SRA Accounts Rules meaning

Hunt v IPS Law LLP and Others (transcript) [2024] EWHC 3395 (Ch) What are the practical implications of this case? This judgment is a pointed reminder of the limits of AA 1996, s 9. That provision permits a party to an arbitration agreement, when sued in court on a matter agreed to be referred to arbitration, to seek a stay of the proceedings. In this dispute, however, the correct interpretation of the Investment Agreement meant the defendants were not parties to the arbitration clause at all, so a stay was unavailable. IPS Law, although described in the agreement as the ‘Investment Escrow Party’, did not fall within the clause’s references to the ‘Parties’. Nor could IPS Law invoke the clause via C(RTP)A 1999, because the Investment Agreement did not confer any benefit on it. Accordingly, the statutory route to a stay could not assist those defendants. As regards Mr Hunt’s investment, the decision shows what can occur when funds are transferred under a poorly drafted agreement, and it...

This Practice Note summarises what the SRA Accounts Rules (Accounts Rules) require in relation to receiving and transferring costs, and mirrors the SRA’s supporting guidance: SRA, Helping you keep accurate client accounting records. Money received or held in respect of unbilled fees or disbursements There is a defined meaning of client money. It includes funds you hold or receive towards your fees and any unpaid disbursements where these are received before you issue a bill for them. The SRA elaborates in separate guidance: ‘client money is money of any currency that is received and held as cash, cheque, draft or electronic transfer by a firm when they are providing legal services’. Examples include amounts for the firm’s fees, and any outstanding expert fees, received before a bill has been sent to the client for those sums. Where money held or received for unpaid disbursements is client money, it follows that money held or received in respect of disbursements already paid is office money. The general...

All family practitioners ought to approach their work with a commercially minded approach to practice. Partners must ensure the firm as a whole turns a healthy profit, heads of department must deliver a profitable team, and each individual must be profitable to safeguard their business, their team or their role. Although making major changes to systems can be culturally or personally difficult, smaller, incremental actions that lift profit margins are usually far more attainable for virtually any practice. This Practice Note sets out practical suggestions designed to strengthen performance at both personal and firm-wide scale. Professional obligations The SRA Standards and Regulations apply. The key requirements set out within the SRA Standards and Regulations comprise the following: Principles Code of Conduct for Solicitors, registered European lawyers (RELs), registered foreign lawyers (RFLs) and registered Swiss lawyers (RSLs) Code of Conduct for Firms Accounts Rules Glossary The SRA Accounts Rules set out how firms should keep clients’ money safe and...

This Practice Note explains the SRA Accounts Rules requirements on withdrawing funds from client accounts. It also mirrors supporting SRA guidance: Helping you keep accurate client accounting records Planning for and completing an accountant’s report Taking money for your firm’s costs See also Precedents: Accounts manual for accounts or finance team—law firms and Accounts manual for staff—law firms, both of which contain a section on client account withdrawals. These are complemented by appendices: Procedure for client account withdrawals and Register of approved signatories. The current Accounts Rules took effect on 25 November 2019. They are brief but supported by extensive SRA guidance. The Rules use plain language, yet contain subjective terms such as ‘promptly’, ‘fair’ and ‘appropriate’, and the SRA recognises this calls for an exercise of judgment. Operating a client account and handling client money Rules 2 to 8 set out what is required for the client account and for dealing with client money. Withdrawals from client account...

We must not use a client account to provide banking facilities for clients or third parties. This is a firm requirement of rule 3.3 in the SRA Accounts Rules, covering our main client account and any separately designated client accounts as well. Permitting use of our client account as a banking facility creates the risk that we could potentially facilitate money laundering or comparable offences. You must understand and adhere to our policy on anti-money laundering (AML), counter-terrorist financing (CTF), and counter-proliferation financing when taking receipt of client or office monies. This also encompasses our distinct policy on accepting cash. The SRA may levy substantial penalties for breach of rule 3.3. There need not be a risk of money laundering, or any hint of impropriety, for this to apply. A breach of rule 3.3, by itself, is enough for the SRA to impose a penalty on the firm and/or any individuals concerned. We should only accept funds into our client account where...

1 General information Report date [ insert date ] Previous report date [ insert date ] Report submitted by [ insert name ] 2 Key points [ Insert key point ] [ Insert key point ] [ Insert key point ] [ Insert key point ] 3 Action points arising from last COFA board report Action item [ Insert action point ] Nominated lead [ Identify person responsible for this action point (may or may not be the COFA) ] Current status [ insert status ] Action item [ Insert action point ] Nominated lead [ Identify person responsible for this action point (may or may not be the ...

A: Introduction Date of monitoring review Person carrying out the review B: Consolidated data Periods: last [insert period] and last 12 months Suspected Accounts Rules breaches reported to the COFA Total breaches (serious and non‑serious) Serious breaches Reported to the SRA; if not same as “serious”, explain C: Data by compliance breach category Client money: non‑permitted use Client money: paid into office account Client money: wrongly withheld from client account Client account: incorrect withdrawal Client money: delay paying in Client money: not paid to client promptly/at all Client account: incorrect receipt Client account: other breach Interest policy breach Accounting records: office account Accounting records: client account Cheque/Bacs: incorrect signatory Bill of costs: miscalculation Accountant’s report Office account breach Other D: Conclusions from monitoring review Breach register current? Yes/No; if...