SOLICITORS' ACCOUNTS RULES 1998 ANNEX 28B

Solicitors’ Accounts Rules 1998

Made by: the Council of the Law Society with the concurrence, where requisite, of the

Master of the Rolls;

date: 22nd July 1998;

authority: sections 32 and 34 of the Solicitors Act 1974, section 9 of the

Administration of Justice Act 1985 and Schedule 15 paragraph 6 of the

Financial Services Act 1986;

replacing: the Solicitors’ Accounts Rules 1991, the Solicitors’ Accounts (Legal Aid

Temporary Provision) Rule 1992 and the Accountant’s Report Rules 1991;

regulating: the accounts of solicitors, registered foreign lawyers and recognised bodies

in respect of their English and Welsh practices.

CONTENTS:

PART A – GENERAL

Rule 1 Principles

Rule 2 Interpretation

Rule 3 Geographical scope

Rule 4 Persons governed by the rules

Rule 5 Persons exempt from the rules

Rule 6 Principals’ responsibility for compliance

Rule 7 Duty to remedy breaches

Rule 8 Controlled trustees

Rule 9 Liquidators, trustees in bankruptcy, Court of Protection receivers and trustees of occupational pension schemes

Rule 10 Joint accounts

Rule 11 Operation of a client’s own account

Rule 12 Solicitor’s rights not affected

Rule 13 Categories of money

PART B – CLIENT MONEY, CONTROLLED TRUST MONEY AND

OPERATION OF A CLIENT ACCOUNT

Rule 14 Client accounts

Rule 15 Use of a client account

Rule 16 Client money withheld from client account on client’s instructions

Rule 17 Other client money withheld from a client account

Rule 18 Controlled trust money withheld from a client account

Rule 19 Receipt and transfer of costs

Rule 20 Receipt of mixed payments

Rule 21 Treatment of payments to legal aid practitioners

Rule 22 Withdrawals from a client account

Rule 23 Method of and authority for withdrawals from client account

PART C – INTEREST

Rule 24 When interest must be paid

Rule 25 Amount of interest

Rule 26 Interest on stakeholder money

Rule 27 Contracting out

Rule 28 Interest certificates

PART D – ACCOUNTING SYSTEMS AND RECORDS

Rule 29 Guidelines for accounting procedures and systems

Rule 30 Restrictions on transfers between clients

Rule 31 Recognised bodies

Rule 32 Accounting records for client accounts, etc

Rule 33 Accounting records for clients’ own accounts

PART E – MONITORING AND INVESTIGATION BY THE SOCIETY

Rule 34 Production of records

PART F – ACCOUNTANTS’ REPORTS

Rule 35 Delivery of accountants’ reports

Rule 36 Accounting periods

Rule 37 Qualifications for making a report

Rule 38 Reporting accountant’s rights and duties – letter of engagement

Rule 39 Change of accountant

Rule 40 Place of examination

Rule 41 Provision of details of bank accounts etc

Rule 42 Test procedures

Rule 43 Departures from guidelines for accounting procedures and systems

Rule 44 Matters outside the accountant’s remit

Rule 45 Privileged documents

Rule 46 Completion of checklist

Rule 47 Form of accountant’s report

Rule 48 Practices with two or more places of business

Rule 49 Waivers

PART G – COMMENCEMENT

Rule 50 Commencement

APPENDICES

Appendix 1 – Flowchart – effect of Solicitors’ Accounts Rules 1998

Appendix 2 – Chart – special situations

Appendix 3 – Guidelines for accounting procedures and systems

Appendix 4 – Reporting accountant’s checklist

Appendix 5 – Form of accountant’s report

For the definition of words in italics see rule 2 – Interpretation..

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