Key Tips for Rule 30

This deals with situations where monies are transferred between clients of the same practice.

Client gives monies to another client

For example, a father completes the sale of his property and gifts a sum of money to his son to enable the son to complete on the purchase of his property.  In this instance, such transfer is only allowed if a payment out to the father could be made in the ordinary way and a payment received from the son in the ordinary way.  This Rule allows for bookkeeping entries to be made by way of a transfer from the father's ledger directly to the son's ledger whilst the money physically remains in client account all the time. 

Client loans monies to another client

The overriding point here is that the prior written authority of both clients is required.  Note that this only refers to private loans rather than a loan, for example, from a building society in a conveyancing transaction.

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