EPR 11 - Solicitor's Account Rules Overview

A bank or deposit account, held in the solicitor's name, specifically for client money. The word 'client' must appear in the account title.

Money held by a solicitor on behalf of a client (in various capacities). This doesn't include money meant for the solicitor or the firm (partners).

A specific type of conveying money that can legally remain in a client account. Defined under SAR Rule 7.

A set of rules governing solicitor accounts specifically for handling client money.

Money related to conveyancing. Conveying Money, Anticipatory Conveying Money, and Unclaimed Conveying Money are categorized types of money.

A law firm account for holding office-related funds. Not explicitly defined in legislation.

A category of money within conveying rules, part of broader categories of money.

Responsibilities of a solicitor that extend beyond the specific rules, covering their conduct and handling of the client's money.

Legal rule outlining the solicitor's duty to protect client's funds and properties and handles them in a way that protects the client's interest.

Solicitor's duty to the client, involving prompt notification of money received for the client and delivering account statements when required.

Solicitor's immediate obligation to release client's funds, even if accidentally deposited into a wrong account.

Solicitor's rules aim to prevent unauthorised use of client's money.

Rules for handling client funds, ensuring proper allocation and preventing unauthorized use.

Rule addressing situations where a solicitor receives a mixture of funds, with different parties' claims.

Using client's funds without authorisation, considered a breach of ethical conduct.

Solicitors are prohibited from mixing client funds with their own or other funds.

Withdrawals from client accounts are permitted for specific reasons outlined in Rule 7, e.g., client payment, solicitor reimbursement.

Solicitors are responsible to ensure the client account does not go into overdraft and are prohibited from using the client's money for their own.

Without specific exceptions as per Rule 7, withdrawals need prior council approval.

Withdrawals can be made by cheque or bank transfer (Rule 8), subject to specified terms and conditions.

For withdrawals exceeding $5,000 and less than $30,000, the two-signatory rule applies (unless specific exemption from the rules are met by the firm).

Withdrawals exceeding $30,000 are subject to the two-signatory rule.

Transfers between client accounts are contingent on rules (Rule 13) as transfers are not always allowed.

Solicitors must maintain detailed accounting records (Rule 11) about their handling of client money.

A solicitor's recourse (e.g., lien, set-off) are not impacted by mixing rules.

Steps taken by a solicitor to verify a client's identity, understand their business, and source of funds. This is required under the Prevention of Money Laundering and Financing of Terrorism rules.

Stricter verification procedures for clients considered high risk. This could involve obtaining senior management approval, tracing wealth sources, and ongoing monitoring of the relationship.

If a solicitor suspects a client of money laundering and taking action to verify them risks exposing the suspicion, they must file a report instead of performing due diligence.

Rules a law practice must have to handle situations where due diligence cannot be completed without disrupting business. They must establish a process to assess this and still proceed cautiously.

Lawyers must maintain records for at least five years for any matter they handle, allowing the transaction to be reconstructed if needed for AML investigations.

The Law Society Council has the authority to demand the production of a firm's books and accounts.

A person designated by a law firm to maintain financial records, freeing the firm from the two-signatory rule.

This rule outlines the requirements and duties of an independent bookkeeper in a law firm.

Failing to prepare and maintain financial records as required by Rule 11 of the Solicitor's Accounts Rules (SAR).

Penalties can range from suspension to being struck off the rolls, depending on the severity and intent of the breach.

A document that compares the firm's financial records with their bank statements to ensure consistency.

A primary financial document containing a detailed record of all transactions within the firm.

The responsibility of equity partners to oversee the client account and prevent misuse of funds.

Salary partners are employees and do not bear the same supervisory responsibility for the client account as equity partners.