LEGAL PROFESSION ACT 1987 - SECT 55 Investigation of affairs of solicitor or locally registered foreign lawyer

This legislation has been repealed.

LEGAL PROFESSION ACT 1987 - SECT 55

55 Investigation of affairs of solicitor or locally registered foreign lawyer

(1) The Law Society may, by instrument signed by the President or 2 members of the Law Society Council, appoint:

(a) one or more trust account inspectors to inspect, either generally or in a particular case, accounts kept under Part 6 by or on behalf of solicitors or to investigate (subject to Part 3B) the affairs, or specified affairs, of a solicitor or solicitors, and

(b) an investigator to investigate the affairs, or specified affairs, of a solicitor or solicitors,

and any such trust account inspector or investigator shall provide the Law Society Council with a report on each inspection or investigation carried out.

(1A) The Law Society may, by instrument signed by the President or 2 members of the Law Society Council, appoint:

(a) one or more trust account inspectors to inspect, either generally or in a particular case, accounts (if any) required to be kept by regulations made for the purposes of section 48ZAB by a locally registered foreign lawyer registered by the Law Society Council, and

(b) an investigator to investigate the affairs, or specified affairs, of a locally registered foreign lawyer or registered foreign lawyer.

(2) A trust account inspector or an investigator may, with the approval of the Law Society Council, appoint an assistant.

(3) A solicitor or locally registered foreign lawyer under inspection or investigation and any other person who has possession or control of any records of the solicitor or foreign lawyer or relating to the affairs of the solicitor or foreign lawyer shall, if required to do so by a trust account inspector or an investigator who produces evidence of his or her appointment, provide the trust account inspector or investigator, or his or her assistant, with:

(a) access to such of the records as relate to the accounts being inspected or the affairs being investigated,

(b) information that the solicitor or foreign lawyer or other person is able to give in relation to those records, accounts and affairs, and

(c) authorities or orders on bankers and others that relate to those records, accounts or affairs and that the solicitor or foreign lawyer or other person is able to provide.

Maximum penalty: 10 penalty units.

(4) If a record:

(a) is not in writing,

(b) is not written in the English language, or

(c) is not decipherable on sight,

a requirement to provide access to the record is not complied with unless access is provided to a statement, written in the English language and decipherable on sight, that contains all the information in the record.

(5) A person shall not hinder, obstruct or delay a trust account inspector or an investigator in the exercise of his or her functions.

Maximum penalty: 10 penalty units.

(6) A solicitor or locally registered foreign lawyer who contravenes subsection (3) or (5) is, whether or not convicted for the contravention, guilty of professional misconduct.

(7) A trust account inspector or an investigator shall:

(a) send a copy of his or her report to the solicitor or locally registered foreign lawyer by post to the address of the solicitor or foreign lawyer last known to the Law Society, and

(b) provide the Attorney General and the Commissioner with a copy of the report if it indicates that there are reasonable grounds for suspecting professional misconduct, improper conduct or irregularity in relation to affairs of the solicitor or foreign lawyer.

(8) The amount of the costs of an inspection or investigation, as certified by the Law Society Council, is a debt due to the Law Society by the solicitor or locally registered foreign lawyer under inspection or investigation if:

(a) in the case of an inspection of accounts kept under Part 6 by or on behalf of the solicitor or foreign lawyer--a trust account inspector states in his or her report that there is evidence that a breach of this Act or the regulations has been committed and the Law Society Council is of the opinion that the breach was wilful or of a substantial nature, or

(b) in the case of an investigation of the affairs of the solicitor or foreign lawyer--a trust account inspector or an investigator states in his or her report that there are reasonable grounds for suspecting unsatisfactory professional conduct or professional misconduct in relation to the affairs investigated or a breach of this Act or the regulations and the Law Society Council is of the opinion that the conduct or breach was wilful or of a substantial nature,

unless payment is waived by the Law Society Council.

(8A) If the inspection or investigation concerned relates to the accounts or affairs of a firm of solicitors, the Law Society Council may determine the proportion or amount (if any) of the debt due to the Law Society payable by each solicitor involved.

(8B) If the inspection or investigation concerned relates to the accounts or affairs of a firm in which a locally registered foreign lawyer is practising in partnership as referred to in section 48ZT, the Law Society Council may determine the proportion or amount (if any) of the debt due to the Law Society payable by each partner involved.

(9) A person who complies with a requirement made by a trust account inspector or an investigator under subsection (3) shall not be subject, merely because of that compliance, to any liability, claim or demand.

(10) A person is not eligible to be appointed as a trust account inspector or an investigator under this section unless the person is:

(a) a solicitor,

(b) an accountant, or

(c) an officer or employee of the Law Society.

(11) In this section:

"affairs", in relation to a solicitor or locally registered foreign lawyer, includes:

(a) accounts kept under Part 3C or 6 or otherwise by or on behalf of the solicitor or foreign lawyer or an associate of the solicitor or foreign lawyer,

(b) any other records kept by or on behalf of the solicitor or foreign lawyer or an associate of the solicitor or foreign lawyer,

(c) any transactions to which the solicitor or foreign lawyer was a party or in which the solicitor or foreign lawyer acted for a party, and

(d) any related matter that an investigator considers should be further investigated.

"associate", in relation to a solicitor or locally registered foreign lawyer, has the same meaning as it has in Part 6.

"locally registered foreign lawyer", includes:

(a) a firm of locally registered foreign lawyers,

(b) a former locally registered foreign lawyer,

(c) in relation to anything done or omitted by a locally registered foreign lawyer--a deceased locally registered foreign lawyer,

(d) except in relation to anything done or omitted by a locally registered foreign lawyer--the personal representative of a deceased locally registered foreign lawyer.

"record" includes any book, account, document, paper or other source of information compiled, recorded or stored in written form, or on microfilm, or by electronic process, or in any other manner or by any other means.

"solicitor", except as a trust account inspector or an investigator, includes:

(a) a firm of solicitors,

(b) a former solicitor,

(c) in relation to anything done or omitted to be done by a solicitor--a deceased solicitor or deceased former solicitor, and

(d) except in relation to anything done or omitted to be done by a solicitor--the personal representative of a deceased solicitor or deceased former solicitor.