Solicitors Accounts Regulations 2014.
Statutory Instruments
Source: Statutory Instruments

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paragraphs: (1) These Regulations may be cited as the Solicitors Accounts Regulations 2014 and shall be construed together with and in accordance with the provisions of section 66 of the Solicitors Act, 1954 (as substituted by section 76 of the Act of 1994), the text of which is, for ease of reference, set forth in the First Schedule to these Regulations.
(2) Save as provided in clause (3) of this Regulation, these Regulations shall come into operation on the 1st day of December 2014 and thenceforth, subject to clause (3) of this Regulation, the Solicitors Accounts Regulations, 2001 to 2013 shall stand revoked.
(3) The Solicitors Accounts Regulations, 2001 to 2013 shall remain in full force and effect in relation to a solicitor in respect of:
(a) any accounting period in any practice year that has commenced before the 1st day of December 2014, until such time as the solicitor has duly complied with the provisions of Part V (Regulations 21 to 27, inclusive) as regards the furnishing to the Society of a reporting accountant’s report for any such accounting period or periods; and
(b) any investigation of the solicitor, as provided for in Regulation 28 thereof, which commenced and has not been finally completed before the 1st day of December 2014; provided that where, in pursuance of such an investigation, further investigation is required after the 1st day of December 2014, the provisions of the Solicitors Accounts Regulations, 2014 shall apply to such further investigation.
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paragraphs: (1) In these Regulations:
(a) the date expiring six months after the commencement of the accounting period in each practice year; and
(b) the accounting date at the end of the accounting period in each practice year;
(a) a bank which is the holder of a licence under section 9 (1) of the Central Bank Act, 1971 ,
(b) any financial institution referred to in subsection (4)(a)(ii) and (iii) of section 7 (as inserted by the Central Bank Act, 1989 ) of the Central Bank Act, 1971 , and
(c) a bank or financial institution standing designated by order of the Minister for Justice, Equality and Law Reform under section 75(2) of the Act of 1994;
(i) moneys received, held or controlled by a solicitor in respect of which he or she is a controlling trustee or a non-controlling trustee, or
(ii) moneys to which the only person entitled is the solicitor himself or, in the case of a firm of solicitors, one or more of the partners in the firm, or
(iii) moneys placed on joint deposit account or joint deposit receipt other than where the payees are all solicitors practising in the same solicitors practice, or
(iv)(save as provided for under Regulation 8(2)(a) and 8(3)(b) and without prejudice to the generality of the liability of a solicitor pursuant to the provisions of section 73 of the Act of 1994 and regulations made thereunder) interest received by a solicitor on clients moneys held by the solicitor on account of his or her clients generally on an interest-bearing “general client account” as defined in Regulation 8(1); or
(v) moneys received, held or controlled by a personal insolvency practitioner in accordance with an insolvency arrangement;
(2) Other words and phrases in these Regulations shall, where applicable, have the meanings assigned to them in the Acts.
(3) The Interpretation Acts, 1937 to 1997 shall apply for the purposes of the interpretation of these Regulations as they apply for the purposes of the interpretation of an Act of the Oireachtas, except insofar as they may be inconsistent with the Solicitors Acts (or any other Act that amends or extends the Solicitors Acts) or with these Regulations.
(4) For the purposes of section 31 of the Act of 1960, Part V (comprising Regulations 26 to 34, inclusive) of these Regulations shall be deemed to be “Accountants Certificate Regulations”.
(5) Insofar as the provisions of these Regulations on the one hand and the provisions of the Act of 2012, and the Personal Insolvency Act 2012 (Accounts and Related Matters) Regulation 2013 ( S.I. No. 247 of 2013 ) on the other hand, relate to the same subject matter, the two sets of provisions shall, whenever possible, be treated as complementary, so that both sets of provisions shall be applicable and neither provision shall narrow the effect of the other; but in case of conflict the provisions of the Act of 2012 and the Personal Insolvency Act 2012 (Accounts and Related Matters) Regulation 2013 ( S.I. No. 247 of 2013 ) shall prevail.
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paragraphs: (1) These Regulations shall apply to a solicitor who is, in the course of and arising from his or her practice as a solicitor, engaged in the provision of legal services, whether as a sole practitioner or as a partner in a firm of solicitors and shall, for the avoidance of doubt, apply to a solicitor carrying on practice as a personal insolvency practitioner as defined in the Act of 2012.
(2) Wherever in these Regulations an obligation is specified as being that of a solicitor, such obligation of the solicitor shall be a personal one notwithstanding that the solicitor may have caused some other person or persons to perform the act or function comprising such obligation; and it shall be assumed unless and until the contrary be shown to the satisfaction of the Society that such other person or persons had the express or implied authority of the solicitor to perform such act or function.
