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18
* , , I^YYSQ^:!:^!TX ^^ ^'.- ^ ^ I^:ifi ^ Solicitors (Profossionallndeinnity) (Amendment) Rules 2016 (Commencement) Notice ("Commencement Notice") (at ,^,!!!!^;:. L) A. Legislative CouncilBrief ^ The Solicitors (Professional Indelimity) (Amendment) Rules 2016 ("PIS Amendment Rules") and Solicitors' Practice (Amendment) Rules 2016 ("Practice Amendment Rules") were gazetted on 25 November 2016. No amendments were made during the negative vetting period which expired on 18 January 2017. B. Justification The details and explanation of the amendments are set out in the Legislative Council Brief dated 17 November 2016 at Annex 2 . These amendments can be implemented by the Hong Kong Solicitors Indelimity Fund Limited ("Company") and the Law Society of Hong Kong ("Law Society") at any time, . The daily operation of the PIS is supported by the Law Society secretariat and the appointed nunager of the PIS, namely ESSAR Insurance Services Limited ("ESSAR"). Both have been closely involved in the preparation and review of these amendments and can readily implement the changes once they come into effect. ESSAR and the Law Society secretariat are supervised by the Board of Directors of the Company and the Council of the Law Society. On the day when the amendments come into operation, a circular explaining the amendments will be issued to members of the Law Society and the "Profi=ssional Indemnity Scheme Frequently Asked Questions" section in the Members' Zone of the Law Society website will also be updated to reflect the amendments. 07 March 2017) 32042i6

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Page 1: Legislative CouncilBrief - 首頁 · PDF fileIndemnity Scheme Frequently Asked Questions" section in the Members' Zone ... neutral in any form of ... this amendment exercise at the

*,

, I^YYSQ^:!:^!TX^^ ^'.- ^ ^ I^:ifi ^

Solicitors (Profossionallndeinnity) (Amendment) Rules 2016(Commencement) Notice ("Commencement Notice") (at ,^,!!!!^;:. L)

A.

Legislative CouncilBrief

^

The Solicitors (Professional Indelimity) (Amendment) Rules 2016 ("PISAmendment Rules") and Solicitors' Practice (Amendment) Rules 2016("Practice Amendment Rules") were gazetted on 25 November 2016. Noamendments were made during the negative vetting period which expired on 18January 2017.

B. Justification

The details and explanation of the amendments are set out in the LegislativeCouncil Brief dated 17 November 2016 at Annex 2 .

These amendments can be implemented by the Hong Kong Solicitors IndelimityFund Limited ("Company") and the Law Society of Hong Kong ("Law Society")at any time, . The daily operation of the PIS is supported by the Law Societysecretariat and the appointed nunager of the PIS, namely ESSAR InsuranceServices Limited ("ESSAR"). Both have been closely involved in thepreparation and review of these amendments and can readily implement thechanges once they come into effect. ESSAR and the Law Society secretariatare supervised by the Board of Directors of the Company and the Council of theLaw Society.

On the day when the amendments come into operation, a circular explaining theamendments will be issued to members of the Law Society and the "Profi=ssional

Indemnity Scheme Frequently Asked Questions" section in the Members' Zoneof the Law Society website will also be updated to reflect the amendments.

07 March 2017) 32042i6

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C. The Notice

The Commencement Notice at Annex I will brin the PTS Amendment Rules

into operation on 3 July 2017.

Rule I of the Practice Amendment Rules provides that the Practice AmendmentRules come into operation on the day which the PTS Amendment Rules comeinto operation. The Practice Amendment Rules will therefore autornnticallycome into operation on 3 July 20 17.

D. Le is Iative Timetable

The legislative timetable for the Coriumencement Notice is -

Publication in the Gazette

Tabling at the Legislative Council 12 April2017

^:^

The amendments have been explained in the "President's Message" of theDecember 2016 edition of Hong Kong Lavryer, a monthly magazine publishedby the Law Society and distributed to all members (except those who havechosen to opt out). The magazine is also available online.

A Circular regarding the amendments will be issued to all members of the LawSociety on 3 July 2017.

E.

