Legal Practitioners Act 1981

The Act's reach is broad, directly affecting legal practitioners, law practices, clients, and related entities. "Legal practitioner" is defined in s.5(1) as a person admitted and enrolled as a barrister and solicitor of the Supreme Court, or an interstate legal practitioner practising in the State. This includes sole practitioners, partners, legal practitioner directors of incorporated legal practices (s.5A(3)), and employees or consultants (s.5A(1)). Barristers are expressly covered despite practising solely as such (s.6(2)), though they may not receive trust money (Schedule 2 cl.10).

Law practices are central: the term encompasses sole practitioners, firms of legal practitioners or incorporated legal practices, incorporated legal practices practising on their own account, and community legal centres (s.5(1)). Incorporated legal practices are regulated under Schedule 1, requiring at least one legal practitioner director (cl.8) and prohibiting non-legal services (cl.2). Foreign lawyers registered under Schedule 1A (locally or interstate) are subject to restricted scope of practice (cl.6), insurance obligations (cl.14), and ethical standards (cl.8). Interstate legal practitioners practising in South Australia must comply with local conditions (s.23B) and notify office establishment (s.23D).

Clients and third-party payers are protected through costs disclosure (Schedule 3 Part 3), trust account rules (Schedule 2 Part 2), and the Fidelity Fund (Part 5). "Client" includes those to whom legal services are provided; "third party payer" covers persons legally obliged to pay costs even if not the direct client (Schedule 3 cl.2). Sophisticated clients (Schedule 3 cl.13(1)(c)–(d)) — such as public companies, financial services licensees, or government bodies — receive fewer disclosure protections.

Regulatory bodies are both affected and empowered. The Law Society manages the Fidelity Fund (s.57), combined trust account (s.53), and may appoint investigators or managers (ss.44–45). LPEAC sets admission and practising certificate qualifications (s.14C). The Legal Profession Conduct Commissioner investigates complaints (s.77B), conciliates (s.77O), and may impose sanctions with consent (s.77J). The Disciplinary Tribunal hears charges (s.82) and the Supreme Court exercises inherent jurisdiction (s.88A) and hears appeals (s.86). The Attorney-General holds oversight powers, including approving insurance schemes (s.52) and authorising payments from the Fidelity Fund (s.57(5)).

Other affected parties include ADIs holding trust accounts (Schedule 2 Part 4), external examiners and investigators (Schedule 4), personal representatives carrying on practices (s.50), and directors of wound-up corporations (s.49). The Act binds the Crown in right of the State (implicit in its regulatory scope) and interacts with federal legislation such as the Corporations Act 2001 (Cth) for incorporated practices (Schedule 1 cl.29) and the Bankruptcy Act 1966 (Cth) for show cause events (s.5(1)).

In practice, the Act affects every stage of legal service delivery in South Australia, from admission through to post-practice claims against the Fidelity Fund. Non-compliance can expose practitioners to disciplinary action, clients to financial risk, and regulators to administrative burdens.

The Act imposes a web of duties on legal practitioners and practices, balanced by rights for clients and procedural safeguards.

Duties of practitioners and practices. Core professional obligations include duties to the Supreme Court, conflict management, client disclosure, and ethical rules (s.5(1) definition of "professional obligations"). Practitioners must hold a current practising certificate (s.21(1)), maintain insurance (s.19, s.52), and comply with conditions (s.22(b)). Trust money must be deposited in a general trust account within 14 days of prescribed dates (s.53(1)), with strict withdrawal rules (Schedule 2 cl.14). Costs must be disclosed before or as soon as practicable after retainer (Schedule 3 cl.12), in clear language (cl.16), including estimates, interest rates, and dispute avenues (cl.10). Conditional costs agreements are permitted but must set out success criteria, contain a 5-business-day cooling-off period, and cap uplift fees at 25% for litigious matters (cll.25–26). Contingency fees are prohibited (cl.27).