(3) These Regulations shall not apply to—
(a) a solicitor who is an employed solicitor during the entire of the practice year or years and the accounting period in question;
(b) a solicitor in the full-time service of the State within the meaning of subsection (3) of section 54 (as substituted by section 62 of the Act of 1994) of the Act; and
(c) a solicitor who is in the part-time service of the State, in respect of moneys received, held, controlled or paid by him or her in the course of such service.
(4) A solicitor, to whom clause (3) of this Regulation has applied at the time of he or she making application to the Society for a practising certificate for a practice year, shall be required to notify the Society if at any time during that practice year he or she proposes to change to being a solicitor to whom clause (1) of this Regulation applies; such notification to the Society to be made not later than fourteen days prior to such change taking place.
(5) Where the Society deem it appropriate in any particular circumstances, the Society may require a solicitor, who represents to the Society that he or she is a solicitor to whom these Regulations do not or should not apply, to verify such representation by means of a statutory declaration or in such other formal manner as the Society may direct; provided that the Society may, in addition, conduct their own investigation in order to confirm the veracity of any such representation.
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paragraphs: (1) Subject to the provisions of Regulations 5 and 6, a solicitor who receives, holds or controls clients moneys shall, without delay, pay such clients moneys into client account.
(2) A solicitor who receives, holds or controls moneys in respect of outlays not yet disbursed shall, without delay, pay such moneys into client account and shall treat such moneys in all respects as clients moneys.
(3) A solicitor may, in the course of and arising from his or her practice as a solicitor, open and keep in a bank or banks more than one client account as he or she thinks fit.
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paragraphs: (1) Subject to clause (2) of this Regulation, a solicitor may pay into a client account such moneys as are:
(a) controlled trust moneys or non-controlled trust moneys;
(b) moneys to replace moneys which for any reason have been withdrawn from the client account in contravention of Regulation 9(2);
(c) moneys received by the solicitor which include an amount being paid to the solicitor by or on behalf of a client on account of outlays actually disbursed by the solicitor in the course of the provision of legal services to that client;
(d) moneys which represent interest on clients moneys, as provided for in Regulation 8.
(2) A solicitor shall not hold moneys to which the solicitor is beneficially entitled in a client account for longer than three months.
(3) In clause (2) of this Regulation, “moneys to which the solicitor is beneficially entitled” means:
(a) moneys held by the solicitor for—
(i) professional fees in respect of all or part of the amount of which the solicitor is entitled, as provided for in Regulation 7(1)(a)(iii), to transfer from client account to office account, or
(ii) outlays in respect of which the solicitor is entitled, as provided for in Regulation 7(1)(a)(ii), to withdraw from client account;
(b) moneys held by the solicitor which, pursuant to Regulation 12, should be the subject-matter of a bill of costs furnished to the client concerned; or
(c) moneys which are held in client account to the credit of a client matter which the solicitor is himself or herself beneficially entitled to share together with one or more clients, to the extent of the amount of the beneficial share of the solicitor.
(4) For the avoidance of doubt, it shall be a breach of these Regulations for a solicitor to pay into or hold in a client account moneys other than clients moneys and moneys referred to in clause (1) or in clauses (2) and (3) of this Regulation.
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paragraphs: (1) Where a solicitor receives a cheque or draft which includes a mixture of clients moneys and/or controlled trust moneys or non-controlled trust moneys and/or other moneys (but not including insolvency arrangement moneys), the solicitor shall first pay the entire proceeds of the cheque or draft into client account and, thereafter, without delay, the solicitor shall transfer the part or parts of such proceeds as shall appropriately be payable into a controlled trust account or a non-controlled trust account or into office account, as the case may be.
(2) Where a solicitor receives insolvency arrangement moneys co-mingled with other moneys, a solicitor shall not pay or lodge the insolvency arrangement moneys into an account other than an insolvency arrangement account. For the avoidance of doubt, it shall be a breach of these Regulations for insolvency arrangement moneys to be co-mingled with those of the personal insolvency practitioner or with those of any other person.
(3) Without prejudice to the generality of Regulation 4(1), a solicitor shall not be required to pay into client account such clients moneys received by him or her which he or she pays into a separate bank account in the name of the client or (where so instructed by the client in writing) of some other person.
(4) Without prejudice to the generality of Regulation 4(1), a solicitor (hereinafter in this clause referred to as “the purchasers solicitor”) who, when acting for a purchaser of property, receives a cheque or draft from or on behalf of his or her client or from a lender to his or her client which is drawn in favour of the purchasers solicitor or is drawn in favour of the client who endorses it either generally or specifically to the purchasers solicitor and where the proceeds of such cheque or draft are required to be paid, without delay, to the vendor (or the solicitor for the vendor) in respect of the balance (other than the deposit) of the purchase price of the property in question, the purchasers solicitor shall not be required to pay the proceeds of such cheque or draft into a client account; provided that the application of such proceeds for that purpose is apparent from the purchasers solicitors file maintained in relation to such client matter.
