Legal Profession Act 2007

In deciding the amount of pecuniary loss resulting from a default of a law practice, the law society is to add interest on the amount payable (excluding interest), unless it considers that special circumstances exist warranting—

a reduction in the amount of interest; or

a decision that no amount should be paid by way of interest.

The interest is to be calculated from the date on which the claim was made to the date the law society notifies the claimant that the claim has been allowed at the rate stated in or prescribed under a regulation.

To the extent a regulation does not provide for a rate for subsection (2), interest is to be calculated at the rate of 5% per year.

The interest is payable from the fidelity fund.