Fidelity Fund Certificate Applications

Fidelity fund certificate applications

Important notice regarding fidelity fund certificates in respect of the legal practice act and its rules

Fidelity fund certificate application form

The Fidelity Fund Certificate Application Forms were gazetted on 20 July 2018.

All active legal practitioners practising as either directors/partners/sole practitioners, including Advocates practising in terms of s34(2)(b), are required to be in possession of a valid Fidelity Fund Certificates (FFC). A fidelity fund certificate is valid for a year, from January to December of a year. The Legal Practice Council (LPC) issues these certificates annually to legal practitioners through an online system provided by the Legal Practitioner’s Fidelity Fund (the Fund), except for Advocates who are still required to complete and submit their applications to the LPC manually until further notice.
Legal practitioners applying for the FFCs are required to make a contribution for an amount of R345.00 to the LPC before they can be issued with a certificate.
The online application system receives information directly from the LPC through an interface between the system and the LPC’s systems. Legal practitioners should therefore ensure correctness of the information provided to the LPC, including informing the LPC of any changes to already provided information.
Legal practitioners, with the exception of Advocates, requiring to apply for their FFCs can access the online system from any computer system, smartphone, tablet, ipad, etc by typing: https://ffc.fidfund.co.za. Legal practitioners should note that the system operates on any web browser, except for Internet Explorer versions 8.0 or lower. While the system works well with others, it is advisable to use Chrome or Firefox for the best experience.

Section 84(1), (2) and (3) of the Legal Practice Act 28 of 2014 (the Act) states that:

  1. Every attorney or any advocate referred to in Section 34(2)(b), other than a legal practitioner in the full – time employ of the South African Human Rights Commission or the State as a state attorney or state advocate and who practices or is deemed to practice –
    (a) for his or her own account either alone or in partnership;
    or
    (b) as a director of a practice which is a juristic entity, must be in possession of a Fidelity Fund Certificate.
  2. No legal practitioner referred to in subsection (1) or person employed or supervised by that legal practitioner may receive or hold funds or property belonging to any person unless the legal practitioner concerned is in possession of a Fidelity Fund Certificate.
  3. The provisions of subsections (1) and (2) apply to a deposit taken on account of fees or disbursements in respect of legal services to be rendered.

The implementation of the remaining Chapter 2 of the Legal Practice Act, on 1 November 2018, will see the Law Societies cease to exist on 31 October 2018 with the Regulatory functions assumed by the Legal Practice Council, and through delegated authority, the Provincial Councils.

Legal practitioners are generally expected to start applying for their Fidelity Fund Certificates in respect of the ensuing year by the 01 October of a year. Due to the anticipated changes as aforementioned, it is planned that the applications process for the 2019 Fidelity Fund Certificates will commence on 12 November 2018, thus ensuring compliance with the Act and its Rules. In order to remain compliant with both the Act and its Rules, we encourage Legal Practitioners to apply for their certificates during November 2018.

In order to obtain a Fidelity Fund Certificate

In order to obtain a Fidelity Fund Certificate in terms of the Act and its Rules, legal practitioners must satisfy the following requirements:-

  • The annual contribution of R345.00 (VAT inclusive) payable by the applicant to the Council for the issuing of the certificate;
  • Proof of completion of the Practice Management Training before applying for the first Fidelity Fund Certificate, subject to the provisions of Rule 27.1 of the Legal Practice Act Rules;
  • Timeous submission of the trust account audit report/s (in respect of all practices in which the legal practitioner is either sole practitioner/partner/director); approved by the Council; and
    The completed application, which now also includes the Attorneys Insurance Indemnity Fund risk questionnaire.
  • The system used for the application process is currently undergoing enhancements to ensure alignment with the requirements as set out above, and is planned to be available to accept applications effective from 12 November 2018.

