Part 4.5 of the Uniform Law provides for a fidelity cover scheme, which is a system that provides a source of compensation for clients who have lost trust money or trust property as a result of a default of a law practice. The interest rate on fidelity fund claims is fixed by section 243 of the Uniform Law in the absence of specific provision in the Uniform General Rules.
On 30 July 2021, the Legal Profession Uniform General Amendment (Interest Rate) Rule 2021 commenced. The Rule provides that, for the purposes of section 243 of the Uniform Law, the interest rate payable on fidelity fund claims is equivalent to the Reserve Bank of Australia cash rate plus 1%. This interest rate will only apply to claims made after the commencement of the Rule.