,,

31 March 20 17

F'. Contact details of relevant officer

The contact details of the officer assisting in this amendment exercise at the LawSociety are as follows:

GigiLiu, Assistant Director, Prof^:ssionallndenmity Scheme3'' Floor, Wing On House, 71 Des Voeux Road Central, Hong KongTel: 2846 0557

G. Issum

This briefwas prepared by the Law Society on 27 March 2017.

a

p7 March 2017) 32042i6

and issuance date

2

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Solicitors (Professional Indemnity) {Amendment) Rules 20.6 (Commencement)Notice

Solicitors (:re'rofessionallndemnity) (Amendment) Rules2016 (Commencement) Notice

Under rule I of the Solicitors errofossionalhidemni^,) (Amendment) Rules2016 q. ,. N. 173 of 2016), I appoint 3 July 2017 as the day on which theRules come into operation.

22 March 2017

Hong Kong

ANNEX I

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^^

^^

THE

41

A.

I^^VsQ, ^:!l^TX

Titles of the subsidia

^,..

Solicitors (P'rofossionallndernnity) (Amendment) Rules 2016 ("PTS AmendmentRules")

Solicitors' Practice (Amendment) Rules 2016 ("Practice Amendment Rules")(together "funendinent Rules") (at ^!!^^:)

Legislative CouncilBrief

I

B.

^I^;

Introduction I Bac

re 'SIation

ANNEX 2

(a)

^;ifi

Section 7(d) of the Legal Practitioners Orditiarice (Cap 159 of the Laws ofHong Kong - "LPO") states that Do person shall be qualified to act as a

solicitor unless Ile is complying with any indemnity rules nude by theCouncil of the Law Society ("Council"). The power of the Council toInake such rules derives from section 73A of the LFO.

The Solicitors (Professional Indenimty) Rules ("PTS Rules") have beenpromulgated as subsidiary legislation under the LFO and constitute Cap159M of the Laws of Hong Kong.

The PTS Rules provide that the Law Society is authorised to establish andmumta^I a fund to provide the indenimty mentioned in section 73A of theLPO. This fund is known as the Hong Kong Solicitors Indenimty Fund("Fund"). The Fund is held and administered by Hong Kong SolicitorsIndelimity Fund Lintted ("Company") which is a company limited byguarantee.

The Fund provides compulsory profossional indemnity cover to allsolicitors andi'or their employees against loss arising from claims in respectof civil liability incurred in connection with the solicitors' practices. TheInariner in which the Fund operates, such as the terms and conditions oftidernnity, the method of calculation of deductibles, exclusions and theformulae for calculating the contributions to the Fund by all solicitors areset uniformly for all. solicitors parsuarit to the PTS Rules.

I'

.^..

round

(b)

(0)

(d)

(17 November 2016)

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(e) Over the years, the Board of the Company has noted various operationalissues arising when applying' the PIS Rules. A Queen's Coursel ("QC")has therefore been appointed to review and prepare draft amendments toupdate and enhance the ms Rules.

Justification for introducim the amendments to the SIIbsidiaC.

The F1S AmemdmLe, ,t Rules consist of miscellaneous amendments to the PISRules which:

(a) enhance the operation of the Fund;(b) provide more clarity to the PIS Rules;(0) provide better protection to the public;(d) correct typos and gramiriatical errors in the PIS Rules.

The Practice Amendment Rules correct the Chinese text of the defined ten^"China-Appointed Attesting Officer" in the Chinese version of rule 2B of Cap.159H from "^I^I^, ifEl^^.^,^^i, A^." to "I. ^I^^^^^{:^^$, A".

ID. ^ lariatiom of nam

The F1S Amendmemt Rules consist of miscellaneous amendments resolved bythe Pro:ressional Indemnity Advisory Committtee, the Civil Litigation, PersonalInjuries and ADR Committees of the Law Society and the Board over the years,including:

(a) the business of practising as a solicitor bus been clarified to include "theneutral in any form of alternative at$;parte resolution procedure,Ching-Appointed ,, litesti?Ig oricer or civil celebrant" in the definition of"Proctice"^ (Rule 2) thus e>;panding the scope of the Fund;

(b) charif;ring that disputes as to whether a claim should be contested("Counsel's Clause") are to be deternitned by Counsel in accordance withthe provisions of paragraph 8(I)(c) of Schedule 3 runJ^r than being thesubject of a fiiU arbitration PUTSuant to rule 13;

(0) amending the Counsel's Clause giving the parties the choice to ref^r toeither a Junior or Senior Counsel (the current PIS Rules only makereference to a Senior Coin^61) which may result in savings of costs(paragi. aph 8(I)(c) of Schedule 3);

to 'SIatiom

rovisions. .