Incorporated legal practices must have a legal practitioner director responsible for management systems ensuring compliance (Schedule 1 cl.8(3)), notify commencement (cl.4), and face extended vicarious liability (cl.16). Foreign lawyers may practise only foreign law, arbitration, or certain tribunal matters (Schedule 1A cl.6), must register locally if practising from an office (cl.4), and comply with insurance and fidelity fund contributions (cll.14–15). Legal practitioner associates of community legal centres retain full professional obligations and privileges (s.23F).

The Commissioner must investigate complaints (s.77B), notify practitioners (s.77D), consider submissions (s.77E), and either deal with minor matters (s.77J), conciliate (s.77O), or lay charges (s.77L). The Society must report certain matters to the Commissioner (s.14AB), including appointments of supervisors or managers and suspected misconduct.

Rights. Clients have rights to costs disclosure (Schedule 3 cl.10), itemised bills (cl.34), progress reports (cl.19), and adjudication of costs (Part 7). They may negotiate costs agreements (cl.24) and, in disciplinary contexts, receive notice and make submissions (s.77D, s.83). Third-party payers, including associated and non-associated payers (Schedule 3 cl.2), enjoy parallel rights where they bear costs liability.

Practitioners have rights to appeal Commissioner determinations (s.77K), Tribunal orders (s.86), and to apply for revocation of suspensions (s.20AF). They may surrender certificates (s.20AK) and, in show cause events (bankruptcy or serious offence convictions, s.5(1)), provide statements explaining fitness (ss.20AG–20AH). Interstate practitioners have rights to practise subject to notification and conditions (ss.23B–23C).

The public may inspect registers of practising certificates (s.20(2)), disciplinary action (s.89C(5)), and locally registered foreign lawyers (Schedule 1A cl.49). The Fidelity Fund provides compensation for defaults where recovery is unlikely (s.60), with rights to advance payments (s.64A) and subrogation to the Society (s.65).

Safeguards. Self-incrimination is overridden but derivative use immunity applies (s.95C). Legal professional privilege is preserved in most contexts (s.95C(3), Schedule 2 cl.20). Proceedings are generally public (s.84A) but may be closed to protect privacy (s.84A(2)). Absolute privilege attaches to Tribunal proceedings (s.84B).

These duties and rights are enforced through a graduated system, with the Commissioner acting as gatekeeper before Tribunal or Court involvement.

The Act deploys a multi-layered enforcement regime combining criminal, civil, and disciplinary sanctions.

Criminal penalties. Unauthorised practice attracts a maximum $50,000 fine (s.21(1)). Practising while suspended or in breach of conditions carries $10,000 (s.22). Unlawful representation as a qualified lawyer or holding out unqualified persons is $10,000 (s.23(1)–(2)). Aiding unqualified practice or profit-sharing with unqualified persons is $10,000 (s.23(3)). Employment of disqualified persons is $10,000, with a defence of reasonable ignorance (s.23AA(1)–(2)). Failure to notify office establishment is $10,000 (s.23D(1)). Undue influence on community legal centre practitioners is $50,000 (s.23G). Mortgage financing without disclosure is $10,000 (s.95BA(2)). False or misleading information is $10,000 (s.95B). Summary offences require Attorney-General authorisation (s.96(2)).

Trust account breaches attract $50,000 or 1 year imprisonment for non-compliance with investigator requirements (Schedule 2 cl.5(5), cl.24(5), Schedule 4 cl.3(5), cl.4(3)). Obstruction of investigators is $50,000 (Schedule 4 cl.16). Incorporated legal practices face $50,000 for various breaches (Schedule 1 cll.4(2), 6(1), 10(1), 18(1), 21(6)).

