Commissioner Update – December 2024

18 December 2024

In this edition:

Commissioner’s message
Our office will be closed from 24 December
Statement to the profession on the ethical use of AI
Warning – increase in impersonation scams targeting law practice bank accounts
Ensuring a proper basis for any claim of client legal privilege
Reporting sexual harassment in any work-related space
VLSB+C Annual Report 2024 – improving lawyer and consumer experiences
Announcing the 2024 Change Grants recipients
Review of Victoria's Victims' Charter – have your say
Other news updates

Commissioner's message

This year, there has been a lot of commentary on the potential benefits and risks that artificial intelligence (AI) poses for the delivery of legal services, and for the future of the profession – both locally and globally. Its potential for transforming the way legal services are delivered, helping lawyers do their work more effectively, and increasing access to quality legal help is exciting, but there is also a lot for us to still learn. And that’s why we chose to have a particular focus on AI at the International Conference of Legal Regulators, which we hosted in Melbourne in October. We brought global experts together to discuss the impact on the legal system today and in the future – from concerns about the quality and legality of data that’s used to train AI, through to the potential to better meet unaddressed legal need with emerging technologies.

Earlier this month, we issued a statement to the profession on the responsible and ethical use of AI, in collaboration with Uniform Law partners in NSW and WA. We did so to give lawyers clarity on our expectations, and to support them in upholding their professional and ethical obligations as they experiment with new technologies. I encourage you to closely review the statement. It offers important tips about how you can protect your practice and ethically use AI when delivering legal services to clients. You can access the statement below.

In November, we announced the 2024 Change Grants recipients who will share in more than $11 million in funding through our Grants Program. This is another way we use the Public Purpose Fund to support organisations to address barriers limiting people’s access to justice. Read more about this important work below.

As another busy year comes to a close, my office and I extend our thanks to the profession for the vital work that you do. I’d also like to wish you a safe and restful festive season.

Fiona McLeay
Board CEO and Commissioner

Our office will be closed from 24 December

Our office premises will be closed from 3pm on Tuesday 24 December 2024 and will reopen on Monday 6 January 2025.

We will be responding to calls and enquiries from Thursday 2 January 2025, and will prioritise urgent enquiries, requests and applications. LSB Online will remain available throughout the closure period.

If you have a question, get in touch with us via our lawyer enquiry form

Statement to the profession on the ethical use of AI

Understanding the capabilities and limitations of AI tools is important for lawyers. Your clients may need a reliable source of advice on how they can lawfully use AI, or advice about how to defend their interests if they have been adversely affected by a third party using these technologies. You may also want to experiment with it yourself, as part of your practice.

To ensure you have clarity on our expectations, we’ve collaborated with partners in the other Uniform Law jurisdictions to develop our Statement on the use of artificial intelligence in Australian legal practice.

If you choose to use AI in your legal work, you must continue to maintain high ethical standards and comply with your professional obligations, including:

maintaining client confidentiality
providing independent advice
being honest and delivering legal services competently and diligently
charging costs that are fair, reasonable and proportionate.

Law practices that are using these technologies should also consider implementing clear, risk-based policies, limiting the use of AI tools, and being transparent about their use of AI.

Access our statement

Warning – increase in impersonation scams targeting law practice bank accounts

We are aware of a significant increase in lawyers being contacted by scammers pretending to be a representative of their law practice’s bank. They claim to be investigating fraud or an inconsistency in the law practice’s accounts.

The aim is to get enough information from the lawyer to steal money from the law practice’s trust accounts.

Your bank will never ask you over the phone for your online banking passwords, one-time security codes, PINs or tokens.

If you have transferred funds or given a scammer information or access to your account, you need to act quickly. Immediately report the cyber incident to the security team of any involved banks, and to the VLSB+C via our lawyer enquiry form (including near misses).

Ensuring a proper basis for any claim of client legal privilege

In November 2024, the Parliamentary Joint Committee on Corporations and Financial Services released its final report – Ethics and professional accountability: structural challenges in the audit assurance and consultancy industry.

The report considered a range of issues in the wake of allegations of serious corporate misconduct arising from the PwC scandal. A key issue that has surfaced in the PwC matter is the misuse of the doctrine of legal professional privilege (also known as client legal privilege). It's timely for you to be reminded of your professional and ethical obligation to have a proper legal basis for any claim of client legal privilege.

Making a claim without a proper basis – including to cover up breaches of the law – is a breach of your ethical obligations. It is capable of constituting unsatisfactory professional conduct or the more serious charge of professional misconduct, and we are monitoring reports of issues in the way lawyers are using this privilege.

Under common law, client legal privilege applies to confidential communications made for the dominant purpose of obtaining or giving legal advice, and for using in or in relation to pending or contemplated litigation. It’s an important client right and a privilege that belongs to the client, not the lawyer.

We remind all lawyers to:

avoid arrangements where communications are routed through you for the purpose of claiming client legal privilege
avoid marketing your services by suggesting client legal privilege offers a commercial or business advantage
never put yourself in situations where your clients could direct you to claim client legal privilege without a proper basis
never use client legal privilege to try to avoid regulatory investigation of, or enforcement against, your clients
never use client legal privilege to engage in breaches of the law or your own legal and ethical obligations.

Reporting sexual harassment in any work-related space

Sexual harassment by lawyers can constitute professional misconduct. As the regulator of the Victorian legal profession, we will not tolerate sexual harassment of any kind.

We take all complaints about sexual harassment that happens in the workplace very seriously. And by workplace, this includes locations and spaces that are in some way connected to work – such as end of year work events, functions and activities.