I~

q7 November 2016)

c\(*)

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(d) erupowering the Company to appoint a firm of solicitors which is not on

the panel appointed by the Council (rule 17). The flexibility may be

necessary when e>:penise in a particular area of law is not available from

the panel or when all panel firms wight be conflicted in a claim;

(e) clarifying that the power of the Company or the Society to dishurse orand liabilities incurred in thereinibarse out of the fund all e>:peruses

handling of o1airns is subject to the Company or the Society having acted

in good faith (^atagraph 3(d) of Schedule 2);

(1) transferring the power to gr. ant a waiver of deductible from the PIS Claims

Coinimttee to the Board of the Company (paragraph I(I)(b) of Schedule

3);

(g) removing an exclusion (paragraph I(2)(c)(x) of Schedule 3) so thatIndenimty will be provided even where Do Receipt had been issued to therelevant practice because of some default by its principals. This meamthe relevant law firm will still be indenimfied even when its principalshave failed to pay the PTS contributions. The Company's remedy wouldbe to rely on the power to charge interest on overdue contributions and topursue each principal of the firm under paragraph 9 of Schedule 3;

(h) consolidating the provisions for charging interest on overdue contributionsand adopting a uniform penalty interest rate across the IRIS Rules (samerate as that allowed for a judgment debt under section 49 of the High CourtOrdirmmce (Cap. 4));

co amending paragraph 8(I)(a) and adding paragraph 8(I)(d) of Schedule 3 sothat the Company's discretion to take over the conduct of a claim is nolonger dependent on the prior triggering of the Counsel's clause, which isimportant in cases where a claim may be made agalnst a sole practitionerwho has passed away and no personal representative has been appointed toadjniiiister the estate. Unless the Company takes over the conduct of theclaim the claimant may go uricompensated.

O) amending paragraph 8(I)(a) of Schedule 3 so that defence costs moorredby the Company after it has taken over the conduct of a claim will erodethe policy limit.

Please refer to paragraph C above for the explanation on the Practice

I\

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07 November 2016) 3

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Amendment Rules.

E. Date of tabhn the subsidia

Date

It is hoped that LegCo will table the Amendment Rules on 30 November 2016.The Commencement Date is to be appointed by the President of the Law Societyby notice published in the Gazette.

E'. Result of am consultation with the relevant aches

The amendments were proposed by various coinmittees of the Law Society andthe Board of the Company over the years and approved by the Board and theCouncil,

Contact details of relevant officer

to 'SIation in I. ,e Co and its Commencement

G.

The officer assisting in this amendment exercise at the Law Society is Ms. GigiLiu, Assistant Director, Professional Indemnity Scheme of the Law Society at3'' Floor, W'Ing On House, 71 Des Voeux Road Centi'aL Hong Kong (TelephoneNo. 2846 0557).

111. Issum

The Amendment Rules were gazetted on 25 November 2016.prepared by the Law Society on 17 November 2016.

,

a and issuance date

e;

(17 November 20 16)

This brief was

4

I

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Solicitors (Professional Indemnity) (Amendment) Rules 2016

Soncitors or'rofessioiiall, Id. eonlnity) (Amendmelint) Rules2016

Contents

Rule

I.

2.

3.

4.

5.

6.

Page

Commencement. .............~-.........."",,',',""""""""""""',","""",,,,,""" I

Solicitors (professional Indemnity) Rules amended. .,.....~..................,. I

Rule 2 amended (interpretation) ......,..........,...................,....,,.......,...... . I

Rule I I amended (1)To vision of indemnity)..,....,..,.,.....,......,....,.,......,.. 3 '

Rule 13 amended (disputes).............,........,.. ..............,.......................... 3

Rule 17 substituted ..,..........,,.,....,...........,....".....,.,.........,..................., 4

Panel of finus of solicitors. .........,...........,.....,...,,.,...,..,..,.... 417.