Preparation for the fidelity fund certificates application

In preparation for the application process, legal practitioners are reminded to be ready with the following information in respect of all practices that they are linked to as either sole practitioner/partner/director:

Trust account/s balances for the previous four quarters ended (31/12/2017; 31/03/2018; 30/06/2018 and 30/09/2018) for the following accounts:

  • Section 86(2) – to be reported individually for each s86(2) account held by the practice per
    financial institution
  • Section 86(3) – to be reported individually for each s86(3) account held by the practice per
    financial institution
    Section 86(4) – total balances to be reported per financial institution
  • A breakdown of the reported balances e.g what portion was for conveyancing/litigation/estates/commercial/etc. in terms of values. Please note that this breakdown is compulsory.
  • Estates – total balances to be reported per financial institution
  • Properties (other entrusted assets) – total balances to be reported

Contact details of the Provincial Offices of the Legal Practice Council

Please take note of the following changes in respect of the sections for the trust accounts:

s78(1) becomes s86(2);                  s78(2)(a) becomes s86(3)                              s78(2A) becomes s86(4)

The Legal Practitioners Fidelity Fund Certificate Application Form was published on 30 September 2015 and certain information fields are compulsory in your application. To assist practitioners, the application form was automated and applications are only accepted through this online process.

Legal Practitioners – Frequently Asked Questions

When can I start to apply for the 2019 Fidelity Fund Certificates?

The online Fidelity Fund Certificates system started accepting applications for 2019 on 21 November 2018, considering that the Legal Practice Council and the remaining section of the Act only came into effect on 1 November 2018.The Rules in terms of sections 95(1) and (3) of the Act was gazetted on 20 July 2018 and include Rules 47, 48, 49, 51 and 52 that prescribe the form for the application for the FFC, with reference to schedules 7A and 7B. These Rules are applied by the Legal Practice Council since its establishment in terms of Chapter 2 of the Act and apply to all legal practitioners (attorneys and advocates) as well as all candidate legal practitioners and juristic entities as defined in the Act.

Can I still submit manual applications?

NO. The new online application has been developed for all attorneys sole practitioners/partners/directors to submit their FFC applications online. All certificates can only be issued via this online application. The only exception is for advocates contemplated in section 34(2)(b) of the Act, who need to apply for a Fidelity Fund certificate manually, until further notice, submitting the application as per Schedule 7B in the Rules, to the Legal Practice Council

How do I get started?

You are required to ensure that the Legal Practice Council has your correct email address and mobile number. You will receive communication via e-mail and/or SMS to activate your login for the new application. It is therefore crucial for you to advise the Legal Practice Council of any changes in your contact details. The online application is web-based, you can access it anytime from anywhere as long as you have internet connectivity. The address from which you can access the online application is: https://ffc.fidfund co.za Easy to use help guides are provided to assist users navigate the online application.

What if I struggle to access the system?

The online application is supported in Chrome, Firefox and Internet Explorer, except Internet Explorer version 8.0 or lower. For the best experience, it is advised to use Firefox or Chrome. Make sure your provided login credentials are correctly captured, especially your password which is extremely sensitive as it also considers spaces as characters. Should you be on the correct browser and having captured your login credentials correctly but still experience problems accessing the online application, please contact the provincial office of the Legal Practice Council for assistance. Additional contact details will be provided to assist practitioners on the website.

Does it cost anything to apply for the certificate?

The cost of the certificate is R345.00 paid annually with each application to the Legal Practice Council.

What if my firm has more than one member?

Legislation requires that each member who is either a sole practitioner, partner or director must apply for an FFC in order to practice and charge for services rendered. The below applies to firms with more than one member:

  • Firms with more than one member who is required to hold an FFC can appoint a firm representative, either a member or a non-member, who will capture the financial data for the firm.
  • The representative, if not a member that is required to hold an FFC, will receive their own login credentials via email or sms once created by a member.
  • The representative, if a member entitled to hold an FFC, will already have login credentials and use those to capture the firm’s financial information.
  • A representative can information up to completion of the application form, including the AIIF risk questionnaire, for the firm, but cannot proceed to certify or submit the application, each member needs to individually login to certify the correctness of the information provided by the representative and submit the FFFC application.
  • A member representative who is required to hold an FFC will be able to capture firm’s information and proceed until he/she can generate the certificate for self.
  • There is therefore no need to replicate the information pertaining to the firm, it is captured only once.

What if my personal or firm details are incorrect?

The online application pre-populates firm and personal information. However, should a member’s personal information not display correctly, the member is able to change the following information:

  • Mobile number
  • Telephone number
  • Email address
  • Residential addres; and
  • Marital status

Should critical data be displayed incorrectly, including data pertinent to the firm, kindly notify the Legal Practice Council, through the Provincial Office, in writing of the correct information.

Does the Legal Practice Council continue to issue the Certificates?

