220Meaning of relevant jurisdiction

220 Meaning of relevant jurisdiction

220 Meaning of relevant jurisdiction

(1) The relevant jurisdiction for an associate of a law practice whose act or omission (whether alone or with one or more other associates of the practice) gives rise to or constitutes a default of the practice is to be determined under this section.

Note

The concept of an associate’s “relevant jurisdiction” is used to determine the jurisdiction whose fidelity fund is liable for a default of a law practice arising from or constituted by an act or omission committed by the associate. The relevant jurisdiction for an associate is in some cases the associate’s home jurisdiction.

(2) In the case of a default involving trust money received in Australia (whether or not it was paid into an Australian trust account), the relevant jurisdiction for the associate is—

(a) if the trust money was paid into an Australian trust account and if the associate (whether alone or with a co-signatory) was authorised to withdraw any or all of the trust money from the only or last Australian trust account in which the trust money was held before the default—the jurisdiction under whose law that trust account was maintained; or

(b) in any other case—the associate’s home jurisdiction.

(3) In the case of a default involving trust money received outside Australia and paid into an Australian trust account, the relevant jurisdiction for the associate is—

(a) if the associate (whether alone or with a co-signatory) was authorised to withdraw any or all of the trust money from the only or last Australian trust account in which the trust money was held before the default—the jurisdiction under whose law that trust account was maintained; or

(b) in any other case—the associate’s home jurisdiction.

(4) In the case of a default involving trust property received in Australia, or received outside Australia and brought to Australia, the relevant jurisdiction for the associate is the associate’s home jurisdiction.

(5) In this section, Australian trust account means a trust account maintained under this Law or a trust account maintained under a corresponding law.

Note

Section 251 (Default involving interjurisdictional elements if committed by one associate only) provides that the interjurisdictional fidelity authority may treat the default as consisting of 2 or more defaults for the purpose of determining the liability of the fidelity fund.