Terms of Engagement 20 DECEMBER 2019 www.simpsongrierson.com © Simpson Grierson 2019 Terms of Engagement LAST UPDATED DECEMBER 2019 What are these terms of engagement? instructions, and the results achieved. We typically review and change our rates at the These terms of engagement (Terms) set out beginning of each year. the basis of our professional relationship with you, in accepting and actioning your We will give you a fee estimate on request. instructions. This will be a guide only, and not a fixed When do these Terms apply? quote. We will also, on request, periodically advise you of the level of fees incurred or These Terms apply whenever you instruct us inform you when fees reach a specified level. to act for you, unless we agree (in writing) to vary them. What other charges will be payable? What is our role in acting for you? We also charge for general office services and disbursements we incur on your behalf. Our role is to provide you with the legal services we agree on, unless a conflict of General office services include photocopying, interest or other factors prevent us from document production and delivery costs, providing the legal services to you. telephone expenses, and routine on-line searching. These are charged at a flat rate of We will use due care and skill. We will act in NZ$50 or 2.5% of our fee, whichever is accordance with your instructions, subject to greater. any ethical or legal duties. Disbursements include out-of-pocket Nobody except you may rely on our advice to expenses such as travel and accommodation you without our written consent. costs, registration and filing costs, court charges, and the fees of any agents, experts, Who will work with you? and other professionals we appoint. These We will usually ask you to nominate the are charged at the amount charged to us. partner responsible for each matter to work Where you have asked us to instruct counsel with you. That person will then involve other from outside our firm, then you must, on partners and staff to assist on your matter, as demand, pay us the fees for which that appropriate. counsel bills us. How are our fees calculated? If we hold funds on interest-bearing deposit in our trust account on your behalf, we may Our fees are calculated taking into account charge an administration fee. That fee will be the time we spend on a matter, charged at 5% of the gross interest earned while these our hourly rates, and adjusted where funds are in our trust account. appropriate to reflect other factors permitted by the Lawyers and Conveyancers Act We will also charge goods and services tax (Lawyers: Conduct and Client Care) Rules (GST) at the rate required by law. Unless we 2008 (Conduct Rules). indicate otherwise, our stated rates and any estimates of costs do not include GST. These factors may include the specialised knowledge and responsibility required, the importance of the matter, the urgency and circumstances in which we carry out your © Simpson Grierson 2019 1 Terms of engagement - continued When will our fees and charges be payable? Legal conflicts Our general practice is to send interim A legal conflict of interest may arise in a invoices on a regular basis, usually monthly. matter on which you have instructed us. If We will also send an invoice on completion of this happens, we will contact you as soon as each matter. Our invoices are payable on possible. receipt. We may need to decline your instruction or to If our invoice is not paid promptly, we have stop acting for you. In that case, we may the right to: accept instructions from, or continue to act for, other clients whose interests are adverse deduct any amount outstanding from any to your own, as long as: money we are holding on your behalf; not do any further work for you; we do not hold confidential information retain your papers and files, and other belonging to you that is relevant to the property belonging to you that is in our matter; or possession; and we have taken proper steps to keep your charge interest at Westpac New Zealand's information confidential. Indicator Lending Rate (or any rate Westpac substitutes for it) on any amount Commercial competitors outstanding one month after the date of We may accept instructions from other clients the invoice. This interest accrues on the or potential clients working in the same or outstanding balance until the amount competing markets and whose commercial outstanding has been paid in full, and is interests conflict with yours. payable on demand. Subject to the Conduct Rules, we may also act, You must pay us when our invoice is due, or have previously acted, for other clients (or whether or not you expect somebody else to potential clients) who are parties (or potential reimburse you for our fees and/or charges parties) to a transaction or other matter in (and whether or not you receive that which you are involved, or whose interests are reimbursement). adverse to your own. If we agree to act in such a role: Do we require payment in advance? we will operate appropriate information We may ask you for a payment in advance for barriers to protect client interests and amounts we need to pay to third parties on comply with relevant laws and codes of your behalf, or as security for our fees and professional practice; and charges. we will have no obligation to disclose to you any information we have about We will hold this money in our trust account. another client or its affairs or to use that It will be used to pay any charges as they are information for your benefit. due, and ourselves immediately after sending you our invoice. Subject to the Conduct Rules, you consent to us not disclosing to you any information we We will send you a statement showing how hold for any other client. this money has been applied. How will we deal with conflicts of interest? We have procedures to deal with issues that arise if the interests of two or more clients conflict. © Simpson Grierson 2019 2 Terms of engagement - continued What customer checks will be done? handle and deposit money on trust for you); and We are required to comply with all laws binding on us in all applicable jurisdictions, report a transaction, including: without notice to you if: the Anti-Money Laundering and Countering Financing of Terrorism Act the required information or documents 2009 (AML/CFT Act); and are not provided; or the United States Foreign Account Tax it is suspected that the business Compliance Act, the intergovernmental relationship or transaction is unusual, may agreement between the United States breach any applicable law, or may and New Zealand relating to it, and otherwise relate to conduct that is illegal relevant provisions of the Tax or unlawful in any country. Administration Act 1994 (together, FATCA). How will we use and store your personal information? We will perform customer due diligence and We will treat all your personal information as account monitoring, keep records, and report confidential. any unusual or suspicious transactions where required by the AML/CFT Act, FATCA, or any Our Privacy Policy details what we may do other law. with your personal information, your rights and other information related to the We may also be required to assist any bank or protection of your personal information. other entity with whom we transact as your agent, or with whom we deposit money on You may review our Privacy Policy here. trust for you, to comply with that entity's legal obligations in any jurisdiction. We may also use your personal information to keep you informed about legal developments, We will periodically advise you what other legal services, or seminars we offer. information and documents are required for Please let us know if you do not want your these purposes. These purposes may relate personal information used for this purpose. to you, any other relevant person (eg any beneficial owner), the source of The records relating to your matter will be funds/wealth, the transaction, the ownership stored electronically in an on-premises data structure, tax identification details, and any centre or by 3rd party data management, other relevant matter. Please provide the processing and storage service providers. information and documents requested promptly. We may retain the information How do we treat email communications? and documents, provide them to a bank or We will usually communicate with you by other entity (where applicable) to deal with in email while acting for you. Please let us know accordance with their terms, and disclose if you prefer us not to send you emails. them to any law enforcement or regulatory agency or court as required by law. Our incoming email messages are scanned for content and viruses and are cleared by our We or the bank or other entity (as the case email security system. On rare occasions, a may be) may: legitimate email may be deleted before its suspend, terminate, or refuse to enter intended recipient at our firm reads it. into a business relationship; delay, block, or refuse to process a Emails are not always secure or may have transaction (including by refusing to defects, such as viruses. We do not accept responsibility (and will not be liable) for any © Simpson Grierson 2019 3 Terms of engagement - continued damage or loss caused by an email that is We have no liability to you for or in relation to intercepted or that has a defect.