Legal Profession Act 2006

(1) A legal practitioner who, in the practitioner's capacity as legal practitioner for a lender or contributor, negotiates the making of or acts in relation to a regulated mortgage must ensure an approved policy of fidelity insurance is in force in relation to the practitioner for the purpose of compensating persons who suffer pecuniary loss because of any dishonest failure to pay money payable under the mortgage.

(2) A policy of fidelity insurance is an approved policy of fidelity insurance if:

(a) the Law Society is satisfied the terms of the policy comply with agreed national standards for fidelity insurance for legal practitioners; and

(b) the policy is not to expire before the expiration of the local practising certificate or interstate practising certificate of the legal practitioner to whom the policy relates; and

(c) the insurer and the terms of the policy have been approved by the Attorney-General by written order given to the Society; and

(a) the practitioner, in the practitioner's capacity as legal practitioner for a lender or contributor, negotiates the making of or acts in relation to a regulated mortgage; and

(b) an approved policy of fidelity insurance is not in force in relation to the practitioner under this section.

Maximum penalty: 200 penalty units.

(4) A contravention of this section does not limit the operation of section 445.

(5) This section does not apply in relation to any regulated mortgage forming part of a managed investment scheme operated by a responsible entity.