Legal Profession Act 2006

(1) If money entrusted to a law practice is or becomes non-trust money, the practice must, in accordance with this section and the regulations, give written notice to the person who entrusted the money to the practice that:

(a) the money is not treated as trust money for this Act and is not subject to any supervision, investigation or audit requirements of this Act; and

(b) a claim against the Fidelity Fund under this Act cannot be made in relation to the money.

(2) A notice under subsection (1) must be given to the person at the time:

(a) the money was entrusted to the law practice – if the money was non-trust money when it was entrusted to the practice; or

(b) the money becomes non-trust money – if the money was trust money when it was entrusted to the practice.

(3) The regulations may make provision for or with respect to the way in which the notice must be given and the contents of it.

(4) If a law practice that is an Australian legal practitioner who is a sole practitioner, or an incorporated legal practice, contravenes subsection (1), the practitioner or practice is guilty of an offence.

Maximum penalty: 100 penalty units.

(5) If a law practice that is a law firm or multi-disciplinary partnership contravenes subsection (1), each principal of the practice is guilty of an offence.

Maximum penalty: 100 penalty units.

(6) An offence against subsection (4) or (5) is an offence of strict liability.

non-trust money means money that is not trust money for this Act because of section 236 or because of a determination under section 237.