251Default involving interjurisdictional elements if committed by one associate only

251 Default involving interjurisdictional elements if committed by one associate only

251 Default involving interjurisdictional elements if committed by one associate only

(1) This section applies to a default of a law practice arising from or constituted by an act or omission that was committed by only one associate of the practice, where the default involves more than one of the cases referred to in section 220(2) to (4) (Meaning of relevant jurisdiction).

(2) The fidelity authority may treat the default to which this section applies as if the default consisted of 2 or more separate defaults—

(a) one of which is a default to which this Part applies, where this jurisdiction is the relevant jurisdiction; and

(b) the other or others of which are defaults to which this Part does not apply, where another jurisdiction or jurisdictions are the relevant jurisdictions.

(3) The fidelity authority may treat a claim about the default to which this section applies as if the claim consisted of—

(a) one or more claims made under this Part; and

(b) one or more claims made under a corresponding law or laws.

(4) A claim about a default to which this section applies is to be assessed on the basis that the fidelity funds of the relevant jurisdictions involved are to contribute—

(a) in equal shares in respect of the default, and disregarding sections 230 and 231 and the provisions of the corresponding laws of other jurisdictions that correspond to those sections; or

(b) in other shares as agreed by the fidelity authority and the corresponding authority or authorities involved.

(5) Subsection (4) does not affect the application of sections 230 and 231 in respect of the amount payable from the fidelity fund after the claim has been assessed.