(5) Without prejudice to the provisions of clauses (3) and (4) of this Regulation and for the avoidance of doubt, it shall be a breach of these Regulations—
(a) for a solicitor, having received clients moneys, to fail, without reasonable cause, to pay such clients moneys into the appropriate client account (or client accounts); and
(b) for a solicitor, having received clients moneys, to fail, without reasonable cause, to record such receipt in his or her accounting records.
(6) The Society may, upon application by a solicitor, give directions in writing to the solicitor regarding the holding of clients moneys in an account other than a client account.
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paragraphs: (1) A solicitor may withdraw from a client account:
(a) in the case of clients moneys—
(i) moneys properly required for the payment to the client concerned or (in accordance with the instructions of the client concerned) to another person or other persons on behalf of the client;
(ii) moneys properly required for or towards payment of an amount due to the solicitor by the client concerned in respect of outlays actually disbursed by the solicitor on behalf of that client in the course of the provision of legal services to the client; and
(iii) moneys properly available to be applied by the solicitor in satisfaction (in whole or in part) of professional fees payable by the client concerned where it has been made clear to such client that clients moneys held by the solicitor for the client are being or will be applied by the solicitor in satisfaction (in whole or in part) of such professional fees; provided that such moneys shall be transferred in a timely manner from client account to office account; and
(iv) moneys which are then transferred into another client account in accordance with the instructions of the client concerned.
(b) in the case of controlled trust moneys or non-controlled trust moneys-
(i) moneys properly required for a payment in the due execution of the controlled trust or non-controlled trust concerned; and
(ii) moneys to be then transferred into a controlled trust account or a non-controlled trust account opened and maintained solely for the controlled trust moneys or the non-controlled trust moneys of the controlled trust or non-controlled trust concerned.
(c) moneys which for any reason have been paid into the client account by mistake or otherwise in contravention of these Regulations.
(2) For the avoidance of doubt, it shall be a breach of these Regulations—
(a) for a debit balance to arise on any client ledger account, other than a debit balance which is totally offset by a credit balance arising on another client ledger account in respect of the same client; and
(b) for a solicitor to discharge personal or office expenditure from client account.
(3) In clause (1)(a)(iii) of this Regulation and in Regulations 11, 12 and 23, “in a timely manner” means within a period not exceeding three months after the date on which the solicitor concerned has furnished to the client concerned a bill of costs (or an interim bill of costs as the case may be) specifying the amount of the professional fees payable by the client and in respect of which professional fees the solicitor may properly apply clients moneys of the client concerned in satisfaction (in whole or in part) thereof.
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paragraphs: (1) In this Regulation:
(2) A solicitor to whom these Regulations apply, shall, in respect of client moneys or controlled trust moneys or non-controlled trust moneys or insolvency arrangement moneys received by that solicitor for or on behalf of a client or a controlled trust or a non-controlled trust or an insolvency arrangement,
(I) hold such moneys in an interest bearing account and account for interest thereon while so held; or
(II) account for interest thereon.
(a) where such moneys are held in a dedicated account which is an interest bearing account, by ensuring that all interest which accrues on such account is lodged to the credit of that account as additional, as the case may be client moneys, controlled trust moneys, non-controlled trust moneys or insolvency arrangement moneys held for or on behalf of that client or controlled trust or non-controlled trust or insolvency arrangement until such time as they are paid out of such account; and
(b) in all other cases, by accounting for all interest, in excess of €100 (one hundred euro), which would have been earned on such moneys had they been held as an individual amount to the credit of an interest bearing dedicated account of the solicitors choosing at the bank(or if more than one bank, the principal bank) to the practice of the solicitor for the period commencing seven days after the receipt by the solicitor of such moneys and for so long thereafter as they are so held and, where appropriate, paying that interest concerned out of:
(i) general client account up to but not exceeding the amount of interest at that time standing to the credit of the general client account; or
(ii) office account; or
(iii)(immediately following a transfer of the amount due from office account to the general client account) the general client account.
(3) A solicitor shall, within a period of three months or by the next accounting date (whichever is the later) after the date on which an amount of interest has been credited by the bank to an interest bearing general client account either:
(a) transfer from the general client account to office account, the amount of such interest so credited, to the extent it has not already been paid out of general client account by the solicitor to an individual client or clients entitled to be paid interest, or treated as additional client moneys held by the solicitor, and designate such amount transferred as being interest earned on client account; or
(b) credit to the appropriate client ledger account of the individual clients concerned the amount of interest due to those clients and, each such amount so credited to a client ledger account shall thereafter be treated by the solicitor as additional clients moneys held by the solicitor for that client.
