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Risk Management

Risk Management

LPLC is committed to helping our insured practitioners manage the risks of practice. We combine a wealth of experience in private practice and handling claims with risk management knowledge and expertise from around the world.

LPLC has a dedicated risk management team. Our risk managers are constantly analysing our data, liaising with global and Australian experts and talking to our insured practitioners to ensure that LPLC continues to deliver topical and practical risk management solutions.

We provide a comprehensive education program that assists firms in raising the level of risk awareness among their employees and partners and managing those risks. Our services include in-house workshops (for larger firms) and group seminars (for small practices). We also provide benchmarking and tailored risk management advice in order to assist our firms in building effective risk management systems.

For further risk management resources please choose a resource from the menu.

 

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6 February 2019

High risk lending alert

The current economic climate is increasing the risks for lenders and their lawyers We have seen a significant increase in mortgage claims involving inadequate security in the 2017/18 policy year. Many of these claims have in common private lenders providing urgent, short term, high interest rate loans, or risky joint venture arrangements.  The prevalence of […]

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18 December 2018

In Check Issue 81 | December 2018

Table of contentsHoliday season remindersLand tax and duty claimsPlanning for the worst – new LSB+C policyCommon GST questionWhat’s new on LPLC’s websiteOffice closure over New YearChanging your email address? Holiday season reminders The lead up to Christmas with the extra commitments and pressure is a high-risk time for mistakes and oversights. Be diligent and maintain […]

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3 December 2018

A good precedent

Using precedent documents effectively is essential risk management Most practitioners understand the value of having good precedents and it is an important investment for any firm irrespective of its areas of practice. However, precedents are not just a set and forget tool. If not used and maintained properly, precedents can increase your risk. Previous matter documents are not precedents Sometimes […]

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1 November 2018

Be secure when advising lenders

Making assumptions about your retainer with longstanding lender clients is risky In 2017/18, mortgage matters accounted for 19 per cent of LPLC’s total claims cost. Most of that cost was attributable to practitioners failing to ensure the lender client had adequate security. These mistakes are sometimes made by practitioners acting for private lenders who they […]

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1 October 2018

What can go wrong?

Every firm needs to develop risk management strategies As part of managing a practice, you need to invest time in identifying what can go wrong in your matters and devise appropriate risk management strategies. You should not assume knowing the law in your areas of practice and being diligent in your work is enough to […]

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25 September 2018

PEXA, email, electronic funds transfers and cyber-crime

Table of contentsPEXA, email, electronic funds transfers and cyber-crimeThe risk of EFT-fraud for lawyers is human error, not ITVerify all email instructions for the transfer of fundsAlways double-check bank account details before sign-offPEXA residential seller’s guaranteeWhat the PEXA residential seller guarantee coversThree-day time limit for seller to apply for guaranteeWhat to do if EFT fraud […]

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25 September 2018

GST withholding practical examples

Download PDF Table of contentsGST withholding practical examplesResidential premisesFarm landVendor registration GST withholding practical examples This bulletin contains practical examples in question and answer format of how the purchaser GST withholding provisions work. For general information about the withholding requirements see the bulletin Some purchasers required to withhold GST from 1 July 2018. Contracts signed […]

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4 September 2018

Retrospective changes proposed for residential ‘off the plan’ sunset clauses

Download PDF Table of contentsRetrospective changes proposed for residential ‘off the plan’ sunset clausesSunset clauses – details of the proposed amendmentsRetrospectivity trap for practitionersWhat you should do nowOther legislative changes proposed in the bill Retrospective changes proposed for residential ‘off the plan’ sunset clauses The Sale of Land Act Amendment Bill 2018 (Vic) (the bill) […]

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14 August 2018

Medical Treatment Planning and Decisions Act 2016 (Vic)

Download PDF Key points   Appointments of medical treatment decision makers and advanced care directives replace medical powers of attorney and refusal of medical treatment certificates from 1 July 2018. Medical power of attorneys entered into before 1 July 2018 are taken to be appointments of medical decision makers. Any refusal of treatment certificates created […]

