of the Corporations Act; or

(d) the practitioner, or an associate of the practitioner, receives any pecuniary benefit from the scheme or the responsible entity for the scheme if a client of the practitioner invests in the scheme; or

(e) the practitioner, or an associate of the practitioner, has an interest of a kind prescribed by the regulations or legal practitioners rules in the scheme or the responsible entity for the scheme.

449. Claims against Fidelity Fund relating to managed investment schemes connected with legal practitioners

A person who entrusts money to a legal practitioner to be invested in a managed investment scheme operated by a responsible entity is not entitled to make a claim against the Fidelity Fund for the purpose of obtaining compensation for any pecuniary loss arising from that investment.

450. Transfer of mortgages to responsible entity

(1) A legal practitioner who, in the practitioner's capacity as legal practitioner for a lender or contributor, is responsible for the administration of a regulated mortgage must not transfer the mortgage to a responsible entity for a managed investment scheme unless the lender or contributor has given the practitioner written authority to transfer the mortgage to the entity.

(2) For this section, a legal practitioner transfers a regulated mortgage to a responsible entity when the practitioner does anything that results in:

(a) a responsible entity for a managed investment scheme becoming the holder or custodian of the mortgage; or

(b) any advances of money made in relation to the mortgage, or the property that is charged or encumbered by the mortgage, becoming scheme property (as defined in the Corporations Act) of a managed investment scheme.

451. Regulations relating to managed investment schemes

Without limiting section 460, the regulations may include provisions for the following:

(a) ensuring the operation of a managed investment scheme by a responsible entity is kept separate from a legal practitioner's practice;

(b) ensuring clients of a legal practitioner are aware that the operation of such a managed investment scheme does not form part of the practitioner's practice.

452. Fidelity insurance for pre-existing regulated mortgage

(1) Section 444 does not apply in relation to a regulated mortgage that was created before the application date.

(2) Despite subsection (1), section 444 applies in relation to a regulated mortgage created before the application date if:

(a) whether before or after the application date, a client entrusts money to the legal practitioner to be advanced to a borrower for the regulated mortgage; and

(b) that money is advanced or proposed to be advanced to the borrower on or after the application date.

(a) the legal practitioner must take out and maintain an approved policy of fidelity insurance under section 444 in relation to the advance of that money and comply with section 446(1) in relation to that advance; and

(b) section 445(1) applies to any claim for compensation for pecuniary loss suffered in relation to that advance.

(4) If the money mentioned in subsection (2) is received by the legal practitioner before the application date, the 7 days mentioned in section 446(1) is taken to be 7 days after the application date

453. Prohibited conduct in relation to run-out mortgage

(a) advance to a borrower for a run-out mortgage any money entrusted to the practitioner; or

(d) do anything in contravention of the regulations or the professional conduct rules relating to run-out mortgages.

454. Substitution of lender or contributor under run-out mortgage

(1) Despite section 453, a legal practitioner may receive money from a client and do any work that is necessary solely for substituting a lender or contributor under a run-out mortgage.

(2) Section 444 does not apply in relation to anything done under subsection (1) and the legal practitioner is not required to obtain fidelity insurance for compensating the substitute lender or contributor for any pecuniary loss in relation to the substitution.

(3) If a client entrusts, or proposes to entrust, money to a legal practitioner for the purpose of substituting a lender or contributor under a
run-out mortgage, the practitioner must give the client written notice:

(b) that the practitioner is not required to have fidelity insurance in relation to the substitution under the run-out mortgage.

(4) The legal practitioner must not advance money received for subsection (1) to a borrower for a run-out mortgage unless the practitioner has given the client notice under subsection (3).

455. Limited claims against Fidelity Fund by substitute lender

(1) A person who becomes a lender or contributor under a run-out mortgage after the application date is not entitled to apply for compensation from the Fidelity Fund for pecuniary loss suffered in relation to the mortgage.

(2) Subsection (1) does not apply if the legal practitioner who acts for the person fails to give the client notice under section 454.

456. Law Society may require information about mortgage practices

(1) The Law Society may, by written notice, require a legal practitioner to give information to it about any of the following:

(a) whether the practitioner, an associate of the practitioner or a person engaged by the practitioner negotiates the making of or acts in relation to regulated mortgages or has done so in the past;

(i) to nominate the practitioner's practice as a Territory regulated mortgage practice; or

(d) the other information relating to regulated mortgages required by regulation to be provided.

457. Indemnity insurance

This Part does not affect the terms of an approved policy of professional indemnity insurance.

458. Law Society to disseminate information

The Law Society has the function of disseminating information for the purpose of increasing public awareness about the obligations of legal practitioners under this Part.

459. Secrecy provisions not affected

This Act or any other law of the Territory does not prohibit the disclosure of information to ASIC or to a regulatory authority of a State or Territory concerning the conduct of legal practitioners in relation to regulated mortgages.

460. Regulations relating to Part

(2) In particular, the regulations may make provision for or with respect to the following:

(a) the negotiation of the making of or acting in relation to regulated mortgages by legal practitioners;

(b) the way in which the Law Society is to be given any notice or other information under this Part.

461. Purposes of Chapter

(a) to provide a nationally consistent scheme for the discipline of the legal profession in this jurisdiction, in the interests of the administration of justice and for the protection of consumers of the services of the legal profession and the public generally;

(b) to promote and enforce the professional standards, competence and honesty of the legal profession;

(d) to enable lay persons to participate in complaints and disciplinary processes involving lawyers to ensure community interests and perspectives are recognised;

(e) to give complainants, lawyers and other participants in the system immunity from civil liability for communications made by them in good faith in connection with the complaints and disciplinary system.

(2) The purposes of this Chapter relating to lay persons and the clients of law practices are as follows:

(b) to ensure information is readily available to lay persons about the means of redress that are available under the scheme;

(c) to give clients of law practices access to sufficient advice and assistance in order to make complaints in accordance with their rights and responsibilities under this Chapter;

(d) to promote transparency and openness for lay persons at all levels of the operation of the scheme, subject to the need to preserve confidentiality in appropriate circumstances;

(e) to provide an opportunity for mediation of consumer disputes relating to legal services;

(f) to provide complainants with a reasonable opportunity to comment on statements of the lawyer against whom the complaint is made before the complaint is disposed of;

(g) to ensure complainants receive adequate notice of the start and status of the disciplinary process at relevant stages of the process, including notice of the dismissal of complaints and the reasons for the dismissal;

(h) to give complainants the right to seek an independent review of decisions of the Law Society to dismiss complaints or reprimand Australian legal practitioners.

(3) The purposes of this Chapter relating to the providers of legal services are as follows:

(a) to ensure information is readily available to lawyers about the means of redress that are available under the scheme;

(b) to ensure the rules of natural justice (being rules for procedural fairness) are applied to any disciplinary proceedings taken against lawyers;

(4) The Statutory Supervisor must keep under review the provisions and operation of this Chapter for:

(a) ascertaining whether the scheme established by this Chapter meets the purposes of this Chapter; and

(5) However, subsection (4) does not affect the making or carrying out of other arrangements for reviewing the provisions or operation of the provisions of this Act or of this Act generally.

462. Definitions

"disciplinary application" means an application made to the Disciplinary Tribunal under section 515;

"official complaint" means a complaint made under this Chapter by the Law Society or Statutory Supervisor.

463. Application of Chapter to lawyers, former lawyers and former practitioners

(1) This Chapter applies (with the necessary modifications) to Australian lawyers and former Australian lawyers in relation to conduct occurring while they were Australian lawyers, but not Australian legal practitioners, in the same way as it applies to Australian legal practitioners and former Australian legal practitioners.

(2) This Chapter applies (with the necessary modifications) to former Australian legal practitioners in relation to conduct occurring while they were Australian legal practitioners in the same way as it applies to persons who are Australian legal practitioners.

464. Unsatisfactory professional conduct

"unsatisfactory professional conduct" includes conduct of an Australian legal practitioner occurring in connection with the practice of law that falls short of the standard of competence and diligence that a member of the public is entitled to expect of a reasonably competent Australian legal practitioner.

465. Professional misconduct

(a) unsatisfactory professional conduct of an Australian legal practitioner, where the conduct involves a substantial or consistent failure to reach or maintain a reasonable standard of competence and diligence; and

(b) conduct of an Australian legal practitioner whether occurring in connection with the practice of law or occurring otherwise than in connection with the practice of law that would, if established, justify a finding that the practitioner is not a fit and proper person to engage in legal practice.

(2) For finding that an Australian legal practitioner is not a fit and proper person to engage in legal practice, regard may be had to the suitability matters that would be considered if the practitioner were an applicant:

466. Conduct capable of constituting unsatisfactory professional conduct or professional misconduct

(1) Without limiting section 464 or 465, the following conduct is capable of constituting unsatisfactory professional conduct or professional misconduct:

(d) conduct of an Australian legal practitioner as or in becoming an insolvent under administration;

(e) conduct of an Australian legal practitioner in becoming disqualified from managing or being involved in the management of any corporation under the Corporations Act;

(f) conduct of an Australian legal practitioner in failing to comply with an order of the Disciplinary Tribunal made under this Act or an order of a corresponding disciplinary order made under a corresponding law (including but not limited to a failure to pay wholly or partly a fine imposed under this Act or a corresponding law);

(g) conduct of an Australian legal practitioner in failing to comply with a compensation order made under this Act or a corresponding law.

(2) Also, without limiting section 464 or 465, the following acts or omissions are capable of constituting unsatisfactory professional conduct or professional misconduct:

(a) a failure by an Australian legal practitioner to comply with any requirement made by the Law Society or investigator, or a person authorised by the Society or investigator, in the exercise of powers conferred by Part 6.4;

(b) a contravention by an Australian legal practitioner of any condition imposed by the Society or investigator in the exercise of powers conferred by Part 6.4;

(c) a failure by a legal practitioner director of an incorporated legal practice to ensure the incorporated legal practice, or any officer or employee of the incorporated legal practice, complies with any of the following:

(i) any requirement made by the Society or investigator, or a person authorised by the Society or investigator, in the exercise of powers conferred by Part 6.4;

(ii) any condition imposed by the Society or investigator in the exercise of powers conferred by Part 6.4.

467. Practitioners to whom this Chapter applies

(1) This Chapter applies to an Australian legal practitioner in respect of conduct to which this Chapter applies and so applies:

(d) whether or not the practitioner resides or has an office in this jurisdiction; and

(e) whether or not the person making a complaint about the conduct resides, works or has an office in this jurisdiction.

(d) a judge of a court, or a judicial member of a tribunal, of a State or another Territory.

(3) A provision of this Act or any other Act that protects a person from any action, liability, claim or demand in relation to any act or omission of the person does not affect the application of this Chapter to the person in relation to the act or omission.

(4) For this Chapter, conduct of an Australian legal practitioner in the exercise of a function as an arbitrator is conduct happening in connection with the practice of law.

(5) However, conduct in relation to any justiciable aspect of decision making by an arbitrator is not conduct happening in connection with the practice of law for this Chapter.

(6) For this Chapter, conduct of an Australian legal practitioner is not conduct happening in connection with the practice of law to the extent that it is conduct engaged in the exercise of an executive or administrative function under an Act as:

"council" means a municipal council or community government council as defined in the Local Government Act;

(b) a government department (however described) of another jurisdiction or of the Commonwealth;

468. Conduct to which this Chapter applies – generally

(1) Subject to subsection (3), this Chapter applies to conduct of an Australian legal practitioner occurring in this jurisdiction.

(2) This Chapter also applies to an Australian legal practitioner's conduct occurring outside this jurisdiction, but only:

(a) if it is part of a course of conduct that has occurred partly in this jurisdiction and partly in another jurisdiction, and either:

(i) the regulatory authority of each other jurisdiction in which the conduct has occurred consents to its being dealt with under this Act; or

(ii) the complainant and the practitioner consent to its being dealt with under this Act; or

(b) if it occurs in Australia but wholly outside this jurisdiction and the practitioner is a local lawyer or local legal practitioner, and either:

(i) the regulatory authority of each jurisdiction in which the conduct has occurred consents to its being dealt with under this Act; or

(ii) the complainant and the practitioner consent to its being dealt with under this Act; or

(a) the Law Society consents to its being dealt with under a corresponding law; or

(b) the complainant and the Australian legal practitioner consent to its being dealt with under a corresponding law.

(4) Subsection (3) does not apply if the conduct is not capable of being dealt with under the corresponding law.

(5) The Society may give consent for subsection (3)(a), and may do so conditionally or unconditionally.

469. Conduct to which this Chapter applies – insolvency, serious offences and tax offences

(1) This Chapter applies to the following conduct of a local legal practitioner whether occurring in Australia or elsewhere:

(b) conduct of the practitioner as or in becoming an insolvent under administration;

(c) conduct of the practitioner in becoming disqualified from managing or being involved in the management of any corporation under the Corporations Act.

470. Complaints

(1) A complaint may be made under this Chapter about an Australian legal practitioner's conduct to which this Chapter applies.

(2) A complaint may be made under this Chapter about the conduct of an Australian legal practitioner occurring outside this jurisdiction.

(3) However, the complaint must not be dealt with under this Chapter unless this Chapter is or becomes applicable to it.

471. Making of complaints

(1) A complaint about the conduct of an Australian legal practitioner may be made by:

(b) if possible, identify the Australian legal practitioner about whom the complaint is made; and

(4) This section does not affect any other right of a person to complain about the conduct of an Australian legal practitioner.

472. To whom complaint made

(1) A complaint must be made to the Law Society unless it is made by the Society.

(2) The Society must, as soon as practicable after receiving a complaint, give written notice to the complainant of its receipt.

473. Complaints made over 3 years after conduct concerned

(1) A complaint may be made about conduct of an Australian legal practitioner irrespective of when the conduct is alleged to have occurred.

(2) However, a complaint cannot be dealt with (other than to dismiss it or refer it to mediation) if the complaint is made more than 3 years after the conduct is alleged to have occurred, unless the Law Society decides:

(a) it is just and fair to deal with the complaint having regard to the delay and the reasons for the delay; or

(b) the complaint involves an allegation of professional misconduct and it is in the public interest to deal with the complaint.

474. Further information and verification

The Law Society may require a complainant to do either or both of the following:

(b) to verify the complaint, or any further information, by statutory declaration.

475. Practitioner to be notified of complaint

(1) The Law Society must ensure the Australian legal practitioner about whom the complaint is made is given:

(b) unless the Society advises the practitioner that the Society has dismissed or intends to dismiss the complaint, a written notice:

(i) informing the practitioner of the practitioner's right to make submissions to the Society; and

(2) Subsection (1) does not apply if the complaint is dismissed under section 478.

(3) Subsection (1) does not apply if the Society is of the opinion that the giving of the notice will or is likely to:

(b) prejudice an investigation by the police or other investigatory or law enforcement body of any matter with which the complaint is concerned; or

(a) may postpone giving the practitioner a copy of the complaint and notice about making submissions, until it is satisfied it is appropriate to do so; or

(ii) the practitioner's right to make submissions to the Society, specifying the period within which submissions must be made, if satisfied the practitioner has sufficient information to make submissions.

(5) The notice must also inform the practitioner of any action already taken by the Society in relation to the complaint.

(6) The notice must also inform the practitioner of the practitioner's right to make submissions to the Society, unless it advises the practitioner that it has dismissed or intends to dismiss the complaint.

(7) Nothing in this section requires the Society to give written notice under this section to the practitioner until it has had time to consider the complaint, seek further information about the complaint from the complainant or otherwise undertake preliminary inquiries into the complaint, and properly prepare the notice.

476. Submissions by practitioner

(1) The Australian legal practitioner about whom a complaint is made may, within a period specified by the Law Society, make submissions to it about the complaint or its subject matter or both.

(2) The Society may at its discretion extend the period in which submissions may be made.

(3) The Society must consider the submissions made within the permitted period before deciding what action is to be taken in relation to the complaint.

477. Preliminary assessment

(1) If the Law Society is deciding whether or not to dismiss a complaint under section 478, the Society may conduct a preliminary assessment of the complaint for assessing the substance of the complaint.

(2) The Society may, in writing, appoint a suitably qualified person as an investigator to conduct the preliminary assessment of the complaint as its agent.

(3) The appointment may be made generally (to apply for all complaints or for all complaints of a specified class) or for a specified complaint.

(4) The investigator is not bound by rules of evidence and may inform himself or herself on any matter in the way the investigator considers appropriate.

(5) Chapter 6, except Part 6.3, applies to a preliminary assessment under this section as if:

(b) the investigator conducting the assessment were an investigator conducting a complaint investigation.

(6) The investigator may terminate the preliminary assessment at any time and may make any recommendations the investigator considers appropriate.

(7) Any evidence or information obtained by the Society or investigator in the course of conducting the preliminary assessment may be used by the Society or investigator in relation to any later investigation or consideration of the complaint.

478. Summary dismissal of complaints

(a) further information is not given, or the complaint or further information is not verified, as required by the Society under section 474; or

(b) the complaint is vexatious, misconceived, frivolous or lacking in substance; or

(c) the complaint was made more than 3 years after the conduct complained of is alleged to have occurred, unless a decision is made under section 473 in relation to the complaint; or

(d) the conduct complained about has been the subject of a previous complaint that has been dismissed; or

(f) it is not in the public interest to deal with the complaint having regard to the fact that the name of the Australian legal practitioner to whom the complaint relates has already been removed from an Australian roll in which the practitioner was enrolled; or

(g) the Society is satisfied it is otherwise in the public interest to dismiss the complaint; or

(2) The Society may dismiss a complaint under this section without completing an investigation if, having considered the complaint, it forms the view the complaint requires no further investigation.

