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Fidelity Fund
The Solicitors' Fidelity Guarantee Fund is established under the Law Practitioners Act 1982. Clients who have suffered financial loss because of theft by a solicitor or a solicitor's employee or agent, and who cannot recover the money through other avenues, may claim reimbursement from the fidelity fund.
With certain exceptions specified in the Act, the fidelity fund does not cover any losses relating to money given to a solicitor for investment purposes.
All solicitors who are sole practitioners or partners in law firms in New Zealand contribute to the fidelity fund, which is administered by the New Zealand Law Society through a committee of practising lawyers.
The fidelity fund adds to the confidence clients may have in entrusting their money or property to solicitors in order to buy or sell a home, raise mortgage finance, administer estates, form trusts and the many other tasks that might require solicitors to handle clients' money.
Clients who are concerned about the security of their money (such as unexplained or unreasonable delays) should take any or all of the following steps:
- make an inquiry of, or complaint to, the district law society to which the lawyer belongs
- phone the NZLS toll-free number (0800 261 801) for reporting concern involving client money
- report the matter to the Police
- get advice on how to recover the money including, if necessary, the possibility of a claim to the fidelity fund.
The Solicitors Guarantee Fund Rules 1936 are available at www.legislation.govt.nz, under Statutory Regulations.
Contact details for the fund are: The Secretary, Fidelity Fund, NZLS, PO Box 5041, Lambton Quay, Wellington 6145.
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