Trust money and fidelity fund | The Law Society of NSW

Trust Money

& Fidelity Fund

The Law Society's Trust Accounts Department ensures that law practices across the state comply with stringent laws concerning the receipt, holding and disbursement of trust money – the money a law practice holds on behalf of a client or other people in the course of, or in connection with, the provision of legal services.

The Trust Accounts Department carries out this important function by conducting investigations of solicitors’ trust and controlled money accounts and reviewing general account records in order to detect and prevent fraud.

To promote understanding of this complex area, the Department conducts education programs and offers advice to both practitioners and support staff. To encourage best-practice the Department also maintains a suite of practical resources.

The Trust Accounts Department wants to reassure all law practices that we are sympathetic to challenging circumstances posed by COVID-19 protocols.

Click here to read about COVID-19 and your Trust Account

Legal Practitioners

Fidelity Fund

What does the fidelity fund do?

Administered by the Law Society under provisions in the legal profession legislation, the Fund exists to compensate persons who suffer pecuniary loss due to defaults by law practices arising from dishonest acts or omissions of associates of the practice relating to trust money or property.

How is my fidelity fund fee set?

The amount of your Fidelity Fund contribution may change from year to year. The Law Society's Council considers how much is currently in the Fund and the type and number of claims that are made in order to establish the fee amount. Before being charged to solicitors the fee set by the Council must be approved by the Attorney General.

How are claims made?

For more information about the eligibility requirements and application procedures for members of the public go to the Legal Practitioners Fidelity Fund page in the For the Public section of this website.

Advertisement for claims

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.