Disclosure to clients—money not received or held as trust money

Current

(1)

If money entrusted to a law practice is or becomes non-trust money, the practice must notify the person who entrusted the money to the practice that—

(a)

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

(b)

a claim against the fidelity fund can not be made in relation to the money.

Maximum penalty—50 penalty units.

(2)

The notification must be in writing and given to the person—

(a)

if the money is non-trust money when it is entrusted to the law practice—when the money is entrusted to the practice; or

(b)

if the money was trust money when it was entrusted to the practice but becomes non-trust money because of a decision under section 239—as soon as practicable after the decision is made.

(3)

The notification must be given in the way, and contain the information, prescribed under a regulation, if any, for this section.

(4)

In this section—

non-trust money means money that is not trust money under this Act because of section 238 or because of a decision under section 239.

Regulations

This provision refers to the regulations (a regulation). Made under this Act:

1 more instrument made under this Act are listed on the Act’s overview.

This Act’s bill:Explanatory memorandum

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294 Disclosure to clients—money not received or held as trust money