Civil and administrative sanctions. Practising certificates may be amended, suspended, or cancelled on grounds including unfitness or breach of conditions (s.20AC, Division 2A). Immediate suspension is available in the public interest (s.20AJ, up to 56 days). Show cause events trigger mandatory statements and potential refusal or conditions (ss.20AG–20AI). Costs agreements in breach of Part 5 are void (cl.29), with repayment obligations (cl.29(3)–(5)). Adjudication may reduce costs for non-disclosure (Schedule 3 cl.18(4)) and order refunds (s.41(4)(a)).

The Fidelity Fund satisfies valid claims (s.64), with apportionment for insufficient funds (s.64(3)) taking account of hardship (s.64(4)). Advance payments are discretionary (s.64A). The Society is subrogated to claimant rights (s.65).

Disciplinary enforcement. Unsatisfactory professional conduct is conduct falling short of the standard a competent practitioner would meet (s.68). Professional misconduct includes substantial failure to maintain standards or conduct justifying a finding of unfitness (s.69). Specific conduct is deemed capable of constituting either (s.70), including breaches of the Act, excessive charging, convictions for serious or dishonest offences, insolvency, or failure to comply with orders or mentoring agreements.

The Commissioner investigates (s.77B), may close complaints (s.77C), and after investigation may reprimand, fine (up to $5,000 or $10,000 with consent for unsatisfactory conduct; up to $20,000 for misconduct), impose conditions, order training, or suspend certificates (up to 3 or 6 months) (s.77J). With consent, further powers include medical examination or mentoring (s.77J(1)(b)–(2)). Failure to comply with s.77J orders is professional misconduct (s.77J(10)). Charges must be laid if conduct cannot be adequately dealt with under s.77J and it is in the public interest (s.77L).

The Tribunal may reprimand, fine (up to $50,000 or $10,000 if constituted by one member), impose conditions (up to 12 months), suspend (up to 12 or 3 months), or recommend Supreme Court proceedings (s.82(6)). The Supreme Court may reprimand, impose conditions, suspend, strike off, or make other just orders (s.89(2)). Interim suspension is available (s.89A). Disciplinary action is publicised via a register (s.89C) and other means (s.89D), with liability protection for good-faith publication (s.89F).

Enforcement bodies. The Commissioner, Society, Attorney-General, and aggrieved persons may initiate proceedings. The Tribunal and Supreme Court have broad procedural powers (ss.84, 89). Costs orders are available (s.85), with certificates enforceable as judgments (s.85(3)–(4)). Appeals lie to the Supreme Court (s.86), with possible stays (s.87).

Grounds for amending, suspending, or cancelling registration of foreign lawyers mirror those for local practitioners (Schedule 1A cl.26). Banning orders may disqualify corporations (Schedule 1 cl.21) or individuals from managing practices (cl.22).

The regime is calibrated: minor breaches attract Commissioner sanctions; serious matters proceed to the Tribunal or Court. Public interest is a recurring filter (e.g. s.77L, s.20AJ).

The Act is not a code; it expressly interacts with, defers to, and displaces other legislation.

Federal legislation. Schedule 1 cl.29 provides that the Act prevails over the Corporations Act 2001 (Cth) to the extent of inconsistency in relation to incorporated legal practices, with regulations able to declare provisions as Corporations legislation displacement provisions under s.5G (cl.29(1)). External administration under the Corporations Act is subject to court regard for client interests (Schedule 1 cl.24). The Australian Securities and Investments Commission may receive information (Schedule 1 cl.23). Bankruptcy show cause events reference the Bankruptcy Act 1966 (Cth) (s.5(1)). Tax offences invoke the Taxation Administration Act 1953 (Cth) (s.5(1)). The Judiciary Act 1903 (Cth) defines the Australian Government Solicitor (s.5(1)).

