Legal Profession Amendment Act 2007 (ACT)

Legal Profession Amendment Act 2007

A2007-28

Contents

Page

Name of Act 2
Commencement 2
Legislation amended 2
Terms relating to associates and principals of law practices

Section 9, definition of associate, paragraph (a) (v) 2
Section 9, definition of associate, paragraph (e) 2
Local lawyer is officer of Supreme Court

New section 28 (2) 2
Suitability to hold local practising certificate

Section 36 (2) (e) (ii) 3
Section 36 (4) (b) 3
Sections 38 and 39 3
Application for grant or renewal of local practising certificate

Section 41 (2) (a) 4
Section 41 (2) (b) (i) and (iii) 5
Section 41 (2) (b) (iv) 5
Section 41 (2) (b) (v) 5
Section 41 (3) 5
Section 41 (6), (7) and (8) 5
Grant or renewal of unrestricted or restricted practising certificate

Section 44 (6), note 7
Grant or renewal of barrister practising certificate

Section 45 (6), note 7
Conditions imposed on local practising certificate by licensing body or relevant council

Section 47 (8) (a) (ii) 7
Section 47 (10) 7
Section 47 (10) (a) 8
Compliance with conditions of local practising certificate

Section 53 (2) 8
Amending, suspending or cancelling local practising certificate

Section 56 (1) 8
Section 56 (2) (a) 8
Section 56 (2) (b) and (c) 8
Section 56 (2) (c) (ii) 9
New section 56 (5) 9
Other ways of amending or cancelling local practising certificate

Section 58 (1) and (2) 9
Relationship of div 2.4.6 with ch 4

Section 59 10
Applicant for local practising certificate—show-cause event

Section 60 (3) and (4) 10
Relationship of div 2.4.7 with pt 4.4 and ch 6

Section 67 (3) 10
Professional indemnity insurance—interstate legal practitioners Section 72 (1) (b) (ii) 11
Section 72 (3) (a) and (b) 11
Section 72 (4), new definition of defence costs 11
Section 72 (4), definitions of government agency and government employee 11
Special provisions about interstate legal practitioner engaging in unsupervised legal practice in ACT

New section 75 (2) 12
Protocols with regulatory authorities

Section 77 (1) (a) 12
Investigation of practising certificate applicants or holders etc

Section 78 (1) 12
Government lawyers generally

Section 82 (2) 13
Section 82 (5) 13
Government lawyers of other jurisdictions

Section 83 (1) and (2) 13
Section 83 (5), definitions of government agency and government lawyer 13
Official notice to other jurisdictions of removals from local roll

Section 88 (1) 13
Section 88 (3) 14
Section 91 heading 14
Section 91 (1) (b) 14
Section 91 (1) (c) 14
Section 91 (2) (b) 14
New section 92A 15
Section 93 heading 16
Section 93 (1) 16
Peremptory removal of local lawyer’s name from local roll following removal in another jurisdiction

Section 94 (1) (b) 17
Peremptory cancellation of local practising certificate following removal of name from interstate roll

Section 95 (1) (c) 17
Sections 96 and 97 17
Definitions—pt 2.6

Section 99 (2), definition of disqualified person 21
Incorporated legal practice must have legal practitioner director etc Section 107 (5) 21
Section 107 (6) 21
Obligations of legal practitioner director relating to misconduct—incorporated legal practices

New section 108 (1A) 21
Advertising requirements—incorporated legal practices

Section 116 (2) 22
Section 118 heading 22
Section 118 (1) and (2) 22
Disqualified people—incorporated legal practices

Section 119 (1) (c) 23
Audit of incorporated legal practices

Section 120 (3) 23
Section 146 heading 23
Section 146 (1) and (2) 23
Disqualified people—multidisciplinary partnerships

Section 147 (b) 24
Section 147, note 24
Definitions—pt 2.7

Section 152, definition of commercial legal presence 24
Requirement for registration to practice foreign law

Section 155 (2) 24
Application of Australian professional ethical and practice standards to practice of foreign law

Section 159 (1) 25
Advertising by Australian-registered foreign lawyers

Section 162 (1) 25
Trust money and trust accounts—Australian-registered foreign lawyers Section 164 (1) 25
Section 164 (2), new note 26
Professional indemnity insurance—Australian-registered foreign lawyers

Section 165 (3) (c) 26
Section 165 (5) 26
Section 165 (6), new definition of defence costs 27
Approved form for grant or renewal application—foreign lawyers Section 171 (2) (a) 27
Requirements for applications for grant or renewal of registration—foreign lawyers

Section 172 (2) (d) 27
Section 172 (2) (f) and (g) 28
Section 172 (2) (i) 28
Section 172 (3) (b) 28
Grant or renewal of registration as foreign lawyer

Section 173 (1), note 29
Section 173 (4) 29
Requirement to grant or renew registration as foreign lawyer if criteria satisfied

Section 174 (1) (b), (c) and (d) 29
Refusal to grant or renew registration as foreign lawyer
New section 175 (2) (g) 30
Grounds for amending, suspending or cancelling registration of foreign lawyer

Section 177 (b) to (g) 30
New section 177 (2) 31
Amending, suspending or cancelling registration of foreign lawyer Section 178 (1) 31
Section 178 (2) (a) 31
Section 178 (2) (b) and (c) 31
Section 178 (2) (c) (ii) 32
New section 178 (5) 32
Relationship of div 2.7.6 with ch 4

Section 181 32
Investigation of applicants and locally-registered foreign lawyers etc

Section 200 (1) 32
Appeals or reviews

Section 207 (3), except the note 33
Definitions—pt 3.1

Section 210 (1), definition of controlled money 33
Section 210 (1), new definition of deposit record 33
Section 210 (2), definition of controlled money account 33
Section 210 (2), definition of trust records, paragraph (d) 33
New section 210 (4) 33
Money involved in financial services or investments

Section 212 (3) (a) 34
When money is received by law practice

Section 216 (1) (b), (c) and (d) 34
Keeping of general trust account

Section 221 (3) 35
Certain trust money to be deposited in general trust account

Section 222 (2) (d) 35
Section 222 (5) 35
New section 222 (8A) 35
New section 223A 36
New section 224A 37
Transit money

New section 225 (6) 38
Trust money subject to specific powers

Section 226 (1) 38
Section 226 (2) 38
New section 226 (6) 38
New section 226A 39
Dealing with trust money—legal costs and unclaimed money

Section 229 (1) (a) 41
Section 229 (1) (b) 41
Section 229 (1), new note 41
Section 229 (2) 41
Costs of investigation

Section 239 (2), (3) and (4) 42
Sections 241 and 242 42
Reports, records and information by ADIs

Section 252 (6) 43
Statutory deposits

Section 253 (1) and (2) 44
Application of pt 3.1 to incorporated legal practices and multidisciplinary partnerships

New section 255 (1A) 44
Section 255 (2) 45
Disclosure—money not received as trust money

Section 257 (3) 45
Section 260 45
Part 3.2 heading 46
Definitions—pt 3.2

Section 261, definition of client 46
Section 261, definition of costs review 47
Section 261, definition of itemised bill 47
Section 261, new definition of public authority 47
Section 261, new definitions of sophisticated client and third party payer 47
Section 261, definition of uplift fee 48
New section 261A 48
Purpose—pt 3.2

Section 262 (d) 49
Pt 3.2 also applies by agreement or at client’s election

Section 264 (1) (c) (i) 49
Section 264 (2) (a) 49
New section 264 (2A) 49
Displacement of pt 3.2

Section 265 (2) (b) (i) 50
Section 266 50
What happens when different laws apply to a matter?

Section 268 (4) and (5) 50
Disclosure of costs to client

Section 269 (1) (b) (iii) 51
New section 269 (1) (ba) 51
Section 269 (1) (e) 52
Section 269 (1) (i) (i) 52
Section 269 (1) (l) (i) 52
Section 269 (1) (l), note 52
New section 269 (1A) and (1B) 53
New section 269 (3) and (4) 53
Disclosure if another law practice is to be retained

Section 270 (1) 53
Section 271 heading 54
Section 271 (2) and (3) 54
Exceptions to requirement for disclosure

Section 272 (1) (a) 54
Section 272 (1) (c) (ii) 54
Section 272 (1) (c) (iv) 55
Section 272 (2) 55
Section 274 56
Form of disclosure

Section 275 (1) 56
Section 277 (1), (2) and (3) 57
Progress reports

Section 278 (4), new note 58
On what basis are legal costs recoverable?

Section 279, note 59
Section 281 (1), new example 59
Section 281 (4) (b) 59
New section 281 (5) 59
New section 281A 60
Making costs agreements

New section 282 (1) (d) 60
Section 282 (4) (a) and (b) 61
Section 282 (5) 61
Conditional costs agreements

Section 283 (5) 61
Conditional costs agreements involving uplift fees

Section 284 (1) to (4) 62
Contingency fees prohibited

Section 285 (1) 63
Effect of costs agreement

Section 286 (1) 63
Section 286 (2) 63
Certain costs agreements void

Section 287 (2) 63
Section 288 64
Bills

New section 290 (6A) 67
Notification of client’s rights

Section 291 67
Section 291 (a) (i) 68
New section 291 (2) and (3) 68
Section 292 68
Interim bills

Section 293 (2) 69
Division 3.2.7 heading 70
Section 294 70
Section 295 heading 73
Section 295 (1) 74
Section 295 (2) and (3) 74
Section 296 74
Sections 297, 298 and 299 75
Section 300 heading 75
Section 300 (1) 75
Section 300 (1) (c) 76
Section 300 (2) (b) 76
Section 300 (2) (d) 76
New sections 300A, 300B and 300C 76
Section 302 78
Referral for disciplinary action

Section 303 (1) and (2) 78
Section 304 heading 79
Section 304 (1) 79
Section 304 (2) 79
New section 304A 79
Division 3.3.1 heading 79
Professional indemnity insurance for insurable legal practitioners

Section 311 (2) (b) 80
New section 312A 80
Definitions—pt 3.4

Section 316, definition of concerted interstate default 81
Section 316, definition of default 81
Purpose—pt 3.4

Section 318 81
Meaning of relevant jurisdiction—pt 3.4

Section 327 (1) 82
Defaults to which pt 3.4 applies

Section 328 (1) 82
Section 328 (3) 82
Claims not affected by certain matters

Section 335 (1) 82
Claims by law practices or associates about defaults

Section 350 (1) 83
Claims by law practices or associates about notional defaults

Section 351 (1) 83
Defaults involving interstate elements if committed by 1 associate only

Section 353 (1) 83
Section 367 heading 83
Section 367 (1) 84
New section 367 (3) (aa) 84
Conduct capable of being unsatisfactory professional conduct or professional misconduct

Section 389 (e) 84
Person to be told about complaint

Section 397 (2) 85
New section 397 (6) 85
Summary dismissal of complaints

Section 399 (1) (f) 86
Section 409 heading 86
Section 409 (1) 86
Section 409 (2) 86
Section 409 (3) 87
Section 409 (3) 87
Section 409 (4) 87
Council to give reasons to complainant and practitioner

Section 415 (c) 87
New section 416 (2A) 88
Complainant and person complained about to be told about action taken

Section 418 (2) (c) 88
Section 418 (3) 88
New section 420A 89
New section 426A 89
Decisions of disciplinary tribunal—unsatisfactory professional conduct or professional misconduct

Section 430 (5) (b) 90
Section 430 (5) (d) 90
Compliance with decisions and orders of disciplinary tribunal

Section 433 (3) 91
Definitions—pt 4.9

Section 447, definition of disciplinary action, paragraph (b) (iii) 91
Register of disciplinary action

Section 448 (3) 91
Disciplinary action taken because of infirmity, injury or illness