(4) For the avoidance of doubt, where a solicitor holds client moneys, controlled trust moneys, or insolvency arrangement moneys in a non interest bearing account the solicitor has the same obligation to account for interest on those moneys, as if held in an interest bearing account.
(5) Where client moneys are received by a solicitor for or on behalf of a client, the client (without prejudice to any other legal remedy) may refer, any question relating to interest on such client money to the Law Society, and the Society (after providing reasonable opportunity to the client and to the solicitor to make submissions to the Society on such question) shall determine such question and shall duly notify the client and the solicitor in writing of such determination.
(6) Nothing in this Regulation shall:
(a) affect any arrangement in writing, whenever made, between a solicitor and a client as to the application of client moneys received by the solicitor or his or her firm for or on account of that client or interest thereon;
(b) deprive a solicitor of any legal recourse or right, whether by way of lien, charge or otherwise, that the solicitor may have against client moneys of a client standing to the credit of a client account.
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paragraphs: (1) A solicitor shall not withdraw moneys from a client account other than by means of a cheque drawn on that client account, except as provided for in Regulation 7(1)(a)(iv) or 7(1)(b)(ii) or in clause (2) of this Regulation.
(2) A solicitor shall not withdraw moneys from a client account as provided for in Regulation 7(1)(a)(ii) or (iii) or Regulation 7(1)(c) other than by—
(a) a cheque drawn on that client account in favour of the solicitor, the proceeds of which are then paid into the office account; or
(b) a transfer from client account to office account.
(3)(a) Where a solicitor withdraws moneys from a client account by means of a cheque drawn on that client account, the payee details, to be recorded on the client account cheque and the cheque stub or requisition docket or other document of record in respect thereof maintained and kept by the solicitor, shall include the name of the payee or other person who is to be credited with such payment.
(b) Where a solicitor withdraws moneys from a client account by means of a cheque drawn on that client account which is made payable to a bank in order to purchase a draft or other negotiable or non-negotiable instrument, the payee details, to be recorded on the client account cheque and the cheque stub or requisition docket or other document of record in respect thereof maintained and kept by the solicitor, shall include the name of the person shown as payee on such draft or other negotiable or non-negotiable instrument.
(4) A solicitor shall not withdraw moneys from a client account, other than moneys permitted by and in accordance with Regulation 7, unless the Society, upon application by the solicitor, give directions in writing in respect of such other withdrawal.
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paragraphs: A solicitor shall not transfer an amount from the client ledger account of one client to the client ledger account of another client, other than in circumstances in which it would have been permissible for the solicitor under these Regulations to have withdrawn, by means of a cheque drawn on client account in favour of the second client, such amount debited against the first client and then to have paid the proceeds of that cheque into a client account credited to the second client; provided that—
(a) the solicitor shall maintain and keep in respect of each such transfer such accounting records and other documents as will enable such transaction to be appropriately vouched; and
(b) the solicitor shall record each such transaction in his or her books of account in the manner provided for in Regulation 13.
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paragraphs: (1) A solicitor may, in the course of and arising from his practice as a solicitor, open and keep in a bank or banks more than one office account as he or she thinks fit; and a solicitor may pay into office account any moneys to which he or she is beneficially entitled.
(2) A solicitor shall, without delay, pay all moneys received by him or her in respect of professional fees into client account or office account.
(3) Where a solicitor pays moneys received by him or her in respect of professional fees into client account pursuant to clause (2) of this Regulation, the solicitor shall then transfer such moneys in a timely manner from client account to office account, as provided for in Regulation 7(1)(a)(iii)
(4) A solicitor shall, without delay, record as a debit on the office side of the relevant clients ledger account the amount of professional fees in any bill of costs furnished to a client.
(5) For the avoidance of doubt, it shall not be permissible under these Regulations for a credit balance to arise on the office side of a client ledger account; and, where such a credit balance does arise, it shall be a breach of these Regulations for the solicitor to fail, without delay, to correct the position as appropriate in the particular circumstances consequent on an investigation by him or her as to how such credit balance has arisen, including whether such credit balance has arisen as a result of:
(a) a failure to comply with Regulation 4(2) by lodging moneys in respect of outlays not yet disbursed to office account instead of to client account; or
(b) a failure to comply with clause (4) of this Regulation by not recording as a debit on the office side of the relevant client ledger account the amount of professional fees in a bill of costs furnished to a client and where the subsequent receipt (in whole or in part) of such amount from the client has been recorded as a credit on the office side of that client ledger account; or
(c) the payment into office account of moneys received from a client in excess of an amount payable by that client for professional fees the subject of a bill of costs, the furnishing of which has been recorded as provided for in clause (5) of this Regulation; or
(d) another accounting or posting error;
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paragraphs: (1) A solicitor, who holds clients moneys on client account on behalf of a client to whom the solicitor has provided legal services in a client matter which has been completed and the clients moneys concerned are clients moneys which would be properly available to be applied by the solicitor in satisfaction (in whole or in part) of professional fees by the client concerned if the solicitor had furnished to that client a bill of costs, shall be required to furnish to such client a bill of costs which specifies the amount of the professional fees payable by the client in respect of such legal services in such client matter; and, thereafter, the provisions of Regulation 7(1)(a)(iii) shall apply to the transfer in a timely manner of such moneys from client account to office account.
