Legal Services Board
How much can I claim?
Maximum amount payable
The maximum amount a person can claim in relation to a default is the amount of actual pecuniary loss suffered from the default. Pecuniary loss in relation to a default means:
- the amount of trust money, or the value of trust property, that is not paid or delivered; or
- the amount of money that a person loses or is deprived of, or the loss of value of trust property.
Under certain circumstances, the Board may reduce this amount. See How a claim is determined.
Additional payments: Costs
In the absence of special circumstances, if the Board allows any portion of a a claim, the claimant will be entitled to receive reasonable legal costs for making and proving the claim. These costs are paid from the Fidelity Fund. In certain circumstances, the Board may pay costs even if the claim has not been approved.
Additional payments: Interest
Similarly, in the absence of special circumstances, in determining the amount of pecuniary loss resulting from the default, the Board will include interest from the date on which the claim was made to the date the Board notifies the claimant that the claim has been allowed. The interest rate is determined by the Attorney-General as published in the Government Gazette. Currently the Attorney-General has specified that the rate for each quarter is to be the 90 day bank swap reference rate as published in the Australian Financial Review on the last day of each quarter (applicable in arrears).
Claim reduction due to other benefits
A person is not entitled to recover from the Fidelity Fund, any amounts they have received, or are likely to receive, from other sources in respect of the pecuniary loss to which a claim relates.
Repayment to the Board
If a claimant receives a payment from the Fidelity Fund and a payment from another source on account of the pecuniary loss, and the total of both payments exceeds the pecuniary loss, the claimant will have to repay the Board the surplus amount. The surplus cannot exceed the amount paid from the Fidelity Fund.
A claimant must notify the Board within 60 days if they receive a payment from another source on account of the pecuniary loss.
Subrogation
On payment of a claim, the Board is subrogated to the rights and remedies of the claimant, against any person in relation to the default that is the subject of the claim.