For example, there are situations in which client funds will be deposited with a MDP and both the services of a lawyer and non-lawyer will be utilized by the client for the same matter or transaction, such as a real estate transaction. In addition, there are situations in which a client of a MDP may obtain services from a lawyer and a non-lawyer in related matters, such as obtaining psychological counseling due to marital stress and then seeking legal counseling regarding the filing of a divorce. This is sound public policy to adopt because the rules governing a lawyer's handling of client trust funds set very high standards and thus afford much protection for clients against the mishandling or misappropriation of their funds. Furthermore, it certainly will be simpler administratively and less likely for funds to be improperly deposited if there is only one set of rules in effect regarding the handling of funds deposited with the MDP on behalf of the client. Commingling of client funds with those of a lawyer or law firm is a serious disciplinary problem.
Many jurisdictions require that fees paid by clients remain segregated until earned by the lawyer.
Lawyers in an MDP may not have the same direct supervision over the handling of funds that they do in a law firm. Moreover, whereas fees paid by clients to law firms are by definition legal fees, fees paid by clients to MDPs will often cover both legal and non-legal services. Thus, a lawyer in an MDP must take special care that payment for legal services and funds received on behalf of a legal services client are clearly disignated as such and segregated from other funds of the MDP as required by the rules of professional conduct. In this regard, the MDP must also comply with any and all financial recordkeeping rules of the jurisdiction in which the legal services are being delivered. Therefore, the Commission believes that the only sound and practical approach to the handling of client funds by the MDP is to require the application of one set of standards, and those should be the exacting ones applied to lawyers .