Page 2386 - Week 08 - Thursday, 30 August 2007
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A large number of the provisions in this bill make merely technical changes, and I will not discuss those in detail at this time. Many of the technical or corrective amendments flow from more significant provisions in the bill.
Many of the provisions of this bill simply reflect mandatory amendments in the model law. I will briefly summarise the more significant refinements.
Provisions relating to a person’s eligibility for admission to the legal profession, and to obtain a practising certificate, have been clarified in line with changes to the model law. It has been of utmost importance in this project to ensure that the requirements for qualifying and licensing lawyers are as uniform as possible throughout Australia.
The bill also refines the provisions relating to the registration and regulation of foreign lawyers.
Section 41 is amended in a number of respects, the most significant change making it clear that the obligation to apply for a local practising certificate in the ACT applies only to a practitioner who reasonably expects to engage in practice solely or principally in the ACT in the next financial year. The existing provision is more onerous, imposing the obligation upon a practitioner who expects to practise in the ACT in any capacity in the next financial year.
Clause 99 inserts a new subsection 210 (4) into the act, setting out who may exercise the power given to a law practice or an associate of the practice to deal with money on behalf of a person. This is an important protection for the client and a particular amendment to the model law that this government strongly supports.
A new section 223A provides that a law practice must not withdraw trust money from a general trust account otherwise than by cheque or electronic funds transfer. The section expressly prohibits cash withdrawals, ATM transactions and telephone banking transactions. A new section 224A makes similar provisions for controlled money accounts.
Members may wish to pay particular attention to clauses 95 to 124 of the bill, which make a range of important, if often small, changes to the provisions of the act relating to trust money and controlled money. The amendments follow revisions to the model law that significantly clarify the obligations of legal practitioners in relation to money held on behalf of other people.
The bill also makes extensive improvements to the provisions of the act in relation to costs disclosure and assessment, also largely in accordance with revisions to the model law. Again there are some important clarifications of protections for clients and other people responsible for paying bills, as well as some practical amendments to reduce the level of unnecessary disclosure and notification undertaken by law practices when dealing with experienced clients. Members are referred to clauses 125 to 198 of the bill.
Clause 140 substitutes a new paragraph 269 (1) (b) (iii) into the act. A law practice must disclose to a client the client’s right to request an itemised bill if the lump sum
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