Client Account Regulation 2016-001 PDF

CLIENT ACCOUNT REGULATION , ©2017 www.iccrc-crcic.ca CLIENT ACCOUNT REGULATION 2016-001 Version: 2016-001 Approved Board of Directors: May 13, 2016 ©2017 IMMIGRATION CONSULTANTS OF CANADA REGULATORY COUNCIL CONSEIL DE RÉGLEMENTATION DES CONSULTANTS EN IMMIGRATION DU CANADA Page 2 of 10 C...

CLIENT ACCOUNT REGULATION , ©2017 www.iccrc-crcic.ca CLIENT ACCOUNT REGULATION 2016-001 Version: 2016-001 Approved Board of Directors: May 13, 2016 ©2017 IMMIGRATION CONSULTANTS OF CANADA REGULATORY COUNCIL CONSEIL DE RÉGLEMENTATION DES CONSULTANTS EN IMMIGRATION DU CANADA Page 2 of 10 CLIENT ACCOUNT REGULATION 2016-001 Table of Contents 1. AUTHORITY ............................................................................................................................................. 4 2. DEFINITIONS ........................................................................................................................................... 4 3. REQUIREMENT TO MAINTAIN ................................................................................................................ 5 4. USE OF CLIENT ACCOUNTS ..................................................................................................................... 6 5. PROHIBITION ON USE OF CLIENT ACCOUNT .......................................................................................... 7 6. WITHDRAWAL OF MONEY FROM CLIENT ACCOUNT ............................................................................. 7 7. INTEREST EARNED ON MONEY IN CLIENT ACCOUNT(S) ......................................................................... 8 8. REQUIREMENT TO MAINTAIN SUFFICIENT BALANCE IN CLIENT ACCOUNT ........................................... 9 9. REQUIREMENT TO RECONCILE CLIENT ACCOUNT(S) MONTHLY ............................................................ 9 10. MEMBER WORKING IN A MULTI-DISCIPLINARY PRACTICE .................................................................... 9 11. PENALTY FOR BREACH OF REGULATION ................................................................................................ 9 ©2017 IMMIGRATION CONSULTANTS OF CANADA REGULATORY COUNCIL CONSEIL DE RÉGLEMENTATION DES CONSULTANTS EN IMMIGRATION DU CANADA Page 3 of 10 CLIENT ACCOUNT REGULATION 2016-001 1. AUTHORITY 1.1 This Regulation is enacted pursuant to section 3.1 of the By-law of the Council. 1.2 In the event of any conflict between the English version and the French version of this Regulation, or between this Regulation and the Council’s By-law, the English version of the Bylaw shall govern. 2. DEFINITIONS 2.1 In this Regulation, capitalized terms, unless otherwise defined herein, have the same meaning as they do in the By-law. 2.2 In this Regulation: a) “Authorized Representative” means an individual who can offer immigration/citizenship advice and/or service for a fee or other consideration. An Authorized Representative includes a member in good standing with a Canadian provincial or territorial law society (including paralegals within their authorized scope of practice), the Chambre des notaires du Québec or ICCRC. b) “Client” means a person or Entity whose interests the Member undertakes to represent, for a fee or other consideration, or pro bono regarding a proceeding or application, or potential proceeding or application, under the Immigration and Refugee Protection Act or the Citizenship Act. c) “Client Account” means a savings or chequing account opened by a Member at a Financial Institution in which account the Member holds funds received from or on behalf of one or more Clients and which is designated in the Member’s records as a Client Account. d) “Disbursements” means miscellaneous expenses incurred by a Member in the course of providing services to a Client including government filing fees and for which such Client may reimburse the Member and, for purposes of clarity, excludes fees for services rendered by a Member. e) “Entity” means a company, business, corporation, partnership, institution, or any other organization that has a separately identifiable existence and which is distinguished from individuals. f) “Financial Institution” means a: i. ii. iii. iv. v. vi. ©2017 Canadian chartered bank; Canadian loan or trust company; Canadian provincial savings office; Canadian credit union or league regulated under Canadian or provincial/territorial statute; Canadian registered trust corporation; or government-regulated and registered financial institution, as approved by the IMMIGRATION CONSULTANTS OF CANADA REGULATORY COUNCIL CONSEIL DE RÉGLEMENTATION DES CONSULTANTS EN IMMIGRATION DU CANADA Page 4 of 10 CLIENT ACCOUNT REGULATION 2016-001 Registrar, in a foreign country for which there is no Canadian banking presence at a reasonable distance or access to the Member’s practice. g) “Group of Members” means: i. ii. iii. a partnership of Members and all Members employed by that partnership; a Member who is a shareholder of a corporation, or a group of Members who are all shareholders of the same corporation, and all Members employed by that corporation; or a Member and all Members employed by that Member. h) “Immigration Agency” means an Entity that is not owned by an Authorized Representative, or a group of Authorized Representatives. i) “Jurisdiction” means the authority to enforce rules over specific groups of individuals or within specific geographies. j) “Money” includes current coin, government or bank notes, cheques, drafts, credit card sales slips, post office orders and express and bank money orders. 