Yes, the Legal Practice Council continues to be responsible for issuing the FFC. To facilitate this issuance, the system is automated to make the process of issuing and obtaining an FFC simpler and expeditious. Checks and balances will still be conducted on the online application to ensure compliance with all the requirements before a certificate can be issued. The Legal Practice Council retains the discretion to issue or decline the issuance of the certificate.

How long does it take to receive the Certificate once application submitted?

Provided all the necessary requirements have been met and the Legal Practice Council has satisfied itself of that, there should be no delays. The certificate will be generated, forwarded to the Legal Practice Council for approval, and once approved the legal practitioner will receive notification of the approval, and the certificate is available for the member to print on the online application.

Do I have to complete the FFC application all at once?

Not necessarily. Provided you save all captured information as and when you access the online application, you can always go back to the online application and continue with the process. The online application will automatically take you directly to the step that is to be completed. Should you not have saved the information, you will be required to start the process from the beginning and recapture the information.

Is the Certificate specific to my province?

The certificate is issued by the Legal Practice Council and reflect the name of the legal practitioner, the period for which it is valid, the FFC number, the Legal Practice Council practitioner reference number, the date of issue and that the practitioner is compliant with the provisions of section 85 of the Act. A practitioner will receive one certificate irrespective of the number of firms that they are practicing in, or their location.

Can I regenerate a Certificate?

The certificate is generated only once, after the submission of the application and all requirements have been met. The practitioner will be able to print the application form and the generated certificate. The application form and the certificate will always be available to reprint any time thereafter.[

What if I don’t have a computer?

You can access the online application through any electronic platform that supports internet access, from your computer, ipad, tablet, smartphone, internet café, etc. Should you have exhausted all efforts to obtain internet access to the online application, you may contact or attend at the provincial offices of the Legal Practice Council where you will be assisted and/or provided with access to the online application. Below are the contact details for the Legal Practice Council’s Provincial Offices:

PROVINCIAL OFFICES Email address/es Telephone Number/s
Gauteng Provincial Office 012 338 5861
012 338 5915
012 338 5916
012 338 5822
012 338 5888
012 338 5889
012 338 5883
012 338 5951
012 338 5952
Western Cape Provincial Office 021 443 6700
KwaZulu-Natal Provincial Office 033 345 1304
Free State Law Society (FSLS) 051-447 323

Public Member Section

What a Fidelity Fund Certificate is

A Fidelity Fund Certificate is a certificate that an attorney practising for own account as director or partner or sole practitioner; and an Advocate operating a trust bank account and accepting deposits from the public; must hold; without which they cannot practice or take deposits from clients.  This is a requirement in terms of s84(1) of the Legal Practice Act that regulates the legal profession in South Africa.

Legal practitioners not required to hold Fidelity Fund Certificates

The following categories of legal practitioners are not required to hold Fidelity Fund Certificates, but should be in the employ of or in association with a legal practitioner who holds a valid Fidelity Fund Certificate:

  • Professional Assistants
  • Candidate Attorneys
  • Associates

The validity period of a Fidelity Fund Certificate

A Fidelity Fund Certificate is valid for a period of a year from 01 January (or from date of issuance if issued after 01 January) to 31 December of the year for which it was issued.  The Fidelity Fund Certificate remains valid for the year for which it was issued unless it gets withdrawn by the Legal Practice Council.

The validity period of a Fidelity Fund Certificate

A Fidelity Fund Certificate is valid for a period of a year from 01 January (or from date of issuance if issued after 01 January) to 31 December of the year for which it was issued.  The Fidelity Fund Certificate remains valid for the year for which it was issued unless it gets withdrawn by the Legal Practice Council.

Issuance of the Fidelity Fund Certificate

Fidelity Fund Certificates are issued throughout the year for the eligible period/s.  This allows for legal practitioners who practice for own account for the first time during the year to apply for the remainder of that year.  Fidelity Fund Certificates are not issued retrospectively.

The application period for a Fidelity Fund Certificate to already practising legal practitioners opens on 01 October; and legal practitioners are required to have applied by 01 December of that year for the following year.

Who issues the Fidelity Fund Certificates to legal practitioners

The Legal Practice Council, as the Regulator of the profession, issues the Fidelity Fund Certificates to legal practitioners.

Withdrawal of a Fidelity Fund Certificate

A Fidelity Fund Certificate can be withdrawn by the Legal Practice Council where the holder of the certificate is found to no longer fulfil the requirements to be in possession of one.  This includes instances where a legal practitioner is found to be unfit due to misconduct or being unethical.

