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Vision Mission Legal Practice Board Board Practice Legal Vision Annual Report 2002Annual Report A regulatory system that protects consumers of legal services by being effective, efficient, fair and accessible to all members of the community. Mission The Legal Practice Board is the fund- ing body and independent regulator whose mission is to protect consumers and enhance the integrity of the legal services market. Annual Report 2002 Legal Practice Board Values Independence: We aim to make correct and objective decisions having regard to our statutory obligations and taking into account the views of others. Commitment to an ethical approach: We will strive to achieve high standards of general and pro- fessional conduct. Fairness: We will apply the following principles in all our dealings with staff and stakeholders: •equal opportunity • consistency •inclusion and open communication •due process. Delivery of quality services: We will be: •efficient •effective • committed to best practice •knowledgeable • easily accessible •responsive to the needs and expectations of all stakeholders. Accountability: As a statutory body representing the interests of all stakeholders we must: • accept responsibility for actions •consult with those likely to be affected by our decisions •provide transparency by ensuring our actions in policy and process are visible. 4684_LPB_AR_Text_5.qxd 20/11/02 2:36 PM Page 1 Contents Vision, Mission and Values inside front cover Chairman's message 2 Message from the CEO 3 Highlights and Achievements 4 Review of the Legal Practice Act Changes at the Board Documentation of Board Business Processes Security Review The Board's Website IT Management Prosecutions The Year Ahead 6 Assisting in the Review Process Amendments to the Legal Practice Act IT Integration Implementation of Privacy Policy The Organisation 7 Role of the Board Legislation Board Members Board Meetings Board's Staffing Organisational Chart Review of Operations 11 Election of Board Members Trust Money Trust Account Monitoring Fidelity Fund Claims and Administration Fidelity Fund Contribution Investment Policy & Funds Management RPAs – Funding and Supervision Funding of other Organisations Administration of Budgets Register Professional Indemnity Insurance Legal Profession in Victoria – Statistics 19 Supplementary Information 20 Tribunal Decisions 2001/2002 22 Financial Statements 26 Annual Report 2002Annual Report Abbreviations inside back cover Legal Practice Board Practice Legal 1 4684_LPB_AR_Text_5.qxd 20/11/02 2:36 PM Page 2 Chairman’s Message The fifth anniversary of the introduction of the Legal Practice Act 1996 and the establishment of the Legal Practice Board occurred during the year under review.The five years have The year also saw the resignation of the Board’s seen substantial achievements. founding Chief Executive Officer, Bill Robinson, after over 5 years of outstanding service. Bill’s Having commenced with a significant shortfall the steady hand during the Board’s developmental Legal Practitioners Fidelity Fund is now in a very phase has contributed greatly to its present strong healthy position with adequate funds available to financial position and to the respect in which the meet all existing and actuarially anticipated claims. Victorian community holds the Board. Moreover, the Board has been able to more than The major issue now confronting both the double the total amount distributed to its statutory Board, and others within the regulatory structure, beneficiaries, Victoria Legal Aid, The Leo Cussen is the Legal Practice Act Review presently being Institute for Continuing Legal Education, The undertaken by the Victorian Government. Victorian Law Foundation and the Victorian The Board has been pleased to contribute to Law Reform Commission. the various stages of this Review and now awaits The procedures developed in relation to annual with interest an announcement by the Attorney- funding of the Victorian Lawyers RPA Ltd and the General of any proposed legislative changes to Victorian Bar Incorporated have seen this process be introduced. become considerably smoother and more It is clear that some aspects of the regulatory predictable. This has allowed all bodies better structure are in need of reform. Others have to plan their activities. worked well. The Review has been comprehensive The Board’s progress has been greatly enhanced and has allowed wide consultation. All concerned by the dedicated contribution of my predecessor will look forward to the certainty brought about The Honourable Ken Marks QC who retired as by a conclusion to this process. Chairman on 31 December, 2001. The Board, and the legal profession, owe Ken a significant debt of gratitude for his untiring efforts over five years. Professor The Honourable George