The pitched change in the Regulatory Systems (Justice) Amendment Bill aligns with other regulatory bodies
The government has revealed its intent to progress changes that will improve the efficiency of the Lawyers Complaints Service.
The pitched reform is aligned with other regulatory bodies and represents a move towards modernisation and regulatory reform, according to the New Zealand Law Society | Te Kāhui Ture o Aotearoa. The amendment will permit limited administrative triaging in the lawyers’ complaints service.
The Regulatory Systems (Justice) Amendment Bill will also modify the AML/CFT Act 2009.
From late 2021 to early 2022, the Law Society invited the profession to engage on possible changes to the Lawyers and Conveyancers Act 2006 (LCA) that would bolster the transparency and efficiency of the complaints process. Reforms were then pitched to the Ministry of Justice, and Cabinet supported three amendments via the te Regulatory Systems (Occupational Regulation) Amendment Bill; this bill is set to be implemented later this year following a full public consultation.
As per the 2022 consultation, 90% of respondents supported a change to permit the limited administrative triaging of complaints. Under the proposed amendment, the complaints service will have the power to decide not to refer a complaint to a lawyers standards committee for specific reasons; this is in line with processes implemented by the Real Estate Authority, Teaching Council and health practitioners’ authorities.
By facilitating the efficient allocation of the complaints services’ resources as with other regulatory bodies, the service can become more responsive. The bill also includes modifications confirming that standards committee lawyer members are not providing regulated services when serving on standards committees; the same is true for complaints service staff holding practising certificates while supporting standards committees.
Another amendment automatically revokes the power of attorney (POA) for sole directors when they enter into a partnership or begin practice as co-directors. In addition, the bill proposes the repeal of a transitional provision for lawyers practising on their own account under the previous LCA.
Meanwhile, the AML/CFT Act would be amended such that reporting entities do not have to verify information on the source of funds or wealth of a trust under improved customer due diligence requirements for low-risk trusts.
The Law Society confirmed that it would push for more significant reforms to the AML/CFT regime.