How to verify validity of a Fidelity Fund Certificate

You can verify the validity of a Fidelity Fund Certificate by contacting the Provincial Office of the Legal Practice Council where the legal practitioner operates and enquiring on the status of the legal practitioner.

You can also verify the Fidelity Fund Certificate status of a legal practitioner that you wish to source legal services from using a public verification portal/website at https://ffc.fidfund.co.za/verification/

This portal allows you to search by:

  • the Fidelity Fund Certificate number,
  • the name of the legal practitioner,
  • the ID number of the legal practitioner,
  • the practitioner number with the Legal Practice Council,
  • the legal practice name, or
  • the legal practice number with the Legal Practice Council.

Right to ask a legal practitioner for his/her Fidelity Fund Certificate

It is within your rights to ask your chosen legal practitioner to produce a valid Fidelity Fund Certificate before engaging his/her services.  It is also advisable to regularly verify the validity of that certificate while continuing to use their services to ensure that it was not withdrawn at any point.  Should you discover that the legal practitioner providing you a service no longer holds a valid Fidelity Fund Certificate while servicing you, you are advised to terminate his/her services/appointment because the Fund may not entertain a claim arising after the certificate was withdrawn and information to that effect published on the public verification portal/website.  

Legal Practitioner Section

Legal practitioners required to hold Fidelity Fund Certificates

Legal practitioners required to hold Fidelity Fund Certificates are:

  • Attorneys practising for own account either as director or partner or sole practitioner.
  • Advocates who take deposits from clients and operate a trust account.

Validity of the Fidelity Fund Certificate

A Fidelity Fund Certificate is valid for a period of a year from 01 January (or from date of issuance if issued after 01 January) to 31 December of the year for which it was issued; provided the Legal Practice Council does not withdraw it subsequent to issuance. A Fidelity Fund Certificate can be withdrawn by the LPC on grounds of the legal practitioner no longer fulfilling the criteria or being found to be unfit to hold a certificate on the basis of misconduct or unethical conduct.

Issuance of the Fidelity Fund Certificate

Fidelity Fund Certificates are issued throughout the year for the eligible period/s.  This allows for legal practitioners who practice for own account for the first time during the year to apply for the remainder of that year.  Fidelity Fund Certificates cannot be issued retrospectively.

The application period for a Fidelity Fund Certificate to already practising legal practitioners opens on 01 October; and legal practitioners are required to have applied by 01 December of that year for the following year.

Eligibility criteria for issuance of Fidelity Fund Certificate

A legal practitioner is required, as basic, to fulfil the following requirements:

  • Have completed the Practice Management Training (PMT), or be exempted by the Legal Practice Council from doing the PMT, or complete the PMT within a year from first issuance of a certificate. Should a legal practitioner with to apply for an extension to fulfilling this requirement, they may do so through the LPC.
  • Pay the required application fee of R345.00 as invoiced by the LPC
  • Have approved audit reports for all legal practices linked to as either director or partner or sole practitioner. Audit reports are approved by the LPC.  Failure to submit approved audit report/s by any one or more legal practices linked to will result in the issuance of the certificate being denied.

For new legal practices, they are required to have their opening audit (first audit) done by a registered auditor within six months of opening for the first four months, thereafter year end audit reports should be submitted to the LPC within six months after the financial year end of the legal practice annually.

The LPC considers all submitted applications for Fidelity Fund Certificates on merits and issue a certificate should the legal practitioner meet all requirements.

Applying for the Fidelity Fund Certificate

As a legal practitioner you need to ensure that the LPC has your up to date email address and correct ID number as you will need these to register on the Fidelity Fund Certificate application portal for the first time.  Once successfully registered on the portal you will be given access credentials for future logins.

 

Applications are submitted to the LPC through an online application portal which can be accessed using a computer/laptop/smartphone/iPhone or any device with internet access. No manual applications are accepted by the LPC.