Section 452 (2) (b) 92
Sections 458 and 459 92
Protection for things done in administration of ch 4

Section 468 (2), definition of protected person, paragraphs (e), (f), (g) and (h) 93
Definitions—ch 5

Section 473 (1), definition of regulated property 93
Purpose—ch 5

Section 474 (1) 94
Application of ch 5 to barristers

Section 476 (1) 94
Application of ch 5 to Australian-registered foreign lawyers

Section 477 94
Decision about external intervention

Section 480 (1) 95
Section 480 (2) (b) 95
Part 5.3 heading 95
Appointment of supervisor

Section 481 (1) 96
Section 481 (2) 96
Section 481 (3) (a) 96
Section 481 (5) (b) 96
Notice of appointment of supervisor

Section 482 (1) and (2) (b) 97
Effect of service of notice of appointment of supervisor

Section 483 (1) 97
Section 483 (1) (a), (b) and (c) 97
Section 483 (2) (a) 97
Section 483 (3) 98
Section 483 (5) 98
Section 484 heading 98
Section 484 (1) (a) 98
Section 484 (2) (b) 98
Ending of supervisor’s appointment

Section 486 (1) 99
New section 486 (1) (aa) 99
Effect of service of notice of appointment of manager

Section 489 (3) (a), (b) and (c) 99
Section 489 (9) 100
Role of manager

Section 490 (2) (b) 100
Ending of manager’s appointment

New section 493 (1) (aa) 101
Appointment of receiver

Section 494 (7) (a) 101
Notice of appointment of receiver

New section 495 (2) (fa) 101
Effect of service of notice of appointment of receiver

Section 496 (3) (a), (b) and (c) 101
Section 496 (9) 102
Role of receiver

Section 497 (5) (b) 102
Section 497 (6), new note 103
Power of receiver to require documents or information

Section 502 (1) (a) and (b) 103
Section 502 (5) (c) 103
Section 502 (6) 103
Section 502 (7), definition of relevant person 103
Lien for costs on regulated property

Section 504 (1) (b) 104
Section 504 (2) 104
Section 504 (3) 104
Ending of receiver’s appointment

Section 509 (1) 104
New section 509 (1A) to (1D) 105
New section 515A 105
Section 516 106
New sections 519A and 519B 108
Requirements that may be imposed for investigations, examinations and audits under pt 3.1 and pt 2.6

Section 525 (1) 109
Requirements that may be imposed for investigations under ch 4 Section 526 (2) 110
Provisions relating to requirements under pt 6.2

Section 527 (2) 111
New section 555A 111
Purpose—pt 8.3

Section 578 111
Division 8.3.2 heading 112
Subject matter of legal profession rules

Section 582 112
Rules for incorporated legal practices and multidisciplinary partnerships

Section 584 (3) (a) and (b) 112
Section 584 (3) (c) 112
Section 584 (3) (d) 113
New section 587A 113
Associates who are disqualified or convicted people

Section 589 (1) 113
New section 589 (5A) 114
Section 589 (7), definition of disqualified person 114
Section 589 (7), new definition of lay associate 114
Minister may determine fees

Section 601 (1) 114
Regulation-making power

New section 602 (1A) 115
Continuing application of provisions of Legal Practitioners Act about costs

Section 606 (2) (a) 115
Costs disclosure

Section 607 (2) (a) and (3) (a) 115
Dictionary, new definition of associated third party payer 115
Dictionary, definition of client 116
Dictionary, definitions of conditional costs agreement and costs agreement 116
Dictionary, definition of commercial legal presence 116
Dictionary, definition of costs review 116
Dictionary, definition of disbursements 116
Dictionary, definition of disqualified person 117
Dictionary, new definition of government lawyer 118
Dictionary, definitions of litigious matter and lump sum bill 118
Dictionary, new definition of non-associated third party payer 118
Dictionary, definition of scale of costs 118
Dictionary, new definition of sophisticated client 119
Dictionary, definition of supervised legal practice, new paragraph (ba) 119
Dictionary, new definition of third party payer 119
Dictionary, definition of trust money 119
Dictionary, definition of uplift fee 120

Schedule 1Consequential amendments  121
Part 1.1Court Procedures Rules 2006  121
Part 1.2Legal Aid Act 1977  121

Legal Profession Amendment Act 2007

A2007-28

An Act to amend the Legal Profession Act 2006, and for other purposes

The Legislative Assembly for the Australian Capital Territory enacts as follows:

Name of Act
This Act is the Legal Profession Amendment Act 2007.
Commencement
This Act commences on 1 October 2007.
Note The naming and commencement provisions automatically commence on the notification day (see Legislation Act, s 75 (1)).
Legislation amended
This Act amends the Legal Profession Act 2006.
NoteThis Act also amends the following legislation (see sch 1):
· Court Procedures Rules 2006
· Legal Aid Act 1977.
Terms relating to associates and principals of law practices
Section 9, definition of associate, paragraph (a) (v)
substitute
(v)an employee of, or consultant to, the law practice; or
Section 9, definition of associate, paragraph (e)
substitute
(e)a person (other than an Australian legal practitioner) who is a partner in a multi-disciplinary partnership; or
Local lawyer is officer of Supreme Court
New section 28 (2)
insert
(2)A person ceases to be an officer of the Supreme Court under subsection (1) if the person’s name is removed from the local roll.
Suitability to hold local practising certificate
Section 36 (2) (e) (ii)
substitute
(ii)whether the person has contravened a requirement imposed by the council about professional indemnity insurance; or
Section 36 (4) (b)
substitute
(b)decided by a Supreme Court, the admissions board or a corresponding authority not to be sufficient for refusing admission;
Sections 38 and 39
substitute
Conditions on practising certificate—government lawyer and in-house lawyer
(1)This section applies to the following people who apply for the grant or renewal of a local practising certificate:
(a)an Australian lawyer who is a government lawyer who, in the lawyer’s application for the grant or renewal of the certificate, stated that the lawyer did not intend to engage in legal practice otherwise than as a government lawyer engaged in government work;
(b)an Australian lawyer who is employed by a corporation, that is not an incorporated legal practice, and who provides only in‑house legal services to the corporation.
(2)The licensing body must not grant or renew a local practising certificate unless the licensing body—
(a)for an application by an Australian lawyer mentioned in subsection (1) (a)—imposes a condition on the certificate that the lawyer must not engage in legal practice otherwise than as a government legal officer engaged in government work; or
(b)for an application by an Australian lawyer mentioned in subsection (1) (b)—imposes a condition on the certificate that the lawyer must not engage in legal practice otherwise than by providing in-house legal services for a corporation by which the lawyer is employed.
(3)A person must comply with a condition imposed under subsection (2) on the person’s practising certificate.
(4)A failure by an Australian lawyer to comply with subsection (3) can be unsatisfactory professional conduct or professional misconduct.
Application for grant or renewal of local practising certificate
Section 41 (2) (a)
substitute
(a)if the lawyer is not an Australian legal practitioner at the time of making the application—
(i)the lawyer reasonably expects to be engaged in legal practice solely or principally in the ACT during the currency of the certificate or renewal applied for; or
(ii)if subparagraph (i) does not apply to the lawyer or it is not reasonably practicable to establish whether subparagraph (i) applies—the lawyer’s place of residence in Australia is the ACT or the lawyer does not have a place of residence in Australia; or
Section 41 (2) (b) (i) and (iii)
omit
principally
substitute
solely or principally
Section 41 (2) (b) (iv)
omit
Section 41 (2) (b) (v)
omit
in the ACT
substitute
the ACT
Section 41 (3)
omit
principally
substitute
solely or principally
Section 41 (6), (7) and (8)
substitute
(6)An Australian legal practitioner who engages in legal practice solely or principally in the ACT during a financial year and reasonably expects to engage in legal practice solely or principally in the ACT in the next financial year must apply for the grant or renewal of a local practising certificate in relation to the next financial year.
(7)Subsection (6) does not apply to an interstate legal practitioner who applied for the grant or renewal of an interstate practising certificate on the basis that the practitioner reasonably expected to engage in legal practice solely or principally in the ACT under an arrangement that is of a temporary nature.
(8)The exemption provided by subsection (7) ceases to operate at the end of the period prescribed by regulation.
(9)A reference in this section to engaging in legal practice principally in a jurisdiction applies only to legal practice in Australia and despite anything in this section an Australian lawyer who is engaged or expects to be engaged in legal practice principally in a foreign country is eligible to apply for the grant or renewal of a local practising certificate if the lawyer otherwise meets the requirements of this section.
Example
A person practises both in Australia and overseas and the overseas practice is the principal part of the person’s overall practice. The question whether the person is engaged in legal practice principally in the ACT is determined by reference to the person’s practice in Australia.
NoteAn example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act, s 126 and s 132).
(10)A regulation under subsection (2) (c) may—
(a)limit the kind of practising certificate for which a lawyer prescribed for that paragraph may apply for grant or renewal; or
(b)provide that a council has a discretion as to whether or not to grant or renew a local practising certificate to a person in his or her capacity as a lawyer prescribed for that paragraph.

Grant or renewal of unrestricted or restricted practising certificate
Section 44 (6), note
substitute
Note 1The licensing body must not grant or renew a practising certificate for an insurable legal practitioner unless satisfied that the practitioner will be covered by an approved indemnity insurance policy (see s 311).
Note 2See also s 62 (Refusal to grant or renew unrestricted or restricted practising certificate—failure to show cause etc).
Grant or renewal of barrister practising certificate
Section 45 (6), note
substitute
Note 1The licensing body must not grant or renew a practising certificate for an insurable legal practitioner unless satisfied that the practitioner will be covered by an approved indemnity insurance policy (see s 311).
Note 2See also s 62 (Refusal to grant or renew unrestricted or restricted practising certificate—failure to show cause etc).
Conditions imposed on local practising certificate by licensing body or relevant council
Section 47 (8) (a) (ii)
substitute
(ii)particular legal education or training; or
Section 47 (10)
omit
an academic or training course
substitute
particular legal education or training
Section 47 (10) (a)
substitute
(a)the council is satisfied, having regard to—
(i)the nature or currency of the holder’s academic studies, legal training or legal experience; or
(ii)the holder’s conduct;
that it is reasonable to require the particular legal education or training to be undertaken; or
Compliance with conditions of local practising certificate
Section 53 (2)
omit
Amending, suspending or cancelling local practising certificate
Section 56 (1)
omit
(the show-cause notice)
Section 56 (2) (a)
omit
show-cause notice
substitute
notice under subsection (1)
Section 56 (2) (b) and (c)
omit
show-cause
Section 56 (2) (c) (ii)
substitute
(ii)suspend the certificate for a stated period; or
(iii)amend the certificate in a less onerous way the council considers appropriate because of the representations.
New section 56 (5)
insert
(5)In this section:
amend, a certificate, means amend the certificate under section 47 (Conditions imposed on local practising certificate by licensing body or relevant council) during its currency, otherwise than at the request of the holder of the certificate.
Other ways of amending or cancelling local practising certificate
Section 58 (1) and (2)
substitute
(1)The relevant council may amend or cancel a local practising certificate if the holder asks the council to do so.
(2)The relevant council may also amend a local practising certificate—
(a)for a formal or clerical reason; or
(b)in another way that does not adversely affect the holder’s interests.
(2A)The relevant council must cancel a local practising certificate if the holder’s name has been removed from the local roll or the holder stops being an Australian lawyer.
(2B)The amendment or cancellation of a local practising certificate under this section must be by written notice given to the holder.
Relationship of div 2.4.6 with ch 4
Section 59
omit
the relevant council from making a complaint
substitute
a complaint from being made
Applicant for local practising certificate—show-cause event
Section 60 (3) and (4)
substitute
(3)However, the person need not give a statement under subsection (2) if the person (as a previous applicant for a local practising certificate or as the holder of a local practising certificate previously in force) has previously provided to the relevant council—
(a)a statement under this section; or
(b)a notice and statement under section 61;
explaining why, despite the show-cause event, the person considers himself or herself to be a fit and proper person to hold a local practising certificate.
Relationship of div 2.4.7 with pt 4.4 and ch 6
Section 67 (3)
omit
the relevant council from making a complaint
substitute
a complaint from being made
Professional indemnity insurance—interstate legal practitioners
Section 72 (1) (b) (ii)
substitute
(ii)is for at least the relevant amount (including defence costs) unless, without affecting subparagraph (i) or (iii), the practitioner engages in legal practice only as or in the manner of a barrister; and
Section 72 (3) (a) and (b)
omit
government employee
substitute
government lawyer
Section 72 (4), new definition of defence costs
insert
defence costs, in relation to professional indemnity insurance covering an interstate legal practitioner, means costs (other than the claimant’s costs) payable by an insurer in relation to a claim, or notification that may lead to a claim, under the policy of insurance held by the interstate legal practitioner.
Section 72 (4), definitions of government agency and government employee
omit
Special provisions about interstate legal practitioner engaging in unsupervised legal practice in ACT
New section 75 (2)
insert
(2)Subsection (1)—
(a)does not apply if the interstate legal practitioner is exempt from the requirement for supervised legal practice in the practitioner’s home jurisdiction; or
(b)applies only to the extent of a shorter period if the required period of supervised legal practice has been reduced for the interstate legal practitioner in the practitioner’s home jurisdiction.
Protocols with regulatory authorities
Section 77 (1) (a)
omit
from which
substitute
in which
Investigation of practising certificate applicants or holders etc
Section 78 (1)
omit
or impose conditions on a local practising certificate,
Government lawyers generally
Section 82 (2)
omit
government employee
substitute
government lawyer
Section 82 (5)
omit
Government lawyers of other jurisdictions
Section 83 (1) and (2)
omit
government employee
substitute
government lawyer
Section 83 (5), definitions of government agency and government lawyer
omit
Official notice to other jurisdictions of removals from local roll
Section 88 (1)
omit
local lawyer’s
substitute
person’s
Section 88 (3)
omit
lawyer’s
substitute
person’s
Section 91 heading
substitute
Lawyer to give notice of removal in another jurisdiction
Section 91 (1) (b)
omit
or foreign roll
Section 91 (1) (c)
omit
s 91
substitute
div 2.5.3
Section 91 (2) (b)
omit
or foreign roll
New section 92A
insert