Schedule I amended (contributions to fund} .....................,.,......,.......... 4

Schedule 2 amended <management and aiministi'atton of

fluid) ...,....,..,,.---------.--.,,-..,-.--..,,.-.

Schedule 3 amended (orclusions and conditions)..,.........,..,,...,...,....... 7

- ^\

7.

8.

9.

t~) ANNEX

Sandtors (Profossional Indemnity) (Amendment) Rules 2016

Rule I

I

Solicitors (P'rotessionalimden^inity) (Amendment) Rules2016

0.1ade by the CouncilofThe Law Society offlong Kongunder sections 73and 73A of the Legal Practitioners Ordinance (Cap. 159) silliest to the prior

approval of the Chieflustice)

Commencement

These Rules come into operation on a day to be appointed by thePresident of The Law Society of Hong Kong by, ,once pub^shed inthe Gazette.

2. Solicitors Orofessiomalimdemiaity) Rules amended

The Solicitors (;P'rot^ssional indemnity) Rules (Cap 159 sub. leg.un are amended as set out in rules 3 to 9.

3. Rule 2 amended (interpretation)

(1) Rule2, definition of former Proct^CG--Repeal", for the purposes of Schedule I, ".

(2) Ruts 2, definition o1:10r"e, principal-Repeal

", for the PIicooses of Schedule I, ",(3) Rule2-

Repeal the definition of PC"e! soft^orSubstitute

'7, ""el solicitor (^^ '^'j^:gi^) means a firmi of concharsappointed by the Company-

I.

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,t

~

~

Rule 3

Solicitors (Profossioriallnderrinlty) (Amendment) Rules 20.6

(a) to act on: behalf of an jaden, rinfjed or a fonnersolicitor in respect of any claim ag^r theindeannified or the former solicitor for which thejade, unified or the foamer solicitot seeks mach. :aityfrom the Company under these rules; or

(b) to advise the Company on its obligations underthese rules;"-

(4) Rule 2, definition of Pi. acttoe, pangaph (IL)--Repeal"Or".

(5) Rule 2, definition of, ',."c, it, e, para^laph (i>-Repeal

"qualified;"SUIbstitute

"qualified;".^ Rule 2, defuition of PFCetice, after paragraph (i)-

Add

"6) the neutral in any form of altornattve dispute resolutionProcedure;

^) China*Appointed Attosimg oncer; or

^) civil celebrant of marriages appointed Inter theMarriage Ordirnnce (Cap. 181),".

(7) Rule 2-Repeal the alefimilio" of related costsSLbstit"to

"refo, ed costs (;^'B^;^^^^51) means all costs and orp. rises-

(a) incurred with authorized maniars' or theCompany's consent ill the de^lice or salone":t of

2 Rule 4

Solidlors (professional Indemnity) (amendment) Rules 20/6

ally claim against- the indamnified or a 1:3nnetconchat; or

(b) incurred by the Company in the orercise of itspower under paragraph 8(I)(d) of Schedule 3;".

Rule n amended (^rovision of Indemnity)

(1) Rule 11(I)(b)~~Repeal

"costs and e, ,pulses incurred in respect of the defence,settteme:at or compromise of tile claim"Substitute

'^related costs".

(2) Rule 1100(c)--Repeal"costs and e, ,peruses momred in respect of the deforice orsettlement or compromise of tile claim, "SIIbsl*t"to

"related costs, ".

(3) Rule 1100(c)-Repeal"such costs and expenses"

Substitute

"such costs".

4.

\

3

I

5. Rule 13 amended (disputes)

(1) Rule 13-Repeal

"Any dispute or difference concerning the adsterice in!'

,\>.

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.

Rule 6

Solicitois (Pronessional Indemnity) (Amendment) Rules 2016

Substitute

"Subject to paragraph 800(c) of Schedule 3, a dispute ordifference concerning the existence or".

(2) Rule 13-

Repeal

CGquam. turn of any claim to be provided with 111deinni^,"Substitute

"quantumi of any claim in respect of which indemnity is to beprovided".

