Lawyers to pay more to fidelity guarantee fund

Press, 24 August 1988, Page 2

Lawyers to pay more to fidelity guarantee fund

PA Wellington Solicitors will be called on to dig deeper into their pockets for increased contributions to their fidelity guarantee fund under legislation introduced in Parliament yesterday.

The Law Practitioners Amendment Bill, introduced by the Minister of Justice, Mr Palmer, allows the Law Society Council to set the fees to the fund, increases the minimum fee from $2O to $5O and removes the present maximum of $lOO. Mr Palmer told Parliament the changes would let the Law Society respond sooner and more efficiently to ensure the fund met its purpose. The fund is used to reimburse people who have suffered losses through theft by a solicitor of any money entrusted to the solicitor.

the present balance of the fund.” Mr Paul East (Nat., Rotorua) said the Opposition supported the changes. The bill was evidence of the substantial increase in white-collar crime in New Zealand, and the legal profession was not immune, he said. “The legislation puts the interests of the consumers first, so that those defrauded by a solicitor can obtain quick redress.” Mr East said about 2800 solicitors contributed to the fund, which had existed since 1930. The bill was referred to the Justice and Law Reform Select Committee to allow oral submissions from the Law Society today, and the bill is expected to return to Parliament for passage through its remaining stages tomorrow.

All solicitors in private practice on their own account or in partnership contribute to the fund.

$975,000. “The management committee of the fund has indicated that the claims received so far arising from a solicitor’s defalcations in a Tauranga firm of solicitors will exceed

Mr Palmer said the fund stood at about