Sch 4applies to an investigation under this Division.

Schedule 4 applies to an investigation under this Division. 31—Investigator's report (1) As soon as practicable after completing the investigation, the investigator must give a written report of the investigation to the Society. (2) The investigator must not disclose information in the report or acquired in carrying out the investigation except— (a) to the practice that or person who is a subject of the investigation or report; or (b) as is necessary for properly conducting the investigation and making the report of the investigation; or (c) as provided in Schedule 4 Part 5 clause 19. 32—When costs of investigation are debt (1) If— (a) an investigator states in his or her report of an investigation that there is evidence that a breach of this Act or the regulations has been committed or evidence that a fiduciary or professional default has occurred in relation to the law practice whose affairs are under investigation; and (b) the Society is satisfied that the breach or default is wilful or of a substantial nature, the Society may decide that the whole or part of the costs of carrying out the investigation is payable to the Society and may specify the amount payable. (2) The amount specified by the Society is a debt payable to the Society by the law practice whose affairs are under investigation. (3) The Society must, before seeking to recover the amount payable, give the law practice written notice of the Society's decision, the reasons for the decision and the amount specified as being payable. Division 2—External examinations 33—Designation of external examiners (1) The Society may, in writing, designate persons (referred to in this Division as designated persons) as being eligible to be appointed as external examiners. (2) Only designated persons may be appointed as external examiners. (3) An employee or agent of the Society may be a designated person. (4) The Society may revoke a person's designation under this clause. 34—Trust records to be externally examined (1) A law practice must, as soon as practicable after the end of each financial year, have its trust records for that year externally examined by an external examiner appointed in accordance with the regulations. (2) The Society may appoint an external examiner to examine a law practice's trust records if the Society is not satisfied— (a) that the practice has had its trust records externally examined as required by this clause; or (b) that an external examination of the practice's trust records has been carried out in accordance with the regulations. (3) Without affecting the generality of clause 49, this clause has effect subject to any exemptions provided by or given under the regulations from the requirement to have trust records examined as otherwise required by this clause. 35—Examination of affairs in connection with examination of trust records (1) An external examiner appointed to examine a law practice's trust records may examine the affairs of the practice for the purposes of and in connection with an examination of the trust records. (2) A reference in this Division and Schedule 4 to trust records includes a reference to the affairs of a law practice that may be examined under this clause for the purposes of and in connection with an examination of the practice's trust records. 36—Designation and appointment of associates as external examiners (1) The Society may designate an associate of a law practice under this Division only if the Society is satisfied that it is appropriate to do so. (2) However, an associate of a law practice cannot be appointed as an external examiner under this Division to examine the practice's trust records. 37—Final examination of trust records (1) This clause applies if a law practice— (a) ceases to be authorised to receive trust money; or (b) ceases to engage in legal practice in this jurisdiction. (2) The law practice must appoint an external examiner to examine the practice's trust records— (a) in respect of the period since an external examination was last conducted; and (b) in respect of each period thereafter, comprising a completed period of 12 months or any remaining partly completed period, during which the practice continued to hold trust money. (3) The law practice must lodge with the Society— (a) a report of each examination under subclause (2) within 60 days after the end of the period to which the examination relates; and (b) a statutory declaration in a form approved by the Attorney‑General or the Society within 60 days of ceasing to hold trust money. (4) If a legal practitioner who is a principal or an associate of a law practice dies, the practitioner's legal personal representative must assist the law practice to comply with this clause as if the representative were the practitioner. (5) Nothing in this clause affects any other requirements under this Schedule. 38—Carrying out examination (1) Schedule 4 applies to an external examination under this Division. (2) Subject to Schedule 4, an external examination of trust records is to be carried out in accordance with the regulations. (3) Without limiting subclause (2), the regulations may provide for the following: (a) the standards to be adopted and the procedures to be followed by external examiners; (b) the form and content of an external examiner's report on an examination. 39—External examiner's report (1) Subject to subclause (2), as soon as practicable after completing an external examination, an external examiner must give a written report of the examination to the Society. (2) A written report of an external examination completed pursuant to clause 34(1) must, if reasonably practicable, be given by the external examiner to the Society on or before 31 October following the financial year to which the report relates. (3) The examiner must not disclose information in the report or acquired in carrying out the examination, unless permitted to do so under subclause (4) or under Schedule 4 Part 5 clause 19. (4) The examiner may disclose information in the report or acquired in carrying out the examination— (a) as is necessary for properly conducting the examination and making the report of the examination; or (b) to an investigator or a supervisor, manager or receiver appointed in relation to the law practice; or (c) to the law practice concerned or an associate of the law practice. 40—Law practice liable for costs of examination (1) A law practice whose trust accounts have been externally examined must pay the costs of the examination. (2) If the Society appointed the external examiner to carry out the examination, the Society may specify the amount payable as the costs of the examination, and the specified amount is a debt payable to it by the law practice. (3) The Society must, before seeking to recover the amount payable, give the law practice written notice of the Society's decision, the reasons for the decision and the amount specified as being payable. Part 4—Provisions relating to ADIs 41—Approval of ADIs (1) Subject to subclause (2), the Society may approve ADIs at which trust accounts to hold trust money may be maintained. (2) The Society may not approve an ADI unless the ADI is prepared to pay interest on trust accounts at a rate equal to or above the rate determined by the Society. (3) The Society may impose conditions, of the kinds prescribed by the regulations, on and under this clause, when the approval is given or during the currency of the approval, and may amend or revoke any conditions imposed. (4) The Society may revoke an approval given under this clause. 