Administered by the Law Society of NSW, the Fidelity Fund receives annual contributions from solicitors as part of their practising certificate requirements. The money received is used to pay compensation to members of the public who successfully claim financial loss due to a solicitor’s or firm’s dishonest failure to pay or deliver trust money or property.

You do not have to be a client of the solicitor or firm that has committed the dishonesty. Any person who has suffered financial loss may make a claim on the Fidelity Fund.

There are specific financial and time limitations in relation to claims against the Fund. Notify the Fidelity Fund Manager at the Law Society of NSW in writing as soon as you become aware of your loss or suspect that a solicitor or firm has acted dishonestly in relation to trust money or property.

The Law Society of NSW will send you a claim form and an information brochure.

1. Read the information brochure.
2. Complete and return the claim form to the Law Society. We recommend that you engage a new solicitor to assist you in the completion of the claim form.
3. Upon receipt of your claim form, the Law Society may make further enquiries to fully investigate your claim.
4. The Fidelity Fund Management Committee will decide your claim. It can allow or disallow your claim, or compromise or settle it.

If your claim is successful you can receive compensation for:

• the specific sum which you have lost as a result of the dishonesty
• interest on this amount, and
• the reasonable costs of the new solicitor acting for you in regards to your Fidelity Fund claim.

The information brochure sent with your claim form has more details about how the interest and costs are calculated.

The Fidelity Fund is not an insurance scheme. It does not cover claims for negligence by a solicitor or a law firm. In some circumstances the Fund will not cover regulated mortgages, managed investment schemes or other investment money placed with a solicitor. The information brochure sent with your claim form contains more information.

The Law Society may advertise in the press if it has fixed a final date for receipt of Fidelity Fund claims against a law practice. The current advertisements can also be viewed on the Current Notices page.

Claims must be received by the Law Society no later than the final date fixed in the advertisement. A late claim will only be considered if the Council allows further time.

For almost all Fidelity Fund claims, there is a limit on payments of a total of $1,000,000 for all claims against a particular solicitor or firm. The Law Society may increase this total amount above $1,000,000, but is not obliged to do so.

However, for one specific type of claim on the Fidelity Fund (for “dishonest default” under the Legal Profession Act 1987) there is a different financial limit of $1,000 for each dishonest default.

You can view the Fidelity Authority Statement here.