92ALawyer to give notice of foreign regulatory action
(1)A person commits an offence if—
(a)the person is a local lawyer (other than a local legal practitioner); and
(b)foreign regulatory action has been taken in relation to the person; and
(c)the person fails to give the registrar written notice of the foreign regulatory action in accordance with section 93 (1) (Provisions applying to notices under div 2.5.3) not later than 7 days after the day the person receives notice of the foreign regulatory action.
Maximum penalty: 50 penalty units.
(2)A person commits an offence if—
(a)the person is a local legal practitioner; and
(b)foreign regulatory action has been taken in relation to the person to remove the person’s name from a foreign roll for disciplinary reasons; and
(c)the person fails to give the registrar or the relevant council written notice of the removal in accordance with section 93 (1) not later than 7 days after the day the person receives notice of the foreign regulatory action.
Maximum penalty: 50 penalty units.
(3)Strict liability applies to subsection (1) (a) and subsection (2) (a).
(4)In this section:
foreign regulatory action taken in relation to a person means either of the following:
(a)removal of the person’s name from a foreign roll for disciplinary reasons;
(b)suspension or cancellation of, or refusal to renew, the person’s right to engage in legal practice in a foreign country.

Section 93 heading
substitute
Provisions applying to notices under div 2.5.3
Section 93 (1)
substitute
(1)A notice to be given under section 91 or section 92A by a person must—
(a)state the person’s name and address; and
(b)identify the roll from which the person’s name has been removed; and
(c)state the date of the removal; and
(d)be accompanied by a copy of any official notification given to the person in relation to the removal.
Peremptory removal of local lawyer’s name from local roll following removal in another jurisdiction
Section 94 (1) (b)
omit
96
substitute
97A
Peremptory cancellation of local practising certificate following removal of name from interstate roll
Section 95 (1) (c)
omit
96
substitute
97A
Sections 96 and 97
substitute
Show-cause procedure for removal of lawyer’s name from local roll following foreign regulatory action
(1)This section applies if the relevant council is satisfied that—
(a)foreign regulatory action has been taken in relation to a local lawyer (other than a local legal practitioner); and
(b)no order mentioned in section 97A (1) (a) (Order for non‑removal of name or non-cancellation of local practising certificate) is in force in relation to the action taken.
(2)The relevant council may serve on the lawyer a written notice stating that the council will apply to the Supreme Court for an order that the lawyer’s name be removed from the local roll unless the lawyer shows cause to the council why his or her name should not be removed.
(3)If the lawyer does not satisfy the relevant council that the lawyer’s name should not be removed from the local roll, the council may apply to the Supreme Court for an order that the lawyer’s name be removed from the local roll.
(4)Before applying for an order that the lawyer’s name be removed, the relevant council must give the lawyer a reasonable opportunity to show cause why his or her name should not be removed.
(5)The Supreme Court may, on application made under this section, order that the lawyer’s name be removed from the local roll.
(6)The lawyer is entitled to appear before and be heard by the Supreme Court at a hearing in relation to an application under this section.
(7)In this section:
relevant council means—
(a)if the lawyer holds a local practising certificate that is a barrister practising certificate—the bar council; or
(b)if the lawyer holds a local practising certificate that is an unrestricted practising certificate or restricted practising certificate—the law society council; or
(c)if the lawyer holds an interstate practising certificate—the bar council or law society council; or
(d)if the lawyer does not hold a local practising certificate—the law society council.
Show-cause procedure for cancellation of local practising certificate following foreign regulatory action
(1)This section applies if the relevant council is satisfied that—
(a)foreign regulatory action has been taken in relation to a local legal practitioner; and
(b)no order mentioned in section 97A (1) (a) (Order for non‑removal of name or non-cancellation of local practising certificate) is in force in relation to the action taken.
(2)The relevant council may serve on the practitioner a written notice stating that the council proposes to cancel the practitioner’s practising certificate unless the practitioner shows cause to the council why his or her practising certificate should not be cancelled.
(3)The relevant council must give the practitioner a reasonable opportunity to show cause why his or her practising certificate should not be cancelled.
(4)If the practitioner does not satisfy the relevant council that the practising certificate should not be cancelled, the council may cancel the certificate.
(5)The relevant council must, as soon as practicable, give the practitioner an information notice about its decision to cancel the practising certificate.
(6)The practitioner may appeal to the Supreme Court against a decision of the authority to cancel the practising certificate.
(7)On an appeal under this section, the Supreme Court may make the order it considers appropriate.

97AOrder for non-removal of name or non-cancellation of local practising certificate
(1)If an Australian lawyer reasonably expects that his or her name will be removed from an interstate roll or that foreign regulatory action will be taken against the lawyer, the lawyer may apply to the Supreme Court for either or both of the following orders:
(a)an order that his or her name not be removed from the local roll under section 94 (Peremptory removal of local lawyer’s name from local roll following removal in another jurisdiction) or section 96 (Show-cause procedure for removal of lawyer’s name from local roll following foreign regulatory action);
(b)an order that his or her local practising certificate not be cancelled under section 95 (Peremptory cancellation of local practising certificate following removal of name from interstate roll).
(2)The Supreme Court may make an order if satisfied that—
(a)the lawyer’s name is likely to be removed from the interstate roll; and
(b)the reason for its removal from the interstate roll will not involve disciplinary action or the possibility of disciplinary action.
(3)An order under this section may be made subject to any conditions the Supreme Court considers appropriate and remains in force for the period stated in it.
(4)The Supreme Court may revoke an order made under this section, and either or both of section 94 and section 95 (as relevant) then apply as if the lawyer’s name were removed from the interstate roll when the revocation takes effect.
(5)This section does not affect action being taken in relation to the lawyer under other provisions of this Act.

Definitions—pt 2.6
Section 99 (2), definition of disqualified person
omit
Incorporated legal practice must have legal practitioner director etc
Section 107 (5)
omit
Section 107 (6)
omit
liability
substitute
liabilities
Obligations of legal practitioner director relating to misconduct—incorporated legal practices
New section 108 (1A)
after subsection (1), insert
(1A)A legal practitioner director is not guilty of unsatisfactory professional conduct or professional misconduct under subsection (1) if the director establishes that he or she took all reasonable steps to ensure that—
(a)Australian legal practitioners employed by the incorporated legal practice did not engage in conduct or misconduct mentioned in subsection (1) (a); or
(b)any other directors (other than Australian legal practitioners) of the incorporated legal practice did not engage in conduct mentioned in subsection (1) (b); or
(c)unsuitable directors (other than Australian legal practitioners) of the incorporated legal practice were not appointed or holding office as mentioned in subsection (1) (c).
Advertising requirements—incorporated legal practices
Section 116 (2)
omit
the business of the relevant class of Australian legal practitioners
substitute
business in that branch of the legal profession or in that style of legal practice
Section 118 heading
substitute
Sharing of receipts, revenue or other income—incorporated legal practices
Section 118 (1) and (2)
omit
receipts
substitute
receipts, revenue or other income
Disqualified people—incorporated legal practices
Section 119 (1) (c)
omit
receipts of
substitute
receipts, revenue or other income arising from
Audit of incorporated legal practices
Section 120 (3)
substitute
(3)The appointment may be made generally or in relation to a particular incorporated legal practice or a particular audit.
Section 146 heading
substitute
Sharing of receipts, revenue or other income—multidisciplinary partnerships
Section 146 (1) and (2)
omit
receipts
substitute
receipts, revenue or other income
Disqualified people—multidisciplinary partnerships
Section 147 (b)
omit
receipts of
substitute
receipts, revenue or other income arising from
Section 147, note
omit
Definitions—pt 2.7
Section 152, definition of commercial legal presence
omit
Requirement for registration to practice foreign law
Section 155 (2)
substitute
(2)This section does not apply to an overseas-registered foreign lawyer who—
(a)either—
(i)practises foreign law in the ACT for 1 or more periods that do not in aggregate exceed 90 days in any 12-month period; or
(ii)is subject to a restriction imposed under the Migration Act 1958 (Cwlth) that has the effect of limiting the period during which work may be done, or business transacted, in Australia by the person; and
(b)either—
(i)does not maintain an office for the purpose of practising foreign law in the ACT; or
(ii)does not become a partner or director of a law practice.
Application of Australian professional ethical and practice standards to practice of foreign law
Section 159 (1)
omit
be
substitute
be capable of being
Advertising by Australian-registered foreign lawyers
Section 162 (1)
omit
on the practice of law
substitute
on legal practice engaged in
Trust money and trust accounts—Australian-registered foreign lawyers
Section 164 (1)
before
Australian legal practitioners
insert
law practices and
Section 164 (2), new note
insert
NoteThis Act is defined in the dictionary.
Professional indemnity insurance—Australian-registered foreign lawyers
Section 165 (3) (c)
substitute
(c)if the insurance is for less than the relevant amount (including defence costs)—provides a disclosure statement to each client stating the level of cover.
Section 165 (5)
substitute
(5)A disclosure statement must—
(a)be in writing; and
(b)be given before, or as soon as practicable after, the foreign lawyer is retained in a matter.
(5A)A disclosure statement given to a person before the foreign lawyer is retained in a matter is taken to be given to the person as a client for the purposes of this section.
(5B)A disclosure statement must be given in accordance with, and must comply with, any requirement under regulation.
Section 165 (6), new definition of defence costs
insert
defence costs, in relation to professional indemnity insurance covering an Australian-registered foreign lawyer, means costs (other than the claimant’s costs) payable by an insurer in relation to a claim, or notification that may lead to a claim, under the policy of insurance held by the lawyer.
Approved form for grant or renewal application—foreign lawyers
Section 171 (2) (a)
substitute
(a)matters that may be relevant to or affect the licensing body’s consideration of the application for the grant or renewal of registration; and
Requirements for applications for grant or renewal of registration—foreign lawyers
Section 172 (2) (d)
substitute
(d)state whether the applicant has been convicted of an offence in Australia or a foreign country and, if so, state—
(i)the nature of the offence; and
(ii)how long ago the offence was committed; and
(iii)the applicant’s age when the offence was committed; and
Section 172 (2) (f) and (g)
substitute
(f)state—
(i)that the applicant is not otherwise personally prohibited from engaging in legal practice in any place or bound by any undertaking not to engage in legal practice in any place; and
(ii)whether or not the applicant is subject to any special conditions in engaging in legal practice in any place;
because of any criminal, civil or disciplinary proceeding in Australia or a foreign country; and
(g)state any special conditions imposed in Australia or a foreign country as a restriction on legal practice engaged in by the applicant or any undertaking given by the applicant restricting the applicant’s practice of law; and
Section 172 (2) (i)
substitute
(i)state which of section 165 (2), (3) or (4) (Professional indemnity insurance—Australian-registered foreign lawyers) the applicant proposes to rely on and be accompanied by supporting proof of the relevant matters; and

