The NZSOC has established a Conveyancing Practitioners Fidelity Fund in accordance with Part 10 Lawyers and Conveyancers Act 2006. Regulations provide for the management and maintenance of the fund.
The Conveyancing Practitioners Fidelity Fund is held for the purpose of reimbursing persons who suffer pecuniary loss as a result of theft by a Conveyancing Practitioner, an incorporated conveyancing firm, their employee or agent.
All Conveyancing Practitioners who practice on their own account, and all incorporated conveyancing firms that provide regulated services to the public are required to make financial contributions to the Fund on a regular basis.
The maximum amount that may be paid out of the Fidelity Fund to an individual claimant by way of compensation is an amount equal to 60% of the money in the fund or $1,000.00, whichever is the greater at the time. No person is entitled to recover from the Fund an amount greater than their loss suffered.
In addition, members of the Society may elect to be covered under the Society’s Master Professional Indemnity Insurance Policy which includes a fidelity cover of $100,000.00 for any one claim, which will be payable in the event that the Conveyancers Fidelity Fund is insufficient to provide compensation up to the maximum of $100,000.00. This master policy is owned by the NZ Society of Conveyancers, and covers all conveyancing firms and their principals who are named under the policy.
No compensation is available for any loss incurred as a result of a person instructing a conveyancing practitioner or incorporated conveyancing firm to invest money on behalf of that person.