Legal Services Board
How a claim is determined
Investigation
Upon receiving a valid claim against the Fidelity Fund, the Board may investigate a claim and the default to which it relates in any manner it considers appropriate.
Determination period
If the Board considers that a claim is not likely to be determined within 12 months after the claim is made, the Board must notify the claimant.
The Board must, as soon as practicable, notify the claimant about any decision it makes about the claim. Such notification will include details, if applicable, as to why a claim was reduced or wholly or partially disallowed.
Factors affecting the outcome of a claim
The Board may wholly or partly disallow a claim, or even reduce the amount of a claim on the basis of a number of factors including (but not limited to):
- involvement by the claimant in the act or omission giving rise to a claim, (i.e. knowingly assisting or contributing towards the act or omission)
- any illegality of the transaction to which the claim relates where the claimant ought reasonably to have known of the illegality
- claimant involvement in the failure to create or keep proper records during the course of the transaction which formed the subject matter of the default
- unreasonable refusal by the claimant to co-operate with the Board in the investigation of the claim
- if the claimant has assisted in or contributed towards, or was a party or accessory to, the act or omission giving rise to the claim
- if the claimant has unreasonably failed to mitigate losses arising from the act or omission giving rise to the claim
- if the claimant has unreasonably hindered the investigation of the claim.
Appeals
If the Board decides to wholly or partly disallow a claim, the claimant can may appeal the decision to an appropriate court. An “appropriate court” for this purpose is a court that would have jurisdiction to determine the claim if it were a claim for a debt owing to the claimant. An appeal must be lodged within 30 days after receiving the information notice from the Board about the decision.