Section 172 (3) (b)
omit
practise law
substitute
engage in legal practice
Grant or renewal of registration as foreign lawyer
Section 173 (1), note
substitute
NoteWhen granting or renewing registration as a foreign lawyer, the licensing body may impose conditions on the registration under s 193 (Conditions imposed on local registration by licensing body).
Section 173 (4)
substitute
(4)The licensing body must give the applicant an information notice if the licensing body—
(a)refuses to grant or renew registration; or
(b)imposes a condition on the registration and the applicant does not agree to the condition.
Requirement to grant or renew registration as foreign lawyer if criteria satisfied
Section 174 (1) (b), (c) and (d)
substitute
(b)considers an effective system exists for regulating engaging in practice in 1 or more of the foreign countries; and
(c)considers the applicant is not, because of any criminal, civil or disciplinary proceeding in any of the foreign countries, subject to—
(i)any special conditions in engaging in legal practice in any of the foreign countries that would make it inappropriate to register the person; or
(ii)any undertakings about engaging in legal practice in any of the foreign countries that would make it inappropriate to register the person; and
(d)is satisfied the applicant demonstrates an intention to start practising foreign law in the ACT within a reasonable period if registration were to be granted;
Refusal to grant or renew registration as foreign lawyer
New section 175 (2) (g)
substitute
(g)the applicant has failed to pay any expenses of receivership payable under this Act; or
(h)the applicant’s foreign legal practice is in receivership (however described).
Grounds for amending, suspending or cancelling registration of foreign lawyer
Section 177 (b) to (g)
substitute
(b)the person fails to comply with a requirement of this part;
(c)the person fails to comply with a condition imposed on the person’s registration;
(d)the person becomes the subject of disciplinary proceedings in Australia or a foreign country (including any preliminary investigations or action that might lead to disciplinary proceedings) in the person’s capacity as—
(i)an overseas-registered foreign lawyer; or
(ii)an Australian-registered foreign lawyer; or
(iii)an Australian lawyer;
(e)the person has been convicted of an offence in Australia or a foreign country;
(f)the person’s registration is cancelled or currently suspended in any place because of any disciplinary action in Australia or a foreign country;
(g)the person does not meet the requirements of section 165 (Professional indemnity insurance—Australian-registered foreign lawyers);
New section 177 (2)
insert
(2)Subsection (1) does not limit the grounds on which conditions may be imposed on registration as a foreign lawyer under section 193 (Conditions imposed on local registration by licensing body).
Amending, suspending or cancelling registration of foreign lawyer
Section 178 (1)
omit
(the show-cause notice)
Section 178 (2) (a)
omit
show-cause notice
substitute
notice under subsection (1)
Section 178 (2) (b) and (c)
omit
show-cause
Section 178 (2) (c) (ii)
substitute
(ii)suspend the registration for a stated period; or
(iii)amend the registration in a less onerous way the council considers appropriate because of the representations.
New section 178 (5)
insert
(5)In this section:
amend, a person’s registration, means amend the registration under section 193 (Conditions imposed on local registration by licensing body) during its currency, otherwise than at the person’s request.
Relationship of div 2.7.6 with ch 4
Section 181
omit
the licensing body from making a complaint
substitute
a complaint from being made
Investigation of applicants and locally-registered foreign lawyers etc
Section 200 (1)
omit everything before paragraph (a), insert
(1)To help it consider whether or not to grant, renew, amend, suspend or cancel registration under this part, the licensing body may, by written notice to the applicant or foreign lawyer, require the applicant or lawyer—
Appeals or reviews
Section 207 (3), except the note
omit
Definitions—pt 3.1
Section 210 (1), definition of controlled money
omit
received by a law practice with
substitute
received or held by a law practice for which the practice has
Section 210 (1), new definition of deposit record
insert
deposit record includes a deposit slip or duplicate deposit slip.
Section 210 (2), definition of controlled money account
omit
approved
Section 210 (2), definition of trust records, paragraph (d)
substitute
(d)deposit records;
New section 210 (4)
insert
(4)A reference in this part to a power given to a law practice or an associate of the practice to deal with money for or on behalf of someone else is a reference to a power given to the practice or associate that is exercisable by—
(a)the practice alone; or
(b)an associate of the practice alone (otherwise than in a private and personal capacity); or
(c)the practice or an associate of the practice jointly or severally, or jointly and severally with either of the following:
(i)1 or more associates of the practice;
(ii)the person, or 1 or more nominees of the person, for whom or on whose behalf the money may or is to be dealt with under the power.
Money involved in financial services or investments
Section 212 (3) (a)
omit
or property
When money is received by law practice
Section 216 (1) (b), (c) and (d)
substitute
(b)the practice obtains possession or control of it indirectly as a result of its delivery to an associate of the practice; or
(c)the practice, or an associate of the practice (otherwise than in a private and personal capacity), is given a power to deal with the money for or on behalf of someone else.
Keeping of general trust account
Section 221 (3)
substitute
(3)Subsection (1) does not apply to a law practice in relation to any period during which the practice receives only either or both of the following:
(a)controlled money;
(b)transit money received in a form other than cash.
Certain trust money to be deposited in general trust account
Section 222 (2) (d)
substitute
(d)the money is the subject of a power given to the practice or an associate of the practice to deal with the money for or on behalf of someone else.
Section 222 (5)
omit
New section 222 (8A)
insert
(8A)This section is subject to section 226A (Trust money received in form of cash).
New section 223A
insert

223AWay of withdrawing trust money from general trust account
(1)A law practice must not withdraw trust money from a general trust account otherwise than by cheque or electronic funds transfer.
(2)Without limiting subsection (1), the following are prohibited:
(a)cash withdrawals;
(b)ATM withdrawals or transfers;
(c)telephone banking withdrawals or transfers.
(3)A regulation may make provision in relation to withdrawals by cheque or electronic funds transfer.
(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 commits an offence.
Maximum penalty: 50 penalty units.
(5)If a law practice that is a law firm, or a multidisciplinary partnership, contravenes subsection (1), each principal of the practice commits an offence.
Maximum penalty: 50 penalty units.
NoteFor this part, a reference to a law practice includes the principals of the law practice (see s 218 (Liability of principals of law practices under pt 3.1)).

(6)An offence against subsection (4) or (5) is a strict liability offence.
(7)This section has effect despite anything to the contrary in any direction given to the law practice, even if the direction is given by a person who is otherwise legally entitled to give the law practice directions in relation to dealings with the trust money.

New section 224A
insert

224AWay of withdrawing controlled money from controlled money account
(1)A law practice must not withdraw controlled money from a controlled money account otherwise than by cheque or electronic funds transfer.
(2)Without limiting subsection (1), the following are prohibited:
(a)cash withdrawals;
(b)ATM withdrawals or transfers;
(c)telephone banking withdrawals or transfers.
(3)A regulation may make provision in relation to withdrawals by cheque or electronic funds transfer.
(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 commits an offence.
Maximum penalty: 50 penalty units.
(5)If a law practice that is a law firm, or a multidisciplinary partnership, contravenes subsection (1), each principal of the practice commits an offence.
Maximum penalty: 50 penalty units.
NoteFor this part, a reference to a law practice includes the principals of the law practice (see s 218 (Liability of principals of law practices under pt 3.1)).

(6)An offence against subsection (4) or (5) is a strict liability offence.
(7)This section has effect despite anything to the contrary in any direction given to the law practice, even if the direction is given by a person who is otherwise legally entitled to give the law practice directions in relation to dealings with the controlled money.

Transit money
New section 225 (6)
insert
(6)This section is subject to section 226A (Trust money received in form of cash).
Trust money subject to specific powers
Section 226 (1)
substitute
(1)A law practice must ensure that trust money that is the subject of a power given to the practice or an associate of the practice is dealt with by the practice or associate only in accordance with the power relating to the money.
Section 226 (2)
omit
required by regulation
substitute
prescribed by regulation
New section 226 (6)
insert
(6)This section is subject to section 226A (Trust money received in form of cash).
New section 226A
insert

226ATrust money received in form of cash
(1)A law practice must deposit general trust money received in the form of cash in a general trust account of the practice.
(2)If the law practice has a written direction by an appropriate person to deal with general trust money received in the form of cash otherwise than by first depositing it in a general trust account of the practice—
(a)the money must nevertheless be deposited in a general trust account of the practice in accordance with subsection (1); and
(b)the money is after that to be dealt with in accordance with any applicable terms of the direction to the extent that the terms are not inconsistent with paragraph (a).
(3)Controlled money received in the form of cash must be deposited in a controlled money account in accordance with section 224 (Controlled money).
(4)A law practice must deposit transit money received in the form of cash in a general trust account of the practice before the money is otherwise dealt with in accordance with the instructions relating to the money.
(5)A law practice must deposit trust money that is received in the form of cash and is the subject of a power in a general trust account (or a controlled money account in the case of controlled money) of the practice before the money is otherwise dealt with in accordance with the power.
(6)This section has effect despite anything to the contrary in any relevant direction, instruction or power.
(7)If a law practice that is an Australian legal practitioner who is a sole practitioner, or an incorporated legal practice, contravenes subsection (1), (4) or (5), the practitioner or practice commits an offence.
Maximum penalty: 50 penalty units
(8)If a law practice that is a law firm, or a multidisciplinary partnership, contravenes subsection (1), (4) or (5) each principal of the practice commits an offence
Maximum penalty: 50 penalty units.
NoteFor this part, a reference to a law practice includes the principals of the law practice (see s 218 (Liability of principals of law practices under pt 3.1)).

(9)An offence against subsection (7) or (8) is a strict liability offence.
(10)In this section:
appropriate person, in relation to trust money, means a person who is legally entitled to give the law practice concerned directions in relation to dealings with the money.
general trust money means trust money other than—
(a)controlled money; and
(b)transit money; and
(c)money that is the subject of a power.