479. Withdrawal of complaints

(2) Withdrawal of a complaint may be effected by oral or written communication to the Law Society or an officer or other representative of the Society.

(3) If a complaint is withdrawn orally and the complaint was made by a person other than the Society, the Society must:

(b) give the complainant a copy of the record, or send a copy of it addressed to the complainant at the complainant's address last known to the Society;

unless the complainant has previously provided the Society with written confirmation of the withdrawal.

(4) A complaint may be withdrawn even though the Society has started or completed an investigation of the complaint, but cannot be withdrawn if proceedings in relation to the complaint have been started in the Disciplinary Tribunal.

(5) If a complaint is made by a person other than the Society, a further complaint about the matter that is the subject of the withdrawn complaint cannot be made unless the Society is satisfied it is appropriate to do so in the circumstances.

(6) If a complaint is properly withdrawn, no further action must be taken under this Chapter in relation to it, unless the Society is satisfied investigation or further investigation of it is justified in the particular circumstances.

(a) the Society making a complaint or further complaint about the matter that is the subject of the withdrawn complaint (whether or not after investigation or further investigation referred to in subsection (6)); or

(b) action being taken on any other complaint duly made in relation to that matter.

(8) This section extends to the withdrawal of a complaint so far as it relates to some only or part only of the matters that form the subject of the complaint.

480. Consumer dispute

A consumer dispute is a dispute between a person and an Australian legal practitioner about conduct of the practitioner to the extent the dispute does not involve an issue of unsatisfactory professional conduct or professional misconduct.

481. Mediation of complaint involving consumer dispute solely

(1) This section applies to a complaint that involves a consumer dispute but does not involve an issue of unsatisfactory professional conduct or professional misconduct.

(2) If the Law Society considers the whole or part of the matter the subject of the complaint is capable of resolution by mediation, the Society may suggest to the complainant and the Australian legal practitioner to whom the complaint relates that they enter into a process of mediation.

(3) If the complainant and the practitioner agree to enter into a process of mediation in connection with the complaint:

(a) the Society may refer the complaint to mediation by a prescribed mediator; and

(b) no further action is required on the complaint to the extent it is referred to mediation, except as provided by section 485.

482. Mediation of hybrid complaint

(1) This section applies to a complaint that involves both a consumer dispute and an issue of unsatisfactory professional conduct or professional misconduct.

(2) If the Law Society considers the whole or part of the consumer dispute is capable of resolution by mediation, the Society may suggest to the complainant and the Australian legal practitioner to whom the complaint relates that they enter into a process of mediation.

(3) If the complainant and the practitioner agree to enter into a process of mediation in connection with the consumer dispute:

(a) the Society may refer the complaint to mediation by a prescribed mediator; and

(b) so far as it involves an issue of unsatisfactory professional conduct or professional misconduct, the complaint must continue to be dealt with under this Chapter after or during the mediation or attempt at mediation; and

483. Compulsory mediation of consumer dispute

(1) Despite any other provision of this Part, the Law Society may, by written notice, require the complainant and the Australian legal practitioner concerned to enter into a process of mediation under this Part in connection with a consumer dispute that comprises or is involved in a complaint.

(a) the Society may refer the complaint to mediation by a prescribed mediator; and

(b) if and so far as it involves an issue of unsatisfactory professional conduct or professional misconduct, the complaint must continue to be dealt with under this Part after or during the mediation or attempt at mediation; and

484. Nature of mediation

Mediation of a consumer dispute is not limited to formal mediation procedures and extends to encompass preliminary assistance in dispute resolution, including the giving of informal advice designed to ensure:

(b) there is full and open communication between the parties concerning the dispute.

485. Facilitation of mediation

If the complainant and the Australian legal practitioner concerned agree to enter into a process of mediation under this Part in connection with a complaint, the Law Society may facilitate the mediation to the extent it considers appropriate.

486. List of mediators

487. Confidentiality of mediation process

(1) The following are not admissible in any proceedings in a court or before a person or body authorised to hear and receive evidence:

(a) evidence of anything said or admitted during a mediation or attempted mediation under this Part of the whole or a part of the matter that is subject of a complaint;

488. Complaints to be investigated

(a) a complaint that is dismissed or withdrawn under this Chapter (to the extent it is dismissed or withdrawn);

(b) a complaint to the extent it is a consumer dispute after it has been referred to mediation under this Chapter;

(c) a complaint that is a separate complaint under section 494 and that under subsection (7) of that section need not be the subject of a separate or further investigation;

(d) a complaint that is a modified complaint under section 495 and that under subsection (4) of that section need not be the subject of a separate or further investigation;

489. Consultation and cooperation on complaints

(1) The Law Society may consult and cooperate with the corresponding authority of another jurisdiction when dealing with a complaint against an interstate legal practitioner under this Act or a corresponding law.

(2) For subsection (1), the Society and corresponding authority may exchange information concerning the complaint.

490. Monitoring by Statutory Supervisor of conduct of investigation

(1) The Statutory Supervisor must monitor investigations by the Law Society into complaints.

(2) For subsection (1), the Supervisor and Society must enter into an arrangement about provision by the Society of assistance required by the Supervisor relating to complaints generally and particular complaints.

(3) The Society must report to the Supervisor on the progress of the investigation if required to do so by the Supervisor.

491. Appointment of investigator

(1) The Law Society may, in writing, appoint a suitably qualified person as an investigator to investigate a complaint as agent of the Society.

(2) An appointment under subsection (1) may be made generally (to apply for all complaints or for all complaints of a specified class) or for a specified complaint.

492. Application of Chapter 6

493. Application for cost assessment

(1) The Law Society may at its discretion, for investigating a complaint, apply under Part 3.3, Division 8, for an assessment of costs claimed by an Australian legal practitioner.

(2) The application may be made outside the 12-month period mentioned in section 332.

(a) consider whether the client was aware of the client's right to apply for a costs assessment of the costs within the 12-month period; and

(b) if the client was so aware, consider whether the application may cause significant injustice to the practitioner.

(4) Subject to this section, Part 3.3, Division 8 applies to the application as if the Society were a client of the practitioner.

494. Conduct that may be investigated

(1) An investigation may extend to conduct of the Australian legal practitioner concerned revealed during the investigation if:

(a) the conduct is related to the subject matter of the complaint and involves the complainant but is not within an allegation contained in the complaint; or

(b) the conduct is not related to the subject matter of the complaint but involves the complainant; or

(d) the conduct is not related to the subject matter of the complaint and does not involve the complainant.

(a) be informed in writing of the extended investigation as soon as practicable after the investigation is extended; and

(b) be given a reasonable opportunity to make submissions regarding the additional matters.

(3) Subsection (2) does not apply if, under section 475, notice of the complaint was not given to the Australian legal practitioner.

(4) Matters arising in connection with subsection (1)(a) may be made the subject of a separate complaint under section 470 or of modification of a complaint under section 495.

(5) Matters arising in connection with subsection (1)(b), (c) or (d) may be made the subject of a separate complaint under section 470.

(6) The making of the separate complaint or modification of the complaint as mentioned in subsection (4) or (5) need not occur until the extended investigation has been completed.

(7) If matters arising in connection with subsection (1)(a) to (d) are made the subject of a separate complaint under section 470, the separate complaint need not be the subject of a separate or further investigation if the Law Society investigating the original complaint is satisfied the matter has already been sufficiently investigated during the investigation of the original complaint.

495. Modified complaints

(1) During or after completion of the investigation of a complaint, the Law Society may modify the complaint by doing either or both of the following:

(c) may be made even though the conduct to which the modification relates occurred more than 3 years before the date of the modification.

(3) Before taking action under subsection (1), the Society must consult with the original complainant (except if the Society is the complainant).

(4) A modified complaint need not be the subject of a separate or further investigation if the Society is satisfied the matter has already been sufficiently investigated during the investigation of the original complaint.

(5) Sections 475, 476 and 479 apply (with the necessary modifications) to a modification of a complaint under this section in the same way as they apply to a complaint made under section 470.

496. Decision after investigation

(1) After completing an investigation of a complaint against an Australian legal practitioner, the Law Society must:

(2) Unless section 499 applies, the Society must start proceedings in the Tribunal in relation to a complaint against an Australian legal practitioner if satisfied there is a reasonable likelihood the practitioner will be found by the Tribunal to have engaged in unsatisfactory professional conduct or professional misconduct.

497. Decision without investigation

(1) Subsection (2) applies to a complaint against an Australian legal practitioner, if the Law Society is satisfied action should be taken under this section having regard to:

(b) the reasonable likelihood that the Disciplinary Tribunal will find the practitioner has engaged in unsatisfactory professional conduct or professional misconduct.

(2) The Society may start proceedings in the Tribunal under this Chapter in relation to the complaint without the need to start or complete an investigation.

498. Dismissal of complaint

After completing an investigation of a complaint against an Australian legal practitioner, the Law Society may dismiss the complaint if satisfied:

(b) there is no reasonable likelihood that the practitioner will be found guilty by the Disciplinary Tribunal of either unsatisfactory professional conduct or professional misconduct; or

499. Summary conclusion of complaint procedure by fine or reprimand

(a) completes an investigation of a complaint against an Australian legal practitioner; and

(b) is satisfied there is a reasonable likelihood that the practitioner would be found guilty by the Disciplinary Tribunal of unsatisfactory professional conduct (but not professional misconduct); and

(c) is satisfied the practitioner is generally competent and diligent and that no other material complaints have been made against the practitioner.

(a) publicly reprimand the practitioner or, if there are special circumstances, privately reprimand the practitioner;

(4) A fine must be paid in the way and within the period specified by the Society.

(5) If action is taken under subsection (2), no further action can be taken under this Chapter in relation to the complaint.

(6) The Society must give the practitioner an information notice for a decision to take action under subsection (2).

500. Record of decision

The Law Society must keep a record of its decision, together with reasons for the decision, for each complaint dealt with under this Part.

501. Reasons to be provided to complainant and practitioner

(1) If a complaint has been made about an Australian legal practitioner, the complainant and the practitioner are entitled to receive a statement of reasons from the Law Society in relation to:

(b) its decision to start proceedings in the Disciplinary Tribunal in relation to the complaint; or

(c) its decision to omit, from the allegations in an application made to the Tribunal in relation to the complaint, matter that was originally part of the complaint.

(2) The Society must give a complainant an information notice for a decision to dismiss the complaint.

502. Immediate suspension of local practising certificate

(1) This section applies if the Law Society considers it necessary in the public interest to immediately suspend a local practising certificate on the ground of the seriousness of the conduct in relation to which a complaint has been made in relation to the holder of the certificate.

(4) The Society must give written notice of the suspension to the holder of the practising certificate.

(b) indicate the period of operation of the suspension as provided by subsection (4); and

(7) The holder may make written representations to the Society about the suspension.

(10) A decision to revoke a suspension need not be in response to any written representations made by the holder.

503. Other powers to suspend not affected

Nothing in this Part affects any other power under this Act to suspend a local practising certificate and any such power may be exercised despite the existence of a power to suspend the practising certificate under this Part.

504. Rules of procedural fairness

The rules of procedural fairness, to the extent they are not inconsistent with the provisions of this Act, apply in relation to the investigation of complaints and the Law Society's procedures under this Chapter.

505. Duty to deal with complaints efficiently and expeditiously

It is the duty of the Law Society to deal with complaints as efficiently and expeditiously as is practicable.

506. Appeals

(1) An aggrieved person may appeal to the Disciplinary Tribunal against a decision of the Law Society to:

(a) dismiss a complaint made about an Australian legal practitioner under section 498; or

(b) for an appeal mentioned in subsection (1)(b) – the Australian legal practitioner.

(3) The appeal must be started by filing notice of appeal with the Tribunal within 28 days after receiving the information notice for the decision.

507. Hearing procedures

508. Parties

(b) the Australian legal practitioner against whom the complaint has been made; and

(3) A party may appear at the hearing personally or be represented by an Australian legal practitioner or (with the leave of the Disciplinary Tribunal) by another person.

509. Hearing closed to public

(1) The hearing of the appeal must be open to the public, except if the Disciplinary Tribunal directs that the hearing or a part of the hearing be closed to the public.

(2) The Tribunal must not direct that a hearing or a part of a hearing be closed to the public unless satisfied it is desirable to do so in the public interest for reasons connected with:

510. Appeal may be withdrawn or discontinued

(a) withdraw the appeal at any time before the Disciplinary Tribunal starts the hearing; or

511. Decision on appeal

(ii) set aside the decision and direct the Society to start disciplinary proceedings in the Tribunal in relation to the whole or part of the complaint; or

(iii) set aside the decision and take action that the Society could take under section 499(2); or

(iii) set aside the decision and direct the Society to start disciplinary proceedings in the Tribunal in relation to the whole or part of the complaint; or

(iv) set aside the decision and take action that the Society could take under section 499(2).

(2) If the Tribunal makes a decision mentioned in subsection (1)(a)(ii) or (b)(iii), the Society must make a disciplinary application under Part 4.11 in accordance with the decision within 28 days after the decision is made.

(3) If the Tribunal makes a decision mentioned in subsection (1)(a)(iii) or (b)(i) or (iv), it must give the practitioner an information notice for the decision.

(4) The Tribunal must give written notice to the parties of its decision on the appeal.

512. Costs of appeal

The Disciplinary Tribunal may make the order as to costs of the appeal it considers appropriate.

513. Appeals

(a) a decision of the Law Society under section 502 to suspend a local practising certificate; or

(b) a decision of the Disciplinary Tribunal for which an information notice is required to be given to an Australian legal practitioner under section 511(3).

(a) for an appeal mentioned in subsection (1)(a) – the holder of the practising certificate; or

(b) for an appeal mentioned in subsection (1)(b) – the Australian legal practitioner.

(a) if the person receives an information notice for the decision – the day the person receives the notice; or

(b) if paragraph (a) does not apply – the day the person becomes aware of the decision.

514. Decision on appeal

On hearing the appeal, the Supreme Court may make the order it considers appropriate.

PART 4.11 – PROCEEDINGS IN DISCIPLINARY TRIBUNAL FOR DISCIPLINARY APPLICATIONS

515. Starting proceedings

(1) Proceedings may be started in the Disciplinary Tribunal in relation to the whole or part of a complaint against an Australian legal practitioner by an application (a "disciplinary application") made by the Law Society under this Chapter.

(2) The application may contain one or more allegations of unsatisfactory professional conduct or professional misconduct.

(3) An allegation in the application must relate to the subject matter of the complaint but need not be an allegation made in the original complaint or have been the subject of separate or further investigation under this Chapter.

516. Time for starting proceedings

(1) A disciplinary application may be made to the Disciplinary Tribunal at any time within 6 months after the Law Society decides that proceedings be started in the Tribunal in relation to the complaint concerned.

(2) Despite subsection (1), the Tribunal may, on written application by the Society, extend the time for making a disciplinary application.

(3) In exercising the power to extend the time for making a disciplinary application, the Tribunal must have regard to all the circumstances of the case.

(4) Without limiting subsection (3), the Tribunal must have regard to the following:

(b) the extent to which, having regard to the delay, there is or may be prejudice to the legal practitioner concerned by reason that evidence that would have been available if the application had been made within the 6-month period is no longer available;

(5) The time for making a disciplinary disciplinary application may be extended under subsection (2) although that time has expired.

(6) For subsection (1), a decision that proceedings be started is made when the Society decides there is a reasonable likelihood that the legal practitioner concerned will be found by the Tribunal to have engaged in unsatisfactory professional conduct or professional misconduct as mentioned in section 496(2) or 497(1).

(7) An official record or notice of a decision mentioned in subsection (6) specifying the date the decision was made is evidence the decision was made and of the date the decision was made.

517. Hearings

The Disciplinary Tribunal must conduct a hearing into each allegation particularised in a disciplinary application.

518. Joinder

The Disciplinary Tribunal may, subject to its rules and the rules of procedural fairness, order the joinder of more than one disciplinary application against the same or different Australian legal practitioners.

519. Variation of disciplinary application

(1) The Disciplinary Tribunal may, on the application of the person who made the disciplinary application or on its own initiative, vary the application to omit allegations or to include additional allegations, if satisfied it is reasonable to do so having regard to all the circumstances.

(2) Without limiting subsection (1), when considering whether or not it is reasonable to vary the disciplinary application, the Tribunal must have regard to whether varying the application will affect the fairness of the proceedings.

(3) The inclusion of an additional allegation is not precluded on any of the following grounds:

520. Nature of allegations

(1) A disciplinary application for a complaint cannot be challenged on the ground that the allegations contained in it do not deal with all of the matters raised in the complaint or deal differently with matters raised in the complaint or deal with additional matters.

(2) This section applies whether the allegations were included in the application as made or were included by way of variation.

521. Rules of evidence

The Disciplinary Tribunal is bound by the rules of evidence in conducting a hearing under this Part.

522. Parties

(1) The parties to proceedings in the Disciplinary Tribunal in relation to a complaint are:

(a) the Australian legal practitioner against whom the complaint has been made; and

(a) those aspects of the hearing that relate to a request by the complainant for a compensation order; and

(b) other aspects of the hearing, but only if the Tribunal grants leave to the complainant to appear in relation to them.

(4) The Tribunal may grant leave to any other person to appear at the hearing if satisfied it is appropriate for that person to appear at the hearing.

(5) A person who is entitled to appear at the hearing or who is granted leave to appear at the hearing may appear personally or be represented by an Australian legal practitioner or (with the leave of the Tribunal) by any other person.

523. Public hearings

(1) A hearing under this Part must be open to the public, except if the Disciplinary Tribunal directs that the hearing or a part of the hearing be closed to the public.