3. REQUIREMENT TO MAINTAIN 3.1 Every Member shall maintain an account designated as a Client Account in the name of the Member, or in the name of the Entity under which the Member conducts business, or in the name of the Firm under which the Member conducts business, or in the name of the Firm of which the Member is a partner, or in the name of the partners of the Firm in which the Member is a partner, unless specified otherwise in this Regulation. 3.2 Prior to opening a Client Account, a Member is not permitted to receive from a Client any Money to be held on behalf of a Client for: a) future unbilled services; b) overpayment of billed services; c) government processing fees; or d) any other type of Disbursements. 3.3 A Member agreeing not to hold Money on behalf of a Client at any time may be exempted from opening and/or maintaining a Client Account by submitting to ICCRC an annual declaration, in the prescribed form, attesting to such fact. 3.4 Should the Member, however, choose to hold Money on behalf of a Client after signing such declaration, the Member shall have a Client Account pursuant to section 3.1 of this Regulation, prior to receiving Money to be held on behalf of a Client. ©2017 IMMIGRATION CONSULTANTS OF CANADA REGULATORY COUNCIL CONSEIL DE RÉGLEMENTATION DES CONSULTANTS EN IMMIGRATION DU CANADA Page 5 of 10 CLIENT ACCOUNT REGULATION 2016-001 4. USE OF CLIENT ACCOUNTS 4.1 Deposits in Client Accounts a) A Member who receives Money to be held on behalf of a Client for future unbilled services, for overpayment of billed services, for all Government processing fees, and for all other Disbursements shall promptly and in no event later than fourteen (14) calendar days following receipt, pay it into an account that is: i. ii. iii. designated as a Client Account; kept in the name of the Member; and kept at a Financial Institution. b) Notwithstanding Section 4.1(a) of this Regulation, Client Money received by means of an electronic funds transfer is deemed to be deposited when the Member is informed of the deposit by the Financial Institution. c) A Member shall not hold or deposit Client funds which are not immigration or citizenship related. 4.2 Money to be Paid into a Client Account a) A Member is required to deposit funds to a Client Account whenever he/she receives Money to be held on behalf of a Client for future unbilled services, for overpayment of billed services, for all Government processing fees, and for all other Disbursements. These requirements apply to both models available to the Member as explained below. b) The Council recognizes two distinct approaches to Client Accounts: Model 1 and Model 2, which are differentiated as follows: i. ii. Model 1—All Monies received from Clients shall be deposited into the Client Account. Model 2—A Member shall deposit all unearned and unbilled Monies into the Client Account. c) A Member shall choose either Model 1 or 2 and apply it consistently for the entire audit year. 4.3 Member Employed by an Immigration Agency 4.4 a) A Member working as an Employee for an Immigration Agency shall deposit Client funds into his/her Client Account pursuant to section 3.1 of this Regulation. One or More Client Accounts a) A Member may maintain one or more Client Accounts in one or more currencies but does not need to maintain a separate Client Account for each Client unless a Client specifically requests that a Member do so. ©2017 IMMIGRATION CONSULTANTS OF CANADA REGULATORY COUNCIL CONSEIL DE RÉGLEMENTATION DES CONSULTANTS EN IMMIGRATION DU CANADA Page 6 of 10 CLIENT ACCOUNT REGULATION 4.5 2016-001 Reporting to the Council a) A Member shall provide written notice to the Council by e-mailing [email protected] of each Client Account maintained by the Member promptly and in no event later than fifteen (15) calendar days of opening or closing a Client Account, which notice shall set out the date that the Client Account was opened or closed, the name and address of the Financial Institution at which the Client Account is opened and the account number of the Client Account. 5. PROHIBITION ON USE OF CLIENT ACCOUNT 5.1. Money not to be Paid into Client Account a) A Member shall not deposit into a Client Account Money that belongs entirely to the Member or to a Group of Members of which the Member is a part other than Money referred to in section 4.1 (a) or (b) of this Regulation except a reasonable amount to cover administrative fees (e.g., bank fees, credit card fees etc.). b) A Member shall not hold Client money for the benefit of a third party except for money to pay the Member’s fees, including Agent’s fees, application fees, and disbursements. For greater clarity, the prohibition on holding Client money includes money the Client needs to be eligible for any program under the IRPA or the Citizenship Act. 5.2. No Liens or Security Interests a) A Member may not grant a lien on or security interest in any Client Account under any circumstances, other than those arising by operation of law. 6. WITHDRAWAL OF MONEY FROM CLIENT ACCOUNT 6.1. Withdrawal from Client Account a) A Member may withdraw Money from a Client Account for the following reasons: i. ii. iii. iv. ©2017 Money properly required for payment of a Disbursement for which a Member has received, in writing from the Client, permission regarding the payment of the Money; Money required to reimburse the Member for Disbursements incurred on behalf of a Client for which the