Tweet
News: SRA warns about client account usage
We have published a warning notice reminding solicitors why a client account should not be mis-used for clients or others.
The notice explains why use is prohibited, what represents mis-use of the client account, and what action might be taken against those breaching the Code of Conduct. Payments into the client account or transfers and withdrawals from it must relate to a solicitor's normal regulated activity, as outlined in Rule 14.5 of the SRA Accounts Rules 2011.
David Middleton, Executive Director for Legal and Enforcement, said: "The High Court and Solicitors Disciplinary Tribunal have made it clear that law firms must not mis-use client account by effectively providing a banking facility for clients. The role of law firms is to provide legal services, not to provide banking facilities. Rule 14.5 of the SRA Accounts Rules 2011 makes this clear and it is also clear in the decided cases.
"Solicitors who breach the rule may, for example, be helping organised crime to launder the proceeds of crime. The warning notice acts as a reminder of why solicitors should decline clients requests to use their client account as a banking facility, and reiterates that we will take action if the rule is breached."
The warning notice was published in December and can be accessed here:
Go to the warning notice
More...
The notice explains why use is prohibited, what represents mis-use of the client account, and what action might be taken against those breaching the Code of Conduct. Payments into the client account or transfers and withdrawals from it must relate to a solicitor's normal regulated activity, as outlined in Rule 14.5 of the SRA Accounts Rules 2011.
David Middleton, Executive Director for Legal and Enforcement, said: "The High Court and Solicitors Disciplinary Tribunal have made it clear that law firms must not mis-use client account by effectively providing a banking facility for clients. The role of law firms is to provide legal services, not to provide banking facilities. Rule 14.5 of the SRA Accounts Rules 2011 makes this clear and it is also clear in the decided cases.
"Solicitors who breach the rule may, for example, be helping organised crime to launder the proceeds of crime. The warning notice acts as a reminder of why solicitors should decline clients requests to use their client account as a banking facility, and reiterates that we will take action if the rule is breached."
The warning notice was published in December and can be accessed here:
Go to the warning notice
More...