The Legal Practitioners' Fidelity Guarantee Fund (the Fidelity Fund) is administered by Queensland Law Society (QLS) to reimburse people (clients) who suffer financial loss arising from an act or omission of one or more associates of a law practice that involves dishonesty (a dishonest default).
The Fidelity Fund does not reimburse losses suffered as the result of negligence. Law practices have professional indemnity insurance policies for this purpose.
The Fidelity Fund is vested in QLS by the Legal Profession Act 2007. QLS does not have any discretion to pay claims which are not covered by the legislation.
Financial Services Reform disclosure notice
Pursuant to Australian Securities and Investments Commission class order relief, the QLS and/or persons responsible for these matters are not licensed under the Corporations Act 2001 (Cth) in relation to the operation of the Legal Practitioners Fidelity Guarantee Fund.
The QLS is not regulated under the Insurance Act 1973 (Cth).
If you want to make a claim against the Fund
If you believe that you have suffered financial loss as the result of the dishonest default of a law practice associate, you should immediately advise the QLS Fidelity Guarantee Fund Claims Manager.
Notification of a potential claim against the Fund must be given to QLS within 6 months of you becoming aware of the financial loss. Failure to notify QLS within this 6 month period may result in your claim being disallowed.
When you notify QLS of a potential claim, you will be provided with a claim form to complete and submit to QLS.
If your claim is allowed, QLS pays interest on the allowed amount of your claim at the rate of 5% per year from the date of receipt of your claim form (not the date of notification) to the date you are advised your claim is allowed.
You might want to consult another law practice to advise you in respect of a potential claim and, if appropriate, to help you prepare it. Successful claimants are reimbursed their reasonable legal costs of making and proving their claim.
QLS may allow your claim but may reduce the amount of your claim for any benefit QLS believes has been, or is likely to be paid to, or received by, you.