Are you aware that the Solicitors Accounts Rules have now been amended?

bennettbrooks Solicitor's e-Flash

22nd May 2009

Are you aware that the Solicitors Accounts Rules have now been amended?

Are you aware that the Solicitors Accounts Rules have now been amended?

Are you aware of the impact on the Solicitors Accounts Rules (SAR) following the Legal Services Act which came into play on 31st March 2009. Is your firm still compliant?

The Act has resulted in the biggest amendments to the SAR’s for many years, so now is the time to ensure your staff and those not previously affected by the Rules are aware of their obligations and your firm continues to comply with the Rules.

The Act brought in Legal Disciplinary Practices (LDP’s) as well as firm based regulation. The introduction of non-lawyers now being able to become a partner, member or director of a firm means that such people now have a responsibility to comply with the rules, as well as all employees of a firm. It is therefore essential that all employees are aware of the rules and how this affects their role within the firm. Training is paramount!

The SRA have also taken this as an opportunity to clarify certain rules:

In brief the changes to the rules are:

• Regulatory framework now applies to firm as well as all employees within the firm;
• Controlled trusts no longer exist as they now fall within the definition of ‘Client money’;
• Interest rules specific to controlled trust no longer apply and such funds now come within the interest rules for ‘client money’;
• The notes to the rules are now mandatory;
• When aggregation of client accounts is allowed for interest purposes;
• Interest certificates now removed from the rules. All complaints regarding payment of interest now dealt with by the Legal Complaints Services

For further advice on the changes that have taken place and their impact on your firms systems and procedures, please contact bennettbrooks accounts rules compliance team who will be able to assist.

As well as CPD accredited seminars covering such areas, bennettbrooks al so offer in-house training to legal firms which can be tailored to the areas of work that you operate in.

Call us today on 0845 330 3200 to find out more...