Our Sexual Harassment Complaints team is responsive and here to help. They have specialised training in managing complaints made by people who witness or experience sexual harassment. You can choose to make a formal complaint, which is managed by the team via our regular complaints process, or you can provide an informal, anonymous report.

If you’re not sure which path is right for you, we encourage you to speak with us to understand more about the process. You can call 9679 8001 and ask to speak with a member of the Sexual Harassment Complaints Team, or email harassmentcomplaints@lsbc.vic.gov.au.

Find out more about making a complaint or an informal report

VLSB+C Annual Report – improving lawyer and consumer experiences

In 2023–24 we actively sought out the perspectives of lawyers and consumers to help improve the quality of services we provide.

Our report shines a light on the breadth of work we’ve undertaken, including:

asking our customers about their experience – the feedback we receive will help us understand if our systems, processes and communications are meeting consumer and lawyer needs, and the changes we need to make if they’re not
spotlighting the most concerning risks for the profession in our Risk Outlook 2024 and developing resources in response – including on how lawyers can meet our minimum cybersecurity expectations
establishing a new research program, and conducting an in-depth survey on how consumers understand the law and engage with lawyers – this will help in monitoring consumer behaviour and needs, and in informing policies that influence lawyer behaviour
awarding grants to 36 organisations – these included Change Grants that address issues limiting people's access to justice, and the new Strong Foundations Grants that invest flexible and stable funding over time, where it’s needed.

So much more kept our team driven and focused, and will keep doing so as we head into 2025.

Announcing the 2024 Change Grants recipients

This year, 23 community organisations will share in $11,875,997 of funding from our Grants Program. The goal? To support access to justice throughout Victoria, now and into the future. The Change Grants offer an effective way for not-for-profit organisations to test new ideas and advocate for wide reaching systemic change, supporting them to deliver projects that directly address issues or gaps limiting people's access to justice.

Among the many Victorians who will benefit from projects being funded in the 2024 Change Grants round, this funding will help:

older people across the state who are experiencing or are at risk of experiencing elder abuse
victim-survivors of sexual violence who are engaged in civil claims in Victoria
vulnerable and disadvantaged community members statewide who need support to navigate social security legal issues
First Nations communities using self-determining justice models to help divert members away from the criminal justice system, promote cultural healing and strengthen community connections.

There are also projects that will address emerging needs in the digital-legal space, including a platform that will help people navigate complex complaint systems for individual redress.

Find out more about the 2024 Change Grants recipients

Review of Victoria's Victims' Charter – have your say

The Victims of Crime Commissioner is reviewing the Victims’ Charter – legislation introduced in Victoria in 2006 with 17 principles guiding how justice agencies and victims’ services must treat people who have experienced crime.

The review will specifically look at:

victims’ awareness and understanding of the Charter
the effectiveness of the Charter in ensuring justice and victim service agencies respect victims’ entitlements
the effectiveness of any reforms made to the Charter since it was introduced
whether further reform to the Charter for the benefit of victims is necessary.

Make a written submission to the consultation paper by 17 January 2025

Victoria Law Foundation

2025 Legal Laneway Breakfast

Join in celebrating the beginning of the 2025 legal year at the iconic Legal Laneway Breakfast. Come together in Hardware Lane to catch up with colleagues and hear from guest speakers about the year ahead. Register so you don't miss out.

For lawyers in regional Victoria, the Ballarat Laneway Breakfast will return, and the first Gippsland event will be held in Morwell. Keep a watch on Victoria Law Foundation's (VLF) website for updates.

2024 International Access to Justice Forum reflections

The 2024 International Access to Justice Forum provided a platform to unpack the latest developments, innovations and practical solutions to address barriers to access to justice. Read VLF Research Director Dr Hugh McDonald's reflections on the forum, where he explores the global and local intersections of capability, need and person-centred justice.

Victorian Bar

Mediation Centre relocation

The Victorian Bar Mediation Centre, currently located at Douglas Menzies Chambers (180 William Street) is relocating. The new premises will be Castan Chambers on Level 11, 460 Lonsdale Street from 6 January 2025. The Victorian Bar encourages mediators to organise a visit to the new premises, which is in the heart of the legal precinct.

Legal Practitioners' Liability Committee

Appointment of new CEO Mary Maini

The Legal Practitioners' Liability Committee (LPLC) is pleased to announce the appointment of Mary Maini as their new CEO from 6 January 2025. Mary is a qualified lawyer with a wealth of legal and leadership experience in the insurance industry. Mary's appointment comes after CEO Justin Toohey announced his resignation after more than 20 years of service to the LPLC and the profession. We wish Justin well in the next phase of his career and welcome Mary to the role. Read the full statement.

Defamation law reforms stage two – tips and traps

More changes are being made to defamation laws in Victoria, particularly in relation to online publications. Make sure you're across these stage two reforms to the Model Defamation Provisions, and be aware of the risks involved when acting in defamation matters. LPLC's article looks at some of the key changes and risks for lawyers.

Law Library Victoria

Catch up on CPD with Law Library Victoria

Over the end of year break, top up your CPD with the Law Library Victoria's free webinar recordings and eLearning courses. Their 2025 event calendar is coming soon, with the Research Refresher webinar in January ready to book. This session will look at essential research tools and practical tips to help improve research efficiency and effectiveness.

Sentencing Advisory Council

Review of the impact of inflation on fine amounts

The Sentencing Advisory Council has completed an Australian-first review investigating the impact of inflation on fine amounts in Victoria. The review spans the 19 years since penalty indexation began in 2004. The aim is to determine whether fine amounts have kept up with inflation and the values of penalty units.

Last updated on 18 December 2024