(2) Nothing in clause (1) of this Regulation shall prevent a solicitor from furnishing to a client an interim bill of costs for interim professional fees for legal services already provided in a client matter but where the client matter concerned has not yet been completed; provided that, where clients moneys held in client account on behalf of the client concerned are clients moneys which that client has designated as being in respect of such interim professional fees for legal services already provided by the solicitor, the solicitor shall be required to furnish to that client an interim bill of costs for the amount of such interim professional fees; and, thereafter, the provisions of Regulation 7(1)(a)(iii) shall apply to the transfer in a timely manner of such moneys from client account to office account.
(3) For the avoidance of doubt, it shall be a breach of these Regulations for a solicitor to withdraw moneys from a client account, as provided for in Regulation 9(2), in respect of professional fees or interim professional fees or outlays not properly payable to the solicitor at the time of such withdrawal.
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paragraphs: (1) A solicitor shall, at all times in the course of and arising from his or her practice as a solicitor, maintain (as part of his or her accounting records) proper books of account and such relevant supporting documents as will enable clients moneys handled and dealt with by the solicitor to be duly recorded and the entries relevant thereto in the books of account to be appropriately vouched.
(2) Without prejudice to the generality of clause (1) of this Regulation, a solicitor shall maintain books of account:
(a) which will show the true financial position in relation to the solicitors transactions with clients moneys and with other moneys transacted by him or her through client account as referred to in Regulation 5(1); and
(b) which shall, in respect of each client, distinguish separately between, on the one hand, clients moneys and moneys as specified in subclause (a) of this clause and, on the other hand, any other moneys received, held, controlled or paid by him or her.
(3)(a) Without prejudice to the generality of clause (1) of this Regulation, a solicitor shall at all times maintain a separate client ledger account for each client matter dealt with where clients moneys are received, held, controlled or paid by the solicitor.
(b) A solicitor shall, where applicable, maintain and keep on the relevant client matter file appropriate evidence of outlays disbursed out of moneys withdrawn from client account or disbursed out of moneys withdrawn from office account and recouped out of clients moneys withdrawn from client account.
(4) Without prejudice to the generality of clause (1) of this Regulation, a solicitor shall record each of his or her transactions with clients moneys and with any other moneys transacted through client account as referred to in clause (2)(a) of this Regulation, as appropriate:
(a)(i) in a clients cash book, or
(ii) in a journal, where the particular transaction involves the transfer from one client ledger account to another client ledger account, such journal record to include a narrative explaining each such transaction; and
(b) in a client ledger.
(5) Without prejudice to the generality of clause (1) of this Regulation and of Part III(A) (relating to controlled trusts) and Part III(B) (relating to non-controlled trusts) of these Regulations, a solicitor shall, as appropriate, record his or her transactions with controlled trust moneys or non-controlled trust moneys in the same way as is provided for in subclauses (a) and (b) of clause (4) of this Regulation in respect of clients moneys.
(6) Without prejudice to the generality of clause (1) of this Regulation, and of Part III(C) (relating to insolvency arrangements) a personal insolvency practitioner shall, as appropriate, record his or her transactions with insolvency arrangement moneys in the same way as is provided for in subclauses (a) and (b) of clause (4) of this Regulation in respect of clients moneys.
(7) Without prejudice to the generality of clause (1) of this Regulation, a solicitor shall record in his or her books of account each of his or her transactions on office account with moneys (other than clients moneys or moneys referred to in clause 2(a) of this Regulation and other than controlled trust moneys or non-controlled trust moneys and other than insolvency arrangement moneys) as appropriate, in the following books of account:
(a) an office cash book (or the office side of a clients cash book);
(b) an office ledger (or the office side of a client ledger);
(c) an office ledger control account (to record the totals of all items that have been posted individually to the debit and credit columns of the office ledger); and
(d) nominal ledger accounts (to record the totals of all items that have been posted individually other than to the debit and credit columns of the client ledger or the debit and credit columns of the office ledger).
