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Lawyers and Conveyancers Act 2006

Complaints and discipline - Intervention in practice

165: Administration of funds obtained from regulated trust accounts

You could also call this:

"Looking after money from trust accounts"

Illustration for Lawyers and Conveyancers Act 2006

When a Standards Committee or the New Zealand Law Society or the New Zealand Society of Conveyancers gets money under section 164(2), they must put it into a separate bank account right away. They choose the bank and the people who can use the account. You need to know that this account is used to hold money that comes from regulated trust accounts. If the money in the account belongs to someone other than the practitioner, it must be held in trust for that person. The Standards Committee or the New Zealand Law Society or the New Zealand Society of Conveyancers looks after this money for the person who it belongs to. They do this because the money was held on behalf of that person in the first place.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM366708.

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164: Intervention in relation to regulated trust accounts, or

"When a lawyer or conveyancer does something wrong, a committee can take control of their clients' money."

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166: Claims in respect of money paid to Standards Committee, or

"Getting money back from a Standards Committee"

Part 7Complaints and discipline
Intervention in practice

165Administration of funds obtained from regulated trust accounts

  1. A Standards Committee or the New Zealand Law Society or the New Zealand Society of Conveyancers, on receiving money paid to it under section 164(2), must forthwith cause that money to be paid into a separate account at such bank as the Standards Committee or the New Zealand Law Society or the New Zealand Society of Conveyancers appoints; and that account may be operated on by such 2 or more persons as the Standards Committee or the New Zealand Law Society or the New Zealand Society of Conveyancers appoints in that behalf.

  2. If any money that was contained in a regulated trust account and that was paid to a Standards Committee or the New Zealand Law Society or the New Zealand Society of Conveyancers under section 164(2) is money that was held on behalf of any person other than the practitioner or the person or persons in whose name or names the account was held, that money must be held by the Standards Committee or the New Zealand Law Society or the New Zealand Society of Conveyancers in trust for the person on whose behalf the money was held.

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