.^

6. Rule 17 substituted

Rule 17-

Repeal the ruleSubstitute

"17. Famel of firms of solicitors

(1) Th^ Council is to appoint a panel of firms of conchorsfrom which the Company may appoint a panel solicitor.

(2) The Company may, if it considers it necessary to do so,appoint a firm of solicitors which is not on the panelappointed by the Council under cobrale (1) to act as apanel solicitor. ".

Schedule I amended (contributions to fund)

(1) Schedule I-Repeal

"trules 2,4 & 91"SEIbstit, .to

"!it. 2,4 & 9 & schs. 2 & 31".

4

7.

--r\

Rule 7

Solicitors (Profossional Indemnity) (Amendment) Rules 2016

(2) Schedule I, paragraph 2(I)-

Repeals, Ib-subparagraj, in (d)Substit^to

"(d) On a pmcipal making good all ^ilures under sub-subparagraph (c), the Company must assess thecontribution payable in respect of the Practice, and---(i) if the amount of the contribution as assessed is less

than the amount of the contribution paid, thedifference must be repaid to the firm withoutinterest; or

(ii) if the amount of tile contribution as assessedexceeds the amount of the contribution paid, thefirm must on domaind pay and each principal of thefirm is jointiy and severally liable to pay to theCompany die balance of the amount of theconttibiition together with interest on the amount ofthe balance calculated in accordance with

par^graph 5<3) until receipt of payment by theCompany. ".

(3) Schedule I, after paragraph 4-Add

5

"5. Interest Gin overdine contrib, ,ticms

(1) The Company may at any time demand in writing fromeach principal of the firm who is requirad to makecontribution in respect of the firm to pay any outstandingbalance of the amount of tile contribution together withinterest on the outstanding balance calculated inaccordance with subpa"agraph (3).

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Rule 8

Solicitors (Prolessionallndemnity) (amendment) Rules 2016

(2) Each principal of the firm is joindy and severally nthleto pay to the Company the amount under subparagraph.(1) within 14 days after the issue of the witten demand.

(3) Interest is to be calculated-

(a) from the date on which the o1tslanding balance isdue and payable or from any later date as theCompany may specify in tile writiai damand; and

(b) at tile same rate as allowed for a judgment debtfrom time to time under section 49 of the I^igb.Court Ordinance (Cap. 4).".

Schedule 2 amended (management and administration of found)(1) Schedule 2, English tact-

Repeal"Irule 51"Sthstit, ,to

"tr. 51".

(2) Schedule 2, paragraph 2(d. )-Repeal

"and compromise".(3) Schedule 2, paragraph 2(61-

Repeal

"and coinprotnise",(4) Schedule 2, paragraph 3(d)-

Repeal

"fi. rod, "Substitute

chad and these rules, ".

8.

6 Rule 9

Solicitors (Professional Indemnity) (Amendment)'Rules 20.6

(5) Sebume 2, paragraph 3(d}-

Repealeverything at^ "Sod, ty"Substit, Ite

"or the Company, cot^. g in good ^ith, in respect of allor any of the following. -(i) the establishin"cot or maintsnan. CG, or the

manager meat, , adminis^on or protection, of thehad;

6i) the handling of any claim for hade^^ from thehad;

(in) the handling of any claim by a third party againstan indamnified or a former solicitor. ".

9. Schedule 3 amended (exclusions and conditions)

(1) Schedule 3-

Repeal

"trules 2 & toySubstitute

"tit, 2, 10 & 13 & Soh. 21".

(2) Sch^d"I^ 3, par^ph. 100, proviso, paragr^ph (a)--Repeal

"pay or include in any paynLenr made out of the fund inlegp^t of any claim"Substit, rte

"at any time pay or include in. any payment made oat of thefund in respect of any claim, claimants costs or relatedcosts".

,-:~:)

7

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Rule 9

Solicitors (Professional Indemnity) (Amendment) Rules 2016

(3) Schedule 3, paragraph 100, proviso, paragraph (^)--

Repeal

"as the Company may request of any payment so made andinterest on the amount of any payment so made from the dateof the payment thereof"Substitute

"of the daductible applicable to that payment as the Companymay request and interest on the amount so requested by aleCompany from the date of the payment'.

