370Conduct of mortgage practices

370 Conduct of mortgage practices (1) A solicitor must not, in the solicitor’s capacity as solicitor for a lender mortgage unless— (a) the mortgage is a territory regulated mortgage; or (b) the mortgage is a run-out mortgage; or (c) the mortgage forms part of a managed investment scheme that is operated by a responsible entity. (2) A solicitor must not, in the solicitor’s capacity as solicitor for a lender mortgage except in accordance with— (a) the Corporations Act, or that Act as modified by any ASIC exemption or the regulations under that Act; and (b) this Act. (3) A solicitor must not, in the solicitor’s capacity as solicitor for a lender mortgage that forms part of a managed investment scheme unless the solicitor complies with any ASIC exemption that applies to managed investment schemes that— (a) have more than 20 members; and (b) are operated under the supervision of the law society in accordance with that exemption. (4) Subsection (3) applies even if the regulated mortgage forms part of a managed investment scheme that has no more than 20 members. (5) Subsection (3) does not apply if the managed investment scheme is operated by a responsible entity. (6) A solicitor who knows that an associate has contravened subsection (1), (2) or (3) must give written notice to the law society council of that fact not later than 21 days after the day the solicitor becomes aware of the contravention. (7) A contravention of this section can be professional misconduct.