(2) The Tribunal must not direct that a hearing or a part of a hearing be closed to the public unless satisfied it is desirable to do so in the public interest for reasons connected with:

524. Power to disregard procedural lapses

(1) The Disciplinary Tribunal may order that a failure by the Law Society to observe a procedural requirement in relation to a complaint must be disregarded if satisfied the parties to the hearing have not been prejudiced by the failure.

(2) This section applies to a failure occurring before proceedings were started in the Tribunal in relation to the complaint as well as to a failure occurring afterwards.

525. Decisions of Disciplinary Tribunal

(1) This section applies if, after completing a hearing under this Part in relation to a complaint against an Australian legal practitioner, the Disciplinary Tribunal is satisfied the practitioner is guilty of unsatisfactory professional conduct or professional misconduct.

(2) The Tribunal may make the order it considers appropriate, including any one or more of the orders specified in this section.

(a) an order recommending that the name of the practitioner be removed from the local roll;

(b) an order that the practitioner's local practising certificate be suspended for a specified period or cancelled;

(c) an order that a local practising certificate not be granted to the practitioner before the end of a specified period;

(i) specified conditions be imposed on the practitioner's practising certificate granted or to be granted under this Act; and

(iii) specifies the time (if any) after which the practitioner may apply to the Tribunal for the conditions to be amended or removed;

(e) an order publicly reprimanding the practitioner or, if there are special circumstances, privately reprimanding the practitioner.

(a) an order recommending that the name of the practitioner be removed from an interstate roll;

(b) an order recommending that the practitioner's interstate practising certificate be suspended for a specified period or cancelled;

(c) an order recommending that an interstate practising certificate not be granted to the practitioner before the end of a specified period;

(i) specified conditions be imposed on the practitioner's interstate practising certificate; and

(iii) the time (if any) after which the practitioner may apply to the Tribunal for the conditions to be amended or removed.

(a) an order that the practitioner pay a fine of a specified amount, not exceeding:

(b) an order that the practitioner undertake and complete a specified course of further legal education;

(d) an order that the practitioner do or refrain from doing something in connection with the practice of law;

(e) an order that the practitioner cease to accept instructions as a public notary in relation to notarial services;

(f) an order that the practitioner's practice be managed for a specified period in a specified way or subject to specified conditions;

(g) an order that the practitioner's practice be subject to periodic inspection by a specified person for a specified period;

(h) an order that the practitioner seek advice in relation to the management of the practitioner's practice from a specified person;

(i) an order that the practitioner not apply for a local practising certificate before the end of a specified period.

(6) The Tribunal may make ancillary or other orders, including an order for payment by the practitioner of expenses associated with orders under subsection (4), as assessed or reviewed in or in accordance with the order or as agreed.

(7) If the practitioner against whom the complaint is made is the supervising legal practitioner for a complying community legal centre, or a practitioner employed by a complying community legal centre, the Tribunal may make an order that any of the following persons must not operate or be involved in the management of a complying community legal centre for the period specified in the order:

(a) a person who is on the board of management (however described) of a complying community legal centre;

(b) a person who is involved in the management of a complying community legal centre.

(8) The Tribunal may find a person guilty of unsatisfactory professional conduct even though the complaint or charge alleged professional misconduct.

526. Interlocutory and interim orders

(1) The Disciplinary Tribunal may make interlocutory or interim orders as it considers appropriate before making its final decision about a complaint against an Australian legal practitioner.

(2) Without limiting subsection (1), orders of the kinds referred to in section 525 may be made as interlocutory or interim orders.

527. Consent orders

(1) The Disciplinary Tribunal may, with the consent of the Australian legal practitioner concerned contained in a written instrument, make orders under this Part without conducting or completing a hearing in relation to the complaint.

(2) Consent may be given before or after the proceedings were started in the Tribunal in relation to the complaint.

(3) If consent is given before the proceedings were started, the requirement to conduct an investigation of the complaint (whether started or not) may be dispensed with and any investigation of the complaint already being conducted may be suspended or terminated.

(4) This section does not apply to consent given by the practitioner unless the practitioner and the Law Society have agreed on the terms of an instrument of consent.

(5) Without limiting what may be included in the instrument of consent, the instrument:

(a) must contain an agreed statement of facts, including as to the grounds of complaint; and

(7) This section does not affect the procedures for the start of proceedings in the Tribunal if consent was given before the proceedings are started.

(8) If consent was given before the start of proceedings, the proceedings must nevertheless be started for the complaint in the same way as if the consent had not yet been given.

(9) The Tribunal must be constituted in the same way as for the conduct of a hearing into the complaint.

(10) In deciding whether to make orders under this Part under an instrument of consent, the Tribunal may:

(b) despite any consent, conduct or complete a hearing in relation to the complaint if it considers it to be in the public interest to do so.

528. Compliance with decisions and orders

(ii) any interlocutory or interim order of the Tribunal made under section 526(1) so far as it is an order of the kind referred to in section 525(2) or otherwise needs to be, or is capable of being, given effect to in this jurisdiction; and

(b) enforce the following orders (to the extent they relate to the practitioner's practice of law in this jurisdiction):

(ii) any interlocutory or interim order of the Tribunal made under section 526(1) so far as it is an order of the kind referred to in section 525(4) or otherwise needs to be, or is capable of being, enforced in this jurisdiction.

(2) The Law Society must ensure persons and bodies having relevant powers or functions under a corresponding law of another jurisdiction are notified of the making and contents of:

(i) an order of the Tribunal made under section 525(3) in relation to that corresponding law;

(ii) any interlocutory or interim order of the Tribunal made under section 526(1) so far as it is an order of the kind referred to in section 525(3) or otherwise needs to be, or is capable of being, given effect to in the other jurisdiction; and

(b) the following orders (to the extent that they relate to the practitioner's practice of law in the other jurisdiction):

(3) If the Tribunal makes an order recommending that the name of an Australian legal practitioner who is a local lawyer be removed from the local roll, the Supreme Court may order the removal of the name from the roll.

(4) If the Tribunal makes an order that an Australian legal practitioner pay a fine:

(b) on being filed, the order may be enforced as if it were an order of the court.

529. Costs

(1) The Disciplinary Tribunal must make an order requiring an Australian legal practitioner whom it has found guilty of unsatisfactory professional conduct or professional misconduct to pay costs (including costs of the Law Society and the complainant), unless the Tribunal is satisfied exceptional circumstances exist.

(2) The Tribunal may make an order requiring an Australian legal practitioner whom it has not found guilty of unsatisfactory professional conduct or professional misconduct to pay costs (including costs of the Society and the complainant), if satisfied:

(a) the sole or principal reason why the proceedings were started in the Tribunal was a failure of the practitioner to cooperate with the Society; or

(b) there is some other reason warranting the making of an order in the particular circumstances.

(3) The Tribunal may make an order requiring the Society to pay costs, but may do so only if satisfied the Australian legal practitioner concerned is not guilty of unsatisfactory professional conduct or professional misconduct and the Tribunal considers that special circumstances warrant the making of the order.

(4) The Tribunal may make an order requiring an Australian legal practitioner in relation to whom proceedings are pending before the Tribunal to pay costs on a interlocutory or interim basis.

(b) may be for an unspecified amount but must specify the basis on which the amount is to be determined.

530. Notice of decision

The Disciplinary Tribunal must give written notice of its decision under this Part to the parties to disciplinary proceedings before it.

531. Early termination of proceedings

(1) Proceedings before the Disciplinary Tribunal for a complaint cannot be terminated, whether by withdrawal of the disciplinary application or otherwise, before the Tribunal makes its final decision about the complaint, without the leave of the Tribunal.

(2) The Tribunal may give leave for this section if it is satisfied continuation of the proceedings is not warranted in the public interest.

532. Other remedies not affected

533. Appeal against Disciplinary Tribunal orders

(1) The following persons may appeal against a decision of the Disciplinary Tribunal to make an order under section 525:

(b) the Australian legal practitioner or other person against whom the order is made.

(2) However, subsection (1)(b) does not apply if the order is made against the practitioner with the practitioner's consent.

(3) The appeal must be started by filing notice of appeal within 28 days after receipt of notice of the decision.

(5) On hearing the appeal, the Supreme Court may make the order it considers appropriate.

534. Compensation orders

(1) A compensation order is an order, made in relation to a complaint against an Australian legal practitioner, to compensate the complainant for loss suffered because of conduct that is the subject of the complaint.

(a) an order that the practitioner cannot recover or must repay the whole or a specified part of the amount charged to the complainant by the practitioner in relation to specified legal services;

(b) an order discharging a lien possessed by the practitioner in relation to a specified document or class of documents;

(c) an order that the practitioner pay to the complainant, by way of monetary compensation for the loss, a specified amount.

535. Prerequisites to making of compensation orders

(a) the complainant and the Australian legal practitioner agree to it being made; and

(2) Also, a compensation order must not be made in relation to any loss for which the complainant has received or is entitled to receive:

(a) compensation received or receivable under an order that has been made by a court; or

(b) compensation paid or payable from a Fidelity Fund of any jurisdiction, if a relevant claim for payment from the Fund has been made or determined.

(3) In addition, a compensation order under section 534(2)(c) requiring payment of an amount exceeding $10 000 by way of monetary compensation must not be made unless the complainant and the practitioner both consent to the order.

536. Making of compensation orders

(1) The Law Society may make a compensation order before starting proceedings in the Disciplinary Tribunal in relation to a complaint, if satisfied the Australian legal practitioner against whom the complaint is made is likely to be found guilty of unsatisfactory professional conduct or professional misconduct.

(2) The Tribunal may make a compensation order if it has found an Australian legal practitioner guilty of unsatisfactory professional conduct or professional misconduct in relation to the complaint.

537. Effect of compensation order

(1) A compensation order under section 534(2)(a) preventing recovery of an amount is effective even if proceedings to recover the amount (or any part of it) have been started by or on behalf of the Australian legal practitioner.

(2) Also, a compensation order under section 534(2)(a) requiring repayment of an amount is effective even if a court has ordered payment of the amount (or an amount of which it is part) in proceedings brought by or on behalf of the practitioner.

538. Enforcement of compensation orders

A copy of a compensation order may be filed in the Local Court and the order (so far as it relates to any amount payable under the order) may be enforced as if it were an order of that Court.

539. Other remedies not affected

(1) The recovery of compensation awarded under this Part does not affect any other remedy available to a complainant.

(2) However, any compensation so awarded must be taken into account in any other proceedings by or on behalf of the complainant in relation to the same loss.

540. Disciplinary action

(a) the making of an order by a court or tribunal for or following a finding of professional misconduct by an Australian legal practitioner under this Act or under a corresponding law; or

(b) any of the following actions taken under this Act or under a corresponding law, following a finding by a court or tribunal of professional misconduct by an Australian legal practitioner:

(ii) the suspension or cancellation of the Australian practising certificate of the practitioner;

(iii) the refusal to grant or renew an Australian practising certificate to the practitioner;

(iv) the appointment of a receiver of all or any of the practitioner's property or the appointment of a manager of the practitioner's practice.

541. Register of Disciplinary Action

(a) disciplinary action taken under this Act against Australian legal practitioners; and

(b) disciplinary action taken under a corresponding law against Australian legal practitioners who are or were enrolled or practising in this jurisdiction when the conduct that is the subject of the disciplinary action occurred.

(a) the full name of the person against whom the disciplinary action was taken; and

(3) The Register may be kept in a form decided or identified by the Law Society and may form part of other registers.

(5) Information recorded in the Register may be provided to members of the public in any other way approved by the Society.

(7) The requirement to keep the Register applies only in relation to disciplinary action taken after the commencement of this section, but details relating to earlier disciplinary action may be included in the Register.

542. Other ways of publicising disciplinary action

(1) The Law Society may publicise disciplinary action taken against an Australian legal practitioner in any way it considers appropriate.

(2) This section does not affect the provisions of this Part relating to the Register.

543. Quashing of disciplinary action

(1) If disciplinary action is quashed on appeal, any reference to that disciplinary action must be removed from the Register.

(2) If disciplinary action is quashed on appeal after the action was publicised by the Law Society under section 542, the result of the appeal must be publicised with equal prominence by the Society.

544. Liability for publicising disciplinary action

(1) No liability is incurred by a protected person in respect of anything done or omitted to be done in good faith for the purpose of:

(a) publicising disciplinary action taken against an Australian legal practitioner; or

(2) Without limiting subsection (1), no liability (including liability in defamation) is incurred by a person publishing in good faith:

or matter purporting to contain information of that kind if the matter is incorrect in any respect; or

(e) a person acting at the direction of the Territory or any person or body referred to in this definition.

545. Disciplinary action taken because of infirmity, injury or illness

(1) Disciplinary action taken against a person must not be recorded in the Register or otherwise publicised under this Part if the action was taken because of the person's material inability to properly to engage in legal practice.

(a) the suspension or cancellation of the person's Australian practising certificate; or

(b) a refusal to grant or renew an Australian practising certificate applied for by the person; or

(3) However, if the disciplinary action involves a matter mentioned in subsection (2), the reason for the disciplinary action and any other information relating to the inability must not:

546. Division subject to secrecy and non-disclosure orders

(1) The provisions of this Part are subject to any confidentiality or secrecy provisions of this Act.

(2) The provisions of this Part are subject to any order, so far as it prohibits or restricts the disclosure of information, made by:

(a) the Disciplinary Tribunal in relation to disciplinary action taken under this Chapter; or

(b) a corresponding disciplinary body in relation to disciplinary action taken under provisions of a corresponding law that correspond to this Chapter; or

(3) Despite subsection (2), the name and other identifying particulars of the person against whom the disciplinary action was taken, and the kind of disciplinary action taken:

547. Cross-border protocols

(1) The Law Society may enter into arrangements ("cross-border protocols") with corresponding authorities for or in relation to investigating and dealing with conduct that appears to have occurred in more than one jurisdiction.

(2) In particular, a cross-border protocol may provide for any of the following:

(a) providing principles to assist in deciding if conduct occurs, either generally or in specified classes of cases;

(b) giving and receiving consent for conduct occurring in a jurisdiction to be dealt with under a law of another jurisdiction;

(c) the procedures to be adopted for requesting and conducting the investigation of any aspect of complaints under this Part.

(3) A cross-border protocol does not have effect in this jurisdiction unless it is embodied or identified in the regulations.

548. Request to another jurisdiction to investigate complaint

(1) The Law Society may request a corresponding authority to arrange for the investigation of any aspect of a complaint being dealt with by the Society and to provide a report on the result of the investigation.

(b) a person or body authorised by the corresponding authority to conduct the investigation;

may be used and taken into consideration by the Society and Disciplinary Tribunal in the course of dealing with the complaint under this Chapter.

549. Request from another jurisdiction to investigate complaint

(1) This section applies in relation to a request received by the Law Society from a corresponding authority to arrange for the investigation of any aspect of a complaint being dealt with under a corresponding law.

(2) The Society may conduct the investigation or authorise another authority to conduct it.

(3) The provisions of this Chapter relating to the investigation of a complaint apply, with any necessary adaptations, in relation to the investigation of the relevant aspect of the complaint that is the subject of the request.

(4) The Society must provide a report on the result of the investigation to the corresponding authority.

550. Sharing of information with corresponding authorities

The Law Society may enter into arrangements with a corresponding authority for providing information to the authority about:

(b) any action taken in relation to any complaints made or investigations conducted, including decisions of the Disciplinary Tribunal under this Chapter.

551. Cooperation with corresponding authorities

(1) When dealing with a complaint or conducting an investigation, the Law Society may consult and cooperate with another person or body (whether in Australia or a foreign country) who or which has or may have relevant information or powers in relation to the person against whom the complaint was made or the person under investigation.

(2) For subsection (1), the Society and the other person or body may exchange information concerning the complaint or investigation.

552. Compliance with orders made under corresponding laws

(a) give effect to or enforce any recommendation or order of a corresponding disciplinary body or other corresponding authority made under a corresponding law in relation to powers exercisable under this Act; and

(b) give effect to or enforce any recommendation or order of a corresponding disciplinary body or other corresponding authority made under a corresponding law so far as the recommendation or order relates to the practice of law by the Australian legal practitioner concerned in this jurisdiction.

(2) If a corresponding disciplinary body makes a recommendation or order that a person's name be removed from the roll of lawyers under this Act, the Supreme Court must order the removal of the name from the roll.

(3) If a corresponding disciplinary body makes an order that an Australian legal practitioner pay a fine:

(b) on being filed, the order may be enforced as if it were an order of the court.

553. Other powers or functions not affected

Nothing in this Part affects any powers or functions that a person or body has apart from this Part.

554. Jurisdiction of Supreme Court

The inherent jurisdiction and powers of the Supreme Court in relation to the control and discipline of local lawyers are not affected by anything in this Chapter and extend to:

(b) interstate legal practitioners engaged in legal practice in this jurisdiction.

555. Information about complaints procedure

(1) The Law Society must ensure information appropriate to the interests and needs of lay persons and relating to the scheme established by this Chapter, including information about:

(2) The Society may provide assistance to members of the public in making complaints.

(3) The Society must ensure information appropriate to the interests and needs of legal practitioners and relating to the scheme established by this Chapter, including information about:

556. Contravention of orders

A person who contravenes an order of the Disciplinary Tribunal under this Act or an order of a corresponding disciplinary body under a corresponding law is not entitled to apply for the grant or renewal of a local practising certificate while the contravention continues.

557. Performance criteria

(1) The Law Society must develop performance criteria relating to the handling of complaints under this Chapter.

(2) The Society must include the relevant criteria in its annual report prepared under section 648, together with an assessment of its performance against the criteria in the period to which the report relates.