State and territory laws. Corresponding laws in participating States trigger mutual recognition for interstate practitioners (s.5(1) definitions, Division 3A). The Act prevails over inconsistent State legislation establishing incorporated practices (Schedule 1 cl.28). It interacts with the Conveyancers Act 1994 (SA) (s.21(3)(c), (o)–(q)), Land Agents Act 1994 (SA) (s.21(3)(m)–(n)), Real Property Act 1886 (SA) (s.21(3)(o)), Community Titles Act 1996 (SA), and Strata Titles Act 1988 (SA). The Notaries Public Act 2016 (SA) is referenced for notaries (s.17A(8), s.21(3)(r)). The Family Relationships Act 1975 (SA) defines domestic partners (s.5(1)). The Unclaimed Moneys Act 1891 (SA) governs unclaimed trust money (s.44(2), Schedule 2 cl.22(1)(c)).

Supreme Court and rules. The Supreme Court retains inherent jurisdiction (s.88A) and may assign functions by rules (s.52A). Admission requires compliance with Court and LPEAC rules (s.15(1)(c)). The Tribunal's procedures are governed by Supreme Court rules (s.88). Costs agreements and adjudication engage Supreme Court powers (Schedule 3 Part 7).

Other South Australian Acts. The Independent Commission Against Corruption Act 2012 (SA) excludes certain office-holders from Part 6 (s.67B(e)). The Judicial Conduct Commissioner Act 2015 (SA) excludes judicial officers (s.67B(a)). The Public Sector (Honesty and Accountability) Act 1995 (SA) applies to the Commissioner (s.75). The Subordinate Legislation Act 1978 (SA) is disapplied for internal Society rules (s.14(3)).

Common law. Professional conduct rules supplement common-law duties (s.5(1)). Conflicts of interest extend to incorporated practices (Schedule 1 cl.13). Client legal privilege is preserved (s.23F(3), Schedule 1A cl.3, Schedule 2 cl.20). The Act does not affect common-law rights to delivery of papers (s.39(2)) or authority for persons of unsound mind (s.40).

Inter-jurisdictional. The Act facilitates national uniformity via protocols for trust money location (Schedule 2 cl.5), mutual recognition (Division 3A, Division 6A), and agreements with other regulators (s.95AA). Conduct outside the State is covered (s.90AA). Disciplinary action in one jurisdiction affects others (s.89(6), Schedule 1A cl.30).

The Act authorises regulations to modify its application to community legal centres (s.23E(2)) and incorporated practices (Schedule 2 cl.46, Schedule 3 cl.52). It declares certain provisions as displacement provisions for the Corporations Act (Schedule 1 cl.29(1)).

In enforcement, the Act interacts with the Criminal Law Consolidation Act 1935 (SA) for offences and the Supreme Court Act 1935 (SA) for procedural matters (e.g. s.39 orders prohibiting vexatious litigants, s.77B(3b)).

The legislative history appended to the Act records progressive amendment since 1981. Key recent changes, grounded in the text, include:

• 2013 amendments (Legal Practitioners (Miscellaneous) Amendment Act 2013): These introduced the Legal Profession Conduct Commissioner (Part 6 Division 2 as substituted), replacing the Conduct Board. The change centralised investigation and early resolution (ss.77B–77O), added conciliation (s.77O), and strengthened show cause events (Division 2B). It expanded disciplinary publicity (Division 6) and aligned with national model laws. The "why" is evident in the text's emphasis on public interest, efficiency, and consistency with interstate regimes (s.5(1) "corresponding law").

• 2014 amendments (Statutes Amendment (Legal Practitioners) Act 2014): These refined practising certificate provisions (ss.20AA–20AK) and aligned definitions. They responded to operational experience with interstate mobility and show cause processes.

• 2016 amendments (Legal Practitioners (Miscellaneous) Amendment Act 2016 and Notaries Public Act 2016): The former added protections against vexatious complaints (s.77B(3b)–(3c)) and adjusted Tribunal constitution for minor matters (s.80(1a)). The latter integrated notaries, allowing LPEAC rules to apply (s.17A(8), s.21(3)(r)). These changes addressed workload pressures and modernised ancillary roles.

