Northern Territory Consolidated Acts Northern Territory Consolidated Acts(1) This Part does not prevent a legal practitioner from:
(a) carrying out any legal services in connection with a managed investment scheme operated by a responsible entity; or
(b) having an interest in such a managed investment scheme or in the responsible entity for such a scheme.
(2) However, if a client entrusts, or proposes to entrust, money to a legal practitioner to be invested in a managed investment scheme operated by a responsible entity and the practitioner has a prescribed interest in the scheme, the practitioner must give the client written notice advising the client:
(a) the practitioner has an interest in the scheme; and
(b) the operation of the scheme does not form part of the practitioner's practice; and
(c) there is no claim against the Fidelity Fund for a pecuniary loss arising from an investment in the scheme.
(3) The notice must include the other matters required by regulation.
(4) The legal practitioner must not advance the money entrusted to the practitioner to the responsible entity for the scheme or to another person unless the client has been given the notice.
(5) A legal practitioner who knows an associate has contravened a requirement mentioned in this section must give written notice to the Law Society of that fact within 21 days after becoming aware of the contravention.
(6) A contravention of this section does not limit the operation of section 449.
(7) For this section, a legal practitioner has a prescribed interest in a managed investment scheme if:
(a) the practitioner, or an associate of the practitioner, is a director of or concerned in the management of the responsible entity for the scheme; or
(b) the practitioner, or an associate of the practitioner, is a shareholder in the responsible entity for the scheme; or
(c) the practitioner, or an associate of the practitioner, is taken to be an agent of the responsible entity under Chapter 5C of the Corporations Act; or
(d) the practitioner, or an associate of the practitioner, receives any pecuniary benefit from the scheme or the responsible entity for the scheme if a client of the practitioner invests in the scheme; or
(e) the practitioner, or an associate of the practitioner, has an interest of a kind prescribed by the regulations or legal practitioners rules in the scheme or the responsible entity for the scheme.