Approved | amendments to Clients’ Protection Fund Rules.

June 29, 2022

At the VSB Annual Meeting, the Bar Council reviewed and adopted, by unanimous vote, with only a slight amendment change, the rule revisions the CPF Board approved at its meeting on January 28, 2022. The changes will allow the CPF Board to revise certain administrative and procedural rules without prior approval of Bar Council. Bar Council will still review all the rule changes the CPF Board adopts, and Council can reject any rules it does not support, but the change will allow the CPF Board to be more nimble and adapt more quickly to the changing needs of the Board in fulfillment of its valuable mission.

Pending approval by VSB Council.

June 1, 2022

The Clients’ Protection Fund Board voted to submit the proposal to VSB Council for approval at its June, 16, 2022, meeting.

March 30, 2022

Comments Sought on Proposed Amendments to Clients’ Protection Fund Rules.

The Virginia State Bar Clients’ Protection Fund Board (the CPF Board) seeks comments on proposed amendments to the Clients’ Protection Fund Rules. The purpose of the amendments is to give the CPF Board more flexibility to amend administrative and/or procedural rules and to clarify the oversight authority of Bar Council over the Clients’ Protection Fund and the CPF Board.

The amendments will be presented to the Virginia State Bar Executive Committee and Bar Council on June 15 and 16, 2022.

The proposed amendments are summarized in the Executive Summary below and the changes with deletions denoted by strikethrough and additions with underlining can be found in the draft CPF Board Rules. View the CPF Board Rules approved by Bar Council on February 26, 2022.

VIRGINIA STATE BAR CLIENTS’ PROTECTION FUND
PROPOSED RULE REVISIONS
EXECUTIVE SUMMARY

On January 28, 2022, the Clients’ Protection Fund Board approved and proposed rule revisions that would give it authority to revise its own procedural rules and retain in the Executive Committee and Council of the Virginia State Bar the authority over the Board regarding the composition of the Board, how the Fund is supported, and the Board powers, duties and responsibilities, as summarized below.

Noteworthy proposed rule revisions:

  1. Emphasize the oversight of the Executive Committee and Council for the Virginia State Bar
    • Preamble, Section 1.B – Purpose and Funding
  2. Amend Section 3 paragraph 5 (now paragraph 7) of the Preamble to state the CPF Board’s authority to revise rules for Fund administration after public comment, and without Council approval, unless Council determines that a conflict exists between the proposed rules and the Fund’s purpose or Council’s fiduciary responsibility for the Fund.
    • Preamble, Section 3.7 – Powers of Board
  3. Amend Section 5 paragraph 3 of the Preamble to restate the CPF Board’s authority in Section 3 paragraph 7 as a duty of the Clients’ Protection Fund Board.
    • Preamble, Section 5.3 – Duties and Responsibilities of Board
    • Preamble, Section 3.7 – Powers of Board
  4. Move provisions in the Rules pertaining to the jurisdictional limits of Fund reimbursement to Section 3 paragraphs 5 and 6 of the Preamble, to make clear that they remain in the control of the Executive Committee and Council of the Virginia State Bar.
    • Rule V.F.5 – Processing Petitions
    • Rule V.F.6 – Processing Petitions
  5. Remove Sections V.F.5 and V.F.6 of the Rules of Procedure and renumber the paragraphs that follow.
  6. Amend Section V.F.5 (formerly V.F.7) of the Rules of Procedure to reference the jurisdictional limit of Fund reimbursement now listed in Section 3 of the Preamble.
    • Rule V.F.5 – Processing Petitions
  7. Allow the Board to establish and revise Rules of Procedure at its discretion.
    • Rule XII - Amendments

Inspection and Comment

Any individual, business, or other entity may file written comments in support of or in opposition to the proposed changes with Vivian R. Byrd, Clients’ Protection Fund Administrator, or the executive director of the Virginia State Bar, not later than May 25, 2022. Comments may be submitted by mail to 1111 East Main Street, Suite 700, Richmond, Virginia 23219-0026 or by email to [email protected].