Fidelity Fund

Question 1

What is the purpose for which the fidelity fund was established?

Answer 1

Fund was established to reimburse members of the public who suffer financial loss due to the theft of an attorney, employee or candidate of money or property entrusted to that attorney

Question 2

What is a fidelity fund certificate?

Answer 2

Certificate issued ito provisions of the Attorneys Act 53 to any practitioner practicing for its own account. remains valid until 31 dec each year.

Question 3

What does the law society require from an attorney who needs its first fidelity fund certificate in order to practice for its own account

Answer 3

1. Complete the prescribed online application form
2. Disclosing the name of the firm
3. Contact details and names of partners
4. commencement date
5. Trust banking account details
6. Act requires a course in practice management training and opening certificate by an accountant that a proper bookkeeping system is in use

Question 4

What is the effects of failing to renew Fidelity Fund Certificate?

Answer 4

An attorney may not practice without it 41(1)
One who does act in contravention may not take any fees for work done
under s83(1) it is also a criminal offence and may be suspended or removed from the roll of practitioners

Question 5

Discuss briefly Payments by the Attorneys Fidelity Fund for the direct benefit of individual practices

Answer 5

The Fidelity Fund contributes to bank charges on trust accounts; costs of annual examination by accountant and pays premiums to the AIIF

Question 6

Discuss briefly Payments by the Attorneys Fidelity Fund for the benefit of the profession generally

Answer 6

The fund contributes to the administration of the LSSA; finances de rebus; subsidizes schools for legal practice and practice courses and seminars