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s 116

Purpose of account; making claims against account

In force
Part VIIIFidelity Guarantee Account

116 Purpose of account; making claims against account

(1)

The Fidelity Account is to be held and applied to reimburse a person for the person’s pecuniary or property loss to the extent of the defalcation of —

(a)

a licensee during any period when the licensee was the holder of a current triennial certificate; or

(b)

a person who ceased to be licensed or to hold a triennial certificate, if —

(i)

the defalcation occurred during the period of 6 months immediately following the day on which the person ceased to be licensed or the holder of the triennial certificate; and

(ii)

the chief executive officer considers that it is just and reasonable in the circumstances of the claim.

[(2A) deleted]

(2)

The chief executive officer is to disallow a claim against the Fidelity Account unless —

(a)

notice of the claim is given in writing to the chief executive officer within 3 years after the day on which the claimant became aware of the defalcation; or

(b)

the chief executive officer —

(i)

has been given notice in writing of the claim within 6 years after the day on which the claimant became aware of the defalcation; and

(ii)

considers that it is just and reasonable in the circumstances to deal with the claim even though notice was not given within the time referred to in paragraph (a).

[Section 116 amended: No. 29 of 1982 s. 12; No. 3 of 2000 s. 4(1); No. 77 of 2006 Sch. 1 cl. 147(2); No. 58 of 2010 s. 108; No. 23 of 2014 s. 76; No. 25 of 2019 s. 57.]

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