558. Reports to Attorney-General

(1) The Law Society must submit to the Attorney-General, at the times and in relation to the periods required by the Attorney-General, reports on the handling of complaints.

(2) A report must deal with matters specified by the Attorney-General and other matters the Society considers appropriate to include in the report.

(3) The obligations under this section are in addition to any obligations to provide an annual or other report under another law.

559. Effect of other proceedings

A complaint may be made and dealt with even though the Australian legal practitioner concerned is the subject of proposed or current criminal or civil proceedings relating to the subject matter of the complaint.

560. Protection from liability

(b) a committee or subcommittee of the Society or a member of a committee or subcommittee; or

(2) The person is not civilly or criminally liable for the act if it is done or omitted to be done in good faith for the administration of this Chapter.

561. Non-compellability of certain witnesses

A person mentioned in section 560 is not compellable in any legal proceedings (including proceedings before the Disciplinary Tribunal) to give evidence or produce documents in relation to any matter in which the person was involved in the course of the administration of this Chapter.

562. Undertakings by Law Society and Statutory Supervisor regarding privileged or confidential information

(1) The Law Society or Statutory Supervisor may give undertakings regarding non-disclosure of information obtained under or for this Chapter from or about a client of an Australian legal practitioner if the information is the subject of client legal privilege or any duty of confidentiality.

(2) An undertaking cannot be inconsistent with any duty of the Society or Supervisor under this Act or any other Act to disclose information.

(3) This section has effect whether or not the client has waived the client legal privilege or the benefit of the duty of confidentiality.

563. Confidentiality of client communications

Subject to section 564, an Australian legal practitioner must comply with a requirement under this Chapter to answer a question or to produce information or a document, despite any duty of confidentiality in relation to a communication between the practitioner and a client.

564. Claims of privilege

If, in any investigation or proceedings under this Chapter, a person properly claims privilege in relation to any information:

(a) the Law Society or Disciplinary Tribunal may require the person to disclose the information; and

(b) if any information adverse to the interests of the person is then disclosed, no question or answer relating to the information may be used in or in connection with any procedures or proceedings other than:

565. Waiver of privilege or duty of confidentiality

(1) If a client of an Australian legal practitioner makes a complaint about the practitioner, the complainant is taken to have waived legal professional privilege, or the benefit of any duty of confidentiality, to enable the practitioner to disclose to the appropriate authorities any information necessary for investigating and dealing with the complaint.

(2) Without limiting subsection (1), any information so disclosed may be used in or in connection with any procedures or proceedings relating to the complaint.

566. Purposes of Chapter

(1) The purpose of this Chapter is to ensure an appropriate range of options is available for intervention in the business and professional affairs of law practices and Australian-registered foreign lawyers to protect the interests of:

(c) lawyers, including the owners and employees of law practices, so far as their interests are not inconsistent with those of the general public and clients.

(a) similar interventions in other jurisdictions, especially if a law practice operates in this jurisdiction and one or more other jurisdictions; and

567. Interpretation

"external intervener" means a supervisor, manager or receiver under this Chapter;

"external intervention" means the appointment of, and the exercise of the powers and functions of, a supervisor, manager or receiver under this Chapter;

(b) interest, dividends or other income or anything else derived from or acquired with money or property referred to in paragraph (a);

(d) any computer hardware or software, or other device, in the custody or control of the practice or an associate of the practice by which any records referred to in paragraph (c) may be produced or reproduced in visible form.

(2) Other expressions used in this Chapter have the same meaning as in Part 3.1.

568. Application of Chapter to barristers

(1) This Chapter, other than Parts 5.3 and 5.5, applies in relation to the law practice of a barrister.

(2) The powers of the manager for a law practice of a barrister include power to reallocate or return briefs.

569. Application of Chapter to Australian-registered foreign lawyers

This Chapter applies, with any necessary adaptations, to Australian-registered foreign lawyers and former Australian-registered foreign lawyers in the same way as it applies to law practices.

570. Application of Chapter to other persons

(b) the executor (original or by representation) or administrator for the time being of a deceased Australian legal practitioner or of the practitioner's estate; and

(c) the administrator, or receiver, or receiver and manager, or official manager, of the property of an incorporated legal practice; and

(d) the liquidator of an incorporated legal practice that is being or has been wound up;

571. Circumstances warranting external intervention

External intervention may take place in relation to a law practice in any of the following circumstances:

(b) in the case of a firm – where the partnership has been wound up or dissolved;

(d) in any case – where the Law Society forms a belief on reasonable grounds that the practice or an associate of the practice:

(i) is not dealing adequately with trust money or trust property or is not properly attending to the affairs of the practice; or

(ii) has committed a serious irregularity, or a serious irregularity has occurred, in relation to trust money or trust property or the affairs of the practice; or

(iii) has failed properly to account in a timely manner to any person for trust money or trust property received by the practice for or on behalf of that person; or

(iv) has failed properly to make a payment of trust money or a transfer of trust property when required to do so by a person entitled to that money or property or entitled to give a direction for payment or transfer; or

(v) is in breach of the regulations or legal profession rules with the result that the record-keeping for the practice's trust account is inadequate; or

(vi) has been or is likely to be convicted of an offence relating to trust money or trust property; or

(vii) is the subject of a complaint relating to trust money or trust property received by the practice; or

(viii) has failed to comply with any requirement of an investigator or external examiner appointed under this Act; or

(ix) has ceased to be engaged in legal practice without making provision for properly dealing with trust money or trust property received by the practice or for properly winding-up the affairs of the practice;

572. Decision regarding external intervention

(1) This section applies when the Law Society becomes aware that one or more of the circumstances referred to in section 571 exist in relation to a law practice and decides that, having regard to the interests of the clients of the practice and to other matters that it considers appropriate, external intervention is warranted.

(a) to appoint a supervisor of trust money of the law practice, if the Society is of the opinion:

(i) that external intervention is required because of issues relating to the practice's trust accounts; and

(ii) that it is not appropriate that the provision of legal services by the practice be wound up and terminated because of those issues; or

(b) to appoint a manager for the law practice, if the Society is of the opinion:

(i) that external intervention is required because of issues relating to the practice's trust records; or

(ii) that the appointment is necessary to protect the interests of clients in relation to trust money or trust property; or

(iii) that there is a need for an independent person to be appointed to take over professional and operational responsibility for the practice; or

(i) that the appointment is necessary to protect the interests of clients in relation to trust money or trust property; or

(ii) that it may be appropriate that the provision of legal services by the practice be wound up and terminated.

(3) The Society may, from time to time, make further decisions in relation to the law practice and for that purpose may revoke a previous decision with effect from a date or event specified by the Society.

(4) A further decision may be made under subsection (3) whether or not there has been any change in the circumstances in consequence of which the original decision was made and whether or not any further circumstances have come into existence in relation to the law practice after the original decision was made.

(5) An appointment of an external intervener for a law practice may be made in respect of the practice generally or may be limited in any way the Society considers appropriate, including, for example, to matters connected with a particular legal practitioner associate or to matters connected with a particular office or a particular subject matter.

573. Appointment of supervisor of trust money

(1) This section applies if the Law Society decides to appoint a supervisor of trust money of a law practice.

(2) The Society may, by instrument in writing, appoint a person as supervisor of trust money.

(a) an Australian legal practitioner who holds an unrestricted practising certificate; or

(b) a person holding accounting qualifications with experience in law practices' trust accounts;

(b) indicate that the external intervention is by way of appointment of a supervisor of trust money; and

(d) specify any conditions imposed by the Society when the appointment is made; and

(e) specify any fees payable by way of remuneration to the supervisor specifically for carrying out the supervisor's duties in relation to the external intervention; and

(f) provide for the legal costs and the expenses that may be incurred by the supervisor in relation to the external intervention.

(5) The instrument of appointment may specify any reporting requirements to be observed by the supervisor.

574. Notice of appointment

(1) As soon as possible after an appointment of a supervisor of trust money of a law practice is made, the Law Society must serve a notice of the appointment on:

(b) any other person authorised to operate any trust account of the practice; and

(e) any person whom the Society reasonably believes should be served with the notice.

(b) indicate that the external intervention is by way of appointment of a supervisor of trust money; and

(e) specify any conditions imposed by the Society when the appointment is made; and

(f) include a statement that the law practice may appeal against the appointment of the supervisor under section 606; and

(g) contain or be accompanied by other information or material prescribed by the regulations.

575. Effect of service of notice of appointment

(1) After service on an ADI of a notice of the appointment of a supervisor of trust money of a law practice and while the appointment is in force, the ADI must ensure no funds are withdrawn or transferred from a trust account of the practice unless:

(a) the withdrawal or transfer is made by cheque or other instrument drawn on that account signed by the supervisor or a nominee of the supervisor; or

(b) the withdrawal or transfer is made by the supervisor or a nominee of the supervisor by means of electronic or Internet banking facilities; or

(c) the withdrawal or transfer is made in accordance with an authority to withdraw or transfer funds from the account signed by the supervisor or a nominee of the supervisor.

(a) the person is given notice of the appointment of a supervisor of trust money of a law practice; and

(ii) signs any cheque or other instrument drawn on a trust account of the practice;

(iii) authorises the withdrawal or transfer of funds from a trust account of the practice.

(4) A supervisor of trust money may, for subsection (1)(b), enter into arrangements with an ADI for withdrawing money from a trust account of the law practice concerned by means of electronic or Internet banking facilities.

(5) Any money that is withdrawn or transferred in contravention of subsection (1) may be recovered from the ADI concerned by the supervisor as a debt in any court of competent jurisdiction and any amount recovered is to be paid into a trust account of the law practice.

576. Role of supervisor of trust money

(1) A supervisor of trust money of a law practice has the powers and duties of the practice in relation to the trust money, including powers:

(2) For exercising or performing powers or duties under subsection (1), the supervisor may exercise any or all of the following powers:

(a) to enter and remain on premises used by the law practice for or in connection with its engaging in legal practice;

(b) to require the practice or an associate or former associate of the practice or any other person who has or had control of documents relating to trust money received by the practice to give the supervisor either or both of the following:

(ii) information relating to the trust money the supervisor reasonably requires;

(c) to operate equipment or facilities on the premises, or to require any person on the premises to operate equipment or facilities on the premises, for a purpose relevant to the supervisor's appointment;

(d) to take possession of any relevant material and retain it for as long as may be necessary;

(e) to secure any relevant material found on the premises against interference, if the material cannot be conveniently removed;

(f) to take possession of any computer equipment or computer program reasonably required for a purpose relevant to the supervisor's appointment.

(3) If the supervisor takes anything from the premises, the supervisor must issue a receipt in a form approved by the Law Society and:

(a) if the occupier or a person apparently responsible to the occupier is present at or near the premises, give the receipt to the occupier; or

(b) otherwise, leave it at the premises in an envelope addressed to the occupier.

(4) If the supervisor is refused access to the premises or the premises are unoccupied, the supervisor may use whatever appropriate force is necessary to enter the premises and may be accompanied by a police officer to assist entry.

(5) This section applies to trust money held by the practice before the supervisor is appointed, as well as to trust money received afterwards.

(6) The supervisor does not have a role in the management of the affairs of the law practice except in so far as the affairs relate to a trust account of the practice.

577. Records of and dealing with trust money of law practice under supervision

(1) A supervisor of trust money of a law practice must maintain the records of the supervisor's dealings with the trust money:

(a) separately from records relating to dealings with trust money before his or her appointment as supervisor; and

(b) separately from the affairs of any other law practice for which he or she is supervisor; and

(2) Subject to subsection (1), a supervisor of trust money of a law practice must deal with trust money in the same way as a law practice must deal with trust money.

578. Termination of supervisor's appointment

(1) The appointment of a supervisor of trust money of a law practice terminates in the following circumstances:

(e) the supervisor has distributed all trust money received by the practice and wound up all trust accounts;

(f) a decision of the Law Society that the appointment be terminated has taken effect.

(2) The Society may decide in writing that the appointment be terminated immediately or with effect from a specified date.

(3) The Society must serve a written notice of the termination on all persons originally served with notice of the appointment.

579. Appointment of manager

(1) This section applies if the Law Society decides to appoint a manager for a law practice.

(3) The appointee must be an Australian legal practitioner who holds an unrestricted practising certificate, and may (but need not) be an employee of the Society.

(b) indicate that the external intervention is by way of appointment of a manager; and

(d) specify any conditions imposed by the Society when the appointment is made; and

(e) specify any fees payable by way of remuneration to the manager specifically for carrying out the manager's duties in relation to the external intervention; and

(f) provide for the legal costs and the expenses that may be incurred by the manager in relation to the external intervention.

(5) The instrument of appointment may specify any reporting requirements to be observed by the manager.

580. Notice of appointment

(1) As soon as possible after an appointment of a manager for a law practice is made, the Law Society must serve a notice of the appointment on:

(b) any other person authorised to operate any trust account of the practice; and

(e) any person whom the Society reasonably believes should be served with the notice.

(b) indicate that the external intervention is by way of appointment of a manager; and

(e) specify any conditions imposed by the Society when the appointment is made; and

(f) include a statement that the law practice may appeal against the appointment of the manager under section 606; and

(g) contain or be accompanied by other information or material prescribed by the regulations.

581. Effect of service of notice of appointment

(a) the person is given notice of the appointment of a manager for a law practice; and

(b) the person is a legal practitioner associate of the practice who is specified or referred to in the notice; and

(3) After service on an ADI of a notice of the appointment of a manager for a law practice and until the appointment is terminated, the ADI must ensure no funds are withdrawn or transferred from a trust account of the practice unless:

(a) the withdrawal or transfer is made by cheque or other instrument drawn on that account signed by:

(b) the withdrawal or transfer is made by means of electronic or Internet banking facilities, by;

(c) the withdrawal or transfer is made in accordance with an authority to withdraw or transfer funds from the account signed by:

(a) the person is given notice of the appointment of a manager for a law practice; and

(ii) signs any cheque or other instrument drawn on a trust account of the practice;

(iii) authorises the withdrawal or transfer of funds from a trust account of the practice.

(6) Subsection (4) does not apply to a legal practitioner associate referred to in subsection (1), an ADI or the manager or receiver for the practice.

(7) A manager may, for subsection (3)(b), enter into arrangements with an ADI for withdrawing money from a trust account of the law practice concerned by means of electronic or Internet banking facilities.

(8) Any money that is withdrawn or transferred in contravention of subsection (3) may be recovered from the ADI concerned by the manager, or a receiver for the law practice, as a debt in any court of competent jurisdiction, and any amount recovered is to be paid into a trust account of the practice or another trust account nominated by the manager or receiver.

582. Role of manager

(1) A manager for a law practice may carry on the practice and may do all things that the practice or a legal practitioner associate of the practice might lawfully have done, including but not limited to the following:

(b) transacting, with the approval of any or all of the existing clients of the practice, any business on their behalf, including:

(d) charging and recovering legal costs, including legal costs for work in progress at the time of the appointment of the manager;

(2) For exercising powers under subsection (1), the manager may exercise any or all of the following powers:

(a) to enter and remain on premises used by the law practice for or in connection with its engaging in legal practice;

(b) to require the practice, an associate or former associate of the practice or any other person who has or had control of client files and associated documents (including documents relating to trust money received by the practice) to give the manager either or both of the following:

(c) to operate equipment or facilities on the premises, or to require any person on the premises to operate equipment or facilities on the premises, for a purpose relevant to the manager's appointment;

(d) to take possession of any relevant material and retain it for as long as may be necessary;

(e) to secure any relevant material found on the premises against interference, if the material cannot be conveniently removed;

(f) to take possession of any computer equipment or computer program reasonably required for a purpose relevant to the manager's appointment.

(3) If the manager takes anything from the premises, the manager must issue a receipt in a form approved by the Law Society and:

(a) if the occupier or a person apparently responsible to the occupier is present at or near the premises, give the receipt to the occupier; or

(b) otherwise, leave it at the premises in an envelope addressed to the occupier.

(4) If the manager is refused access to the premises or the premises are unoccupied, the manager may use whatever appropriate force is necessary to enter the premises and may be accompanied by a police officer to assist entry.

583. Records and accounts of law practice under management and dealings with trust money

(1) The manager for a law practice must maintain the records and accounts of the practice that he or she manages:

(a) separately from the management of the affairs of the practice before his or her appointment as manager; and

(b) separately from the affairs of any other law practice for which he or she is manager; and

(2) Subject to subsection (1), the manager for a law practice must deal with trust money of the practice in the same way as a law practice must deal with trust money.

584. Deceased estates

(1) It is the duty of the manager for a law practice to cooperate with the legal personal representative of a deceased legal practitioner associate of the practice for the orderly winding-up of the estate.

(2) The manager is not, in the exercise or performance of powers and duties as manager, a legal personal representative of the deceased legal practitioner associate, but nothing in this subsection prevents the manager from exercising or performing powers or duties as a legal personal representative if otherwise appointed as representative.

(3) Subject to subsections (1) and (2) and to the terms of the manager's appointment, if the manager was appointed before the death of the legal practitioner associate, the manager's appointment, powers and duties are not affected by the death.

585. Termination of manager's appointment

(1) The appointment of a manager for a law practice terminates in the following circumstances:

(c) the appointment of a receiver for the practice takes effect, where the terms of the appointment indicate that the receiver is authorised to exercise the powers and duties of a manager;

(e) a decision of the Law Society that the appointment be terminated has taken effect.

(2) The Society may decide in writing that the appointment be terminated immediately or with effect from a specified date.