• 2019 amendments (Legal Practitioners (Foreign Lawyers and Other Matters) Amendment Act 2019 and Legal Practitioners (Miscellaneous) Amendment Act 2019): These updated foreign lawyer registration (Schedule 1A), costs adjudication (s.77N), and fidelity fund claims. They reflect national harmonisation and consumer protection enhancements post-financial services inquiries.

• 2020 amendment (Legal Practitioners (Senior and Queen's Counsel) Amendment Act 2020): This replaced Queen's/King's Counsel with Senior Counsel (Part 7 as substituted), abrogating prerogative power (s.92) while preserving existing titles (s.92(3)). The change modernised nomenclature and aligned with other jurisdictions.

• 2023–2025 amendments: These include adjustments to reporting (s.14AB), disciplinary processes (ss.77J, 82), and fidelity fund application (s.57(6)). The 2025 Statutes Amendment (Attorney-General's Portfolio) Act further refines penalties and Tribunal procedures.

These changes respond to practical issues (vexatious complaints, workload), national uniformity (mutual recognition, foreign lawyers), consumer protection (costs, fidelity), and modernisation (titles, corporate practice). The text shows incremental expansion from a 1981 focus on admission and basic regulation to a sophisticated, nationally integrated regime.

The Act has generated litigation primarily in disciplinary, costs, and trust account contexts, though the provided text does not cite specific cases. Controversies centre on procedural fairness, scope of "professional misconduct," and fidelity fund access.

Disciplinary challenges. Section 88A preserves the Supreme Court's inherent jurisdiction, leading to parallel proceedings. Challenges often contest Commissioner decisions to lay charges (s.77L) or Tribunal findings (s.82(6)). The text requires the Commissioner to provide reasons (s.77M) and affords rights to submissions (s.77E), reflecting fairness concerns. Appeals lie to the Supreme Court (s.86), with stays possible (s.87). Controversies arise where conduct outside South Australia is prosecuted (s.90AA) or where interstate disciplinary action triggers local consequences (s.89(6), Division 6A).

Costs adjudication. Schedule 3 Part 7 has been contentious. Courts must consider disclosure compliance (cl.46(2)(b)) and may reduce costs for non-disclosure (cl.18(4)). Disputes over "sophisticated clients" (cl.13(1)(c)–(d)) and uplift fees (cl.26) frequently reach the Supreme Court. The prohibition on contingency fees (cl.27) has been tested in litigious matters. Setting aside costs agreements (cl.30) requires assessing fairness, with the text listing non-exhaustive factors (cl.30(2)).

Trust account and fidelity fund. Schedule 2's strict deposit and withdrawal rules (cll.11–14, 19) have produced offences for deficiencies (cl.23). The combined trust account (s.53) and interest allocation (s.57A) have been challenged on quantum. Fidelity Fund claims (Part 5) require proof of default and unrecoverability (s.60(1)), with limitation notices (s.61) and apportionment for hardship (s.64(4)) generating disputes. The text limits claims to South Australian work (s.60(4)(ab)) and excludes insured liabilities (s.60(4)(b)).

Incorporated practices and foreign lawyers. Schedule 1 cl.8's director obligations and cl.21's banning powers have raised corporate governance issues. Schedule 1A's registration criteria (cll.22–24) and show cause events (cll.31–33) mirror local rules but have been controversial for interstate-registered foreign lawyers (Part 10).

Broader controversies. The Commissioner's dual investigative and prosecutorial role (s.72) has been critiqued for perceived bias, though s.77F exceptions to notification and s.77C closure powers provide flexibility. Public register of disciplinary action (s.89C) raises privacy concerns, balanced by quashing provisions (s.89E). The Act's interaction with the Independent Commission Against Corruption Act 2012 (s.67B(e)) and judicial officers (s.67B(a)) reflects ongoing demarcation debates.

