327Determination to initiate external intervention

327 Determination to initiate external intervention

327 Determination to initiate external intervention

(1) This section applies when the designated local regulatory authority becomes aware that one or more of the circumstances referred to in section 326 exist in relation to a law practice and decides that, having regard to the interests of the clients of the law practice and to other matters that it considers appropriate, external intervention is warranted.

(2) The designated local regulatory authority may determine to initiate the appointment under this Chapter of—

(a) a supervisor of trust money of the law practice, if the designated local regulatory authority is of the opinion—

(i) that external intervention is required because of issues relating to the law practice’s trust accounts; and

(ii) that it is not appropriate that the provision of legal services by the law practice be wound up and terminated because of those issues; or

(b) a manager for the law practice, if the designated local regulatory authority is of the opinion—

(i) that external intervention is required because of issues relating to the law practice’s trust records; or

(ii) that the appointment is necessary to protect the interests of clients in relation to trust money or trust property; or

(iii) that there is a need for an independent person to be appointed to take over professional and operational responsibility for the law practice; or

(c) a receiver for the law practice, if the designated local regulatory authority is of the opinion—

(i) that the appointment is necessary to protect the interests of clients in relation to trust money or trust property; or

(ii) that it may be appropriate that the provision of legal services by the law practice be wound up and terminated.

(3) The designated local regulatory authority may, from time to time, make further determinations in relation to the law practice and for that purpose may, at the designated local regulatory authority’s absolute discretion, revoke a previous determination with effect from a date or event specified by the designated local regulatory authority.