How much can be claimed
Maximum amount payable
There is no limit to how much you can claim on the Fidelity Fund. Where the Board finds that there has been a default the Board will also determine the actual financial (or pecuniary) loss suffered. Pecuniary loss in relation to a default means:
- the amount of trust money, or the value of trust property, that is not paid or delivered; or
- the amount of money that a person loses or is deprived of, or the loss of value of trust property, as a result of a fraudulent dealing.
Additional payments: Costs
There are no fees payable to the Board on making a claim, during the process of investigating a claim, or to have a claim determined.
You may wish to engage the assistance of a lawyer to help make your claim, however, this is not compulsory.
There is no certainty as to whether the Board will pay your legal costs for engaging a lawyer to make and prove a claim. If the Board wholly or partly allows a claim then the Board may agree to pay all or part of your legal costs. Special circumstances may cause the Board to allow a claim but decide not to pay any legal costs. When this occurs, the Board will advise you of the reasons for its decision. The Board can also disallow a claim but decide to pay your legal costs or part of the legal costs if the Board considers it appropriate to do so.
If the Board determines to pay your reasonable legal costs in part or in full, the costs will be assessed on a standard basis by reference to the appropriate Court scale if the claim were for a debt. You should discuss what this means with your lawyer. Please note that if the Board determines to pay all or part of your legal costs then the costs will be paid directly to your lawyer.
For more information, please refer to the Fact sheet: Payment of legal your legal costs when making a claim against the Fidelity Fund (105KB PDF).
Additional payments: Interest
In the absence of special circumstances, in determining the amount of loss resulting from a default, you will be paid interest on your loss calculated from the time that your claim is made against the Fidelity Fund to the time you are notified that the Board has determined the claim. For claims made on or before 30 June 2015, interest is calculated using a method published by the Attorney-General in the Government Gazette. For claims made on or after 1 July 2015, interest is paid at a simple rate of 5%.
Claim reduction due to other benefits
If you have received, or are likely to receive, compensation for their loss from other sources, you will not be eligible to recover those amounts from the Fidelity Fund.
Repayment to the Board
If you receive a payment from the Fidelity Fund and a payment from another source for your loss, and the total of both payments exceeds your pecuniary loss, you will have to repay the Board the surplus amount. The surplus cannot exceed the amount paid from the Fidelity Fund.
If you receive a Fidelity Fund payment, the Board will be subrogated to your rights in relation to the claim. This means that the Board will have the right to seek to recover the cost of your claim from the lawyer, law practice employee or barristers’ clerk.