Hampel QC Chairman Legal Practice Board Practice Legal Annual Report 2002Annual Report 2 4684_LPB_AR_Text_5.qxd 20/11/02 2:36 PM Page 3 Message from the CEO An important event during the year was the publication of the final report of the Review of the Legal Practice Act 1996 by Professor Peter Sallmann and Mr Richard Wright. The significant tightening in the insurance It recommends significant changes to the market during the year presented the Board with structure of legal profession regulation in a challenging responsibility in approving the terms Victoria. It now remains to be seen what and conditions of professional indemnity insurance legislative change will be introduced by for Victorian barristers. Ultimately, the Board was the Victorian Government. able to ensure that all Victorian barristers were able to obtain insurance on terms that were in the public interest. The Board, together with other interested parties, has had the opportunity to contribute to the Having recently assumed, on an interim basis, Review process and it is to be hoped that these this role from the Board’s founding Chief contributions will lead to some strengthening Executive Officer, Bill Robinson, I would wish of the present structure of regulation. to acknowledge, on behalf of the Board staff, our appreciation for Bill’s outstanding service. The administrative and supervisory functions of the He left an organisation in excellent financial Board have continued with further improvements and administrative health and one, which, given in the information technology systems. After the respect he commanded within the legal a period during which the Board’s information community, is well accepted and regarded. technology support was outsourced on a trial basis, the Board has resolved to enter into a fixed term I wish also to acknowledge the retirement during contract for outsourcing this important function. the year of our former Chairman, The Honourable Ken Marks QC, and Mr Simon Libbis, both of It is also pleasing that there has been a further whom have made outstanding contributions to the strengthening in the position of the Fidelity Fund work of the Board. As a result of these retirements during the year, which allowed the Board to the Board has a new Chairman, Professor The maintain practitioner contributions at the existing Honourable George Hampel QC and a newly level whilst enhancing significantly the amounts elected member, Mr Andrew Scott. available to statutory beneficiaries. In particular the Board was able to make a grant of $7,630,000 to Finally I would like to thank all members of the Victoria Legal Aid. Board staff for their efficient and dedicated work. Rod Smith Acting Chief Executive Officer Annual Report 2002Annual Report Legal Practice Board Practice Legal 3 4684_LPB_AR_Text_5.qxd 20/11/02 2:36 PM Page 4 Highlights and Achievements 2001/2002 Review of the Legal Practice Act 1996 The Review of the Act, conducted by Professor Peter Sallmann, Crown Counsel, and Mr. Richard Wright, Associate Director of the Civil Justice Review Project, handed down its Report in November, 2001. Comments on the Report of the Review were The authors of the Report identified both the sought by interested parties. The Board submitted strengths - “a move towards independence and its views in December, 2001. Generally, the accountability in the regulatory system” - and Board supports the overall scheme of regulation weaknesses - “difficulties with the complaints recommended in the Report. It noted that system, ongoing concern about lack of the proposed Legal Services Board (LSB) is, independence, accountability, effectiveness and in many respects, a similar organization to the efficiency of the regulatory system as a whole, Board. Amongst other comments, the Board a variety of administrative issues, and concern also noted that: about the high and increasing cost of the system” •The Chairman should be a person with an - of the present system. appropriate legal background and an appropriate range of skills and experience. The model proposed by Professor Sallman and •The present role in supervision and Mr Wright is “to have an independent regulator administration of the Fidelity Fund should accountable to an independent Board, the Legal vest in the LSB. Services Board, the latter with equal numbers of •The LSB should assume the present role of the legal practitioners and consumer or community Board as the assessor of funding requests and representatives and, ideally, a non-lawyer approval of operating budgets chairperson. This independent regulator would •The financial responsibility for the Statutory have prime responsibility for the whole range of Deposit Account and trust account interest regulatory functions, including complaint handling.” receipts
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