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7 August 2018

Some purchasers required to withhold GST from 1 July 2018

Download PDF Suggested resources: Vendor/supplier GST withholding notice Key points New GST withholding regime applying to some settlements from 1 July 2018. New notification obligations on vendors of new residential or potential residential land. New notification and withholding obligations on purchasers of new residential or potential residential land. Penalties apply for both vendor and purchaser […]

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15 February 2019

5 things your purchaser clients really want to know

Last week’s blog post looked at three things all vendor clients want from their lawyer. This week we are looking at five key things purchasers want to know. Is the vendor entitled to sell the property? Verify the vendor’s title to sell, identify the property correctly and conduct all necessary searches. Build the cost into […]

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6 February 2019

3 things your vendor clients really want

Because conveyancing matters comprise a lot of moving parts, and often seems to be a routine process, it can be easy to lose sight of what is important to your client. Get into the habit of going back to basics and regularly remind yourself of the key things every vendor client wants from their lawyer: […]

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25 January 2019

Risks for lawyers in late FIRB applications

Do you warn your foreign investor clients pre-contract of the need to obtain Foreign Investment Review Board (FIRB) approval before they sign a purchase contract? Two claims this week show the risks of not doing this. The FIRB has issued infringement notices this week to foreign investor clients of two law firms who failed to […]

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17 January 2019

Inactive owners corporations – are they really?

Have you had vendor clients tell you their owners corporation is inactive because they have never had any meetings? If an owners corporation is ‘inactive’ as defined in section 32F of the Sale of Land Act 1962 (Vic) (SL Act) a vendor must state this in the section 32 statement but doesn’t have to provide […]

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12 December 2018

Requests for information about validity of will

Have you been asked to provide a statement as to the circumstances surrounding the preparation and execution of a will and to also provide copies of the will file? Did the request refer to Larke v Nugus? Larke v Nugus is an English case concerning resistance to a grant of probate of a will on […]

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9 November 2018

Key Risk Checklist: Tax issues

This checklist contains the most common taxes and related charges and is not intended to be exhaustive. Ticking a box indicates who is responsible for considering the selected item. Both practitioner and client may be selected. A column has been included for initial comments. It is recommended that a memorandum be sent to the client […]

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7 May 2018

Key Risk Checklist: Sale of land – questions for the vendor

Sale of land – questions for the vendor   Instructions ☐  Please circle yes or no as applicable. ☐  Please provide the additional information as indicated e.g. a copy of your title(s). ☐  If you do not know the answer or are unable to provide the additional information please insert the words ‘not known’. ☐ […]

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24 April 2018

Key Risk Checklist: GST

GST is not simple but there are some easy steps you can take to help protect you and your clients. References to divisions and sections can be found in A New Tax System (Goods and Services Tax) Act 1999 (Cwlth). GST alert – for contracts entered into from 1 July 2018, purchaser to collect and […]

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27 January 2018

Risk management audit checklist

Don’t wait for the worst to happen – use this audit checklist to determine and monitor whether your practice is at risk of a negligence claim. Introduction This audit checklist is a risk management tool for legal practitioners to determine and monitor whether their practice is at risk of a negligence claim arising from poor […]

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18 December 2017

Key Risk Checklist: Electronic property transactions – office management

Electronic property transactions – office management checklist Office policy content Below is a list of issues to consider when writing your office policy and recommended responses. ☐  Who will hold a digital signature? The digital signature is embedded in a USB. Preferably only partners have digital signatures. ☐  How a digital signature’s USB and pin […]

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17 September 2018

Small business big risk

Since LPLC published the first edition of Small business – big risk there have been some changes in the legal landscape which are particularly relevant to transactions for the sale of small businesses including the introduction of: the Estate Agents (General, Accounts and Audit) Regulations 2008, which has made substantial changes to both the form and content […]

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6 August 2018

Pitfalls in personal injury litigation

Table of contentsPersonal injury litigationThe causesThe best risk management – an informed clientCommon mistakesWorkplace injuriesPublic liability and medical negligenceTransport accident claimsEmerging area of riskLPLC Personal Injury Litigation ChecklistAppendix 1 Personal injury litigation Clients seek out litigation lawyers only when something has gone wrong. In the personal injury arena, they have the added difficulty of dealing […]

