LEGAL PROFESSION ACT 2006 - SECT 374 Bar on claims against fidelity fund relating to regulated mortgages

LEGAL PROFESSION ACT 2006 - SECT 374

    (1)     A lender or contributor under a regulated mortgage is not entitled to claim against the fidelity fund to obtain compensation for a financial loss if the claim relates to a regulated mortgage for which a solicitor is required to have fidelity insurance under section 373 (Solicitor to have fidelity cover for regulated mortgages).

    (2)     Subsection (1) does not apply if the solicitor who acts for the lender or contributor contravenes section 373 in relation to the mortgage.

    (3)     However, any claim on the fidelity fund by a lender or contributor to whom subsection (2) relates—

        (a)     is to be dealt with as if the solicitor had complied with section 373; and

        (b)     in particular, is subject to the same restrictions (including the amount of any compensation payable) as would have applied to a claim under an approved policy of fidelity insurance had such a policy been in force in relation to the solicitor in accordance with that section.