The text emphasises public interest thresholds (e.g. s.20AJ, s.77L) and procedural protections (natural justice in Tribunal hearings, s.83), mitigating controversy. No specific High Court or appellate doctrine is stated, but the Act's grounding in Supreme Court rules (s.52A) and inherent jurisdiction (s.88A) ensures judicial oversight.

Most practitioners appreciate the broad strokes but miss nuances that can prove costly.

• Show cause events are broader than they appear. Section 5(1) defines them to include bankruptcy, creditor petitions, and convictions for serious or tax offences, even if committed outside practice or spent. A prior statement under s.20AG or 20AH does not always excuse a new filing (s.20AG(3)). Failure to provide the required statement within 7/28 days can lead to automatic refusal or cancellation (s.20AI), even if the event itself would not have barred registration.

• Trust money "received" is wider than cash in hand. Schedule 2 cl.6 deems receipt when the practice obtains control indirectly, via an associate, or through a power to deal. Electronic transfers, credit card authority, or even a direction to an ADI trigger the obligation. The "lowest aggregate" calculation for combined trust account deposits (s.53(2)) can catch practices that sweep accounts regularly.

• Costs disclosure is not a box-ticking exercise. Schedule 3 cl.10 requires estimates "if reasonably practicable" or a range plus major variables. A generic "our rates are $X–$Y per hour" will not suffice for litigious matters (cl.10(4)). Failure reduces recoverable costs proportionally (cl.18(4)) and may void agreements (cl.29(1)). Sophisticated client exemptions (cl.13) are narrowly construed; a subsidiary of a public company qualifies, but a small proprietary company generally does not.

• Incorporated practices create director liability traps. Schedule 1 cl.9 makes legal practitioner directors responsible for employee misconduct and unsuitable co-directors. "All reasonable steps" is an objective test (cl.9(2)). A director who knows of a conflict but relies on firm policy may still breach cl.13. External administration triggers Supreme Court approval before any director may practise (s.49).

• Interstate practitioners are not immune. An interstate practitioner establishing an office must notify within the prescribed period or face suspension (s.23D(4)). Conditions imposed by home regulators automatically apply (s.23B(1)), and local regulators may add further conditions no more onerous than those for locals (s.23C). Conduct outside the State can found local proceedings (s.90AA).

• Fidelity Fund claims have hidden limitations. Section 60(4)(ab) restricts extra-territorial claims to work arising from South Australian instructions or substantially performed here. "Reasonable prospect of recovery" disregards speculative litigation (s.60(1a)). Personal representatives may claim (s.60A), but the Fund is not an insurer of last resort for insured risks (s.60(4)(b)).

• The Commissioner's "adequate dealing" discretion is potent. Under s.77J the Commissioner may reprimand, fine, or suspend with consent for conduct that could otherwise go to the Tribunal. Refusal of consent can lead to full prosecution, with costs consequences if the practitioner is found guilty (s.85(1a)). The 21-day submission window (s.77D(3)) is strictly applied.

• Public register risks. Once disciplinary action is recorded (s.89C), removal is limited (s.89E only on quashing). Even quashed action must be publicised with equal prominence (s.89E(2)). "Disciplinary action" includes Commissioner sanctions under s.77J (s.89B(b)).

• Mentoring agreements are not soft options. Section 90B requires compliance with all conditions; breach is professional misconduct (s.70(h)). The mentor's report goes to the Society and Commissioner (s.90B(3)(c)).

These gotchas justify specialist advice. Practitioners often assume "I have insurance" or "the client agreed" suffices, only to discover strict statutory overrides.

Compliance requires systemic processes, not ad hoc responses. A risk-based approach grounded in the Act's text is essential.

Governance and admission. Ensure all practitioners hold current practising certificates (s.21). For admission, satisfy the Supreme Court of fitness and compliance with LPEAC rules (s.15(1)). Maintain records of post-admission training (s.17A). For incorporated practices, appoint and retain a legal practitioner director with an unrestricted certificate (Schedule 1 cl.8); implement management systems addressing conflicts, supervision, and record-keeping (cl.8(3)). Notify the Supreme Court before commencing practice (cl.4) or entering partnerships (cl.4A).