Dealing with trust money—legal costs and unclaimed money
Section 229 (1) (a)
omit
practitioner
substitute
practice
Section 229 (1) (b)
omit
the procedure prescribed by regulation
substitute
any relevant provision of this Act
Section 229 (1), new note
insert
NoteThis Act is defined in the dictionary.
Section 229 (2)
omit
review
substitute
assessment
Costs of investigation
Section 239 (2), (3) and (4)
substitute
(2)However, the licensing body may decide that all or part of the costs of carrying out the investigation is payable to the licensing body, and decide the amount payable, if—
(a)an investigator states in his or her report that there is evidence that a breach of this Act has been committed or that a default (within the meaning of part 3.4 (Fidelity cover)) has happened in relation to the law practice whose affairs are under investigation; and
(b)the licensing body is satisfied that the breach or default is intentional or of a substantial nature.
NoteThis Act is defined in the dictionary.
(3)An amount decided by the licensing body under subsection (2) is a debt owing to the licensing body by the law practice whose affairs are under investigation.
Sections 241 and 242
substitute
Trust records to be externally examined
(1)A law practice must at least once in each financial year have its trust records externally examined by an external examiner appointed as required by regulation.
(2)The licensing body may appoint an external examiner to examine a law practice’s trust records if the licensing body is not satisfied—
(a)that the practice has had its trust records externally examined under subsection (1); or
(b)that an external examination of the practice’s trust records has been carried out as required by regulation.
(3)This section has effect subject to any exemption under a regulation from the requirement to have trust records examined under this section.
(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 commits an offence.
Maximum penalty: 50 penalty units
(5)If a law practice that is a law firm, or a multidisciplinary partnership, contravenes subsection (1), each principal of the practice commits an offence
Maximum penalty: 50 penalty units.
NoteFor this part, a reference to a law practice includes the principals of the law practice (see s 218 (Liability of principals of law practices under pt 3.1)).
(6)An offence against subsection (4) or (5) is a strict liability offence.
Reports, records and information by ADIs
Section 252 (6)
after
any
insert
legislation or
Statutory deposits
Section 253 (1) and (2)
substitute
Statutory deposits
(1)A regulation may require the following:
(a)a law practice to pay amounts out of a general trust account of the practice into an ADI account kept by the law society (a statutory deposit account);
(b)the law society to pay interest on money in a statutory deposit account into another ADI account kept by the law society (a statutory interest account).
(2)A regulation may make provision in relation to the following:
(a)the type of account to be kept by the law society;
(b)payments to be made to the account;
(c)the use of money in the account;
(d)for a statutory interest account—the person entitled to interest on the money in the account.
Application of pt 3.1 to incorporated legal practices and multidisciplinary partnerships
New section 255 (1A)
before subsection (1), insert
(1A)The obligations imposed on law practices by this part, and any other provisions of this Act relating to trust money and trust accounts, apply to an incorporated legal practice or multidisciplinary partnership only in relation to legal services provided by the practice or partnership.
Section 255 (2)
omit
Disclosure—money not received as trust money
Section 257 (3)
omit
The legal profession rules
substitute
A regulation
Section 260
substitute
Regulations and legal profession rules—pt 3.1
A regulation or the legal profession rules may make provision in relation to—
(a)the establishment, keeping and closure of general trust accounts and controlled money accounting; and
(b)the way of receiving, depositing, withdrawing, making records about and otherwise dealing with an accounting for trust money; and
(c)without limiting paragraph (a) or (b)—
(i)the keeping and reconciliation of trust records; and
(ii)the establishment and keeping of trust ledger accounts; and
(iii)the establishment and keeping of records about controlled money and transit money; and
(iv)the establishment and keeping of registers of powers and estates where trust money is involved; and
(v)the recording of information about the investment of trust money; and
(vi)the giving of statements about trust money; and
(d)the notification to the licensing body of information relating directly or indirectly to matters to which this part relates, including information about—
(i)trust accounts, trust money and trust records; and
(ii)the proposed or actual termination of a law practice that holds trust money; and
(iii)the proposed or actual termination of engaging in legal practice in the ACT by a law practice that holds trust money; and
(iv)the proposed or actual restructuring of the business of a law practice so that it no longer holds or no longer will hold trust money; and
(e)the creation and exercise of liens over trust money; and
(f)providing exemptions, or for the giving of exemptions, from all or any requirements of this part.
Part 3.2 heading
substitute

Part 3.2Costs disclosure and assessment

Definitions—pt 3.2
Section 261, definition of client
omit
Section 261, definition of costs review
substitute
costs assessment means an assessment of legal costs under division 3.2.7.
Section 261, definition of itemised bill
omit
reviewed
substitute
assessed
Section 261, new definition of public authority
insert
public authority means an entity established for a public purpose by or under a Territory law, or the law of the Commonwealth, a State or another Territory.
Section 261, new definitions of sophisticated client and third party payer
insert
sophisticated client means a client to whom, because of section 272 (1) (c) or (d) (Exceptions to requirement for disclosure), disclosure under section 269 (Disclosure of costs to client) or section 270 (1) (Disclosure if another law practice is to be retained) is not, or was not, required.
third party payer—see section 261A.
Section 261, definition of uplift fee
substitute
uplift fee means additional legal costs (excluding disbursements) payable under a costs agreement on the successful outcome of the matter to which the agreement relates.
New section 261A
insert

261ATerms relating to third party payers

(1)In this part:
(a)a person is a third party payer, in relation to a client of a law practice if the person—
(i)is not the client; and
(ii)either—
(A)is under a legal obligation to pay all or any part of the legal costs for legal services provided to the client; or
(B)being under that obligation, has paid all or a part of the legal costs; and

(b)a third party payer is an associated third party payer if the legal obligation mentioned in paragraph (a) is owed to the law practice, whether or not it is also owed to the client of someone else; and
(c)a third party payer is a non-associated third party payer if the legal obligation mentioned in paragraph (a) is owed to the client or someone else but not to the law practice.
(2)The legal obligation mentioned in subsection (1) can arise by or under contract or legislation.
(3)A law practice that retains another law practice to act on behalf of a client is not for that reason a third party payer in relation to the client.

Purpose—pt 3.2
Section 262 (d)
omit
review
substitute
assessment
Pt 3.2 also applies by agreement or at client’s election
Section 264 (1) (c) (i)
substitute
(i)the client accepts, in writing or by other conduct, a written offer to enter into an agreement under subsection (2) (a) in relation to the matter; or
Section 264 (2) (a)
substitute
(a)accept, in writing or by other conduct, a written offer that complies with subsection (2A) to enter into an agreement with the law practice that this part is to apply to the matter; or
New section 264 (2A)
insert
(2A)An offer mentioned in subsection (2) (a) must clearly state—
(a)that it is an offer to enter into an agreement that this part is to apply to the matter; and
(b)that the client may accept it in writing or by other conduct; and
(c)the type of conduct that will constitute acceptance of the offer.
Displacement of pt 3.2
Section 265 (2) (b) (i)
substitute
(i)the client enters under the corresponding law of the other jurisdiction into an agreement with the law practice that the corresponding provisions of the corresponding law apply to the matter; or
Section 266
substitute
How and where does a client first instruct a law practice?
A client first instructs a law practice in relation to a matter in a particular jurisdiction if the law practice first receives instructions from or on behalf of the client in relation to the matter in that jurisdiction, whether in person or by post, telephone, fax, email or other form of communication.
What happens when different laws apply to a matter?
Section 268 (4) and (5)
substitute
(4)However—
(a)the client may enter into a written agreement with the law practice that the cost assessment provisions of this part are to apply in relation to all legal costs incurred in relation to the matter, and division 3.2.7 (Costs assessment) accordingly applies in relation to the costs; or
(b)the client may enter into a written agreement with the law practice that the cost assessment provisions of a corresponding law are to apply in relation to all legal costs incurred in relation to the matter, and division 3.2.7 accordingly does not apply in relation to the costs.
(5)A written agreement mentioned in subsection (4) need not be signed by the client but in that case the client’s acceptance must be communicated to the law practice by fax, email or other written form.
(6)If a corresponding law applied to a matter for a period and this part applies to the matter afterwards, this part does not require disclosure of any matters to the extent that they have already been disclosed under a corresponding law.
(7)This section has effect despite any other provisions of this part.
Disclosure of costs to client
Section 269 (1) (b) (iii)
substitute
(iii)request an itemised bill if the client receives a lump sum bill for more than the threshold amount; and
New section 269 (1) (ba)
insert
(ba)that the client is not entitled to request an itemised bill if the bill is for an amount equal to or less than the threshold amount; and
Section 269 (1) (e)
substitute
(e)the rate of interest (if any) that the law practice charges on unpaid legal costs, whether the rate is a specific rate of interest or is a benchmark rate of interest; and
NoteFor interest a law practice may charge on unpaid legal costs, see s 281 (Interest on unpaid legal costs).
Section 269 (1) (i) (i)
substitute
(i)costs assessment under division 3.2.7;
Section 269 (1) (l) (i)
substitute
(i)to accept under a corresponding law a written offer to enter into an agreement with the law practice that the corresponding provisions of the corresponding law apply to the matter; or
Section 269 (1) (l), note
omit
sign
substitute
enter into
New section 269 (1A) and (1B)
insert
(1A)For subsection (1) (e), a benchmark rate of interest is a rate of interest for the time being equal to or worked out by reference to a rate of interest that is specified or determined by an ADI or another entity and that is publicly available.
(1B)A regulation may make provision in relation to the use of benchmark rates of interest, and in particular in relation to permitting, regulating or preventing the use of particular benchmark rates.
New section 269 (3) and (4)
insert
(3)A law practice may disclose any or all of the details mentioned in subsection (1) (b) (i) to (iii), (g), (i), (j) and (l) in a form approved by the licensing body under section 587 and if it does so at the time the other details are disclosed as required by this section the practice is taken to have complied with this section in relation to the details disclosed.
(4)In this section:
threshold amount—see section 292 (10).
Disclosure if another law practice is to be retained
Section 270 (1)
omit
on behalf of the client
substitute
on behalf of a client
Section 271 heading
substitute
How and when must disclosure be made to a client?
Section 271 (2) and (3)
substitute
(2)Disclosure under section 270 (1) (Disclosure if another law practice is to be retained) must be made in writing before, or as soon as practicable after, the other law practice is retained.
(3)Disclosure made to a person before the law practice is retained in a matter is taken to be disclosure to the person as a client for section 269 and section 270.
Exceptions to requirement for disclosure
Section 272 (1) (a)
after
$1 500
insert
(exclusive of GST)
Section 272 (1) (c) (ii)
substitute
(ii)a public company, a subsidiary of a public company, a large proprietary company, a foreign company, a subsidiary of a foreign company or a registered Australian body (each within the meaning of the Corporations Act); or
Section 272 (1) (c) (iv)
substitute
(iv)a liquidator, administrator or receiver (as respectively mentioned in the Corporations Act); or
(v)a partnership that carries on the business of providing professional services if the partnership consists of more than 20 members or if the partnership would be a large proprietary company (within the meaning of the Corporations Act) if it were a company; or
(vi)a proprietary company (within the meaning of the Corporations Act) formed for the purpose of carrying out a joint venture, if any shareholder of the company is a person to whom disclosure of costs is not required; or
(vii)an unincorporated group of participants in a joint venture, if any member of the group is a person to whom disclosure of costs is not required and if any other member of the group who is not someone to whom disclosure of costs is not required has indicated that he or she waives the right to disclosure; or
(viii)a Minister of a jurisdiction or the Commonwealth acting in the Minister’s official capacity, or a government department or public authority of a jurisdiction or the Commonwealth;
Section 272 (2)
after
$1 500
insert
(exclusive of GST)
Section 274
substitute
Additional disclosure—uplift fees
(1)If a costs agreement involves an uplift fee, the law practice must disclose to the client in writing, before entering the agreement—
(a)the uplift fee (or the basis for working out the uplift fee); and
(b)the reasons why the uplift fee is justified.
(2)The disclosure under subsection (1) is in addition to any information required to be disclosed to the client under section 269 (Disclosure of costs to client).
(3)A law practice is not required to make a disclosure under subsection (1) to a sophisticated client.
Form of disclosure
Section 275 (1)
after
disclosures
insert
to a client
Section 277 (1), (2) and (3)
substitute
Effect of failure to disclose
(1)If a law practice does not disclose to a client or an associated third party payer anything required by this division to be disclosed, the client or associated third party payer (as the case may be) need not pay the legal costs unless they have been assessed under division 3.2.7.
NoteUnder s 302 (Costs of costs assessment), the costs of an assessment in these circumstances are generally payable by the law practice.
(2)A law practice that does not disclose to a client or an associated third party payer anything required by this division to be disclosed may not bring a proceeding against the client or associated third party payer (as the case may be) for the recovery of legal costs unless the costs have been assessed under division 3.2.7.
(3)If a law practice does not disclose to a client or an associated third party payer anything required by this division to be disclosed and the client or associated third party payer has entered into a costs agreement with the law practice, the client or associated third party payer may also apply under section 288 (Setting aside costs agreements) for the costs agreement to be set aside.
(3A)If a law practice does not disclose to a client or an associated third party payer anything required by this division to be disclosed, the amount of the costs may, on an assessment of the relevant legal costs, be reduced by an amount considered by the Supreme Court to be proportionate to the seriousness of the failure to disclose.
(3B)If a law practice retains another law practice on behalf of a client and the first law practice fails to disclose something to the client only because the retained law practice failed to disclose relevant information to the first law practice as required by section 270 (2) (Disclosure if another law practice is to be retained), subsections (1) to (3A)—
(a)do not apply to the legal costs owing to the first law practice on account of legal services provided by it, to the extent that the non-disclosure by the first law practice was caused by the failure of the retained law practice to disclose the relevant information; and
(b)do apply to the legal costs owing to the retained law practice;
(3C)In a matter involving both a client and an associated third party payer, if disclosure has been made to 1 of them but not the other—
(a)subsection (1) does not affect the liability of the person to whom disclosure was made to pay the legal costs; and
(b)subsection (2) does not prevent proceedings being maintained against the person to whom the disclosure was made for the recovery of the legal costs.
Progress reports
Section 278 (4), new note
insert
NoteAn associated third party payer for a client has the same right as the client to obtain reports under this section to the extent that the costs are payable by the associated third party payer (see s 281A).
On what basis are legal costs recoverable?
Section 279, note
omit
review
substitute
assessment
Section 281 (1), new example
insert
Example
A law practice gives a client a bill for costs on 1 May 2008. The bill remains unpaid on 1 June 2008, that is, for longer than 30 days after the day the practice gave the client the bill. The law practice may charge interest on those costs for the period that the costs remain unpaid, beginning on 2 May 2008.
NoteAn example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act, s 126 and s 132).
Section 281 (4) (b)
substitute
(b)if a rate is not prescribed by regulation—the rate applying under the Court Procedures Rules 2006, schedule 2, part 2.2 (Interest after judgment).
New section 281 (5)
insert
(5)Subsection (1) applies to a bill of costs given in the form of a lump sum bill even if the client later requests or is later given an itemised bill.
NoteA person may request an itemised bill not later than 90 days after the person receives a lump sum bill (see s 292).
New section 281A
in division 3.2.4, insert

