Rule 22(1)(h) – general advice for applicants
Last updated 6 November 2009
The SRA requires specific criteria to be met when determining whether to grant authority to withdraw monies from client account. To make an application for such authority, you need to complete the rule 22(1)(h) Application/Information Form (DOC 1 page, 552K).
On the 14 th July 2008 the amended rules 15 and 22 of the Solicitors' Accounts Rules 1998 took effect. The amended rule 15 makes clear that there is a duty on the solicitors to return client monies to their client (or other person on whose behalf the money is held) promptly, as soon as there is no longer any reason to retain those funds - please see section 4.6 and 4.7 of the Solicitors Regulation authority Guidelines (Annex 3 SAR 1998).
The amended rule 22 allows withdrawal of client money where the amount withdrawn does not exceed £50 in relation to any one individual client or trust matter and, after making adequate attempts to identify the owner and repay those monies. Where attempts are unsuccessful, the amount must be paid to charity.
It will be necessary for you to show what attempts have been made to trace the clients to whom the monies belong and I would ask that, having considered the criteria, you let us have all details of your efforts and the outcome of such searches.
We believe that the Department of Work and Pensions (DWP) offer a letter forwarding service. This may be useful when unable to trace clients or beneficiaries. Please note that the DWP will not forward on bills of costs to clients. For enquiries visit www.dwp.gov.uk/lfs.
When assessing your application we may feel it necessary for further efforts to be made to find clients and may ask for documents relating to those searches to be forwarded to us. We may also ask for a letter from your accountants confirming elements of your application. Generally, the greater the attempts made before application the quicker the application can be dealt with.
In applications for authority to withdraw funds from client account, where applications incur out-of-pocket expenses, these can be taken into account by a decision maker, if the attempts to trace the client have not been successful. Please note that the SRA does not have any legal authority to authorise such expenditure. If you manage to trace the client, you would need to agree deduction of the expenses from the money held. If you are not able to trace the client and the authority is granted, it would commonly be subject to a condition that funds are paid to a charity that provides an indemnity. However, where out-of-pocket expenses have been incurred, the condition would normally require only the amount over and above the out-of-pocket expenses to be paid to charity. This would not alter any liability that a solicitor would have to a client.
Please note that if you make a waiver application, the outcome will be available to other SRA business units. If the application is granted details of the waiver will also be publicly available if an enquiry if received by the SRA.