(8)(a) A solicitor shall, as of each balancing date, prepare a statement (hereinafter in this Regulation referred to as a “balancing statement”) comparing and balancing:
(i) the total of the credit balances due to his or her clients as extracted from the client ledger accounts, including credit balances in respect of controlled trust moneys or non-controlled trust moneys held in client account, controlled trust ledger accounts, and insolvency arrangement ledger accounts, provided that, without prejudice to the generality of Regulations 7(2)(a), 18(4)(a) and 23(4)(a) the solicitor shall not offset debit balances against credit balances, other than a debit balance or balances arising on one or more ledger account or accounts which is or are totally offset by a credit balance or balances on one or more other ledger account or accounts in respect of, as the case may be, the same client within the client ledger, the same controlled trust or the same insolvency arrangement;
(ii) the balance on the client ledger control account, controlled trust ledger control account and insolvency arrangement ledger control account; and
(iii) the balance or balances of each client account, controlled trust account and insolvency arrangement account opened and kept by the solicitor, as appearing from up-to-date statements from the bank or banks in which such account or accounts is or are so opened and kept, as adjusted for outstanding withdrawals and lodgments.
(b) Each balancing statement shall be completed not later than two months after the balancing date to which it relates.
(c) A solicitor shall maintain and keep a copy of each such balancing statement.
(d) The balancing statements in respect of the accounting period in question shall be furnished by the solicitor to his or her reporting accountant; and the information therein shall in turn be provided to the Society in the form of and as Appendix 3 to the reporting accountants report for the accounting period in question.
(9)(a) Without prejudice to the generality of Regulation 11(5), a solicitor shall, on or within not later than two months after each balancing date, extract a list of all debit and credit balances as of such balancing date arising on the office side of the client ledger account, controlled trust ledger account, and insolvency arrangement ledger account.
(b) A solicitor shall, not later than two months after the accounting date at the end of each accounting period, prepare a statement (hereinafter in these Regulations referred to as an “office balancing statement”) comparing and balancing as of that accounting date:
(i) the balance on the office ledger control account; and,
(ii) the total of the debit and credit balances, as extracted from the office side of the client ledger account, controlled trust ledger account, and insolvency arrangement ledger account..
(c) The lists of all debit and credit balances prepared pursuant to subclause (a) of this clause together with the office balancing statement in respect of the accounting period in question shall be furnished by the solicitor to his or her reporting accountant; and the information therein shall in turn be provided to the Society in the form of and as Appendix 5 to the reporting accountants report for the accounting period in question.
num: 14
paragraphs: Subject to the provisions of Regulation 15, a solicitor who receives, holds or controls controlled trust moneys of which he or she is a controlling trustee, other than controlled trust moneys first paid into a client account as referred to in Regulation 5, shall, without delay, pay such controlled trust moneys into a controlled trust account opened and maintained solely for the controlled trust concerned.
num: 15
paragraphs: (1) Subject to clause (2) of this Regulation, a controlling trustee may pay into a controlled trust account such moneys as are:
(a) controlled trust moneys subject to the controlled trust concerned;
(b) moneys to replace controlled trust moneys which for any reason have been withdrawn from the controlled trust account in contravention of Regulation 18; or
(c) moneys which represent interest on controlled trust moneys, as provided for in Regulation 8.
(2) A controlling trustee shall not hold moneys to which the controlling trustee is beneficially entitled in a controlled trust account for longer than three months.
(3) In clause (2) of this Regulation, “moneys to which the controlling trustee is beneficially entitled” has the same meaning, mutatis mutandis, as “moneys to which the solicitor is beneficially entitled” as provided for in Regulation 5(3).
num: 16
paragraphs: (1) Where a controlling trustee receives a cheque or draft which includes a mixture of controlled trust moneys subject to more than one controlled trust of which he or she is a controlling trustee, whether or not also including other moneys not being clients moneys, the controlling trustee shall first pay the entire proceeds of such cheque or draft into a client account as provided for in Regulation 6(1) and, thereafter, the controlling trustee shall, without delay, transfer the part or parts of such proceeds of such cheque or draft as shall appropriately be payable into one or more controlled trust accounts or into office account, as the case may be.
(2) For the avoidance of doubt, it shall be a breach of these Regulations—
(a) for a controlling trustee, having received controlled trust moneys, to fail, without reasonable cause, to pay (or transfer via client account) such controlled trust moneys to the appropriate controlled trust account (or controlled trust accounts); and
(b) for a controlling trustee, having received controlled trust moneys, to fail, without reasonable cause, to record such receipt in his or her accounting records.