281ADisclosure to associated third party payers
(1)If a law practice is required to make a disclosure to a client of the practice under this division, the practice must, in accordance with subsections (2) and (3), also make the same disclosure to any associated third party payer for the client, but only to the extent that the details of matters disclosed are relevant to the associated third party payer and relate to costs that are payable by the associated third party payer in relation to legal services provided to the client.
(2)The disclosure must be made in writing—
(a)at the time the disclosure to the client is required under this division; or
(b)if the law practice only afterwards becomes aware of the legal obligation of the associated third party payer to pay legal costs of the client—as soon as practicable after the practice became aware of the obligation.
(3)Section 275 (Form of disclosure) applies to a disclosure under this section in the same way as it applies to a client.
(4)An associated third party payer for a client of a law practice has the same right as the client to obtain reports under section 278 (Progress reports) of legal costs incurred by the client, but only to the extent that the costs are payable by the associated third party payer in relation to legal services provided to the client.

Making costs agreements
New section 282 (1) (d)
insert
(d)between a law practice and an associated third party payer.
Section 282 (4) (a) and (b)
substitute
(a)that it is an offer to enter into a costs agreement; and
(b)that the offer can be accepted in writing or by other conduct; and
Section 282 (5)
substitute
(5)Except as provided by section 300A (Assessment of costs by reference to costs agreement), a costs agreement cannot provide that the legal costs to which it relates are not subject to costs assessment under division 3.2.7.
NoteIf it attempts to do so, the costs agreement will be void (see s 287 (1)).
(6)A reference in section 288 (Setting aside costs agreements) and in any prescribed provisions of this part to a client is, in relation to a costs agreement that is entered into between a law practice and an associated third party payer as mentioned in subsection (1) (d) and to which a client of the law practice is not a party, a reference to the associated third party payer.
Conditional costs agreements
Section 283 (5)
substitute
(5)Subsection (3) (c) (iii), (d) and (e) also do not apply to a conditional costs agreement made with a sophisticated client.
(6)If a client terminates a conditional costs agreement within the period mentioned in subsection (3) (e), the law practice—
(a)may recover only the legal costs in relation to legal services performed for the client before the termination that were performed on the instructions of the client and with the client’s knowledge that the legal services would be performed during the period; and
(b)without limiting paragraph (a), may not recover the uplift fee (if any).
Conditional costs agreements involving uplift fees
Section 284 (1) to (4)
substitute
(1)A conditional costs agreement may provide for the payment of an uplift fee.
NoteThe Civil Law (Wrongs) Act 2002, pt 14.1 (Maximum costs for certain personal injury damages claims) and pt 14.2 (Costs in damages claims if no reasonable prospects of success) contain limitations on legal costs.
(2)The basis for working out the uplift fee must be separately identified in the agreement.
(3)The agreement must contain an estimate of the uplift fee or, if that is not reasonably practicable—
(a)a range of estimates of the uplift fee; and
(b)an explanation of the major variables that will affect the amount of the uplift fee.
(4)If a conditional costs agreement relates to a litigious matter—
(a)the agreement must not provide for the payment of an uplift fee unless the law practice has a reasonable belief that a successful outcome of the matter is reasonably likely; and
(b)the uplift fee must not exceed 25% of the legal costs (excluding disbursements) otherwise payable.
Contingency fees prohibited
Section 285 (1)
substitute
(1)A law practice must not enter into a costs agreement under which the amount payable to the practice, or any part of that amount, is worked out by reference to the amount of any award or settlement or the value of any property that may be recovered in any proceeding to which the agreement relates.
Effect of costs agreement
Section 286 (1)
omit
review
substitute
assessment
Section 286 (2)
substitute
(2)Mediation may be used to resolve a dispute over an amount claimed to be payable to a law practice under a costs agreement.
Certain costs agreements void
Section 287 (2)
omit
review
substitute
assessment
Section 288
substitute
Setting aside costs agreements or provisions of costs agreements
(1)On application by a client who is a party to a costs agreement with a law practice, the Supreme Court may order that the agreement or a provision of the agreement be set aside if satisfied that the agreement or provision is not fair or reasonable.
NoteSection 277 (3) also allows a client to apply under this section for an order setting aside a costs agreement if the law practice concerned has failed to disclose to the client anything required by div 3.2.3 to be disclosed.
(2)The Supreme Court may set aside—
(a)a provision only of a costs agreement even though the client has applied for the whole agreement to be set aside; or
(b)the whole of a costs agreement even though the client has applied only to have a provision of the agreement set aside.
(3)In deciding whether or not a costs agreement is fair or reasonable, the Supreme Court may have regard to any or all of the following matters:
(a)whether the client was induced to enter into the agreement by the fraud or misrepresentation of the law practice or of any representative of the practice;
(b)whether any Australian legal practitioner or Australian‑registered foreign lawyer acting on behalf of the law practice has been found guilty of unsatisfactory professional conduct or professional misconduct in relation to the provision of legal services to which the agreement relates;
(c)whether the law practice failed to make any of the disclosures required under division 3.2.3 (Costs disclosure);
(d)the circumstances and conduct of the parties before and when the agreement was made;
(e)the circumstances and conduct of the parties in the matter after the agreement was made;
(f)whether and how the agreement addresses the effect on costs of matters and changed circumstances that might foreseeably arise and affect the extent and nature of legal services provided under the agreement;
(g)whether and how billing under the agreement addresses changed circumstances affecting the extent and nature of legal services provided under the agreement;
(h) any other relevant matter.
(4)The Supreme Court may adjourn the hearing of an application under this section until the completion of any investigation or determination of any information in relation to the conduct of any Australian legal practitioner or Australian-registered foreign lawyer.
(5)If the Supreme Court orders that a costs agreement or a provision of a costs agreement be set aside, it may make an order in relation to the payment of legal costs the subject of the agreement or the provision of the agreement.
(6)In making an order under subsection (5), the Supreme Court must decide the fair and reasonable legal costs in relation to the work to which the agreement or the provision of the agreement related, taking into account—
(a)the seriousness of the conduct of the law practice or any Australian legal practitioner or Australian-registered foreign lawyer acting on its behalf; and
(b)whether or not it was reasonable to carry out the work; and
(c)whether or not the work was carried out in a reasonable way.
(7)In making an order under subsection (5), the Supreme Court must not order the payment of an amount in excess of the amount that the law practice would have been entitled to recover if the costs agreement or the provision of the costs agreement had not been set aside.
(8)For subsection (5), the Supreme Court may have regard to any or all of the following matters:
(a)whether the law practice and any Australian legal practitioner or Australian-registered foreign lawyer acting on its behalf complied with this Act;
NoteThis Act is defined in the dictionary.
(b)any disclosures made by the law practice under division 3.2.3 (Costs disclosure), or the failure to make any disclosures required under that division;
(c)any relevant advertisement about—
(i)the law practice’s costs; or
(ii)the skills of the law practice or of any Australian legal practitioner or Australian-registered foreign lawyer acting on its behalf;
(d)the skill, labour and responsibility displayed on the part of the Australian legal practitioner or Australian-registered foreign lawyer responsible for the matter;
(e)the retainer and whether the work done was within the scope of the retainer;
(f)the complexity, novelty or difficulty of the matter;
(g)the quality of the work done;
(h)the place where, and circumstances in which, the work was done;
(i)the time within which the work was required to be done;
(j)any other relevant matter.
Example—par (j)
a scale of costs
NoteAn example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act, s 126 and s 132).
(9)The Supreme Court may decide whether or not a costs agreement exists.
(10)The Supreme Court may order the payment of the costs of and incidental to a hearing under this section.
(11)In this section:
client means a person to whom or for whom legal services are or have been provided.
NoteSee also s 282 (6) which extends the application of this section to associated third party payers.

426ARestriction on publication of certain identifying material from proceedings
(1)A person must not publish an account or report of a proceeding in the disciplinary tribunal if the account or report—
(a)discloses the identity of the person who is the subject of the complaint to which the proceeding relates (the person concerned); or
(b)allows the identity of the person concerned to be worked out.
(2)However, the identity of the person concerned may be disclosed in an account or report of the proceeding if—
(a)the disciplinary tribunal has made a final decision that the person concerned is guilty of the conduct complained of; and
(b)either—
(i)the appeal period has ended and no appeal has been made; or
(ii)any appeal has been decided against the person concerned.

(3)In this section:
appeal, in relation to a decision of the disciplinary tribunal, means an appeal to the Supreme Court under section 437 against the decision.
appeal period means the period within which an appeal may be made.
NoteSee the Court Procedures Rules 2006, r 5052 (Appeals to Supreme Court—general powers) and r 5103 (Appeals to Supreme Court—time for filing notice of appeal).

