16. Clients’ Protection Fund—
The Council may establish a Clients’ Protection Fund for the purposes of reimbursing all or part of losses sustained by a client or other person or entity to whom a fiduciary duty is owed as a result of dishonest conduct of a member of the Virginia State Bar. The Board shall be appointed by Council, and shall receive, hold, manage, invest and distribute funds appropriated to it by Council or otherwise received, in accordance with procedures established by Council.
Effective July 1, 2007, each active member of the Virginia State Bar shall be assessed a required fee of $25 for the Clients’ Protection Fund on the bar’s annual dues statement. The fee shall be in addition to each member’s annual dues as prescribed in Part 6, Section IV, Paragraph 11 of these rules, and it shall be paid on or before the 31st day of July each fiscal year.
All monies collected under this Paragraph 16 shall be accounted for and paid into the State Treasury of Virginia and transferred by the bar from the Treasury to the Clients’ Protection Fund. The bar shall report annually on or about January 15 to the Supreme Court of Virginia on the financial condition of the Clients’ Protection Fund, and the assessment will be discontinued whenever directed by the Court.
Failure to comply with the requirements of this Paragraph 16 shall subject the active member to penalties set forth in Part 6, Section IV, Paragraph 19 of these rules.
Updated: August 8, 2011