Legal Practice Amendment Bill: Fidelity Fund and Governance Changes

Posted 28 April 2026 Written by Acts Online
Category Justice

Brought to you by SA Legal Academy: The Department of Justice & Constitutional Development has finalised a draft Legal Practice Amendment Bill for Cabinet approval, focusing on the governance and regulatory framework of the Legal Practitioners Fidelity Fund.

In terms of the Legal Practice Act, No. 28 of 2014, the proposed legislation seeks to clarify the status of the Legal Practitioners Fidelity Fund (LPFF) as a public entity. According to Justice & Constitutional Development Minister Mmamoloko Kubayi, the draft Bill introduces structural changes to the governance of the fund and the Legal Practice Council (LPC).

The draft Bill includes provisions to:

  • Formally establish the LPFF’s status as a public entity to ensure alignment with national financial management frameworks.
  • Link the election of the LPC to the election of the LPFF board, a move intended to streamline governance and facilitate transformation within the legal profession.
  • Enhance the oversight mechanisms regarding the management of trust fund interest.

Furthermore, the Department intends to address ongoing concerns regarding non-compliance with the Legal Practice Act, No. 28 of 2014 trust fund interest requirements. These issues are expected to be managed through future amendments to the regulations rather than primary legislation alone, ensuring more responsive enforcement of interest remittance obligations.

What this means for you, your business, or your clients

  • For yourself: You will need to familiarise yourself with the revised election protocols for the LPC and the LPFF board to ensure your participation in the profession’s governance remains compliant.
  • For your business: Law firms must review their trust account management processes in anticipation of stricter regulatory oversight and potential new reporting requirements regarding trust fund interest.
  • For your clients: Clients benefit from the clarified legal status of the LPFF and more robust governance, which strengthens the security and integrity of funds held in trust by legal practitioners.

Originally published at https://legalacademy.co.za/news/read/legal-practice-act-fidelity-fund-focused-amendment-bill-ready-for-cabinet-approval

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