Decisions of disciplinary tribunal—unsatisfactory professional conduct or professional misconduct
Section 430 (5) (b)
substitute
(b)an order recommending that the practitioner’s interstate practising certificate be suspended for a stated period or cancelled;
Section 430 (5) (d)
substitute
(d)an order recommending—
(i)that stated conditions be imposed on the practitioner’s interstate practising certificate; and
(ii)that the conditions be imposed for a stated period; and
(iii)a stated time (if any) after which the practitioner may apply to the tribunal for the conditions to be amended or removed.
Compliance with decisions and orders of disciplinary tribunal
Section 433 (3)
substitute
(3)If the disciplinary tribunal makes an order recommending that the name of an Australian legal practitioner who is a local lawyer be removed from the local roll—
(a)a copy of the order may be filed in the Supreme Court; and
(b)the Supreme Court may order the removal of the name from the roll.
Definitions—pt 4.9
Section 447, definition of disciplinary action, paragraph (b) (iii)
substitute
(iii)the refusal to grant or renew an Australian practising certificate applied for by the practitioner;
Register of disciplinary action
Section 448 (3)
omit
Disciplinary action taken because of infirmity, injury or illness
Section 452 (2) (b)
substitute
(b)a refusal to grant or renew an Australian practising certificate applied for by the person; or
Sections 458 and 459
substitute
Sharing of information with corresponding authorities
The councils may, separately or jointly, enter into arrangements with a corresponding authority for providing information to the corresponding authority about—
(a)complaints and investigations under this chapter; and
(b)any action taken in relation to any complaints made or investigations conducted under this chapter, including decisions of the disciplinary tribunal under this chapter.
Cooperation with corresponding authorities
(1)In dealing with a complaint or conducting an investigation, the councils may, separately or jointly, consult and cooperate with another entity (whether in or of Australia or another country) that has or may have relevant information or powers in relation to the person against whom the complaint was made or in relation to whom the investigation is conducted.
(2)For subsection (1), the councils and the other entity may exchange information about the complaint or investigation.
Protection for things done in administration of ch 4
Section 468 (2), definition of protected person, paragraphs (e), (f), (g) and (h)
substitute
(e)the disciplinary tribunal, any member of the disciplinary tribunal, or anyone exercising the functions of registrar of the disciplinary tribunal; or
(f)a mediator to whom a matter is referred under this chapter; or
(g)any member of the staff of any entity mentioned in paragraph (a) to (e).
Definitions—ch 5
Section 473 (1), definition of regulated property
substitute
regulated property, for a law practice, means the following:
(a)trust money or trust property received, receivable or held by the practice;
(b)interest, dividends or other income or anything else derived from or acquired with money or property mentioned in paragraph (a);
(c)documents or records of any description relating to anything mentioned in paragraph (a) or (b);
(d)any computer hardware or software, or other device, in the custody or control of the practice or an associate of the practice by which a record mentioned in paragraph (c) may be produced or reproduced in visible form.
Purpose—ch 5
Section 474 (1)
substitute
(1)The purpose of this chapter is to ensure that an appropriate range of options is available for intervention in the business and professional affairs of law practices and Australian-registered foreign lawyers for the purpose of protecting the interests of—
(a)the general public; and
(b)clients; and
(c)lawyers, including the owners and employees of law practices, so far as their interests are not inconsistent with the interests of the general public and clients.
Application of ch 5 to barristers
Section 476 (1)
omit
Supervisors
substitute
Supervisors of trust money
Application of ch 5 to Australian-registered foreign lawyers
Section 477
after
foreign lawyers
insert
and former Australian-registered foreign lawyers
Decision about external intervention
Section 480 (1)
omit
clients, owners and employees of the practice
substitute
clients of the practice
Section 480 (2) (b)
substitute
(b)to appoint a manager for the law practice, if the relevant council is of the opinion—
(i)that external intervention is required because of issues relating to the practice’s trust records; or
(ii)that the appointment is necessary to protect the interests of clients in relation to trust money or trust property; or
(iii)that, for this to happen, there is a need for an independent person to be appointed to take over professional and operational responsibility for the practice; or
Part 5.3 heading
substitute

Part 5.3Supervisors of trust money

Appointment of supervisor
Section 481 (1)
omit
for a law practice
substitute
of a law practice
Section 481 (2)
after
supervisor
insert
of trust money
Section 481 (3) (a)
substitute
(a)an Australian legal practitioner who holds an unrestricted practising certificate; or
Section 481 (5) (b)
after
a supervisor
insert
of trust money
Notice of appointment of supervisor
Section 482 (1) and (2) (b)
after
a supervisor
insert
of trust money
Effect of service of notice of appointment of supervisor
Section 483 (1)
omit
a supervisor for a law practice
substitute
a supervisor of trust money of a law practice
Section 483 (1) (a), (b) and (c)
after
by the supervisor
insert
or a nominee of the supervisor
Section 483 (2) (a)
omit
a supervisor for a law practice
substitute
a supervisor of trust money of a law practice
Section 483 (3)
omit
the supervisor for the law practice
substitute
the supervisor of trust money of the law practice
Section 483 (5)
omit
The supervisor for a law practice
substitute
The supervisor of trust money of a law practice
Section 484 heading
substitute
Role of supervisor of trust money
Section 484 (1) (a)
substitute
(a)to receive trust money entrusted to the practice; and
Section 484 (2) (b)
substitute
(b)require the practice, an associate or former associate of the practice, or anyone else who has, or has had, control of documents relating to trust money received by the practice, to give the supervisor either or both of the following:
(i)access to the files and documents the supervisor reasonably requires;
(ii)information relating to the trust money the supervisor reasonably requires;
Ending of supervisor’s appointment
Section 486 (1)
omit
a supervisor for a law practice
substitute
a supervisor of trust money of a law practice
New section 486 (1) (aa)
insert
(aa)the appointment is set aside under section 514 (Appeal against appointment of supervisor or manager);
Effect of service of notice of appointment of manager
Section 489 (3) (a), (b) and (c)
substitute
(a)the withdrawal or transfer is made by cheque or other instrument drawn on the account signed by—
(i)the manager; or
(ii)a receiver appointed for the practice; or
(iii)a nominee of the manager or receiver; or
(b)the withdrawal or transfer is made by means of electronic or internet banking facilities by—
(i)the manager; or
(ii)a receiver appointed for the practice; or
(iii)a nominee of the manager or receiver; or
(c)the withdrawal or transfer is made in accordance with an authority to withdraw or transfer funds from the account signed by—
(i)the manager; or
(ii)a receiver appointed for the practice; or
(iii)a nominee of the manager or receiver.
Section 489 (9)
after
the practice
insert
or another trust account nominated by the manager or receiver
Role of manager
Section 490 (2) (b)
substitute
(b)require the practice, an associate or former associate of the practice, or anyone else who has, or has had, control of client files and associated documents (including documents relating to trust money received by the practice), to give the manager either or both of the following:
(i)access to the files and documents the manager reasonably requires;
(ii)information relating to client matters the manager reasonably requires;
Ending of manager’s appointment
New section 493 (1) (aa)
insert
(aa)the appointment is set aside under section 514 (Appeal against appointment of supervisor or manager);
Appointment of receiver
Section 494 (7) (a)
substitute
(a)an Australian legal practitioner who holds an unrestricted practising certificate; or
Notice of appointment of receiver
New section 495 (2) (fa)
insert
(fa)state that the law practice may appeal against the appointment of the receiver under section 514 (Appeal against appointment of supervisor or manager); and
Effect of service of notice of appointment of receiver
Section 496 (3) (a), (b) and (c)
substitute
(a)the withdrawal or transfer is made by cheque or other instrument drawn on the account signed by—
(i)the receiver; or
(ii)a manager appointed for the practice; or
(iii)a nominee of the receiver or manager; or
(b)the withdrawal or transfer is made by means of electronic or internet banking facilities by—
(i)the receiver; or
(ii)a manager appointed for the practice; or
(iii)a nominee of the receiver or manager; or
(c)the withdrawal or transfer is made in accordance with an authority to withdraw or transfer funds from the account signed by—
(i)the receiver; or
(ii)a manager appointed for the practice; or
(iii)a nominee of the receiver or manager.
Section 496 (9)
after
the practice
insert
or another trust account nominated by the manager or receiver
Role of receiver
Section 497 (5) (b)
omit everything before paragraph (b) (i), insert
(b)require the practice, an associate or former associate of the practice, or anyone else who has, or has had, control of client files and associated documents (including documents relating to trust money received by the practice), to give the receiver—
Section 497 (6), new note
insert
NoteIf a form is approved by the law society council under s 587 for this provision, the form must be used.
Power of receiver to require documents or information
Section 502 (1) (a) and (b)
substitute
(a)access to documents relating to the affairs of the practice the receiver reasonably requires;
(b)information relating to the affairs of the practice the receiver reasonably requires (verified by statutory declaration if stated in the requirement).
Section 502 (5) (c)
substitute
(c)an offence relating to the falsity of the answer; or
(d)proceedings taken by the receiver for the recovery of regulated property.
Section 502 (6)
omit
Section 502 (7), definition of relevant person
substitute
relevant person, for a law practice, means—
(a)an associate or former associate of the practice; or
(b)anyone who has, or has had, control of documents of the practice; or
(c)anyone who has information relating to regulated property of the practice or property that the receiver reasonably believes to be regulated property of the practice.
Lien for costs on regulated property
Section 504 (1) (b)
substitute
(b)the practice, or a legal practitioner associate of the practice, claims a lien for legal costs on regulated property of the practice.
Section 504 (2)
omit everything before paragraph (a), insert
(2)The receiver may give the law practice or the legal practitioner associate a written notice requiring the practice or associate to give the receiver within a stated period of not less than 1 month—
Section 504 (3)
substitute
(3)If the law practice or legal practitioner associate asks the receiver in writing to give access to the regulated property that is reasonably necessary to enable the practice or associate to prepare a bill of costs to comply with subsection (2), the time allowed under that subsection does not start to run until the access is provided.
Ending of receiver’s appointment
Section 509 (1)
substitute
(1)The appointment by the Supreme Court of a receiver for a law practice ends in the following circumstances:
(a)the term (if any) of the appointment ends;
(b)the appointment is set aside under section 514 (Appeal against appointment of supervisor or manager);
(c)a decision of the Supreme Court that the appointment be ended takes effect.
New section 509 (1A) to (1D)
insert
(1A)The Supreme Court may, on application by the law society council or the receiver made at any time, determine that the appointment be terminated immediately or with effect from a stated date.
(1B)A receiver for a law practice must apply to the Supreme Court to end the appointment when the affairs of the practice have been wound up and ended, unless the term (if any) of the appointment has already ended.
(1C)On application under subsection (1B), the Supreme Court may make the order that it considers appropriate.
(1D)The appointment of a receiver is not stayed by the making of an application for ending the receiver’s appointment, and the receiver may continue to exercise his or her functions as a receiver pending the Supreme Court’s decision on the application, except to the extent (if any) that the Supreme Court otherwise directs.
New section 515A
insert

515AManager and receiver appointed for law practice
If a manager and receiver are appointed for a law practice, any decision of the receiver prevails over any decision of the manager in the exercise of their respective powers, to the extent of any inconsistency.