(3) The Society may, upon application by a controlling trustee, give directions in writing to the controlling trustee regarding the holding of controlled trust moneys in an account other than a controlled trust account.
num: 17
paragraphs: No moneys, other than moneys which, as provided for in Regulations 14, 15 or 16, a controlling trustee is required or permitted to pay into a controlled trust account, shall be paid into a controlled trust account; and, where moneys are for any reason wrongly so paid, the controlling trustee shall, immediately on becoming aware of that fact, transfer the amount of such moneys to the account into which such moneys should have been paid in the first instance.
num: 18
paragraphs: (1) A controlling trustee may withdraw from a controlled trust account—
(a) controlled trust moneys properly required for a payment in the execution of the controlled trust concerned;
(b) moneys, not being controlled trust moneys subject to the controlled trust concerned, which for any reason have been paid into the controlled trust account by mistake or otherwise in contravention of these Regulations.
(2) The provisions of Regulation 9 (relating to the manner of withdrawal from client account) shall apply, mutatis mutandis, to the manner of withdrawal from controlled trust account.
(3) A controlling trustee shall not withdraw moneys from a controlled trust account, other than moneys permitted by and in accordance with clause (1) of this Regulation, unless the Society, upon application by the solicitor, give directions in writing in respect of such other withdrawal.
(4) For the avoidance of doubt, it shall be a breach of these Regulations-
(a) for a debit balance to arise on any controlled trust ledger account, other than a debit balance which is totally offset by a credit balance arising on another controlled trust ledger account in respect of the same controlled trust; and
(b) for a solicitor to discharge personal or office expenditure from a controlled trust account.
num: 19
paragraphs: A controlling trustee shall at all times maintain and keep such accounting records and other documents as shall be appropriate—
(a) to show separately in respect of each controlled trust of which he or she is a controlling trustee all his or her transactions with controlled trust moneys received, held, controlled or paid by him or her on behalf of each such controlled trust; and
(b) to distinguish controlled trust moneys from all other moneys received, held, controlled or paid by him or her on any other account.
num: 20
paragraphs: (1) A solicitor, who is a non-controlling trustee of a non-controlled trust, who receives non-controlled trust moneys subject to such non-controlled trust, shall, without delay, pay such non-controlled trust moneys into a non-controlled trust account opened and maintained solely for the non-controlled trust concerned; provided that such non-controlled trust moneys, when received by the solicitor, may first be paid into client account before being transferred, without delay, to a non-controlled trust account in respect of the non-controlled trust concerned; and the solicitor shall keep an appropriate record of each transaction concerning such non-controlling trust moneys in his or her books of account in accordance with Regulation 25.
(2) For the avoidance of doubt, it shall be a breach of these Regulations for a solicitor to discharge personal or office expenditure from a non-controlled trust account.
num: 21
paragraphs: A personal insolvency practitioner, who receives, holds or controls insolvency arrangement moneys, shall, without delay, pay such insolvency arrangement moneys into an insolvency arrangement account opened and maintained solely for the insolvency arrangement concerned.
num: 22
paragraphs: (1) Subject to clause (2) of this Regulation, a personal insolvency practitioner shall pay into an insolvency arrangement account such moneys as are:
(a) insolvency arrangement moneys received from or on behalf of the relevant debtor in respect of payments due under the insolvency arrangement; or
(b) refunds from a creditor, the personal insolvency practitioner or, as applicable, the bank for the credit of the relevant debtor, in order to correct any error in making the payments referred to at Regulation 23(1)(a), 23(1)(b), 23(1)(c), 23(1)(d) and in reversing the payments referred to at 23(1)(e); or
(c) moneys which represent interest on insolvency arrangement moneys.
(2) A personal insolvency practitioner shall not hold moneys to which the personal insolvency practitioner is beneficially entitled in an insolvency arrangement account for longer than three months.
(3) No moneys, other than moneys which, as provided for in this Regulation or Regulation 21, a personal insolvency practitioner is required or permitted to pay into an insolvency arrangement account, shall be paid into an insolvency arrangement account; and, where moneys are for any reason wrongly so paid, the personal insolvency practitioner shall, immediately on becoming aware of that fact, transfer the amount of such moneys to the account into which such moneys should have been paid in the first instance.
(4) For the avoidance of doubt, it shall be a breach of these Regulations:
(a) for a personal insolvency practitioner, having received insolvency arrangement moneys, to fail, without reasonable cause, to pay such insolvency arrangement moneys to the appropriate insolvency arrangement account(s); and
(b) for a personal insolvency practitioner, having received insolvency arrangement moneys, to fail, without reasonable cause, to record such receipt in his or her accounting records.