(3) If the appointment terminates in the circumstances referred to in subsection (1)(a), (b) or (d), the former manager must, as soon as practicable after the termination, transfer and deliver the regulated property and client files of the law practice to:

(b) the practice, if another external intervener is not appointed for the practice.

(4) The former manager need not transfer regulated property and files to the law practice in compliance with subsection (3) unless the manager's expenses have been paid to the Society.

(5) The Society must serve a written notice of the termination on all persons originally served with notice of the appointment.

586. Appointment of receiver

(1) This section applies if the Law Society decides to appoint a receiver for a law practice.

(a) an Australian legal practitioner who holds an unrestricted practising certificate; or

(b) a person holding accounting qualifications with experience in law practices' trust accounts;

(b) indicate that the external intervention is by way of appointment of a receiver; and

(d) specify any fees payable by way of remuneration to the receiver specifically for carrying out duties in relation to the external intervention; and

(e) provide for the legal costs and the expenses that may be incurred by the receiver in relation to the external intervention.

587. Notice of appointment

(1) As soon as possible after an appointment of a receiver for a law practice is made, the Law Society must serve a notice of the appointment on:

(e) any person who the Supreme Court directs should be served with the notice; and

(f) any person whom the Society reasonably believes should be served with the notice.

(b) indicate that the external intervention is by way of appointment of a receiver; and

(d) indicate the extent to which the receiver has the powers of a manager for the practice; and

(f) specify any conditions imposed by the Society when the appointment is made; and

(g) include a statement that the law practice may appeal against the appointment of the receiver under section 606; and

(h) contain or be accompanied by other information or material prescribed by the regulations.

588. Effect of service of notice of appointment

(a) the person is given notice of the appointment of a receiver for a law practice; and

(b) the person is a legal practitioner associate of the practice who is specified or referred to in the notice; and

(3) After service on an ADI of a notice of the appointment of a receiver for a law practice and until the appointment is terminated, the ADI must ensure no funds are withdrawn or transferred from a trust account of the practice unless:

(a) the withdrawal or transfer is made by cheque or other instrument drawn on that account signed by:

(b) the withdrawal or transfer is made by means of electronic or Internet banking facilities by:

(c) the withdrawal or transfer is made in accordance with an authority to withdraw or transfer funds from the account signed by:

(a) the person is given notice of the appointment of a receiver for a law practice; and

(ii) signs any cheque or other instrument drawn on a trust account of the practice;

(iii) authorises the withdrawal or transfer of funds from a trust account of the practice.

(6) Subsection (4) does not apply to an ADI or the receiver or manager for the practice.

(7) A receiver may, for subsection (3)(b), enter into arrangements with an ADI for withdrawing money from a trust account of the law practice concerned by means of electronic or Internet banking facilities.

(8) Any money that is withdrawn or transferred in contravention of subsection (3) may be recovered from the ADI concerned by the receiver or a manager for the practice, as a debt in any court of competent jurisdiction, and any amount recovered is to be paid into a trust account of the law practice or another trust account nominated by the receiver or manager.

589. Role of receiver

(2) For winding-up the affairs of the law practice and in the interests of the practice's clients, the Law Society may, by instrument in writing, authorise:

(a) the receiver to carry on the legal practice engaged in by the law practice, if the receiver is an Australian legal practitioner who holds an unrestricted practising certificate; or

(b) an Australian legal practitioner who holds an unrestricted practising certificate, or a law practice whose principals are or include one or more Australian legal practitioners who hold unrestricted practising certificates, specified in the instrument to carry on the legal practice on behalf of the receiver.

(3) Subject to any directions given by the Society by instrument in writing, the person authorised to carry on the legal practice engaged in by a law practice has all the powers of a manager under this Chapter and is taken have been appointed as manager for the law practice.

(4) The Society may, by instrument in writing, terminate an authorisation to carry on a legal practice granted under this section.

(5) For exercising powers under this section, the receiver may exercise any or all of the following powers:

(a) to enter and remain on premises used by the law practice for or in connection with its engaging in legal practice;

(c) to operate equipment or facilities on the premises, or to require any person on the premises to operate equipment or facilities on the premises, for a purpose relevant to the receiver's appointment;

(d) to take possession of any relevant material and retain it for as long as may be necessary;

(e) to secure any relevant material found on the premises against interference, if the material cannot be conveniently removed;

(f) to take possession of any computer equipment or computer program reasonably required for a purpose relevant to the receiver's appointment.

(6) If the receiver takes anything from the premises, the receiver must issue a receipt in a form approved by the Society and:

(a) if the occupier or a person apparently responsible to the occupier is present at or near the premises, give the receipt to the occupier; or

(b) otherwise, leave it at the premises in an envelope addressed to the occupier.

(7) If the receiver is refused access to the premises or the premises are unoccupied, the receiver may use whatever appropriate force is necessary to enter the premises and may be accompanied by a police officer to assist entry.

590. Records and accounts of law practice under receivership and dealings with trust money

(1) The receiver for a law practice must maintain the records and accounts of the practice that he or she manages:

(a) separately from the management of the affairs of the practice before his or her appointment as receiver; and

(b) separately from the affairs of any other law practice that the receiver is managing; and

(2) Subject to subsection (1), the receiver for a law practice must deal with trust money of the practice in the same way as a law practice must deal with trust money.

591. Power of receiver to take possession of regulated property

(1) A receiver for a law practice may take possession of regulated property of the practice.

(2) A person in possession or having control of regulated property of the law practice must permit the receiver to take possession of the regulated property if required by the receiver to do so.

(3) If a person contravenes subsection (2), the Supreme Court may, on application by the receiver, order the person to deliver the regulated property to the receiver.

(4) If, on application made by the receiver, the Court is satisfied an order made under subsection (3) has not been complied with, the Court may order the seizure of any regulated property of the law practice that is located on the premises specified in the order and make the further orders it considers appropriate.

(b) the receiver or a person authorised by the receiver, together with any police officer;

to enter the premises specified in the order and search for, seize and remove anything that appears to be regulated property of the law practice.

(6) The receiver must, as soon as possible, return anything seized under this section if it transpires that it is not regulated property of the law practice.

592. Power of receiver to take delivery of regulated property

(1) If a receiver for a law practice believes on reasonable grounds that another person is under an obligation, or will later be under an obligation, to deliver regulated property to the practice, the receiver may, by notice in writing, require that other person to deliver the property to the receiver.

(a) the person has notice that a receiver has been appointed for a law practice; and

(b) the person has possession or control of regulated property of the practice; and

(c) the person is given notice under subsection (1) in relation to the property or otherwise has notice that the person is under an obligation to deliver the property to the receiver for the practice; and

(3) A document signed by a receiver acknowledging the receipt of regulated property delivered to the receiver is as valid and effectual as if it had been given by the law practice.

593. Power of receiver to deal with regulated property

(1) This section applies if a receiver for a law practice acquires or takes possession of regulated property of the practice.

(2) The receiver may deal with the regulated property in any way in which the law practice might lawfully have dealt with the property.

594. Power of receiver to require documents or information

(b) a person who has or has had control of documents relating to the affairs of the practice; or

(c) a person who has information relating to regulated property of the practice or property that the receiver believes on reasonable grounds to be regulated property of the practice;

to give the receiver either or both of the following within the time specified in the notice:

(d) access to the documents relating to the affairs of the practice the receiver reasonably requires;

(e) information relating to the affairs of the practice the receiver reasonably requires (verified by statutory declaration if the requirement so states).

(2) A person who is subject to a requirement under subsection (1) must comply with the requirement.

(3) The validity of the requirement is not affected, and a person is not excused from complying with the requirement, on the ground that compliance with the requirement may tend to incriminate the person.

(4) If, before complying with the requirement, the person objects to the receiver on the ground that compliance may tend to incriminate the person, the information given or the information in the documents to which access is given is inadmissible in evidence against the person in any proceedings for an offence, other than:

(b) any other offence relating to the keeping of trust accounts or the receipt of trust money; or

595. Examinations

(1) The Supreme Court may, on the application of a receiver for a law practice, make an order directing that an associate or former associate of the practice or any other person appear before the Court for examination on oath or affirmation in relation to the regulated property of the practice.

(2) On an examination of a person under this section, the person must answer all questions that the Court allows to be put to the person.

(3) The person is not excused from answering a question on the ground that the answer might tend to incriminate the person.

(4) If, before answering the question, the person objects on the ground that it may tend to incriminate the person, the answer is not admissible in evidence against the person in any proceedings for an offence, other than:

596. Lien for costs on regulated property

(b) the practice or a legal practitioner associate of the practice claims a lien for legal costs on regulated property of the practice.

(2) The receiver may serve on the law practice or legal practitioner associate a written notice requiring the practice or associate to give the receiver within a specified period of not less than one month:

(3) If the law practice or legal practitioner associate requests the receiver in writing to give access to the regulated property that is reasonably necessary to enable the practice or associate to prepare a bill of costs in compliance with subsection (2), the time allowed does not begin to run until the access is provided.

(4) If a requirement of a notice under this section is not complied with, the receiver may, in dealing with the regulated property claimed to be subject to the lien, disregard the claim.

597. Regulated property not to be attached

Regulated property of a law practice for which a receiver has been appointed (including regulated property held by the receiver) is not liable to be taken, levied on or attached under any judgment, order or process of any court or any other process.

598. Receiver may recover money paid away in bets

If any money of or under the control of a law practice has been stolen or embezzled and later paid to a person as or by way of a bet, the receiver for the practice may recover the amount so paid from the person in a court of competent jurisdiction.

599. Recovery of regulated property if there has been breach of trust etc.

(1) This section applies if regulated property of or under the control of a law practice has, before or after the appointment of a receiver for the practice, been taken by, paid to, or transferred to, a person (the "transferee") in breach of trust, improperly or unlawfully and the transferee:

(a) knew or believed at the time of the taking, payment or transfer that it was done in breach of trust, improperly or unlawfully; or

(b) did not provide to the practice or any other person any or any adequate consideration for the taking, payment or transfer; or

(c) because of the taking, payment or transfer, became indebted or otherwise liable to the practice or to a client of the practice in the amount of the payment or in another amount.

(a) if subsection (1)(a) applies – the amount of the payment or the value of the regulated property taken or transferred; or

(b) if subsection (1)(b) applies – the amount of the inadequacy of the consideration or, if there was no consideration, the amount of the payment or the value of the regulated property taken or transferred; or

and, on the recovery of that amount from the transferee, the transferee ceases to be liable for it to any other person.

(3) If any money of or under the control of a law practice has, before or after the appointment of a receiver for the practice, been paid in breach of trust, improperly or unlawfully to a person (the "prospective plaintiff") in respect of a cause of action that the prospective plaintiff had, or claimed to have, against a third party:

(a) the receiver may prosecute the cause of action against the third party in the name of the prospective plaintiff; or

(b) if the prospective plaintiff did not have at the time the payment was made a cause of action against the third party, the receiver may recover the money from the prospective plaintiff.

(4) If any regulated property of or under the control of a law practice has, before or after the appointment of a receiver for the practice, been used in breach of trust, improperly or unlawfully so as to discharge a debt or liability of a person (the "debtor"), the receiver may recover from the debtor the amount of the debt or liability so discharged less the consideration (if any) provided by the debtor for the discharge.

(5) A person authorised by the Law Society to do so may give a certificate with respect to all or any of the following facts:

(a) the receipt of regulated property by the law practice concerned from any person, the nature and value of the property, the date of receipt and the identity of the person from whom it was received;

(b) the taking, payment or transfer of regulated property, the nature and value of the property, the date of the taking, payment or transfer and the identity of the person by whom it was taken or to whom it was paid or transferred;

(c) the entries made in the trust account and in any other ledgers, books of account, vouchers or records of the practice and the truth or falsity of those entries;

(6) If the receiver brings a proceeding under subsection (2), (3) or (4), a certificate given under subsection (5) is evidence and, in the absence of evidence to the contrary, is proof of the facts specified in it.

600. Improperly destroying property etc.

(a) the person does any of the following (the "action") in relation to regulated property of a law practice:

(iv) delivers it into the possession, or places under the control, of another person; and

(b) a receiver has been appointed, or is likely to be appointed, for the practice; and

(2) Subsection (1) applies whether the person does the action before or after the appointment of a receiver for the law practice.

601. Deceased estates

(1) It is the duty of the receiver for a law practice to cooperate with the legal personal representative of a deceased legal practitioner associate of the practice for the orderly winding-up of the estate.

(2) The receiver is not, in the exercise or performance of powers and duties as receiver, a legal personal representative of the deceased legal practitioner associate, but nothing in this subsection prevents the receiver from exercising or performing powers or duties as a legal personal representative if otherwise appointed as representative.

(3) Subject to subsections (1) and (2) and to the terms of the receiver's appointment, if the receiver was appointed before the death of the legal practitioner associate, the receiver's appointment, powers and duties are not affected by the death.

602. Termination of receiver's appointment

(1) The appointment by the Law Society of a receiver for a law practice terminates in the following circumstances:

(2) The Society may decide in writing that the appointment be terminated, and the termination takes effect immediately or with effect from a specified date.

(3) The former receiver must, as soon as practicable, transfer and deliver the regulated property of the law practice to:

(a) another external intervener appointed for the practice within the period of 14 days beginning with the day after the date of the termination; or

(b) the practice, if another external intervener is not appointed for the practice within that period and if paragraph (c) does not apply; or

(c) another person in accordance with arrangements approved by the Society, if it is not practicable to transfer and deliver the regulated property to the practice.

(4) The former receiver need not transfer and deliver regulated property to the law practice in compliance with subsection (3) unless the expenses of receivership have been paid by the Society.

(5) The Society must serve a written notice of the termination on all persons originally served with notice of the appointment.

603. Conditions on appointment of external intervener

604. Status of acts of external intervener

(1) An act done or omitted to be done by an external intervener for a law practice is, for:

(2) Nothing in this section subjects an associate of the law practice to any personal liability.

605. Eligibility for re-appointment or authorisation

A person who has been appointed as an external intervener for a law practice is eligible for re-appointment as an external intervener for the practice, whether the later appointment is made in respect of the same type of external intervention or is of a different type.

606. Appeal against appointment

(1) The following persons may appeal against the appointment of an external intervener for a law practice:

(d) any other person whose interests may be adversely affected by the appointment.

(2) The appeal must be started by filing notice of appeal within 7 days after notice of the appointment is served on:

(b) the law practice, if a notice is not required to be served on the person who proposes to appeal.

(4) On hearing the appeal, the Supreme Court may make the order it considers appropriate.

(5) The appointment of an external intervener is not stayed by the starting of an appeal, and the external intervener may accordingly continue to exercise powers and functions as external intervener during the currency of the appeal except to the extent (if any) the Court otherwise directs.

607. Directions of Supreme Court

give directions in relation to any matter affecting the intervention or the intervener's powers, duties or functions under this Act.

608. Manager and receiver appointed for law practice

If a manager and a receiver are appointed for a law practice, any decision of the receiver prevails over any decision of the manager in the exercise of their respective powers, to the extent of any inconsistency.

609. Requirement for ADI to disclose information

(a) an external intervener for a law practice requests the ADI to disclose to the intervener:

(i) whether or not the practice, or a specified associate of the practice, maintains or has maintained an account at the ADI during a specified period; or

(a) a trust account is kept with the ADI by a law practice or associate of a law practice; and

(i) to produce for inspection or copying by the intervener, or a nominee of the intervener, any records relating to any such accounts or money deposited in any such account; or

(ii) to give the intervener full details of any transactions relating to any such account or money; and

(4) However, an obligation imposed by this section on an ADI does not apply unless the external intervener produces to the ADI evidence of the appointment of the intervener in relation to the law practice concerned.

(5) A request under this section may be general or limited to particular kinds of accounts.

(6) This section applies despite any privacy legislation or duty of confidence to the contrary.

(7) An ADI or an officer or employee of an ADI is not liable to any action for any loss or damage suffered by another person as a result of producing records or providing details under this section.

610. Fees, legal costs and expenses

(b) the legal costs and the expenses incurred in relation to the external intervention;

(2) An account of the external intervener for fees, costs and expenses may, on the application of the Law Society, be taxed or assessed.

(3) The fees, costs and expenses are payable by and recoverable from the law practice.

(4) Fees, costs and expenses not paid to the external intervener by the law practice are payable from the Fidelity Fund.

(5) The Society may recover any unpaid fees, costs and expenses from the law practice.

(6) Fees, costs and expenses paid by or recovered from the law practice after they have been paid from the Fund must be paid to the Fund.

611. Reports by external intervener

(1) An external intervener must provide written reports in accordance with any reporting requirements to be observed by the intervener as specified in the instrument of appointment.

(2) If the instrument of appointment does not specify any reporting requirements, an external intervener must provide:

(3) An external intervener must also keep the Society informed of the progress of the external intervention, including reports to the Society about any significant events occurring or state of affairs existing in connection with the intervention or with any of the matters to which the intervention relates.

(4) Nothing in this section affects any other reporting obligations that may exist in respect of the law practice concerned.

612. Report to Law Society of disciplinary matters

(1) Subsection (2) applies if an external intervener becomes aware of any matter in the course of an external intervention that the external intervener thinks may be unsatisfactory professional conduct or professional misconduct on the part of an Australian legal practitioner or Australian-registered foreign lawyer.

(2) The external intervener must, unless the matter is or has already been the subject of a complaint under Chapter 4, refer the matter to the Law Society to consider whether disciplinary action should be taken against an Australian legal practitioner or Australian-registered foreign lawyer.