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24 July 2018

Keep managing mortgage risk

Table of contentsAdditional mortgage downloadsIntroductionAmadio claimsImprovident transactionsMortgage fraudNo or inadequate securityAdvice on equity release productsLPLC Checklist: Advice on equity release productsTaking instructionsThe effect of the transactionIssues of duressLPLC Amadio ChecklistAppendix OneAppendix TwoAppendix ThreeAppendix FourAppendix FiveAppendix Six Additional mortgage downloads Solicitor’s Certificate – Direct Borrower Solicitor’s Certificate – Third Party, Guarantor etc Translator’s Certificate Client acknowledgement […]

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24 April 2018

Avoiding superannuation claims

Table of contentsIntroductionCommon themesSuperannuation related claims from 1 July 2015 to 30 June 2017Areas of lawSuperannuation checklistAppendix one Introduction Every year LPLC sees claims involving superannuation funds. Claims sometimes arise because the practitioner does not have sufficient knowledge or experience with superannuation matters. Practitioners who regularly act in this area will agree that extensive expertise […]

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24 January 2018

A guide for executors

Table of contents18 frequently asked questions about being an executor.1 Who is an executor?2 What is ‘an estate’?3 Who is a beneficiary?4 What is the role of an executor?5 Must an executor take on the responsibility?6 Who arranges the funeral?7 What happens to the bodily remains?8 Should there be a reading of the will?9 What […]

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1 February 2019

Risk video bite – Inadequate advice

Presenter: Phil Nolan, LPLC Risk Manager

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7 December 2018

Risk video bite – Define what you do

Presenter: Stephen Bubb, LPLC Risk Manager

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2 November 2018

Risk video bite – Stop and think

Presenter: Matthew Rose, LPLC Risk Manager

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5 October 2018

Risk video bite – Fake bank account details

Presenter: Heather Hibberd, LPLC Chief Risk Manager

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7 September 2018

Risk video bite – defective section 32 statements

Presenter: Phillip Nolan, LPLC Risk Manager

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4 September 2018

Retrospective changes proposed for residential ‘off the plan’ sunset clauses

Download PDF Table of contentsRetrospective changes proposed for residential ‘off the plan’ sunset clausesSunset clauses – details of the proposed amendmentsRetrospectivity trap for practitionersWhat you should do nowOther legislative changes proposed in the bill Retrospective changes proposed for residential ‘off the plan’ sunset clauses The Sale of Land Act Amendment Bill 2018 (Vic) (the bill) […]

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15 August 2018

Vendor/supplier GST withholding notice

There is no prescribed form for section 14-255 supplier GST withholding notice. Below is a suggested form of notice practitioners are welcome to use or adapt.Page two of the notice contains some notes for its use.   Vendor_supplier GST withholding notice(PDF Version) | Vendor_supplier GST withholding notice(Word Version)    

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14 August 2018

Medical Treatment Planning and Decisions Act 2016 (Vic)

Download PDF Key points   Appointments of medical treatment decision makers and advanced care directives replace medical powers of attorney and refusal of medical treatment certificates from 1 July 2018. Medical power of attorneys entered into before 1 July 2018 are taken to be appointments of medical decision makers. Any refusal of treatment certificates created […]

More
7 August 2018

Some purchasers required to withhold GST from 1 July 2018

Download PDF Suggested resources: Vendor/supplier GST withholding notice Key points New GST withholding regime applying to some settlements from 1 July 2018. New notification obligations on vendors of new residential or potential residential land. New notification and withholding obligations on purchasers of new residential or potential residential land. Penalties apply for both vendor and purchaser […]

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27 June 2018

GST withholding special condition

Download PDF GST withholding 1.1. In this special condition, section references are to Schedule 1 of the Taxation Administration Act 1953 (Cwth) as amended by Treasury Laws Amendment (2018 Measures No.1) Act 2018 (Cwth) and asterisked terms have the same meanings as when used in that schedule. 1.2. If section 14-255(1) applies to the supply […]

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