(4) Schedule 3, paragraph 10), proviso, ^ragraph (a), after "eachprincipal"-Add

"and former pnticipal".

(5) Schedule 3, paragraph I(I), proviso--

Repeal paragz'apl, co)SIIbstit, ,to

"(b) i^ in relation to any claim-(i) there is Do admission or finding or acceptance of

liability on the part of the jadem^ie4; and

(ii) there is no paying, .t made from the fund to theclaimant in respect of the clamarit's claim againstthe indenmitied,

the Company may waive in writing in whole or part theCompany's rigb. t to be reirnbursed the amount of thedeductible paid out of the fund, and amend or revoke tilewaiver. .

(6) Schedule 3, paragraph I(2)(c)-Repeals"b-SUIb-subparagraph (x).

(7) Sched, I^ 3, paragraph I(2)(d>-

e\

8

~I

Rule 9

,

Solicito, s (Profossionallndemni!y) {Amendment) Rules 2016

Repeal"and disbursements".

(8) Schedule 3, paragraph 2(2), English tact-Repeal

,,, umpose"Substitute

'ipurposes".

(9) Schedule 3, paragraph 4-

Repeal

"in any"Substitute

"in respect of any".

(10) Schedule 3, paragraph 6--Repealsubparagraph (2).

(11) Schedule 3, paragraph 70)-Repeal

,,,(cXvj, ,,,Substitute

"I(2)(0Xvii)".(12) Schedule 3, paragraph 800(a)-

Repe. I

everything after '^mreusonably"Substitute

"withheld).".

(13) Schedule 3, paragr^ph. 8(I)(c}-Repealsub-sub-subparagraph. co

.

9

.

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,

Rule 9

Solicitors (Profossionallndemnity) (Amendment) Rules 2016

Substitute

"(i) If a difference or dispute arises between the indamnifiedand the Company regarding the contes!^, dBfonce,setttem. eat or otherwise of a claim, the difference ordispute must be referred by the Claims Committee to acounsel (to be mutually ag^ on by the indenunifiedand the Company or :^, inns 88reer. cot to be appointedby the President of the Society) for a deter^onwhatier the claim chould be contested, de^, Ided, settledor otherwise disposed o^, and the counsel is to beinstructed to amtify whether the counsel has foundsubstantially in fo. vonr of the Company. ".

(14) Schedule 3, paragraph 8(IXCXiii), (tv)* (v), (vii), (vin), (x^)and (xv)-Repeal

"tile Senior CourseF' (wherever appearing)S^bstit"to

"die courseF.

(15) Schedule 3, after paragraph 8(I)(c>-Add

"(d. ) Subject to sub-stopar^ph (6), the Company may, inits disci^on and at any time, take over in the name ofthe indemnified the conduct of the dofore or settlement

of any claim, including any claim in respect of which themacronified may become entitled to partial indemnityunder any insurance with any fusingrs and any claimwhich but for paragtaph 2(2) or 3(I)(b) or (2)(b) wouldhave ^nan within the scope of the in^litty. providedby these rules; and the indenin^ed must at their own.cost give all reasonal, Ie assistance to the Company and

10 Rule 9

Solicitors (Profossionallndemnity) (Amendment) Rules 2016

panel colicitots and co-operate in the de^rice or^tilement of any claim. ".

(16) Schedule 3, par^ph. 8(2)-Repeal

"shall procure that notice to the Company shall be given"Substit, ,to

"must notify the Company".

(17) Schedule 3, paragraph 8(2)(!,)-Repeal"claim. "

Substit"te

"claim; and?,.

(18) Schedule 3, attor pang, !aph 8(2)(b>-Add

"(0) any circumstances of which the indenimfied becomesaware daring the period of indemnity and which may(whether during or after the period of indamniy) giverise to any such claim, ".

(19) Schedule 3, pan^h. 8---Repealsmbpara^aph (3).

(20) Schedule 3, paragraph 8(4}-Repeal"or (3y.

(21) Schedule 3, paragraph 8(5)-Repeal

,,(3y,

SIIbsliti, to

I~ *

11

.^. .-* \).^

,

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Rule 9

Solicitors (Professional Indemnity) (Amendment) Rules 2016

,,(c),,.