42—ADI not subject to certain obligations and liabilities (1) An ADI at which a trust account is maintained by a law practice— (a) is not under any obligation to control or supervise transactions in relation to the account or to see to the application of money disbursed from the account; and (b) does not have, in relation to any liability of the law practice to the ADI, any recourse or right (whether by way of set‑off counterclaim, charge or otherwise) against money in the account. (2) Subclause (1) does not relieve an ADI from any liability to which it is subject apart from this Act. 43—Reports, records and information (1) An ADI at which a trust account is maintained must report any deficiency in the account to the Society as soon as practicable after becoming aware of the deficiency. (2) An ADI at which a trust account is maintained must report a suspected offence in relation to the trust account to the Society as soon as practicable after forming the suspicion. (3) An ADI must furnish to the Society reports about trust accounts in accordance with the regulations. (4) An ADI at which a trust account is maintained must without charge— (a) produce for inspection or copying by an investigator or external examiner any records relating to the trust account or trust money deposited in the trust account; and (b) provide the investigator or external examiner with full details of any transactions relating to the trust account or trust money, on demand by the investigator or the external examiner and on production to the ADI of evidence of the appointment of the investigator or the external examiner in relation to the law practice concerned. (5) Subclauses (1) to (4) apply despite any rule of legislation or duty of confidence to the contrary. (6) An ADI or an officer or employee of an ADI is not liable to any action for any loss or damage suffered by another person as a result of— (a) reporting a deficiency in accordance with subclause (1); or (b) making or furnishing a report in accordance with subclause (2) or (3); or (c) producing records or providing details in accordance with subclause (4). 44—Restrictions on receipt of trust money (1) A law practice (other than an incorporated legal practice or a community legal centre) must not receive trust money unless each principal holds a practising certificate that does not prohibit the receipt of trust money. (2) An incorporated legal practice must not receive trust money unless— (a) at least 1 legal practitioner director of the practice holds a practising certificate that does not prohibit the receipt of trust money; or (b) a person is holding an appointment under Schedule 1 clause 10 in relation to the practice and the person holds a practising certificate that does not prohibit the receipt of trust money; or (c) the money is received during any period during which the practice— (i) does not have any legal practitioner directors; and (ii) is not in default of director requirements under Schedule 1 clause 10, so long as there was, immediately before the start of that period, at least 1 legal practitioner director of the practice who held a practising certificate that did not prohibit the receipt of trust money. 45—Protection from liability (1) A matter or thing done or omitted to be done by a protected person does not, if the matter or thing was done or omitted to be done in good faith for the purpose of the administration of this Schedule, subject the person to any action, liability, claim or demand. (2) In this clause— (a) the Society; or (b) the Council; or (c) an officer, employee or agent of the Society; or (d) an investigator; or (e) an external examiner. 46—Application of Schedule to incorporated legal practices The regulations may provide that specified provisions of this Schedule, and any other provisions of this Act, the regulations or the legal profession rules relating to trust money and trust accounts, do not apply to incorporated legal practices, or to specified classes of incorporated legal practices, or apply to them with specified modifications. 47—Disclosure to clients—money not received as trust money (1) In this clause— non‑trust money means money that is not trust money for the purposes of this Act because of a determination under clause 3. (2) When money entrusted to a law practice is or becomes non‑trust money, the practice must, in accordance with this clause and the regulations, notify the person who entrusted the money to the practice that— (a) the money is not treated as trust money for the purposes of this Act and is not subject to any supervision, investigation or external examination requirements of this Act; and (b) a claim against the Fidelity Fund under this Act cannot be made in respect of the money. (3) The notification must be given, in writing, to the person at the time— (a) the money is entrusted to the law practice, if the money is non‑trust money when it is entrusted to the practice; or (b) the money becomes non‑trust money, if the money was trust money when it was entrusted to the practice. (4) The regulations may make provision for or with respect to the form and manner in which notification required by this clause is to be given and the contents of the notification. 48—Disclosure of accounts used to hold money entrusted to law practice or legal practitioner associate (1) A law practice must in accordance with the regulations notify the Society of the details required by the regulations of each account maintained at an ADI in which the law practice or any legal practitioner associate of the law practice holds money entrusted to the practice or legal practitioner associate. (2) Subclause (1) applies whether or not the money is trust money and whether or not clause 3 applies to the money. 49—Regulations The regulations may make provision for or with respect to any matter to which this Schedule relates, including for or with respect to— (a) the establishment, maintenance and closure of general trust accounts and controlled money accounts; and (b) the manner of receiving, depositing, withdrawing, making records about and otherwise dealing with and accounting for trust money; and (c) without limiting paragraph (a) or (b)— (i) the keeping and reconciliation of trust records; and (ii) the establishment and keeping of trust ledger accounts; and (iii) the establishment and keeping of records about controlled money and transit money; and (iv) the establishment and keeping of registers of powers and estates where trust money is involved; and (v) the recording of information about the investment of trust money; and (vi) the furnishing of statements regarding trust money; and (d) the notification to the Society of information relating directly or indirectly to matters to which this Schedule relates, including information about— (i) trust accounts, trust money and trust records; and (ii) the proposed or actual termination of a law practice that holds trust money; and (iii) the proposed or actual termination of engaging in legal practice in this jurisdiction by a law practice that holds trust money; and (iv) the proposed or actual restructuring of the business of a law practice so that it no longer holds or no longer will hold trust money; and (e) the creation and exercise of liens over trust money; and (f) providing exemptions, or providing for the giving of exemptions, from all or any specified requirements of this Schedule.