The Lawyers' Fidelity Fund (Fund) is a statutory entity established under Part 10 of the Lawyers and Conveyancers Act (LCA) 2006, for the purpose of reimbursing pecuniary (monetary) loss arising from theft by lawyers in public practice after 1 August 2008.

How is it funded?

The Fund is maintained by the Law Society and held in trust for its statutory purposes. It is funded by compulsory contributions from qualifying lawyers, imposed by the Law Society, paid in conjunction with lawyers’ annual practising certificate fees.

Lawyers handling trust money

For a range of reasons, many lawyers handle clients’ or others’ money. Lawyers who do so must do that through what is called a ‘trust account’. Lawyer's use of their trust accounts is regulated, and lawyers must strictly observe the requirements that apply to trust accounts and when lawyer’s receive client’s money.

Find out more about lawyer’s obligations when handling client's money. 

Where there is theft by a lawyer, the Lawyers’ Fidelity Fund may be able to provide compensation.

Making a claim

If you wish to make a claim against the Fund, you may do so by completing a claim in the form set out in the regulations (forms for claims and declarations) and emailing it to LFF@lawsociety.org.nz

A claim must contain full details of the matters giving rise to it and the amount it is for.

Important things to note

Potential claimants should be aware of the following:

• Time limit: A claim must be made within 12 months of the claimant becoming aware of the theft (claim event), unless the Law Society allows an extension of time to make a claim (at its discretion).
• Theft only: The Fund exists to compensate those who have suffered pecuniary (monetary) loss because of theft. It does not compensate losses that arise from other conduct, such as negligence, breach of duties owed or other misconduct.
• Maximum amount: The maximum amount payable to an individual claimant under the Fund is $100,000.
• Investment exclusion: Except in certain limited circumstances, the Fund does not cover a client for any loss relating to money that a lawyer is instructed to invest on behalf of the client (see s322 of the LCA).
• Fund of last resort: The Fund is a fund “of last resort”. This means that someone making a claim may be required to pursue alternative remedies to recover the loss, before the Fund would pay compensation.