(22) Schedule 3, paragraph 8(10), after "Claims Coinimttee"-Add

"or panelsolicitors".(23) Schedule 3, paragraph 800)(a) and (6)--

Repeal

"or (37"

(24) Schedule 3-Repeal paragraph 9Sinbstit"te

"9, Special condition(1) Ifthe issue of a receipt under rule 9 has bean withlLeld or

delayed as a result of a f;aimre to pay any contributiondue in accordance with these rules by a principal of thefun and a clam has been made or intimated against thein dominified in respect of which the indemia. ified wouldotherwise have been entitled to be provided withindemnity, the Company must provide the payment (upto the limit provided for in paragraphs 2 and 3) in ortowards satisfying, or enabling the indelnnified tosatisfy, the claim, claimant's costs and related costs.

(2) Each principal of the firm must, on request, reinLburse tothe Company the whole or such part as the Companymay request of any payment so made and interest on tileamount calculated in accordance with paragraph 50) ofSchedule I. Each principal of the firm so indemnifiedunder subpa, ag. aph (1) is jointiy and severally liable tothe Company for the reimbursement. ".

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Solicitors (Professional Indemnity) (amendment) Rules 2016

Approved this day of

Made this

2016.

dayof

re

,

Chief Justice

2016.

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^

Solicitors (Proibssionallndemnity) (Amendment) Rule^2016

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Solicitus (Profossionallndemnity) (Amendment) Rules 2016E>!planatoiy NoteParagraph I

re=PIa, .atcry Note

These Rules mainly seek to enhance the Solicitors (Pro^ssional^damni^,) Rules (Cap, 159 sub. leg. ^^0 (p, ,,,^,"I 12.11^,) invarious aspcots, momdin^

(a) to clarify that the business of practising as a solicitorincludes a solicitot acting as the neutral in any form ofalter nutive dispute resolution procedure, as a China-Appointed Attesting 061icer or as a dvil Getsbrent ofmania^s;

(b) to specify that the arbitration procedure to resolvedisputes between the illdemiiified and Hong KongSolicitors Indemnity Fund Limited, the companymomging the indemnity fund (Cony"^,), is a separatePI^e from the reference to counsel under para^aph8(I)(c) of Schedule 3 to the principal Rules;

(c) to clarify that tile Company has a discretion to appoint afirm of solicitors which is not on the panel appointed bythe Council of The Law Society of Hong Kong to act foran indemnified;

(d) to provide for payment of interest on any overduecontribution which is required to be made under rule 4 ofthe principal Rules;

(e) to remove the restriction on providing indemnity to afirm for losses arising during the period what thecontrib, Ino. 1 payable by the firma remains outstanding;and

(O to erupower the Claims Committee, which has the powerto settie or defend chims under the principal Rules, torefer any dispute (not only disputes in relation tosettteme&It) between the illdei, ,nified and the Company

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Rule I

Solicitors' I^^rantice (Amendment) Rules 201.6

qiliade by the Council of The Law Society of Hong Kong under section 73of the Legal Practitioners Ordinan, e (Cap. 159) subject to the prior

approval of the ChiefJustice)

Commencement

These Rules come into operation on the day on which the Solicitors(Pro^ssional Indemnity) (Amendment) Rules '20/6 come intooperation.

Solicitors' Practice Rules amended

The Solicitors' Practice Rules (Cap. 159 sub. leg. 1:0 are amendedas set our in rule 3.

3. Rule 2B amended (letterhead)

Rule2B(3)(d)(in), Chinese tort-Repeal

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Solicitors' Practice (Amendment) Rules 20.6

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Solicitors' PIaclice (amendment) Rules 20.6

Approved this

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day of

Made this

2016.

day of

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Chief justice

2016.

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Solicitors' Practice (Amendment) Rules 20.6

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Explanatory NoteParagraph ,

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Solicitors' Practice (Amendment) Rules 2016

Exj!lariatory Note

These Rules seek to make a textual amendment to the Chinese text

of rule 2B of the Solicitors' Practice Rules (Cap. 159 sth. leg. 11).

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