Information required to apply for a Fidelity Fund Certificate

Legal practitioners are required to have at their disposal such financial information as required for the previous four calendar quarters starting 01 October and ending 30 September of the following year for the categories reflected in the table below. Legal practitioners also need to provide the following information to the regulator:

  • FICA registration number
  • Financial Services Provider (FSP) number (if running an investment practice)
  • Firm’s Registration number (for Incorporated legal practices)

In addition to meeting the eligibility criteria for applying, legal practitioners should ensure the following:

  • That they have completed information pertaining to the firm/s that they are linked to, as well as the LPIIF risk questionnaire.
  • That they have completed the online Fidelity Fund certificate application form

 

The Legal Practitioners’ Fidelity Fund (the Fund) uses the financial information provided to negotiate enhanced benefits with the banking industry in an ongoing effort to improve the interest returns on trust account balances. Interest returns enable the Fund to contribute towards the costs incurred by legal practitioners in operating the trust bank accounts, and for the first level of professional indemnity insurance cover, provided to all legal practitioners via the Legal Practitioners’ Insurance Indemnity Fund (LPIIF).

This Fund also uses this information for risk management initiatives and reinsurance programmes.

The four quarters for which financial information is required are:

Q1          ~             01 October – 31 December

Q2          ~             01 January – 31 March

Q3          ~             01 April -30 June

Q4          ~             01 July – 30 September

Financial information is required for the following categories for all legal practices linked to:

Financial information is required for the following categories for all legal practices linked to:

Category Explanation Information Required
Section 86(2) – Mandatory  

Main trust account/s into which trust creditors deposit their money – if more than one account, balances for each account are to be reported individually.

Legal practitioner need to assign these accounts to the section on the system, if not already assigned.

 

Balances

 

Interest Rates as obtained from the bank/s

Section 86(3) – Not Mandatory Required where a legal practice operates a savings account opened in terms of this section  

Investment/s account/s – excess amount in s86(2) account/s not immediately required by the firm – if more than one account, balances for each account are to be reported individually.

Legal practitioner to assign these accounts to the section on the system, if not already assigned.

 

Balances

 

Interest Rates as obtained from the bank/s

Section 86(4) – Mandatory

Where no balances exist or the firm has not opened these types of accounts, balance of “NIL” to be captured, and a financial institution of “NONE” to be selected

 

Investment/s account/s opened for specifically designated trust creditors with underlying legal transactions – balances are reported per financial institution

 

Consolidated balances per financial institution

Financial institution/s involved

 

Breakdown of the balances per quarter and per financial institution (broken down in values). Breakdown to tally 100%, to the last cent, to the balance reported e.g
amount for litigation matters, commercial matters, conveyancing matters, RAF matters, etc

Investments in terms of the rules – Mandatory

Where balances do not exist, or the legal practice does not engage in investment practices, balance of “NIL” to be captured, and a financial institution of “NONE” to be selected

 

 

Pure investments made by the firm on behalf of a client, but the investment is not linked to any legal service provided to the client

 

 

Consolidated balances per financial institution

 

Financial institution/s involved

Deceased Estates Mandatory

Where balances do not exist, or the legal practice does not engage in deceased estates matters, balance of “NIL” to be captured, and a financial institution of “NONE” to be selected

 

Balances relating to deceased estate matters and not accounted for through the main trust account – where  separate late estate bank accounts opened for these matters

 

Consolidated balances per financial institution

 

Financial institution/s involved

Other Entrusted Assets / Property – Mandatory

Where balances do not exist, or the legal practice is not entrusted with any other assets or property other than money, balance of “NIL” to be captured.

 

 

Balances relating to any other entrusted assets or property other than money.

 

 

Consolidated balances – balances should be as valued by a qualified valuator

 

Contact details for assistance with FFC related queries only

Queries for data related issues by Provincial Office Provincial Office Email addresses Contact numbers
Eastern Cape LouiseS@lpc.org.za 043 050 1025
Free State riskcompliancefs@lpc.org.za 051 447 3237
Gauteng kulanis@lpc.org.za 012 338 5800
KwaZulu Natal shanah@lpc.org.za 033 345 1304
Limpopo CatherineT@lpc.org.za 015 590 0389
Mpumalanga CandithM@lpc.org.za 017 200 2487
Northern Cape recordsnc@lpc.org.za 053 0500508/9
North West recordsnw@lpc.org.za 018 011 0093
Western Cape marlim@lpc.org.za 021 443 6700
Technical queries LPFF Email addresses Contact numbers
Frank Sudron Frank.sudron@fidfund.co.za 012 622 3976
Neo Motsepe Neo.motsepe@fidfund.co.za 012 622 3977
Kedibone Mashigo Kedibone.mashigo@fidfund.co.za 012 622 3978