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NZLS FEES AND LEVIES: FAQs: 2008
The issue of an annual practising certificate is subject to payment of all the prescribed fees and levies. Both district and NZLS fees and levies are collected by the district law societies, which then forward NZLS fees and levies to the NZLS. Practising certificates generally run from 1 February until 31 January of the next year. Frequently asked questions include:
1. What fees and levies am I liable for?
Barristers and employed solicitors
- practising fee
- district levy
Solicitors in practice on their own account
- practising fee
- district levy
- NZLS inspectorate fee
- Fidelity Fund fee
- any special Fidelity Fund levy
2. What is included in the "practising fee"?
The NZLS Board, acting under delegation from the Council, and with the approval of the Minister of Justice, fixes practising fees and may apportion them between the district law society and the NZLS (see s.60(1) of the Law Practitioners Act 1982). In 2008, $545.00 +GST is payable to the NZLS, and $5.00 + GST is payable to districts for the issuing of practising certificates. This fee has increased from $505.00 + GST in 2007.
3. What is the "district levy"
District law societies impose levies under s.25 of the Law Practitioners Act. These levies can be standard or differ for different groups of practitioners. They vary from district to district.
4. What is an "NZLS levy"?
The NZLS Council has power to impose a levy or levies on its members under s.9 of the Law Practitioners Act. The levy or levies can be standard or differ for different groups of practitioners. There is no levy in 2008.
5. What is the "NZLS inspectorate fee"?
This fee, $365.00 + GST in 2008, is imposed under s.88A(7) of the Law Practitioners Act to meet costs of the NZLS inspectorate. The inspectorate reviews the trust account controls and procedures of firms of solicitors. This fee remains the same as for 2007. This fee applies regardless of whether or not the solicitor’s firm operates a trust account or has an exemption under Rule 8 of the Solicitors Trust Account Rules.
6. What is the "annual Fidelity Fund fee"?
The Fidelity Fund is established under Part IX of the Law Practitioners Act. In general terms, the Fund is held and applied for the purpose of reimbursing persons who may suffer pecuniary loss by reason of theft by a solicitor - but it does not cover most investment/nominee company activity (see ss.169 - 169A of the Act).
Every solicitor who is in practice on his or her own account is liable to pay into the Fund such fees as may from time to time be fixed by the NZLS Council (s.165 refers). Every solicitor who is for the time being engaged in practice on his or her own account, whether in partnership or otherwise, is liable. That is deemed to include every solicitor who is held out as a consultant partner of a solicitor or firm of solicitors, and every solicitor who is held out as a partner even if he or she is in fact an employee (s.157 refers). The fee applies regardless of whether or not the solicitor’s firm operates a trust account or has an exemption under Rule 8.
No Fidelity Fund fee is being charged in 2008 (the fee for 2007 was $320.00 + GST). The decision not to charge a fee reflects the change to the fund under the Lawyers and Conveyancers Act. Under that act, a new Fidelity Fund will be established and the existing fund wound up once all claims under it have been finalised. Money from the existing fund cannot be transferred to the new fund as as current reserves are deemed adequate to see out the existing fund, the NZLS Board decided to charge no Fidelity Fund fee for 2008.
7. What is a "special Fidelity Fund levy"?
If the Fidelity Fund is, or may be, insufficient to meet its liabilities, the NZLS Council, with the consent of the Minister of Justice, may impose a levy on solicitors liable to contribute to the Fund. In respect of claims incurred after 30.4.93, the total amount payable (levy and annual fee combined) cannot exceed $5,000 (ss.167 - 167A refer). The last special Fidelity Fund levy was imposed in 1992: it was paid by instalments, finishing in 1997.
8. Can fees and levies be paid by instalment?
NZLS fees and levies are payable, in full, by the specified due date or dates. There is no provision for deferred or periodic payment.
9. What happens if I don't pay the fees and/or levies?
The issue of a practising certificate is dependent on payment of all the prescribed fees and levies (ss.57 and 165 of the Act refer). No payment, no practising certificate. It is an offence to practise without a practising certificate (see s.56 of the Act). It also exposes the practitioner and everyone they deal with to considerable risk, eg lack of insurance cover.
10. If I can't pay them, can I get help?
Some help may be available. The first step is to make a confidential enquiry of the Secretary or President of the appropriate district law society. Many of the district law societies administer benevolent funds, or can suggest finance providers.
11. What if I need a practising certificate for only part of the year? Can I get a discount? Or a refund?
District levy: District law societies can provide information about any discount or refund in respect of their district levy (see 3 above).
For the NZLS practising fee, NZLS inspectorate fee and Fidelity Fund fee discounted rates are:
| Date of issue of practising certificate/ commencement of practice on own account |
Fee payable |
| 2 February-30 April |
Full Fee |
| 1 May-31 July |
Three-quarters of the full fee |
| 1 August-31 October |
Half of the full fee |
| 1 November-31 January |
One-quarter of the full fee |
For the NZLS practising fee and NZLS inspectorate fee refunds are:
| Date of surrender of certificate/ retirement |
Refund available |
| 2 February-30 April |
Three-quarters |
| 1 May-31 July |
Half |
| 1 August-31 October |
One-quarter |
| 1 November-31 January |
Nil |
For the Fidelity Fund fee, a refund of three-quarters of the fee is available for those who remain in practice on their own account for less than three months of the year concerned (s.165(3) refers).
The liability to pay any Special Fidelity Fund levy crystallises on the date or dates set when it is imposed. Those who are liable must pay the full amount: there is no provision for discount or refund.
12. What about the changeover to the Lawyers and Conveyancers Act 2006?
While the Lawyers and Conveyancers Act is expected to come into force on 1 July 2008, this is not absolutely certain. Consequently, the NZLS Board has budgeted for the 2008 year on a “business as usual” basis and has recommended that district law societies do the same. Thus the practising and other fees that have been set are for a 1 February 2008 to 31 January 2009 practising year.
When the act comes into force, the NZLS will set a new budget with new fees to reflect its restructured organisation and the fact that the act provides for a 1 July to 30 June accounting year. NZLS and district law society fees and levies that practitioners have already paid for the period to 31 January 2009 will be taken into account when setting any new fees for the 2008-2009 year.
Transitional arrangements will be made for new practitioners taking out their first practising certificate after the act comes into force and before new fees are notified.
Updated 30 January 2008
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