613. Confidentiality

(a) discloses information obtained as a result of the external intervener's appointment ("protected information") to someone else; or

(b) does something that discloses protected information to someone else and is reckless about whether:

(a) necessary for exercising or performing the external intervener's powers or functions; or

(iii) an authority of the Commonwealth or of a State or Territory of the Commonwealth;

in relation to any proceedings, inquiry or other matter pending or contemplated arising out of the investigation or examination; or

(e) a member of the police force of any jurisdiction if the Law Society or external intervener believes on reasonable grounds the information relates to an offence that may have been committed by the law practice concerned or by an associate of the law practice; or

(f) the law practice concerned or a principal of the law practice or, if the practice is an incorporated legal practice, a shareholder in the practice; or

(g) a client or former client of the law practice concerned if the information relates to the client or former client; or

(h) another external intervener appointed in relation to the law practice or any Australian legal practitioner or accountant employed by that other external intervener; or

(i) any other external examiner carrying out an external examination of the trust records of the law practice concerned.

614. Provisions relating to requirements under this Part

(1) This section applies to a requirement imposed on a person under this Chapter to give an external intervener access to documents or information.

(2) The validity of the requirement is not affected, and the person is not excused from compliance with the requirement, on the ground that a law practice or Australian legal practitioner has a lien over a particular document or class of documents.

(c) retain the document for a period the intervener thinks necessary for the external intervention in relation to which it was produced.

(4) The person is not subject to any liability, claim or demand merely because of compliance with the requirement.

(5) A contravention of the requirement by an Australian lawyer is capable of constituting unsatisfactory professional conduct or professional misconduct.

suspend a local practitioner's practising certificate while the practitioner's contravention of the requirement continues.

615. Obstruction of external intervener

(1) A person must not obstruct an external intervener exercising a power under this Act.

(2) It is a defence to a prosecution for an offence against subsection (1) if the person has a reasonable excuse.

616. Protection from liability

No liability attaches to the Law Society or a person appointed as an external intervener for a law practice for any act or omission by the intervener done in good faith and in the exercise or performance, or purported exercise or performance, of the intervener's powers or duties under this Act.

617. Purpose of Chapter

The purpose of this Chapter is to provide powers that are exercisable in connection with:

(a) the conduct of audits under Part 2.6, Division 2 in relation to incorporated legal practices ("ILP compliance audits"); and

(b) the investigation of the affairs of law practices under Part 3.1, Division 3, Subdivision 1 ("trust account investigations"); and

(c) the external examination of the trust records of law practices under Part 3.1, Division 3, Subdivision 2 ("trust account examinations"); and

(d) the investigation of complaints under Chapter 4 ("complaint investigations").

618. Definitions

(a) in relation to an audit under Part 2.6, Division 2 – the Law Society or a person authorised by the Society in connection with the audit; or

PART 6.2 – REQUIREMENTS RELATING TO DOCUMENTS, INFORMATION AND OTHER ASSISTANCE

619. Application of Part

620. Requirements for trust account investigations and examinations and ILP compliance audits

(1) For carrying out a trust account investigation, trust account examination or ILP compliance audit in relation to a law practice, an investigator may, on production of evidence of the investigator's appointment, require the practice or an associate or former associate of the practice or any other person (including, for example, an ADI, auditor or liquidator) who has or has had control of documents relating to the affairs of the practice to give the investigator either or both of the following:

(a) access to the documents relating to the affairs of the practice the investigator reasonably requires;

(b) information relating to the affairs of the practice the investigator reasonably requires (verified by statutory declaration if the requirement so specifies).

(2) A person who is subject to a requirement under subsection (1) must comply with the requirement.

(3) A person who is subject to a requirement under subsection (1) is not entitled to charge the investigator for giving the access or information.

621. Requirements for investigations under Chapter 4

(1) For carrying out a complaint investigation in relation to an Australian lawyer, an investigator may, by notice served on the lawyer, require the lawyer to do any one or more of the following:

(a) to produce, at or before a specified time and at a specified place, any specified document (or a copy of the document);

(b) to produce, at a specified time and specified place, any specified document (or a copy of the document);

(c) to provide written information on or before a specified date (verified by statutory declaration if the requirement so states);

(d) to otherwise assist in, or cooperate with, the investigation of the complaint in a specified manner.

(2) For carrying out a complaint investigation in relation to an Australian lawyer, the investigator may, on production of evidence of the investigator's appointment, require an associate or former associate of a law practice of which the lawyer is or was an associate or any other person (including, for example, an ADI, auditor or liquidator but not including the lawyer) who has or has had control of documents relating to the affairs of the lawyer to give the investigator either or both of the following:

(a) access to the documents relating to the affairs of the lawyer the investigator reasonably requires;

(b) information relating to the affairs of the lawyer the investigator reasonably requires (verified by statutory declaration if the requirement so states).

(3) A person who is subject to a requirement under subsection (1) or (2) must comply with the requirement.

(4) A requirement imposed on a person under subsection (1) or (2) must be given by written notice to the person and must specify a reasonable time for compliance.

622. Provisions relating to requirements under this Part

(c) retain the document for a period the investigator thinks necessary for the investigation in relation to which it was produced.

(4) The person is not subject to any liability, claim or demand merely because of compliance with the requirement.

suspend a local practitioner's practising certificate while the practitioner's contravention of the requirement continues.

a requirement under this Part to provide access to the document is not complied with unless access provided to a statement, written in the English language and decipherable on sight, that contains all the information in the document.

(7) The Society may retain any copy of a document or part of a document made by an investigator under this Part and provided to the Society under this Part.

623. Application of Part

624. Investigator's power to enter premises

(1) For carrying out an investigation, an investigator may enter and remain on premises to exercise the powers in section 626.

(a) the investigator may enter premises, other than residential premises, without the need for consent or a search warrant; and

(i) the investigator may enter the premises at any time with the consent of the occupier;

(ii) the investigator may enter the premises under the authority of a search warrant issued under this Part;

(iii) the investigator may enter the premises at any time without the consent of the occupier and without a warrant, but only if the investigator believes, on reasonable grounds, that it is urgently necessary to do so in order to prevent the destruction of or interference with relevant material.

(3) For a complaint investigation, the investigator may only enter premises as follows:

(a) the investigator may enter the premises at any time with the consent of the occupier;

(b) the investigator may enter the premises under the authority of a search warrant issued under this Part.

(4) The investigator must not exercise the power in subsection (2)(b)(iii) unless the Law Society in the particular case has authorised the investigator (orally or in writing) to do so.

(a) when exercising a power under this section, a person apparently in charge of the premises or another person on the premises asks the investigator to produce evidence of the investigator's appointment; and

625. Search warrants

(1) For carrying out an investigation, an investigator may apply to a magistrate for a search warrant.

(2) The magistrate may issue a search warrant to an investigator only if satisfied there are reasonable grounds to suspect that relevant material is located at the premises.

(a) to enter the premises specified in the warrant at the time or within the period specified in the warrant; and

(4) A search warrant may be executed by the investigator to whom it is issued or by another investigator.

(a) when executing a warrant, a person apparently in charge of the premises or another person on the premises asks the investigator to produce the warrant; and

626. Powers of investigator while on premises

(1) An investigator who enters premises under this Part may exercise any or all of the following powers:

(b) search for any information, document or other material relating to the matter to which the investigation relates;

(d) take possession of any relevant material and retain it for as long as may be necessary to examine it to determine its evidentiary value;

(f) seize and take away any relevant material or any part of any relevant material;

(g) use (free of charge) photocopying equipment on the premises to copy any relevant material;

(h) in relation to any computer or other equipment that the investigator suspects on reasonable grounds may contain any relevant material:

(i) if any relevant material found on the premises cannot be conveniently removed, secure it against interference;

(ii) to answer (orally or in writing) questions asked by the investigator relevant to the investigation;

(iv) to operate equipment or facilities on the premises for a purpose relevant to the investigation;

(v) to provide access (free of charge) to photocopying equipment on the premises the investigator reasonably requires to enable the copying of any relevant material;

(vi) to give other assistance the investigator reasonably requires to carry out the investigation;

(k) do anything else reasonably necessary to obtain information or evidence for the investigation.

(2) Any documents, information or anything else obtained by the investigator may be used for the investigation.

(3) If the investigator takes anything from the premises, the investigator must issue a receipt in a form approved by the Law Society and:

(a) if the occupier or a person apparently responsible to the occupier is present at or near the premises, give the receipt to the occupier; or

(b) otherwise, leave it at the premises in an envelope addressed to the occupier.

(4) An investigator may be accompanied by any assistants the investigator requires, including persons with accounting expertise and persons to assist in finding and gaining access to electronically stored information.

627. Application of Part

(1) This Part applies to the following investigations and audits conducted in relation to incorporated legal practices:

628. Investigative powers relating to investigations and audits

An investigator conducting an investigation or audit to which this Part applies may exercise the powers under this Part.

629. Examination of persons

(1) The investigator has and may exercise the same powers as those conferred on the Australian Securities and Investments Commission by Part 3, Division 2 of the Australian Securities and Investments Commission Act 2001 (Cth).

(2) Part 3, Division 2 of the Australian Securities and Investments Commission Act 2001 (Cth) applies (with the necessary modifications) to the exercise of those powers with the following modifications (and any other necessary modifications):

(a) a reference to the Australian Securities and Investments Commission (however expressed) is taken to be a reference to the Law Society or investigator;

(b) a reference to a matter that is being or is to be investigated under Part 3, Division 1 of that Act is taken to be a reference to a matter that is being or is to be investigated, examined or audited by the investigator;

(c) a reference in section 19 of that Act to a person is taken to be a reference to an Australian legal practitioner or an incorporated legal practice;

(d) a reference to a prescribed form is taken to be a reference to a form approved by the Society.

(3) Sections 22(2) and (3), 25(2) and (2A), 26 and 27 of the Australian Securities and Investments Commission Act 2001 (Cth) do not apply in relation to the exercise of the powers conferred by this section.

630. Inspection of books

(1) The investigator has and may exercise the same powers as those conferred on the Australian Securities and Investments Commission by sections 30(1), 34 and 37 to 39 of the Australian Securities and Investments Commission Act 2001 (Cth).

(2) Those provisions apply to the exercise of those powers with the following modifications (and any other necessary modifications):

(a) a reference to the Australian Securities and Investments Commission (however expressed) is taken to be a reference to the Law Society or investigator;

(b) a reference to a body corporate (including a body corporate that is not an exempt public authority) is taken to be a reference to an incorporated legal practice;

(c) a reference to an eligible person in relation to an incorporated legal practice is taken to be a reference to an officer or employee of the incorporated legal practice;

(d) a reference to a member or staff member is taken to be a reference to the Society or a person authorised by the Society who is an officer or employee of the Society;

(e) a reference in section 37 of that Act to a proceeding is taken to be a reference to an investigation, examination or audit to which this Part applies.

631. Power to hold hearings

(1) The Law Society or investigator may hold hearings for an investigation, examination or audit to which this Part applies.

(2) Sections 52, 56(1), 58, 59(1), (2), (5), (6) and (8) and 60 (paragraph (b) excepted) of the Australian Securities and Investments Commission Act 2001 (Cth) apply to a hearing with the following modifications (and any other modifications):

(a) a reference to Australian Securities and Investments Commission (however expressed) is taken to be a reference to the Society or the investigator;

(b) a reference to a member or staff member is taken to be a reference to the Society or a person authorised by the Society who is an officer or employee of the Society;

632. Obstruction of investigator

(1) A person must not obstruct an investigator exercising a power under this Act.

(2) A person requested to do anything under section 626(1)(j) must comply with the request.

(3) It is a defence to a prosecution for an offence against subsection (1) or (2) if the practitioner, practice or principal has a reasonable excuse.

633. Obligation of Australian lawyers

(1) The duties imposed on an Australian lawyer by this section are additional to obligations imposed under other provisions of this Chapter, whether or not the lawyer is the subject of the investigation, examination or audit concerned.

(2) An Australian lawyer must not mislead an investigator or the Law Society in the exercise of:

(b) any power or function under a provision of a corresponding law that corresponds to this Chapter.

(3) An Australian lawyer who is subject to a requirement under section 621, or under a provision of a corresponding law that correspond to that section, must not, without reasonable excuse, fail to comply with the requirement.

634. Permitted disclosure of confidential information

(1) The Law Society or an investigator may disclose information obtained in the course of a trust account investigation, trust account examination, complaint investigation or ILP compliance audit to any of the following:

(b) the Society or any other body regulating legal practitioners in any jurisdiction;

(i) the Society or any other body regulating legal practitioners in any jurisdiction; or

(iii) an authority of the Commonwealth or of a State or Territory of the Commonwealth;

in relation to any proceedings, inquiry or other matter pending or contemplated arising out of the investigation, examination or audit;

(d) an investigative or prosecuting authority established by or under legislation (for example, the Australian Securities and Investments Commission);

(e) a police officer if the Society or investigator is reasonably satisfied the information relates to an offence that may have been committed by:

(i) if a law practice is the subject of the investigation, examination or audit – the law practice or an associate or former associate of the law practice; or

(ii) if an Australian lawyer is the subject of the investigation, examination or audit – the lawyer or an associate or former associate of the law practice of which the lawyer is or was an associate;

(ii) an incorporated legal practice – a director or shareholder in the practice; or

(iii) an Australian lawyer – the lawyer or a principal of the law practice of which the lawyer is or was an associate;

(ii) an Australian lawyer – a client or former client of the law practice of which the lawyer is or was an associate;

(i) a law practice – a supervisor, manager or receiver appointed in relation to the law practice; or

(ii) an Australian lawyer – a supervisor, manager or receiver appointed in relation to the law practice of which the lawyer is or was an associate;

or an Australian legal practitioner or accountant employed by the supervisor, manager or receiver;

(i) an investigator carrying out another investigation, examination or audit in relation to the law practice or Australian lawyer who is or was the subject of the investigation, examination or audit.

(2) No liability (including liability in defamation) is incurred by a protected person in relation to anything done or omitted to be done in good faith for the purpose of disclosing information under this section.

635. Establishment

636. Status

637. Members constituting Law Society

(b) hold a local practising certificate or interstate practising certificate or, under the Law Officers Act, are taken to hold a local practising certificate; and

638. Council of Law Society

(2) The Council consists of the persons elected as members under the Society's constitution.

639. Council's function

(2) Without limiting subsection (1), the Council is responsible for the way in which the Society exercises its powers and performs its functions.

640. Chief executive officer

641. Chief executive officer's function

The chief executive officer is, subject to the directions of the Council, responsible for the day-to-day management of the Law Society's affairs.

642. Financial management

(1) The Law Society may manage its financial affairs in the way it considers appropriate.

643. Budget

(a) adopt for the next financial year a budget for all funds of the Law Society; and

644. Constitution

(3) The constitution may also provide for other matters the Council considers desirable.

(5) The Society must file a copy of the constitution with the Commissioner for Consumer Affairs within one month after the commencement date.

645. Relationship with Association Act

(1) The following provisions of the Associations Act apply (with the necessary modifications and modifications prescribed by the regulations) to the Law Society as if it were an incorporated association under that Act:

(a) Parts 2, 4 (other than sections 27, 29 and 30), 5, 10 and 12 (other than section 110);

(d) regulations made for the provisions mentioned in paragraphs (a), (b) and (c).

(2) Without limiting subsection (1), a reference in that Act to the public officer of an incorporated association is taken to be a reference to the chief executive officer of the Society.

646. Relationship with other Acts

(2) To avoid doubt, a reference in that Act to a public sector organisation includes a reference to the Council.

647. Delegations

(1) The Law Society may delegate any of its powers and functions to the Council or an employee of the Society.

(2) The Council may delegate any of its powers and functions to an employee of the Society.

(3) The chief executive officer may delegate any of the chief executive officer's powers and functions to an employee of the Society.

648. Annual report

(1) The Law Society must prepare a report on its operations under this Act for each financial year.

(2) Within 3 months after the end of the year to which the report relates, the Society must:

649. Definitions

"chairperson", of the Admission Board, means the member who, under section 651(4), is chairperson of the Board.

650. Establishment

There is established the Legal Practitioners Admission Board of the Northern Territory.

651. Membership

(b) not more than 6 legal practitioners appointed by the Chief Justice (each an "appointed member").

(3) One of the appointed members must be appointed on the nomination of the Attorney-General.

652. Duration of appointment

(a) starting on the date of appointment or, if the instrument of appointment states a later date, the later date; and

653. Removal from office of appointed member

(1) The Supreme Court may remove an appointed member of the Admission Board from office on any of the grounds mentioned in subsection (2) on its own initiative or on application of any of the following:

(a) the member's inability, inefficiency, misbehaviour or physical or mental incapacity; or

(d) the member ceases to hold the qualification for which the member was appointed under section 651 and there is no other member of the Board holding that qualification; or

(e) the member is absent, except on leave granted by the Board, from 3 consecutive meetings of the Board.

654. Secretary

655. Meetings

(3) In the absence of the Master from a meeting, the members present at the meeting must elect a member to preside at the meeting.

(4) The Board must hold meetings at the times and places the Master directs or the Board decides.

656. Delegations

657. Protection from liability

(1) This section applies a person who is or has been a member of the Admission Board.

(2) The person is not civilly or criminally liable for an act done or omitted to be done in good faith in the exercise or purported exercise of a power, or the performance or purported performance of a function, under this Act.

(3) Subsection (2) does not affect any liability the Territory would, apart from that subsection, have for the act or omission.

658. Definitions

"appointed member", of the Funds Management Committee, means a member appointed under section 661(1)(c) or (d);

"chairperson", of the Funds Management Committee, means the member who, under section 661(2), is chairperson of the Committee.

