The Society administers the Solicitor’s Fidelity Fund of the Australian Capital Territory (the Fidelity Fund).
One of the functions of the Fidelity Fund is to provide a source of compensation for defaults by a law practice where a person has suffered a financial loss. The Fidelity Fund is available to meet claims by clients for compensation in respect of a loss arising from a solicitor’s failure to account for trust funds or other valuable property. The amount recoverable from the Fidelity Fund does not include amounts recoverable from other sources in relation to the financial loss to which the claim relates.
The Fidelity Fund does not reimburse losses suffered as the result of negligence, which is covered by a law practice’s professional indemnity insurance.
Claims against the Fidelity Fund must be notified to the Society in writing. We recommend potential claimants obtain advice about making a claim from a legal practitioner. A claimant’s reasonable legal costs in relation to the claim may also be recoverable from the Fidelity Fund.
Certain costs relating to the regulation of legal practitioners in the ACT, such as random inspections, investigations and the appointment of managers, are also met from the Fidelity Fund.
NOTE: The ACT Law Society is not licensed by ASIC under the Corporations ACT 2001 (Cth) in relation to the operation of the Fidelity Fund and the operation of the fund is not regulated under the Insurance Act 1973 (Cth).