num: 23
paragraphs: (1) A personal insolvency practitioner may withdraw from an insolvency arrangement account:—
(a) moneys properly required for the payment on behalf of the debtor to a creditor according to his or her entitlement under the insolvency arrangement;
(b) moneys properly required for or towards payment of an amount due to the personal insolvency practitioner under the Act of 2012 and Regulations made pursuant to the Act of 2012 and in accordance with the insolvency arrangement in respect of outlays actually disbursed by the personal insolvency practitioner on behalf of that debtor in the course of the provision of legal services to the debtor for which the personal insolvency practitioner has adequate documentary proof that the moneys are properly due at the time of withdrawal; and
(c) moneys properly available to be applied by the personal insolvency practitioner in satisfaction (in whole or in part) of professional fees payable under the Act of 2012 and Regulations made pursuant to the Act of 2012 and in accordance with the insolvency arrangement where it has been made clear to such debtor that such moneys held by the personal insolvency practitioner are being or will be applied by the personal insolvency practitioner in satisfaction (in whole or in part) of such professional fees; provided that such moneys shall be transferred in a timely manner from the insolvency arrangement account to office account; and
(d) bank charges, where appropriate; and
(e) moneys that have been transferred into the insolvency arrangement account in error for which the personal insolvency practitioner has adequate documentary proof demonstrating such error.
(2) The provisions of Regulation 9 (relating to the manner of withdrawal from client account) shall apply, mutatis mutandis, to the manner of withdrawal from an insolvency arrangement account.
(3) A personal insolvency practitioner shall not withdraw moneys from an insolvency arrangement account, other than moneys permitted by and in accordance with clause (1) of this Regulation.
(4) For the avoidance of doubt, it shall be a breach of these Regulations-
(a) for a debit balance to arise on any insolvency arrangement ledger account, other than a debit balance which is totally offset by a credit balance arising on another insolvency arrangement ledger account in respect of the same insolvency arrangement; and
(b) for a solicitor to discharge personal or office expenditure from an insolvency arrangement account.
num: 24
paragraphs: A personal insolvency practitioner shall at all times maintain and keep such accounting records and other documents as shall be appropriate:
(a) to show separately in respect of each insolvency arrangement all his or her transactions with insolvency arrangement moneys received, held, controlled or paid by him or her on behalf of each such insolvency arrangement; and
(b) to distinguish insolvency arrangement moneys from all other moneys received, held, controlled or paid by him or her on any other account.
num: 25
paragraphs: (1) Without prejudice to the specific provisions of any particular Regulation, the minimum accounting records which a solicitor shall maintain and keep in connection with his or her practice as a solicitor are:
(a) a cash book (or books), showing moneys received and paid, with separate principal money columns on each side, one for transactions on office account and another for transactions on client account and, where applicable, for transactions on controlled trust account or on non-controlled trust account or on insolvency arrangement account; or, alternatively, at the solicitors option, separate cash books, on the one hand, for transactions on office account and, on the other hand, for transactions on client account and, where applicable, transactions on controlled trust account or on non-controlled trust account or on insolvency arrangement account;
(b) an office ledger (or ledgers) and a client ledger (or ledgers) and, where applicable, a controlled trust ledger (or ledgers) or a non-controlled trust ledger (or ledgers) or an insolvency arrangement ledger (or ledgers), so as to distinguish clearly between, on the one hand, transactions on office account and, on the other hand, transactions on client account or transactions on controlled trust account or on non-controlled trust account or on insolvency arrangement account; with a separate account in the office ledger and a separate account in the client ledger or controlled trust ledger or non-controlled trust ledger or insolvency arrangement ledger for each matter dealt with where clients moneys or controlled trust moneys or non-controlled trust moneys or insolvency arrangement moneys are handled;
(c) a record of bank lodgements of moneys received by the solicitor in connection with and arising out of his or her practice, distinguishing between, on the one hand, lodgements made to office account and, on the other hand, lodgements made to client account or to controlled trust account or to non-controlled trust account or to insolvency arrangement account;
(d) a journal of amounts transferred from one ledger account to another ledger account or to an office ledger account or from an office ledger account to another ledger account, each entry therein to include a narrative explaining the transaction;
(e) a bank account register, detailing in respect of each office account and each client account and each controlled trust account, each non-controlled trust account and each insolvency arrangement account, the bank, the branch thereof, the title or name designation of the account, the account number, the opening date, the names of those mandated to withdraw from the account and, where applicable, the date of closure;
(f) the original of each paid cheque drawn on each client account, controlled trust account, non-controlled trust account and insolvency arrangement account regularly procured by the solicitor from his or her bank or banks and maintained and kept by the solicitor in numerical sequence, together with the corresponding cheque stubs or requisition dockets;
(g) a copy of each draft and each other negotiable or non-negotiable instrument (other than a cheque referred to in subclause (f) of this clause) obtained by the solicitor in connection with any matter;
(h) each matter file, each containing all documents generated in the course of each such matter;
(i) a copy of each bill of costs (distinguishing between professional fees and outlays) furnished by the solicitor in respect of all matters, which shall be retained by the solicitor in a bills delivered book or on a file dedicated for that purpose;
(j) a copy of each balancing statement and each office balancing statement; and