Accounts Rules
Recent changes
The Solicitors' Accounts Rules 1998 were amended on 31 March 2009 as part of a general updating of the rules to introduce firm-based regulation and legal disciplinary practices as provided for in the Legal Services Act 2007. To see the amendments highlighted, use change tracker.
Appendix 5 (Form AR1) was amended on 21 May 2009 in order to clarify who should be named on the accountant's report in accordance with rule 35 of the accounts rules.
Contents – Solicitors' Accounts Rules
The notes included in these rules are compulsory.
- Part
A – General
- Rule 1 – Principles
- Rule 2 – Interpretation
- Rule 3 – Geographical scope
- Rule 4 – Persons governed by the rules
- Rule 5 – Persons exempt from the rules
- Rule 6 – Principals' responsibility for compliance
- Rule 7 – Duty to remedy breaches
- Rule 8 – [repealed]
- Rule 9 – Liquidators, trustees in bankruptcy, Court of Protection deputies and trustees of occupational pension schemes
- Rule 10 – Joint accounts
- Rule 11 – Operation of a client's own account
- Rule 12 – Solicitor's rights not affected
- Rule 13 – Categories of money
- Part
B – Client money and operation of a client account
- Rule 14 – Client accounts
- Rule 15 – Use of a client account
- Rule 16 – Client money withheld from client account on client's instructions
- Rule 17 – Other client money withheld from a client account
- Rule 18 – [repealed]
- Rule 19 – Receipt and transfer of costs
- Rule 20 – Receipt of mixed payments
- Rule 21 – Treatment of payments to legal aid practitioners
- Rule 22 – Withdrawals from a client account
- Rule 23 – Method of and authority for withdrawals from client account
- Part C – Interest
- Part D – Accounting systems and records
- Part E – Monitoring and investigation by the SRA
- Part
F – Accountants' reports
- Rule 35 – Delivery of accountants' reports
- Rule 36 – Accounting periods
- Rule 37 – Qualifications for making a report
- Rule 38 – Reporting accountant's rights and duties - letter of engagement
- Rule 39 – Change of accountant
- Rule 40 – Place of examination
- Rule 41 – Provision of details of bank accounts, etc.
- Rule 42 – Test procedures
- Rule 43 – Departures from guidelines for accounting procedures and systems
- Rule 44 – Matters outside the accountant's remit
- Rule 45 – Privileged documents
- Rule 46 – Completion of checklist
- Rule 47 – Form of accountant's report
- Rule 48 – Practices with two or more places of business
- Rule 49 – Waivers
- Part G – Commencement
- Appendix 1 – Flowchart: Effect of the Solicitors' Accounts Rules
- Appendix 2 – Special Situations – What Applies
- Appendix 3 – Accounting Procedures and Systems
- Appendix 4 – Reporting Accountant's Checklist (PDF 5 pages, 128K) (DOC 5 pages, 375K)
- Appendix 5 – Accountant's Report Form (AR1) (PDF 9 pages, 365K) (DOC 9 pages, 624K)
- Index of terms
You can also consult the previous rules.
To link to this page, please use www.sra.org.uk/accounts-rules.