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LEGAL PROFESSION ACT 2006 - SECT 254 Restrictions on receipt of trust money

LEGAL PROFESSION ACT 2006 - SECT 254

Restrictions on receipt of trust money

    (1)     A law practice (other than an incorporated legal practice) must not receive trust money unless a principal holds an Australian practising certificate authorising the receipt of trust money.

    (2)     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.

    (3)     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.

Note     For 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)).

    (4)     An incorporated legal practice commits an offence if—

        (a)     the practice receives trust money; and

        (b)     none of the following subparagraphs applies:

              (i)     at least 1 legal practitioner director of the practice holds an Australian practising certificate authorising the receipt of trust money;

              (ii)     a person is holding an appointment under section 109 (Incorporated legal practice without legal practitioner director) in relation to the practice and the person holds an Australian practising certificate authorising the receipt of trust money;

              (iii)     the money is received during a period during which the practice—

    (A)     does not have a legal practitioner director; and

    (B)     is not in default of director requirements under section 109 ;

but there was, immediately before the start of the period, at least 1 legal practitioner director of the practice who held an Australian practising certificate authorising the receipt of trust money.

Maximum penalty: 50 penalty units.

    (5)     An offence against subsection (2), (3) or (4) is a strict liability offence.