Member has issued an invoice to the Client. For Model 2 this is the rule to be allowed to deposit funds directly to the Member’s account used for business purposes; Money required for or toward payment of fees for services rendered by the Member for which the Member has issued an invoice to the Client. For Model 2 this is the rule to be allowed to deposit funds directly to the Member’s account used for business purposes; Money that is directly transferred at the written direction of a Client into the Client Account of another Member, the trust account of a Lawyer or the trust account of a Québec Notary; IMMIGRATION CONSULTANTS OF CANADA REGULATORY COUNCIL CONSEIL DE RÉGLEMENTATION DES CONSULTANTS EN IMMIGRATION DU CANADA Page 7 of 10 CLIENT ACCOUNT REGULATION v. vi. 2016-001 Money that was paid into a Client Account which, under this Regulation, the By-law, the Code of Professional Ethics or any other rule or policy of the Council in effect from time to time, should not have been paid into a Client Account; or Money refunded to a Client. 6.2. Permission to Withdraw Other Money a) A Member may withdraw from a Client Account Money, other than the Money referred to in section 6.1 of this Regulation, if he/she has been authorized to do so by the Registrar of the Council in accordance with policies implemented by the Council from time to time. 6.3. Limit on Amount Withdrawn from Client Account a) A Member shall not at any time withdraw from a Client Account in connection with a Client more Money than is held on behalf of such Client in that Client Account at that time. 6.4. Manner in which Money may be Withdrawn from Client Account a) A Member shall withdraw Money from a Client Account only: i. ii. iii. by cheque; or for purposes of section 6.1 (a)(ii), (iii), (v) of this Regulation, by an electronic transfer to government or to a bank account that is kept in the name of the Member; or for purposes of section 6.1 (a)(iv) or 6.2 of this Regulation, by an electronic transfer to a bank account that is kept in the name of another Member, a Lawyer or a Québec Notary, or the Client. 6.5. Withdrawal by Cheque a) A cheque drawn on a Client Account shall not be: i. ii. made payable either to cash or to bearer; or signed by a person who is not a Member except in exceptional circumstances, as authorized in writing by the Registrar of the Council in accordance with policies implemented by the Council from time to time. 7. INTEREST EARNED ON MONEY IN CLIENT ACCOUNT(S) 7.1 General Client Account(s) a) Subject to section 7.2 of this Regulation, any interest earned on Money held in a Client Account shall be credited to the Member’s account used for business purposes. 7.2. Client Specific Client Account(s) a) Notwithstanding section 7.1 of this Regulation, if a Client requests that a Member open a Client Account specifically and solely for such Client, any interest earned on Money held in ©2017 IMMIGRATION CONSULTANTS OF CANADA REGULATORY COUNCIL CONSEIL DE RÉGLEMENTATION DES CONSULTANTS EN IMMIGRATION DU CANADA Page 8 of 10 CLIENT ACCOUNT REGULATION 2016-001 such Client Account shall be credited to the Client for whom the Client Account was opened. 8. REQUIREMENT TO MAINTAIN SUFFICIENT BALANCE IN CLIENT ACCOUNT 8.1 Despite any other provision in this Regulation, a Member shall at all times maintain sufficient balances on deposit in his/her Client Accounts to meet all of his/her obligations with respect to Money held on behalf of his or her Clients. 9. REQUIREMENT TO RECONCILE CLIENT ACCOUNT(S) MONTHLY 9.1 Reconciliation of Client Account(s) a) A Member shall reconcile each month’s balances of all Client Accounts opened in his/her name promptly and in no event later than ninety (90) calendar days after each month’s end. b) Each reconciliation and the supporting documents relating to each reconciliation (including, without limitation, bank statements and a detailed list of Money held for each Client) shall be kept in the office of the Member’s principal business address for no less than six (6) years. 10. MEMBER WORKING IN A MULTI-DISCIPLINARY PRACTICE 10.1 Working in Other Jurisdictions a) A Member who works in other Jurisdictions is bound by the client account rules or by-laws of the applicable regulatory body in the Jurisdiction(s) of such practices, where such rules or by-laws are in place, so long as they are not in contravention with the principles of ICCRC’s Client Account Regulation, unless an exemption is granted by the Registrar of the Council. 10.2. Multi-Disciplinary Personnel a) A Member who works as a multi-disciplinary personnel in practices (whether or not incorporated) other than immigration/citizenship practices is bound by this Regulation unless an exemption is granted by the Registrar of the Council. 11. PENALTY FOR BREACH OF REGULATION 11.1 A Member who breaches this Regulation shall be subject to the following penalties: a) For a first offence, written warning with direction to correct deficiency within thirty (30) calendar days. b) ©2017 For a second or subsequent offence, $100.00 per incident. IMMIGRATION CONSULTANTS OF CANADA REGULATORY COUNCIL CONSEIL DE RÉGLEMENTATION DES CONSULTANTS EN IMMIGRATION DU CANADA Page 9 of 10 CLIENT ACCOUNT REGULATION 2016-001 c) Failure to correct deficiencies within thirty (30) calendar days or pay fines is subject to suspension and ultimately revocation. ©2017 IMMIGRATION CONSULTANTS OF CANADA REGULATORY COUNCIL CONSEIL DE RÉGLEMENTATION DES CONSULTANTS EN IMMIGRATION DU CANADA Page 10 of 10