• Specific Year
    Any

LEGAL PROFESSION ACT 1987 - SECT 122B Involvement of solicitors in managed investment schemes

This legislation has been repealed.

LEGAL PROFESSION ACT 1987 - SECT 122B

Involvement of solicitors in managed investment schemes

122B Involvement of solicitors in managed investment schemes

(1) This Part does not prevent a solicitor from carrying out any legal work in connection with a managed investment scheme that is operated by a responsible entity, or from having an interest in such a managed investment scheme or in the responsible entity for such a managed investment scheme.
(2) However, if a client entrusts, or proposes to entrust, money to a solicitor to be invested in a managed investment scheme that is operated by a responsible entity, and the solicitor has a prescribed interest in the managed investment scheme, the solicitor must give the client a notice in writing that advises the client that:
(a) the solicitor has an interest in the managed investment scheme, and
(b) the operation of the managed investment scheme does not form part of the solicitor's practice, and
(c) there is no claim against the Fidelity Fund for a pecuniary loss arising from an investment in the managed investment scheme.
(3) The notice is to include such other matters as may be required by the regulations or the solicitors rules.
(4) The solicitor must not advance the money entrusted to the solicitor to the responsible entity for the managed investment scheme or to any other person unless the client has been given the notice.
(5) A solicitor who knows that an associate has contravened a requirement referred to in this section must notify the Law Society Council in writing of that fact within 21 days after becoming aware of the contravention.
(6) A solicitor who contravenes this section commits professional misconduct.
(7) For the purposes of this section, a solicitor has a "prescribed interest" in a managed investment scheme if:
(a) the solicitor, or an associate of the solicitor, is a director of or concerned in the management of the responsible entity for the managed investment scheme, or
(b) the solicitor, or an associate of the solicitor, is a shareholder in the responsible entity for the managed investment scheme, or
(c) the solicitor, or an associate of the solicitor, is taken to be an agent of the responsible entity under Chapter 5C of the Corporations Act 2001 of the Commonwealth, or
(d) the solicitor, or an associate of the solicitor, receives any pecuniary benefit from the managed investment scheme or the responsible entity for the managed investment scheme if a client of the solicitor invests in the managed investment scheme, or
(e) the solicitor, or an associate of the solicitor, has an interest of a kind prescribed by the regulations or solicitors rules in the managed investment scheme or the responsible entity for the managed investment scheme.
(8) In this section:

"legal work" includes general legal work (within the meaning of section 48E).