NZLS

Lawyers and Conveyancers Act (LCA)

The Lawyers and Conveyancers Act 2006 received the Royal Assent on 20 March 2006. It can be accessed on the government's legislation website, www.legislation.govt.nz and is available from Bennetts Government Bookshop.

The Governor-General has, by Order in Council, appointed 1 August 2008 as the date that the LCA comes into force .

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LCA Implementation

Rules

Three sets of rules have been made under the LCA. These are:

Rules of Conduct and Client Care

Lawyers and Conveyancers Act (Lawyers: Conduct and Client Care) Rules 2008.

These rules, made under ss94 and 95 of the LCA, will replace the Rules of Professional Conduct for Barristers and Solicitors (7th edition), as published in 2006. They will provide for, among other things, standards of conduct and client care, the requirement that lawyers provide clients in advance with information on the principal aspects of client service, the kinds of conduct for which a lawyer or former lawyer may be disciplined, and conditional fee agreements. All lawyers should make themselves familiar with these rules.

Important notice - indemnity arrangements

Indemnity Rules

Lawyers and Conveyancers Act (Lawyers: Indemnity) Rules 2008.

These new rules, made under ss94 and 99 of the LCA, will establish that it is not compulsory for lawyers to hold professional indemnity insurance. However, R 4(2) will require lawyers who are partners or directors of a practice to consider holding appropriate PI insurance. Under R 5(1) the NZLS must, within two years of the commencement of the rules, consider and determine whether to require lawyers or incorporated firms to hold PI insurance.

Nominee Companies

Lawyers and Conveyancers Act (Lawyers: Nominee Company) Rules 2008.

These rules, made under s96 of the LCA, will relate to the formation and operation of lawyers’ nominee companies. They will be broadly similar to, and replace, the Solicitors Nominee Company Rules 1996.

Constitution

The New Zealand Law Society will operate under a new constitution, which it has made under the LCA.

Constitution

Lawyers and Conveyancers Act (Lawyers) Constitution 2008.

The Constitution of the New Zealand Law Society Council, made pursuant to s70 of the LCA, was adopted by the New Zealand Law Society on 18 July 2008.

Mediators sought

Voluntary mediators are wanted to assist the standards committees, and the profession, in resolving complaints.

Regulations

Regulations under the Lawyers and Conveyancers Act have been gazetted and are available on the Government’s legislation website www.legislation.govt.nz.

Practice Rules

Lawyers and Conveyancers Act (Lawyers: Practice Rules) Regulations 2008.

Made under ss94 and 108 of the LCA, these regulations relate to the issue of practising certificates, the register of lawyers, and lawyers’ obligations in respect of those. They also include provisions about approval for practice on own account, and about information that incorporated firms are required to provide to the NZLS, along with transitional provisions.

Trust Account

Lawyers and Conveyancers Act (Trust Account) Regulations 2008.

These regulations, made under s115 of the LCA, apply to both lawyers’ and conveyancers’ trust accounts. They relate to the management of trust accounts, training, the inspectorate and the financial assurance scheme. They are broadly similar to, and replace, the Solicitors’ Trust Account Regulations 1998 and the Solicitors’ Trust Account Rules 1996.

Fidelity Fund

Lawyers and Conveyancers Act (Lawyers: Fidelity Fund) Regulations 2008.

These regulations, made under s108 of the LCA, establish the new Lawyers’ Fidelity Fund. Among other things, they set the maximum amount payable to an individual claimant at $100,000, the minimum size at which the fund is to maintained in any financial year, and the process for dealing with claims. The form for making claims, and the form of declaration in support of claim are set in schedules to the regulations.

Complaints Service and Standards Committees

Lawyers and Conveyancers Act (Lawyers: Complaints Service and Standards Committees) Regulations 2008.

These regulations, made under ss94, 108 and 122 of the LCA, establish the Lawyers Complaints Service and provide for the publication of information about it. Among other things, they set the process for making complaints, provide for the establishment and operation of Standards Committees, and the appointment of their members and convenors.

Legal Complaints Review Officer

Lawyers and Conveyancers Act (Legal Complaints Review Officer) Form and Fee Regulations 2008.

These regulations are made under ss198 and 339(a) and (g) of the LCA. They set the form to be used for applications to the Legal Complaints Review Officer (LCRO), and the fee payable for applications for review ($30 GST inc).

Disciplinary Tribunal

Lawyers and Conveyancers Act (Disciplinary Tribunal) Regulations 2008.

These regulations, made under s339 of the LCA, provide for hearing charges and applications for interim suspension, for application for consent to employ and for sundry matters such as adjournments, evidence, method of service, filing and production of documents and exhibits, and records of proceedings.

Senior Counsel and Queen’s Counsel

Lawyers and Conveyancers Act (Lawyers: Senior Counsel and Queen’s Counsel) Regulations 2008.

These regulations, made under s119 of the LCA, prescribe the process by which candidates may be recommended for appointment as Senior Counsel, the application fees payable, the privileges and duties of Queen’s Counsel and Senior Counsel, and the conditions of appointment and practice.

Admission

Lawyers and Conveyancers (Lawyers: Admission) Rules 2008.

These rules are made under s54 of the LCA and s51C of the Judicature Act, and replace The Law Practitioners Admission Rules 1987. They are in the form of regulations. They set the process for applying to the High Court for admission as a barrister and solicitor. The relevant forms are set in schedules to the rules.

Client Care documentation

Documentation to assist lawyers comply with the Rules of Conduct and Client Care for Lawyers is provided in three PDF documents, available for download using the links below. There are three documents:

Letter of Engagement PDF Word

Information for Clients PDF Word

Standard Terms of Engagement PDF Word

The Information for Clients form contains the information that the Rules of Conduct and Client Care for Lawyers state must be provided to clients at the outset of an engagement. This form should not be amended except to the extent indicated on the form.

The Standard Terms of Engagement form is a sample only.

Once a law practice has settled its Terms of Engagement form and completed the Information for Clients form, all variables relating to a particular retainer can then normally be set out in the letter of engagement.

It is recommended that each law practice ensure that the above material is given to each new client at the commencement of a retainer. It is also necessary to give all existing clients, at the least, the Information for Clients form, together with the information as to fees and the persons responsible for the work.

LCA implementation stories in LawTalk

Duncan Webb's "fascinating" new role

Legal Complaints Review Officer functions

August start for new LCA regime

New rules seminars - 5 May 2008

LCA training in hand - 5 May 2008

Lawyers Standards Committees - 5 May 2008

Financial Assurance Scheme changes - 21 April 2008

New disciplinary tribunal vacancies - 21 April 2008

LCA implementation plans - 7 April 2008

Free seminars on new rules - 7 April 2008

Conduct and client care rules - 3 March 2008