Practising certificate management. Apply annually (s.18), disclosing show cause events with explanatory statements (ss.20AG–20AH). Comply with all conditions, including supervised practice (s.17A). Maintain professional indemnity insurance at all times (s.19, s.52); an uninsured certificate is automatically suspended (s.19(1)(b)). Notify changes in circumstances that could affect fitness (s.20AC(a)).

Trust accounting. Designate an approved ADI (s.53(14)). Deposit trust money in a general trust account as soon as practicable (Schedule 2 cl.12), or follow written directions for controlled money (cl.15). Use only approved forms for withdrawals; prohibit cash, ATM, or telephone transfers (cll.14, 16). Reconcile monthly (cl.25), report irregularities (cl.24), and engage external examiners annually (cl.34). For the combined trust account, calculate and deposit the appropriate amount biannually (s.53(1)–(2)); justify any withholding in the examiner's report (s.53(11)). Pay interest to the statutory interest account (s.57A).

Costs and billing. Disclose in writing before or as soon as practicable after retainer (Schedule 3 cl.12): basis of calculation, estimate or range, client's rights, interest rate, litigious cost ranges, and dispute avenues (cl.10). For uplifts, provide separate estimates and justification (cl.15). Use plain language; translate if the client is more comfortable in another language (cl.16). Provide progress reports and itemised bills on request (cll.19, 34). Avoid lump sum bills if the client may later dispute quantum. Comply with scale or costs agreement; excessive charging is misconduct (s.70(b)).

Complaints and conduct. Maintain a system for receiving and responding to complaints. Notify the Commissioner of any matter that could constitute unsatisfactory professional conduct or professional misconduct (s.14AB(1)(c)). Cooperate with investigations: produce documents, answer questions, and provide access (Schedule 4 cll.3–4). Enter professional mentoring agreements if required (s.90B); comply with all conditions. For community legal centres, ensure practitioners' obligations are not compromised by non-practitioner officers (s.23F–23H).

Disciplinary preparedness. Keep detailed file notes, costs records, and trust ledgers. In show cause events, prepare comprehensive fitness statements within statutory timelines (ss.20AG–20AH). If facing a charge, engage promptly with the Commissioner to explore s.77J resolution. For Tribunal or Court proceedings, note that costs may follow the event (s.85) and that unreasonable refusal of Commissioner resolution can increase exposure (s.85(1a)).

Foreign and interstate practice. Interstate practitioners must notify conditions (s.23B(3)) and office establishment (s.23D). Foreign lawyers register if practising from an office (Schedule 1A cl.4), limit scope (cl.6), and maintain equivalent insurance (cl.14). Disclose non-compliant insurance to clients (s.52AAB).

Record-keeping and reporting. Retain trust records for the prescribed period (Schedule 2 cl.25(2)(d)). Report to the Commissioner on appointments of supervisors/managers, valid fidelity claims, and suspected misconduct (s.14AB). Lodge annual returns and pay levies. For incorporated practices, conduct internal audits (Schedule 1 cl.19) and notify changes (cll.4, 7).

Risk management. Implement conflicts systems (Schedule 1 cl.13), advertising rules (cl.15), and anti-money-laundering checks. Maintain run-off insurance. Educate staff on obligations; vicarious liability extends to practices (Schedule 1 cl.16, s.23AA).

Audit and review. Engage qualified external examiners (Schedule 2 cl.33). Respond promptly to Society or Commissioner notices. Conduct periodic self-audits against the Act, regulations, and Law Society rules.

Compliance is iterative. Maintain a compliance manual cross-referenced to sections, train annually, and seek specialist advice on novel issues. The "gotchas" above highlight that technical breaches, even without client loss, can trigger disciplinary consequences. Regular engagement with the Law Society and Commissioner minimises risk.