Residual balance meaning

At any one time, most practices carry a handful of aged, typically modest, residual balances tied to client matters within the firm. In the normal run of business, handling these residual balances ought to be straightforward, routine housekeeping. On occasion, though, the volume and spread of residual balances is such that a more substantial project is needed to bring them back under firm control. This Practice Note explores practical questions that can confront the project sponsor, eg the COLP or COFA, when initiating a programme to address your firm’s residual balances. It sets out the circumstances that may prompt commencing a project, how best to start and organise the work, and offers pragmatic pointers designed to lighten the project sponsor’s workload considerably. It should be read in conjunction with Practice Note: Residual balances—law firms. In what circumstances will a residual balances project be required? You may have undertaken a residual balance project...

Good character requirement Pursuant to section 6(1) of the British Nationality Act 1981 (BNA 1981) and Sch 1, para 1(1)(b), anyone seeking naturalisation as a British citizen is required to be of good character. This good character test equally covers applicants aged ten or above who seek registration as British citizens. That said, the good character rule does not apply to several categories of applications, notably those brought under: the statelessness routes in BNA 1981, Sch 2 BNA 1981, section 4B, for an eligible individual with no nationality other than as a British Overseas citizen, British subject under BNA 1981, British protected person, or British National (Overseas) BNA 1981, section 4C, for an eligible person born between 1961 and 1983 BNA 1981, sections 4G–4I, for an eligible person who could not previously obtain citizenship because their natural father was not married to their mother (save that, for BNA 1981, section 4F applications, the pertinent registration ground is BNA 1981, sections 1(3),...

This Practice Note summarises the requirements of the SRA Accounts Rules 2019, in force from 25 November 2019, concerning residual balances. It also mirrors the SRA’s mandatory Statement on the prescribed circumstances in which you may withdraw client money from a client account to donate to a charity of your choosing. See also Practice Note: How to manage a residual balances project. Suggested procedures for dealing with residual balances are outlined in the following Precedents: Accounts manual for accounts or finance team—law firms; and Accounts manual for staff—law firms. See also Precedents: Residual balance record; Residual balances register; Residual balance—monitoring review. What is a residual balance? Firms commonly hold funds for clients—this is client money (see below: Definition of client money). Typically, client money is used in delivering the matter or returned to the client. However, this does not always occur and, in some cases, funds remain where the client is untraceable or it has not been possible to return the money. This remaining amount is a residual...

1 General information Review date [ insert date ] Reviewer’s name [ insert name ] Time period covered by this review [ Insert period, e.g. past quarter or past year ] 2 Review and findings Is your residual balance register current? ☐ Yes ☐ No (If no, make sure you create an action point in section 3) For every outstanding residual balance on the register, have you: made sensible attempts to identify the rightful owner of the funds? taken appropriate steps to return the funds to the rightful owner? kept a record of the actions taken to return the funds to the rightful owner and retained those records? ...

The individual responsible for deciding how to handle the residual balance in question should complete this form. 1 Client and matter Name of client (if known) [ [ Insert ] OR ☐ Not known ] Client reference (if known) [ [ Insert ] OR ☐ Not known ] Matter reference (if known) [ [ Insert ] OR ☐ Not known ] Fee earner (if known) [ [ Insert ] OR ☐ Not known ] Description of matter to which the residual balance relates (if known) [ [ Insert ] OR ☐ Not known ] Is the file available to check? ☐ Yes ☐ No ☐ Not known 2 Money held Amount of residual balance £[ insert ] How long have the funds been held? [ [ Insert ] OR ☐ Not known ] Is the money held in a client account?...