659. Establishment

660. Status

661. Membership

(b) the person who, under the Society's constitution, holds or acts in the office of President of the Council of the Society or a nominee of the President; and

(c) a person appointed by the Chief Executive Officer, as defined in the Public Sector Employment and Management Act, of the Agency in which this Act is administered; and

(d) a person appointed by the Chief Executive Officer, as defined in the Public Sector Employment and Management Act, of the Agency in which the Financial Management Act is administered; and

(e) a person appointed by the Attorney-General as representing the interests of consumers of legal services.

(2) The member mentioned in subsection (1)(c) is the chairperson of the Committee.

662. Duration of appointment

(1) An appointed member of the Funds Management Committee holds office for 2 years starting on the date of appointment or, if the instrument of appointment states a later date, the later date.

663. Resignation and removal from office of appointed member

(1) An appointed member of the Funds Management Committee may resign office by writing signed by or for the member and given to the Attorney-General.

(2) The Attorney-General may at any time terminate the appointment of an appointed member of the Committee.

(3) Subsection (2) does not limit the power to terminate the appointment of an appointed member of the Committee mentioned in section 661 (1)(c) or (d) by the Chief Executive Officer who appointed the member.

Under section 44(1) of the Interpretation Act, the power to appoint a person to an office or position includes the power to terminate the appointment.

664. Meetings

(1) At a meeting of the Funds Management Committee, 3 members constitute a quorum.

(2) The chairperson presides at all meetings at which the chairperson is present.

(3) In the absence of the chairperson from a meeting, the members present at the meeting must elect a member to preside at the meeting.

(4) The Committee must hold meetings at the times and places the chairperson directs or the Committee decides.

665. Financial management

(1) The Funds Management Committee may manage its financial affairs in the way it considers appropriate.

(3) Without limiting subsection (2), the regulations may provide for the following:

666. Delegations

(1) The Funds Management Committee may delegate any of its powers and functions to any person.

667. Protection from liability

(1) This section applies a person who is or has been a member of the Funds Management Committee.

(3) In addition, the person is not civilly or criminally liable for an act done or omitted to be done by the Committee in the exercise or purported exercise of a power, or the performance or purported performance of a function, under this Act.

(4) Subsections (2) and (3) do not affect any liability the Territory would, apart from that subsection, have for the act or omission.

668. Definition

"chairperson", of the Disciplinary Tribunal, means the member who, under section 671(1), is chairperson of the Tribunal.

669. Establishment

670. Membership

(ii) has practised as a legal practitioner in Australia or New Zealand for at least 7 years and who is entitled to be issued a local practising certificate;

(c) 5 Australian lawyers nominated by the Law Society (of whom at least 2 must, at the time of their nomination, be local counsel);

"local counsel" means a legal practitioner who holds a current local practising certificate to practise as or in the manner of a barrister.

671. Chairperson and deputy chairperson

(1) The member mentioned in section 670(1)(a) is the chairperson of the Disciplinary Tribunal.

(2) The Attorney-General must appoint one of the members mentioned in section 670(1)(c) or (d) to be the deputy chairperson of the Tribunal.

(3) The deputy chairperson may exercise the powers and perform the functions of the chairperson if the chairperson is absent or unable for another reason to exercise powers or perform functions.

672. Duration of appointment

(1) A member of the Disciplinary Tribunal holds office for 3 years or the lesser period specified in the instrument of appointment.

673. Resignation and removal of member

(1) A member of the Disciplinary Tribunal may resign office by signed writing given to the Attorney-General.

(2) The Attorney-General may at any time terminate the appointment of a member of the Tribunal.

674. Constitution of Disciplinary Tribunal for hearings

(1) As soon as practicable after a disciplinary action is started under Chapter 4, the chairperson must select at least 3 but not more than 5 members to constitute the Disciplinary Tribunal to hear and decide the proceedings.

675. Presiding member

(2) However, if the member appointed under subsection (1)(b) is not present at any proceedings, the members present must elect one of their number who is a legal practitioner to preside at the proceedings.

676. Change in composition

(1) If one of the members (other than the presiding member) constituting the Disciplinary Tribunal for a hearing vacates office or becomes incapable of sitting for any reason before the hearing is completed or a decision has been made for the hearing, the hearing may be continued and completed by the remaining members.

(2) If the presiding member or more than one member vacates office or becomes incapable of sitting before the Tribunal has completed the hearing or made a decision for the hearing, the hearing is terminated and a new hearing may be started before the Tribunal constituted under section 674.

(3) In a new hearing the Tribunal may have regard to the record of the proceeding before the Tribunal as previously constituted, including the record of any evidence taken in the proceeding.

677. Protection from liability

(1) This section applies a person who is or has been a member of the Disciplinary Tribunal.

(3) Subsection (2) does not affect any liability the Territory would, apart from that subsection, have for the act or omission.

678. Office established

(2) The Solicitor-General holds office as the Supervisor unless an appointment is made under section 679.

679. Appointment

(1) The Attorney-General may, by Gazette notice, appoint a person to be the Statutory Supervisor.

(2) If the person appointed to be the Supervisor is not a public sector employee, the Supervisor holds office for the period (not exceeding 5 years) specified in the instrument of appointment and is eligible for re-appointment.

680. Resignation

The Statutory Supervisor may resign office by written notice given to the Attorney-General.

681. Delegations

(1) The Statutory Supervisor may delegate any of the Supervisor's powers and functions to any person or body.

682. Protection from liability

(1) This section applies to a person who is or has been the Statutory Supervisor.

(3) Subsection (2) does not affect any liability the Territory would, apart from that subsection, have for the act or omission.

683. Excluded matters for Corporations Act

(2) The bodies, their employees and the members of the Committee are declared to be excluded matters for section 5F of the Corporations Act in relation to:

(b) provisions of the Corporations legislation that are specified by regulation.

(3) Subsection (2) has effect for the Society and its employees only in relation to:

(4) Subsection (2) has effect for the employees and members of the Committee only in relation to their activities for the Committee.

684. Definition

685. Functions

A regulatory authority has the functions conferred on it under this Act or any other Act.

686. Powers

A regulatory authority may do everything necessary and convenient to be done for the performance of its functions.

687. Evidentiary provisions

(1) A court, judge or person acting judicially must take judicial notice of the common seal of the Law Society or Funds Management Committee affixed to a document and must presume that it was properly affixed.

(2) A signature purporting to be the signature of each of the following persons is evidence of the signature it purports to be:

688. Purpose

The purpose of this Part is to promote the maintenance of high standards of professional conduct by Australian legal practitioners and Australian-registered foreign lawyers by providing for the making and enforcement of rules of professional conduct that apply to them when they practise in this jurisdiction.

Division 2 – Rules for Australian legal practitioners and locally-registered foreign lawyers

689. Rules for Australian legal practitioners

The Law Society may make legal profession rules about legal practice in this jurisdiction engaged in by Australian legal practitioners.

690. Rules for foreign lawyers

The Law Society may make legal profession rules about engaging in legal practice in this jurisdiction as an Australian-registered foreign lawyer.

691. Subject matter of legal profession rules

(1) Legal profession rules for Australian legal practitioners or Australian-registered foreign lawyers may make provision for or with respect to any aspect of legal practice, including standards of conduct expected of practitioners or lawyers to whom the rules apply.

(2) The power to make rules is not limited to any matters for which this Act specifically authorises the making of legal profession rules.

(3) Legal profession rules may regulate advertising by legal practitioners, including regulating advertising it considers:

Division 3 – Rules for incorporated legal practices and multi-disciplinary partnerships

692. Rule-making power

(1) The Law Society may make legal profession rules for or with respect to the following matters:

(a) the provision of legal services by or in connection with incorporated legal practices or multi-disciplinary partnerships, and in particular the provision of legal services by:

(b) the provision of services that are not legal services by or in connection with incorporated legal practices or multi-disciplinary partnerships, but only if the provision of those services by:

may give rise to a conflict of interest relating to the provision of legal services.

(2) Legal profession rules may be made for or with respect to professional obligations relating to legal services provided by or in connection with incorporated legal practices or multi-disciplinary partnerships.

(a) regulate any services that an incorporated legal practice may provide or conduct (other than the provision of legal services or other services that may give rise to a conflict of interest relating to the provision of legal services); or

(b) regulate or prohibit the conduct of officers or employees of an incorporated legal practice (other than in connection with the provision of legal services or other services that may give rise to a conflict of interest relating to the provision of legal services); or

(c) regulate any services that a multi-disciplinary partnership or partners or employees of a multi-disciplinary partnership may provide or conduct (other than the provision of legal services or other services that may give rise to a conflict of interest relating to the provision of legal services); or

(d) regulate or prohibit the conduct of partners or employees of a multi-disciplinary partnership (other than in connection with the provision of legal services or other services that may give rise to a conflict of interest relating to the provision of legal services).

(4) The power to make rules is not limited to any matters for which this Act specifically authorises the making of legal profession rules.

693. Rule-making procedures

(iii) persons who, in the opinion of the Society, would have an interest in the rules; and

(b) give notice in a newspaper circulating in the Territory that rules are to be made and members of the public are invited to make written submissions to the Society about the rules.

(2) Without limiting the power of the Legislative Assembly under section 63(9) of the Interpretation Act, the Attorney-General may, by Gazette notice, disallow rules within 12 months after the rules are made.

(3) If rules disallowed by the Attorney-General amended or repealed rules in force immediately before the disallowed rules came into effect, the disallowance revives the amended or repealed rules from the date of the disallowance as if the disallowed rules had not been made.

(4) To avoid doubt, this section does not affect a power the Society or other professional body may otherwise have to make rules or issue directions or guidelines relating to the professional conduct of legal practitioners.

694. Binding nature of legal profession rules

Legal profession rules are binding on Australian lawyers,
Australian-registered foreign lawyers, law practices and complying community legal centres to which they apply.

695. Legal profession rules inconsistent with Act or regulations

Legal profession rules do not have effect to the extent that they are inconsistent with this Act or the regulations.

696. Regulation-making power

(b) provide for the fees the Law Society may charge for the services it provides.

697. Contravention of certain provisions not offence

Section 69A of the Summary Offences Act does not apply to a provision of this Act that, apart from this section, it would otherwise apply.

698. Liability of principals

(1) If a law practice contravenes, whether by act or omission, any provision of this Act imposing an obligation on the practice, each principal of the practice is taken to have contravened the same provision, unless the principal establishes that:

(a) the practice contravened the provision without the knowledge actual, imputed or constructive of the principal; or

(b) the principal was not in a position to influence the conduct of the law practice in relation to its contravention of the provision; or

(2) Subsection (1) does not affect the liability of the law practice for the contravention.

(3) A contravention of a requirement imposed on a law practice by this Act is capable of constituting unsatisfactory professional conduct or professional misconduct by a principal of the practice.

699. Associates who are disqualified or convicted persons

(1) A law practice must not have a lay associate whom any principal or other legal practitioner associate of the practice knows to be:

(4) If the Society refuses an application mentioned in subsection (2) or imposes a condition on the approval:

(a) the Society must give the applicant an information notice for the decision to refuse the application or impose the condition; and

(b) the applicant may appeal to the Supreme Court against the decision within 28 days after the notice is given to the applicant.

(5) On hearing the appeal, the Court may make the order it considers appropriate.

(7) Proceedings for an offence against subsection (6) may only be brought within 6 months after discovery of the offence by the law practice.

700. Injunctions

(1) This section applies if a person has engaged, is engaging or is proposing to engage in conduct that constituted, constitutes or would constitute:

(d) inducing or attempting to induce, whether by threats, promises or otherwise, a person to contravene this Act; or

(e) being in any way, directly or indirectly, knowingly concerned in, or party to, the contravention by a person of this Act; or

(2) On the application of the Law Society, the Supreme Court may grant an injunction on the terms the Court considers appropriate restraining the first-mentioned person from engaging in the conduct and, if the Court considers it is desirable to do so, requiring that person to do anything.

(3) The Statutory Supervisor may by notice filed in the Court intervene in the proceeding for an application for an injunction under subsection (2).

(4) If an application for an injunction under subsection (2) has been made, the Court may, if the Court decides it to be appropriate, grant an injunction by consent of all the parties to the proceedings, whether or not the Court is satisfied this section applies.

(5) If the Court considers it is desirable to do so, the Court may grant an interim injunction pending decision of an application under subsection (2).

(6) The Court may discharge or vary an injunction granted under subsection (2) or (4).

(7) The Court's power to grant an injunction restraining a person from engaging in conduct may be exercised whether or not:

(a) it appears to the Court that the person intends to engage again, or to continue to engage, in conduct of that kind; and

(c) there is an imminent danger of substantial damage to any person if the first-mentioned person refuses or fails to do that act or thing.

(8) The Court must not require the Society or any other person, as a condition of granting an interim injunction, to give an undertaking as to damages.

701. Disclosure of information by local regulatory authorities

(1) A local regulatory authority may disclose information to another local regulatory authority about any matter relating to or arising under this Act or a corresponding law.

(2) A local regulatory authority may disclose information to an interstate regulatory authority about any matter relating to or arising under this Act or a corresponding law.

702. Confidentiality of personal information

(1) This section applies if a relevant person obtains personal information in the course of exercising powers or performing functions under this Act or any other Act.

(b) does something that discloses the information to someone else and is reckless about whether:

(a) to the extent the disclosure is reasonably required to exercise powers or perform functions under this Act or any other Act; or

(b) to the extent that the relevant person is expressly authorised, permitted or required to disclose the information under this Act or any other Act; or

(f) to the extent the disclosure is reasonably required to enable the enforcement or investigation of the criminal law or a disciplinary matter.

(4) Subsection (2) extends to the disclosure of information that was disclosed under a corresponding law to a local regulatory authority or a relevant person.

"personal information" means information or an opinion (including information or an opinion forming part of a database), that is recorded in any form and whether true or not, about an individual whose identity is apparent, or can be reasonably ascertained, from the information or opinion, but does not include information or an opinion of a kind prescribed by the regulations;

703. Professional privilege or duty of confidence does not affect validity of or compliance with certain requirements

(a) section 256 to give written notice of an irregularity in connection with a trust account, a trust ledger account or trust money; or

(2) The validity of the requirement is not affected, and a person is not excused from complying with the requirement, on the ground of legal professional privilege or another duty of confidence.

704. Duty to report suspected offences

(1) This section applies if the Law Society suspects on reasonable grounds, after investigation or otherwise, that a person has committed an offence against any Act or law.

(a) report the suspected offence to the Commissioner of Police or other appropriate prosecuting authority; and

(b) make available to the Commissioner or authority the information and documents relevant to the suspected offence in its possession or under its control.

(3) The obligation under subsection (2)(b) to make available the information and documents continues while the Society holds the relevant suspicion.

705. Payment of fines

(1) On payment of a fine imposed under this Act by the Law Society or Disciplinary Tribunal, the Society or Tribunal must pay the amount of the fine to the Funds Management Committee.

706. Approved forms

An entity having a power or function under this Act may approve forms for use in connection with the power or function.

CHAPTER 10 – REPEALS AND TRANSITIONAL MATTERS FOR LEGAL PROFESSION ACT 2006

707. Repeal of legal practitioner legislation

708. Repeal of other legislation

The Law Society Public Purposes Trust Act 1988 (Act No. 20 of 1988) is repealed.

709. Definitions

"repealed Act" means the Legal Practitioners Act as in force immediately before the commencement date.

710. Her Majesty's counsel

(1) This section applies to a legal practitioner who, immediately before the commencement date, held appointment under the repealed Act as one of Her Majesty's Counsel.

711. Local roll

The Roll of Legal Practitioners kept under the Rules made under the repealed Act immediately before the commencement date is taken to be, or to form part of, the local roll.

712. Existing legal practitioners

If a person was admitted as a legal practitioner under the repealed Act before the commencement date, the person is taken to have been admitted as a local lawyer under this Act on the day the person was admitted under the repealed Act.

713. Applications for admission

(1) An application for admission as a legal practitioner that was pending immediately before the commencement date is taken to be an application for admission as a legal practitioner under this Act.

(2) The applicant may be admitted as a legal practitioner under this Act if the applicant could have been admitted as a legal practitioner under the repealed Act and the admission requirements of this Act are taken to have been satisfied in relation to the applicant.

714. References to legal practitioner

In an Act or document, a reference to a legal practitioner may, if the context permits, be taken to be a reference to an Australian legal practitioner or local legal practitioner as the case requires.

715. Practising certificates

(1) A practising certificate issued under the repealed Act and in force immediately before the commencement date is taken to be a local practising certificate.

(2) Despite section 48, the practising certificate expires on the date it would have expired had this Act not been enacted.

(3) The fee for renewal of the certificate is 75% of the fee prescribed by the regulations for the renewal of a local practising certificate for a financial year.

(4) A condition or restriction applying to the practising certificate immediately before the commencement date continues to apply to the certificate on and after that date.

716. Applications for practising certificate

(1) An application for a practising certificate under the repealed Act that was pending immediately before the commencement date is taken to be an application for a local practising certificate.

(2) Despite Part 2.3, the applicant may be granted a local practising certificate if the applicant could have been issued a practising certificate as a legal practitioner under the repealed Act.

717. Supervised legal practice

A period of employment as a government lawyer or by a complying community legal centre under the supervision of a supervising legal practitioner before the commencement date must be taken into account for working out periods of supervised legal practice under section 73.

Division 5 – Incorporated legal practices and multi-disciplinary partnerships

718. Incorporated legal practices

(1) An incorporated legal practice providing legal services under the repealed Act immediately before the commencement date is not required to comply with section 122.

(2) Section 130 does not apply in relation to any matter for which services are first provided before the commencement of that section.

(3) A disqualification imposed under section 35AZE of the repealed Act is taken to have been imposed under section 140.

