The New Zealand Law Society has reported on the formal winding up of the Solicitors’ Fidelity Guarantee Fund following legislative reforms that replaced it with the broader Lawyers’ Fidelity Fund. The change arises from the enactment of a new regulatory framework extending compensation coverage beyond solicitors to include conveyancers and other regulated legal service providers. As a result, the legacy fund (worth close to $14.62mwas no longer fit for purpose and has been wound , with its remaining assets dealt with in accordance with statutory requirements.
The current Lawyers’ Fidelity Fund reflects on reforms introduced by the Lawyers and Conveyancers Act of 2006 with a more unified compensation model focused on lawyers in public practice as part of a broader legal framework covering legal and conveyancing services. . The regulatory changes were intended to make consumer protection more consistent across legal and conveyancing services, but the fidelity fund itself still only covers theft by lawyers.
The transition involves the treatment of legacy funds, management and allocation of residual assets and the need to ensure continuity of consumer protection during regulatory transitions.