Section 516
substitute
ADI disclosure requirements
(1)An ADI commits an offence if—
(a)an external intervener for a law practice produces to the ADI evidence of the appointment of the intervener in relation to the practice; and
(b)the external intervener requires the ADI to disclose to the external intervener whether the practice, or an associate of the practice, keeps or has kept an account with the ADI during the period stated by the intervener; and
(c)the ADI fails to comply with the requirement.
Maximum penalty: 50 penalty units.
(2)An ADI commits an offence if—
(a)an account is kept with the ADI by a law practice, or an associate of a law practice; and
(b)an external intervener for a law practice produces to the ADI evidence of the appointment of the intervener in relation to the practice; and
(c)the external intervener requires the ADI to give the intervener details of all accounts kept with the ADI by the law practice or the associate; and
(d)the ADI fails to comply with the requirement.
Maximum penalty: 50 penalty units.
(3)An ADI commits an offence if—
(a)an account is kept with the ADI by a law practice, or an associate of a law practice; and
(b)an external intervener for a law practice produces to the ADI evidence of the appointment of the intervener in relation to the practice; and
(c)the external intervener requires the ADI—
(i)to produce for inspection or copying by the intervener, or a nominee of the intervener, any records relating to the account or money deposited in the account; or
(ii)to give the intervener details of any transactions relating to the account or money; and
(d)the ADI fails to comply with the requirement.
Maximum penalty: 50 penalty units.
(4)If an external intervener for a law practice reasonably believes that trust money has, without the authorisation of the person who entrusted the trust money to the law practice, been deposited into the account of a third party who is not an associate of the practice, the ADI at which the account is kept must, if asked by the intervener, disclose to the intervener—
(a)whether a person stated by the intervener keeps or has kept an account with the ADI during the period stated by the intervener; and
(b)if so, details of the account.
(5)A request under this section may be general or limited to a particular kind of account.
(6)This section applies despite any territory law, law of the Commonwealth or duty of confidence to the contrary.
(7)An ADI or an officer or employee of an ADI is not liable for any loss or damage suffered by someone else because of the producing of records, or the giving of details, under subsection (3).
New sections 519A and 519B
insert

519AProvisions relating to requirements under this part
(1)This section applies to a requirement imposed on a person under this part to give an external intervener access to documents or information.
(2)The validity of the requirement is not affected, and the person is not excused from compliance with the requirement, on the ground that a law practice or Australian legal practitioner has a lien over a particular document.
(3)The external intervener imposing the requirement may—
(a)inspect a document given to the intervener in compliance with the requirement; and
(b)make a copy of the document or part of the document; and
(c)keep the document for the period the intervener thinks necessary for the purposes of the external intervention for which it was produced.
(4)The person is not subject to any liability, claim or demand only because the person complies with the requirement.
(5)A failure of an Australian lawyer to comply with the requirement can be unsatisfactory professional conduct or professional misconduct.
(6)The relevant council may, on its own initiative, suspend a local practitioner’s practising certificate while a failure by the practitioner to comply with the requirement continues.

519BObstruction of external intervener
(1)A person commits an offence if—
(a)the person obstructs, hinders, intimidates or resists an external intervener in the exercise of his or her functions under this Act; and
(b)the person knows that the external intervener is an external intervener.
Maximum penalty: 50 penalty units.
(2)Strict liability applies to the circumstance that the external intervener was exercising a function under this Act.
(3)This section does not apply if the person has a reasonable excuse.

Requirements that may be imposed for investigations, examinations and audits under pt 3.1 and pt 2.6
Section 525 (1)
substitute
(1)For carrying out a trust account investigation, trust account examination or ILP compliance audit in relation to a law practice, an investigator may, on production of evidence of the investigator’s appointment, require the practice or an associate or former associate of the practice or anyone (including, for example, an ADI, auditor or liquidator) who has, or has had, control of documents relating to the affairs of the practice to give the investigator either or both of the following:
(a)access to the documents relating to the affairs of the practice the investigator reasonably requires;
(b)information relating to the affairs of the practice the investigator reasonably requires (verified by statutory declaration if stated in the requirement).
NoteAn example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act, s 126 and s 132).
Requirements that may be imposed for investigations under ch 4
Section 526 (2)
substitute
(2)For carrying out a complaint investigation in relation to an Australian lawyer, the investigator may, on production of evidence of the investigator’s appointment and by written notice require an associate or former associate of a law practice of which the lawyer is or was an associate or anyone (including, for example, an ADI, auditor or liquidator but not including the lawyer) who has, or has had, control of documents relating to the affairs of the lawyer to give the investigator either or both of the following:
(a)access to the documents relating to the affairs of the lawyer the investigator reasonably requires;
(b)information relating to the affairs of the lawyer the investigator reasonably requires (verified by statutory declaration if stated in the requirement).
NoteAn example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act, s 126 and s 132).
Provisions relating to requirements under pt 6.2
Section 527 (2)
before
legal practitioner
insert
Australian
New section 555A
in part 6.5, insert

555AObstruction of investigator
(1)A person commits an offence if—
(a)the person obstructs, hinders, intimidates or resists an investigator in the exercise of his or her functions under this Act; and
(b)the person knows that the investigator is an investigator.
Maximum penalty: 50 penalty units.
(2)Strict liability applies to the circumstance that the investigator was exercising a function under this Act.
(3)This section does not apply if the person has a reasonable excuse.

Purpose—pt 8.3
Section 578
omit
locally-registered foreign lawyers
substitute
Australian-registered foreign lawyers
Division 8.3.2 heading
substitute

Division 8.3.2 Rules for Australian legal practitioners and Australian‑registered foreign lawyers

Subject matter of legal profession rules
Section 582
omit
locally-registered foreign lawyers
substitute
Australian-registered foreign lawyers
Rules for incorporated legal practices and multidisciplinary partnerships
Section 584 (3) (a) and (b)
omit
services,
substitute
services
Section 584 (3) (c)
substitute
(c)regulate any services that a multidisciplinary partnership or partners or employees of a multidisciplinary partnership may provide or conduct (other than the provision of legal services or other services that may give rise to a conflict of interest relating to the provision of legal services); or
Section 584 (3) (d)
omit
services,
substitute
services
New section 587A
insert

587AProtection from liability
(1)A person is not civilly liable for anything done or omitted to be done honestly and without recklessness—
(a)in the exercise of a function under this Act; or
(b)in the reasonable belief that the act was in the exercise of a function under this Act.
(2)This section does not limit any other provision of this Act about protection of an entity from liability.

Associates who are disqualified or convicted people
Section 589 (1)
substitute
(1)A law practice must not have a person as a lay associate if—
(a)a principal, or other legal practitioner associate, of the practice knows that the person—
(i)is a disqualified person; or
(ii)has been convicted of a serious offence; and
(b)the person is not approved by the relevant council under subsection (2).
New section 589 (5A)
insert
(5A)Proceedings for an offence under subsection (4) may only be brought within 6 months after discovery of the offence by the law practice.
Section 589 (7), definition of disqualified person
omit
Section 589 (7), new definition of lay associate
insert
lay associate, of a law practice, includes a consultant to the law practice (however described) who—
(a)is not an Australian legal practitioner; and
(b)provides legal or related services to the law practice, other than services of a kind prescribed by regulation.
NoteLay associate is defined for the Act in s 9 (Terms relating to associates and principals of law practices).
Minister may determine fees
Section 601 (1)
omit
in relation to the admissions board
substitute
(other than for anything in relation to which a fee may be determined under section 84 (Determination of fees by law society council and bar council))
Regulation-making power
New section 602 (1A)
insert
(1A)Without limiting subsection (1), a regulation may make provision about any matter in relation to which a legal profession rule has been made or may be made.
Continuing application of provisions of Legal Practitioners Act about costs
Section 606 (2) (a)
omit
review
substitute
assessment
Costs disclosure
Section 607 (2) (a) and (3) (a)
omit
review
substitute
assessment
Dictionary, new definition of associated third party payer
insert
associated third party payer, for part 3.2—see section 261A (Terms relating to third party payers).
Dictionary, definition of client
substitute
client—
(a)for this Act generally—includes a person to whom or for whom legal services are provided; and
(b)for part 3.5 (Mortgage practices and managed investment schemes)—see section 369.
Dictionary, definitions of conditional costs agreement and costs agreement
omit
review
substitute
assessment
Dictionary, definition of commercial legal presence
omit
Dictionary, definition of costs review
substitute
costs assessment, for part 3.2 (Costs disclosure and assessment)—see section 261.
Dictionary, definition of disbursements
omit
review
substitute
assessment
Dictionary, definition of disqualified person
substitute
disqualified person means any of the following people:
(a)a person whose name has been removed from an Australian roll (whether or not at the request of the person) and who has not later been admitted to the legal profession under this Act or a corresponding law;
(b)a person who is not an Australian legal practitioner because the person’s Australian practising certificate has been cancelled under this Act or a corresponding law;
(c)a person whose Australian practising certificate has been suspended under this Act or a corresponding law and in relation to whom the suspension is in force;
(d)a person who has been refused a renewal of an Australian practising certificate under this Act or a corresponding law and who has not later been granted an Australian practising certificate;
(e)a person who is the subject of an order under this Act or a corresponding law prohibiting a law practice from employing or paying the person in relation to the practice;
(f)a person who is the subject of an order under this Act or a corresponding law prohibiting an Australian legal practitioner from being a partner of the person in a business that includes the practitioner’s practice;
(g)a person who is the subject of an order under section 123 (Disqualification from managing incorporated legal practice) or section 148 (Prohibition on multidisciplinary partnerships with certain partners who are not Australian legal practitioners) or under a provision of a corresponding law that corresponds to section 123 or section 148.
Dictionary, new definition of government lawyer
insert
government lawyer means an Australian lawyer, or a person eligible to be admitted as an Australian lawyer, employed by—
(a)the Territory, a State, another Territory or the Commonwealth; or
(b)a government department (however described) of the Territory, a State, another Territory or the Commonwealth; or
(c)an entity prescribed by regulation as a government agency.
Dictionary, definitions of litigious matter and lump sum bill
omit
review
substitute
assessment
Dictionary, new definition of non-associated third party payer
insert
non-associated third party payer, for part 3.2—see section 261A.
Dictionary, definition of scale of costs
omit
review
substitute
assessment
Dictionary, new definition of sophisticated client
insert
sophisticated client, for part 3.2 (Costs disclosure and assessment)—see section 261.
Dictionary, definition of supervised legal practice, new paragraph (ba)
insert
(ba)as a government lawyer, if the person engages in legal practice under the supervision of an Australian lawyer who holds, or otherwise meets the criteria for the grant or renewal of, an unrestricted practising certificate; or
Dictionary, new definition of third party payer
insert
third party payer, for part 3.2—see section 261A.
Dictionary, definition of trust money
substitute
trust money means money entrusted to a law practice in the course of or in connection with the provision of legal services by the practice, and includes—
(a)money received by the practice on account of legal costs in advance of providing the services; and
(b)controlled money received by the practice; and
(c)transit money received by the practice; and
(d)money received by the practice that is the subject of a power, exercisable by the practice or an associate of the practice, to deal with the money for or on behalf of another person.
Dictionary, definition of uplift fee
omit
review
substitute
assessment

Schedule 1Consequential amendments

(see s 3)

Part 1.1Court Procedures Rules 2006
[1.1]Rule 6250 (3) (e)
omit
review
substitute
assessment

Part 1.2Legal Aid Act 1977
[1.2]Section 69 (b)
omit
review
substitute
assessment

[1.3]Dictionary, definition of practising certificate
substitute
practising certificate means an unrestricted practising certificate, a restricted practising certificate or a barrister practising certificate under the Legal Profession Act 2006.

Endnotes

Presentation speech
Presentation speech made in the Legislative Assembly on 30 August 2007.
Notification
Notified under the Legislation Act on 28 September 2007.
Republications of amended laws
For the latest republication of amended laws, see certify that the above is a true copy of the Legal Profession Amendment Bill 2007, which was passed by the Legislative Assembly on 25 September 2007.
Clerk of the Legislative Assembly
© Australian Capital Territory 2007