719. Multi-disciplinary partnerships

(1) An Australian legal practitioner providing legal services as a member of a multi-disciplinary partnership under the repealed Act immediately before the commencement date is not required to comply with section 153.

(2) Section 159 does not apply in relation to any matter for which services are first provided before the commencement of that section.

720. Definitions

"former repealing Act" means the Legal Practitioners Amendment (Incorporated Legal Practices and Multi-disciplinary Partnerships) Act 2003;

"practising company" means a practising company continued in existence under section 17 of the former repealing Act;

"repealed incorporation Act" means the Legal Practitioners (Incorporation) Act, and statutory instruments made under that Act, as in force immediately before the commencement of the former repealing Act.

721. Repealed incorporation Act ceases to apply

On the commencement date, the repealed incorporation Act ceases to apply to a practising company.

722. Alteration of constitution

A practising company may alter its constitution only with the written approval of the Law Society.

723. Practising company is law firm

For this Act, a practising company is a law firm being a partnership consisting of its directors.

724. Directors to guarantee debts of company

The directors of a practising company are taken to guarantee (jointly and severally) the debts of the company.

725. Records

For giving effect to sections 721 to 723, the Chief Justice and the Law Society may make the arrangements that are necessary and convenient relating to the records of approvals given under the repealed incorporation Act.

726. Practising company becoming incorporated legal practice

(1) On a practising company giving notice of its intention to engage in legal practice under section 122:

(2) Subsection (1) does not affect a right, privilege, obligation or liability acquired, accrued or incurred before the commencement date or any investigation, legal proceeding or remedy in relation to such a right, privilege, obligation or liability.

727. Foreign lawyers

(1) Registration as a locally-registered foreign lawyer granted under the repealed Act and in force immediately before the commencement date, or expressed to take effect on or after the commencement date, is taken to have been granted under this Act.

(2) Notice seeking registration as a foreign lawyer under the repealed Act that was pending immediately before the commencement date is taken to be an application for registration as a locally-registered foreign lawyer under this Act.

(3) Subsection (1) does not permit a person registered as a foreign lawyer under the repealed Act immediately before the commencement date to continue to provide any services that are not permitted to be provided under Part 2.7.

728. Definitions

"former trust account provisions" means the provisions of Part VII of the repealed Act in force immediately before the commencement date;

729. Payment date

(2) However, if the Statutory Supervisor considers it is necessary or convenient for the transition from the repealed Act to this Act, the Supervisor may, by Gazette notice, fix a later date as the payment date.

730. Continuing application of former trust account provisions

(1) Subject to subsection (2), for the period starting on the commencement date and ending on 30 June 2007 or a later date prescribed by the regulations:

(b) the former trust account provisions continue to apply to legal practitioners as if the repealed Act had not been repealed.

(2) If, under the former trust account provisions, an audit of a legal practitioner's records would have been required to be conducted after 30 June 2007 had the repealed Act not been repealed, the former trust account provisions continue to apply in relation to the legal practitioner as if the repealed Act had not been repealed.

731. When offence not committed

An offence is not committed under the provisions of Part 3.1 or the regulations made for that Part for anything done or omitted to be done in good faith during the period of 3 months after the commencement date if:

(a) it was done for the purpose of attempting to comply with any of the provisions; or

(b) it was done in substantial conformity with the requirements of the repealed Act.

732. Return of statutory deposits

(1) This section applies if, on the commencement date, the Legal Practitioners' Trust Committee holds an amount on deposit under Part VII, Division 7, of the repealed Act for a legal practitioner.

(2) The Committee must pay the amount to the legal practitioner before the payment date.

(3) However, if the amount or part of it is repaid under the former trust account provisions, subsection (2) applies only in relation to the amount held by the Committee.

733. Interest on investment income

On the payment date, the Legal Practitioners' Trust Committee must pay all investment income as defined in section 84A of the repealed Act into the Fidelity Fund.

734. Definition

"former costs provisions" means the provisions of Part X of the repealed Act as in force immediately before the commencement date.

735. Continuing application of former costs provisions

(1) The former costs provisions continue to apply to a matter if the client first instructed the law practice in the matter before the commencement date.

(2) Part 3.3 applies to a matter if the client first instructs the law practice on or after the commencement date.

(3) However, if a law practice is retained by another law practice on behalf of a client on or after the commencement date in relation to a matter in which the other law practice was retained by the client before the commencement date, the former costs provisions continue to apply to the matter.

736. Taxation of costs

A taxation of costs started under the former costs provisions before the commencement date but not completed by that date must be completed under those provisions as if the repealed Act had not been repealed.

737. Compliance with former costs provisions sufficient

For the period starting on the commencement date and ending on 31 December 2007, compliance with the former costs provisions by a legal practitioner is taken to be compliance with Part 3.3.

738. Existing professional indemnity insurance

Professional indemnity insurance maintained by a legal practitioner under the repealed Act and in force immediately before the commencement date is taken to be approved professional indemnity insurance under Part 3.4.

739. Exemptions

An exemption granted by the Law Society under the regulations made under section 35B of the repealed Act is taken to have been granted under section 375(2).

740. Definitions

"new fund" means the Legal Practitioners Fidelity Fund established under this Act;

"old fund" means the Legal Practitioners' Fidelity Fund of the Northern Territory established under the repealed Act.

741. Fidelity Fund

742. Amounts payable to and from old fund before commencement date

(1) This section applies to an amount that was payable into, or was payable from, the old fund immediately before the commencement date.

(2) If the amount is payable into the old fund and is received after the commencement date, the amount must be paid into the new fund.

(3) If the amount was payable from the old fund before the commencement date but was not paid before that date, it may be paid from the new fund.

(4) If an amount becomes payable in relation to a default happening before the commencement date, the amount may be paid from the new fund after that date.

"default" has the meaning applicable at the time the act or omission constituting the default happened.

743. Determination for funding for Law Society

A determination for funding for regulatory authorities under section 388 may include funding for costs and expenses incurred by the Law Society in administering the repealed Act.

744. Pending investigations into professional conduct

(i) a complaint had been made to the Law Society under section 46 of the repealed Act in relation to the professional conduct of a legal practitioner or former legal practitioner; or

(ii) the Attorney-General had directed the Society to investigate the professional conduct of a practitioner or former legal practitioner; and

(b) immediately before the commencement date, an investigation into the conduct had not started.

(2) Chapter 4 applies (with the necessary modifications) in relation to the conduct as if a complaint were made under Division 4 of that Part about the conduct.

(3) However, disciplinary action may not be taken against a person under this Act in relation to the conduct that is more onerous than the disciplinary action that could have been taken against the person under the repealed Act in relation to the conduct.

745. Investigations into professional conduct

(a) before the commencement date, the Law Society had started an investigation under section 46B of the repealed Act in relation to the professional conduct of a legal practitioner or former legal practitioner; and

(b) immediately before the commencement date, the investigation had not been completed.

(2) The investigation must be completed under the repealed Act as if it had not been repealed.

(3) If a person would have been entitled to appeal against a decision of the Society on the investigation under section 49 of the repealed Act had that Act not been repealed, the person may appeal to the Supreme Court against the decision of the Society under section 513 as if it were a decision to take action under section 499(2).

746. Pending hearings and inquiries

(b) immediately before the commencement date, the Legal Practitioners Complaints Committee had not completed its hearing into the appeal or inquiry into the charge.

(2) The appeal or charge must be completed under the repealed Act as if it had not been repealed.

(3) For this section, the Committee constituted under the repealed Act for the appeal or inquiry continues in existence.

(4) The decision of the Committee on the hearing or charge may be enforced as if it were an order of the Disciplinary Tribunal.

(5) If a person would have been entitled to appeal against the decision under section 51B of the repealed Act had that Act not been repealed, the person may appeal to the Supreme Court against the decision under section 533 as if it were a decision of the Tribunal to make an order under section 525.

747. New complaints about old conduct

(b) could have been, but was not, the subject of a complaint under the repealed Act.

(2) A complaint about the conduct may be made and dealt with under this Act even if the conduct could not be the subject of a complaint under this Act if it had happened after the commencement date.

(3) Chapter 4 applies (with the necessary modifications) in relation to the conduct.

(4) However, disciplinary action may not be taken against a person under this Act in relation to the conduct that is more onerous than the disciplinary action that could have been taken against the person under the repealed Act in relation to the conduct.

748. Application of Chapter 5 for existing Part VIIIA managers

Chapter 5 applies on and after the commencement date in relation to a manager appointed under Part VIIIA of the repealed Act as if the receiver had been appointed under Part 5.4.

749. Continued application of Part IX to application for appointment of receiver

Part IX of the repealed Act continues to apply to an application for the appointment of a receiver made under that Part that was pending immediately before the commencement date.

750. Application of Chapter 5 for existing Part IX receivers

Chapter 5 applies on and after the commencement date in relation to a receiver appointed under Part IX of the repealed Act (whether the appointment is made before or after that date) as if the receiver had been appointed under Part 5.5.

751. Law Society

(1) The Law Society Northern Territory established by section 635(1) is taken to be a continuation of, and the same legal entity as, the Law Society Northern Territory constituted under the repealed Act.

(2) The Law Society's constitution as in force immediately before the commencement date is the Law Society's constitution under section 644.

(3) An elected member of the council of the Law Society holding office immediately before the commencement date continues to hold office until the member's term of office ends under the constitution.

(4) A member of the Law Society immediately before the commencement date continues to be a member of the Society until the member's membership ends under the constitution.

752. Admission Board

(1) A legal practitioner appointed as a member of the Legal Practitioners Admission Board and holding office immediately before the commencement date is taken to be an appointed member of the Admission Board under Part 7.2.

(2) Subject to section 653, the member holds office until the appointment would have ended under the repealed Act as if it had not been repealed.

753. Legal Practitioners' Fidelity Fund Committee

The Legal Practitioners Funds Management Committee is taken to be a continuation of, and the same legal entity as, the Legal Practitioners' Fidelity Fund Committee constituted under the repealed Act.

754. Legal Practitioners' Trusts Committee

(1) The Legal Practitioners' Trusts Committee continues in existence for Division 8.

Under Division 8, the Committee has functions relating to the former trust account provisions under that Division.

(2) Subsection (1) applies as if Part VII, Division 7, of the repealed Act had not been repealed.

(3) The Committee ceases to exist on the day after the payment date under Division 8.

(4) On that day, the assets and liabilities of the Committee vest in the Legal Practitioners Funds Management Committee.

755. Admission rules

The Legal Practitioners Admission Rules (Subordinate Legislation No. 58 of 2003) as in force immediately before the commencement date are taken to be the admission rules under this Act.

756. Professional conduct rules

The Rules of Professional Conduct and Practice (Subordinate Legislation No. 7 of 2002) as in force immediately before the commencement date are taken to be legal profession rules under this Act.

757. Winding-up of trust

(1) On the winding-up of the Trust, the Law Society may pay the amount comprising the balance of the Trust Fund to the Funds Management Committee for payment into the Fidelity Fund.

"Trust" means the trust established by the Trust Deed in the Schedule to the Law Society Public Purposes Trust Act;

758. General saving and transitional provision

(1) If anything of a kind required or permitted to be done under a provision of this Act was done under a corresponding provision of the repealed Act and still had effect immediately before the commencement date, the thing continues in effect on and after that date as if:

(2) If subsection (1) applies in relation to the signing, lodgment, issue or publication of a written instrument, a reference in the instrument to a provision of the repealed Act must, for that subsection, be read as a reference to the corresponding provision of this Act.

(3) Without limiting subsections (1) and (2), if a provision of the repealed Act that corresponds to a provision of this Act would, but for its repeal, have applied in relation to anything done or being done or in existence before the commencement date, the provision of this Act applies (with the necessary modifications) in relation to the thing.

(5) In addition, this section has effect subject to transitional regulations made under section 761.

759. Continued application of repealed Act

If a provision of the repealed Act continues to apply under this Part, the following provisions also continue to apply in relation to the provision:

(a) other provisions of the repealed Act necessary to give effect to the continued provision;

(b) subordinate legislation made under the repealed Act for the continued provision as in force immediately before the commencement date.

760. Interpretation Act not affected

Unless the contrary intention appears, this Part does not limit Part III of the Interpretation Act.

761. Transitional regulations

(1) The regulations may make provision (a "transitional regulation") about a matter for which:

(a) it is necessary to make provision to allow or facilitate the doing of anything to achieve the transition from the operation of the repealed Act to this Act; and

(2) A transitional regulation may have retrospective operation to a date not earlier than the date of assent to this Act.

(3) However, to the extent a transitional regulation has retrospective operation, it does not operate to the disadvantage of a person (other than the Territory or a Territory authority) by decreasing the person's rights or imposing liabilities on the person.

762. Regulations – minor errors

(1) The regulations may make provision (a "corrective regulation") about a minor error in a provision of this Act.

(3) On the making of the regulation, the provision must be read as if, immediately before the commencement date, this Act had been amended by an Act to correct the error in the way stated in the regulation.

(5) However, the expiry does not affect a corrective regulation made before its expiry.

Legal Practitioners Ordinance 1974	Ordinance No. 18, 1974
Legal Practitioners Ordinance 1977	Ordinance No. 19, 1977
Legal Practitioners Ordinance 1978	Ordinance No. 12, 1978
Legal Practitioners Amendment Act 1981	Act No. 56, 1981
Legal Practitioners Amendment Act 1982	Act No. 52, 1982
Legal Practitioners Amendment Act (No. 2) 1982	Act No. 91, 1982
Legal Practitioners Amendment Act 1983	Act No. 32, 1983
Legal Practitioners Amendment Act 1987	Act No. 36, 1987
Legal Practitioners Amendment Act 1990	Act No. 38, 1990
Legal Practitioners Amendment Act (No. 2) 1990	Act No. 43, 1990
Legal Practitioners Amendment Act 1993	Act No. 42, 1993
Legal Practitioners Amendment Act 1995	Act No. 10, 1995
Legal Practitioners Amendment Act 1999	Act No. 30, 1999
Legal Practitioners Amendment Act 2000	Act No. 29, 2000
Legal Practitioners Amendment Act 2001	Act No. 61, 2001
Legal Practitioners Amendment (Mortgage Practices) Act 2002	Act No. 44, 2002
Legal Practitioners Amendment (Community Legal Centres) Act 2002	Act No. 45, 2002

Legal Practitioners Amendment (Costs and Advertising) Act 2003	Act No. 18, 2003
Legal Practitioners Amendment (Incorporated Legal Practices and Multi-Disciplinary Partnerships) Act 2003	Act No. 51, 2003
Legal Practitioners Amendment Act 2005	Act No. 16, 2005

Northern Territory Bills

LEGAL PROFESSION BILL 2006

1. Short title

2. Commencement

3. Main purposes of this Act

4. Definitions

5. Terms relating to lawyers

6. Terms relating to legal practitioners

7. Terms relating to associates and principals of law practices

8. Home jurisdiction

9. Admission to legal profession

10. Academic qualifications and legal training requirements

11. Suitability matters

12. Corresponding authorities

13. Corresponding disciplinary bodies

14. Corresponding laws and corresponding foreign laws

15. References to convictions for offences

16. Declared offences for Criminal Code

17. Purposes of Part

18. Prohibition on engaging in legal practice when not entitled

19. Prohibition on representing or advertising entitlement to engage in legal practice when not entitled

20. Presumptions about taking or using name, title or description

21. Appointment of Queen's Counsel or Senior Counsel

22. Schemes for specialist lawyers

23. Contravention of Part by Australian lawyers who are not legal practitioners

24. Purposes of Part

25. Admission

26. Conditions of admission

27. Roll of persons admitted to legal profession

28. Local lawyer is officer of Supreme Court

29. Eligibility for admission

30. Suitability for admission

31. Early consideration of suitability

32. Referral of matters to Supreme Court

33. Binding effect of declaration or order

34. Entitlement to be represented, heard and make representations

35. Admission Board to advise on application for admission

36. Compliance certificates

37. Consideration of applicant's eligibility and suitability

38. Appeals

39. Mutual recognition local registration authority

40. Certificate of admission

41. Parties to application

42. Costs of application

43. Admission rules

44. Purposes of Part

45. Entitlement of holder of Australian practising certificate to practise in this jurisdiction

46. Local practising certificates

47. Suitability to hold local practising certificate

48. Duration of local practising certificate

49. Local legal practitioner is officer of Supreme Court

50. Who may apply for grant or renewal of local practising certificate

51. Making application and fees

52. Timing of application for renewal of local practising certificate

53. Late fee

54. Grant or renewal of local practising certificate

55. Application of Division

56. Grounds for amending, suspending or cancelling local practising certificate

57. Amending, suspending or cancelling local practising certificate

58. Operation of amendment, suspension or cancellation of local practising certificate

59. Other ways of amending or cancelling local practising certificate

60. Relationship of this Division with Chapter 4

61. Applicant for local practising certificate – show cause event

62. Holder of local practising certificate – show cause event

63. Refusal, amendment, suspension or cancellation of local practising certificate – failure to show cause

64. Restriction on making further applications

65. Relationship of this Division with Part 4.6 and Chapter 6

66. Immediate suspension of local practising certificate

67. Surrender and cancellation of local practising certificate

68. Return of local practising certificate

69. Conditions generally

70. Conditions imposed by Law Society

71. Imposition or variation of conditions pending criminal proceedings

72. Statutory condition regarding conditions imposed on interstate admission

73. Statutory condition regarding practice – general

74. Statutory condition regarding practice as barrister

75. Additional conditions on practising certificates of barristers

76. Statutory condition regarding notice of offence

77. Conditions imposed by legal profession rules

78. Compliance with conditions