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Lawyers and Conveyancers Act 2006

Complaints and discipline - Intervention in practice

168: Directions relating to Fidelity Scheme

You could also call this:

"Rules for handling other people's money when a lawyer or conveyancer does something wrong"

Illustration for Lawyers and Conveyancers Act 2006

You need to know what happens when a Standards Committee or the New Zealand Law Society or the New Zealand Society of Conveyancers serves a notice on a practitioner. This notice is served when they think the practitioner has done something wrong with someone else's money or property. The money paid to them must be held on behalf of the Management Committee. When a practitioner or their agent is accused of theft or improper conduct, the money is held subject to the Management Committee's directions. The Management Committee gives general or special directions on what to do with the money. This is according to section 164(1) and section 164(2). There are some exceptions to this rule, such as section 165(2) and any court orders. These exceptions can affect how the money is held and used. You can find more information about this in the legislation.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM366711.

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Topics:
Money and consumer rights > Consumer protectionCrime and justice > Courts and legal helpCrime and justice > Police and safety
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167: Power of Standards Committee to repay money, or

"Getting your money back from a Standards Committee or society"

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169: Power to take possession of money, property, records, and documents, or

"When a lawyer's practice is suspected to be wrong, a committee can take their money, property, and papers."

Part 7Complaints and discipline
Intervention in practice

168Directions relating to Fidelity Scheme

  1. Where a Standards Committee or the New Zealand Law Society or the New Zealand Society of Conveyancers has, in relation to a practitioner, served a notice under section 164(1) on the grounds that there is reasonable cause to believe—

  2. that the practitioner has been guilty of theft or of any improper conduct in relation to money or other property of any other person; or
    1. that any person who is an agent (within the meaning of section 305) of the practitioner has been guilty of theft or of any improper conduct in relation to any money or other property entrusted to the practitioner,—
        1. the money paid to the Standards Committee or the New Zealand Law Society or the New Zealand Society of Conveyancers under section 164(2) must be held by the Standards Committee or the New Zealand Law Society or the New Zealand Society of Conveyancers on behalf of and subject to the general or special directions of the Management Committee.

      1. Subsection (1) is subject to—

      2. section 165(2); and
        1. any order made by the court under this Part.

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