Legal Profession Act 1987 No 109
122G Requirement to obtain fidelity insurance in respect of
(1) Section 120 does not apply in respect of a regulated mortgage that
was entered into before the relevant commencement
(2) Despite subsection (1), section 120 applies in respect of a
solicitor if money entrusted to the solicitor by a client (whether before, on
or after the relevant commencement date) is advanced or proposed to be
advanced on or after the relevant commencement date to a borrower for a
regulated mortgage entered into before the relevant commencement date. In such
(a) the solicitor must ensure that a policy of fidelity insurance is
in force in respect of the advance in accordance with section 120, and comply
with section 122, and
(b) section 121 (1) applies to any claim against the Fidelity Fund in
so far as it relates to such an advance.
(3) For the purpose of applying section 122 (1) in such a case, the
date that money is entrusted to the solicitor by a client is taken to be the
relevant commencement date, or the date on which the money is entrusted to the
solicitor, whichever is the later.
(4) This section is subject to section 122I (which allows solicitors
to substitute lenders under a run-out mortgage without obtaining fidelity
(5) In this section, the relevant
commencement date means the date of commencement of section 120, as
inserted by the Legal Profession Amendment
(Mortgage Practices) Act 2000.