Solicitors' Accounts Rules 1998

Rule 34 - Production of records

• (1)

  Any solicitor must at the time and place fixed by the SRA produce to any person appointed by the SRA any records, papers, client and trust matter files, financial accounts and other documents, and any other information, necessary to enable preparation of a report on compliance with the rules.

• (2)

  A requirement for production under paragraph (1) above must be in writing, and left at or sent by the "recorded signed for" or "special delivery next day" service to the most recent address held by the SRA’s Information Directorate, or delivered by the SRA’s appointee. If sent through the post, receipt will be deemed 48 hours (excluding Saturdays, Sundays and Bank Holidays) after posting.

• (3)

  Material kept electronically must be produced in the form required by the SRA’s appointee.

• (4)

  The SRA’s appointee is entitled to seek verification from clients and staff, and from the banks, building societies and other financial institutions used by the solicitor. The solicitor must, if necessary, provide written permission for the information to be given.

• (5)

  The SRA’s appointee is not entitled to take original documents away but must be provided with photocopies on request.

• (6)

  A solicitor must be prepared to explain and justify any departures from the guidelines for accounting procedures and systems published by the SRA (see rule 29).

• (7)

  Any report made by the SRA’s appointee may, if appropriate, be sent to the Crown Prosecution Service or the Serious Fraud Office and/or used in proceedings before the Solicitors Disciplinary Tribunal. In the case of a registered European lawyer or registered foreign lawyer, the report may also be sent to the competent authority in that lawyer’s home state or states. In the case of a solicitor of the Supreme Court who is established in another state under the Establishment of Lawyers Directive 98/5/EC, the report may also be sent to the competent authority in the host state. The report may also be sent to any of the accountancy bodies set out in rule 37(1)(a) and/or taken into account by the SRA in relation to a possible disqualification of a reporting accountant under rule 37(3).

• (8)

  Without prejudice to paragraph (1) above, any solicitor must produce documents relating to any account kept by the solicitor at a bank or with a building society:

  • (a)

    in connection with the solicitor’s practice; or

  • (b)

    in connection with any trust of which the solicitor is or formerly was a trustee,

  for inspection by a person appointed by the SRA for the purpose of preparing a report on compliance with the rules or on whether the account has been used for or in connection with a breach of any other rules, codes or mandatory guidance made or issued by the SRA. Paragraphs (2)-(7) above apply in relation to this paragraph in the same way as to paragraph (1).

Notes

• • (i)

    "Solicitor" in rule 34 (as elsewhere in the rules) includes any person to whom the rules apply - see rule 2(2)(x), rule 4 and note (ii) to rule 4.

  • (ii)

    The SRA’s powers override any confidence or privilege between solicitor and client.

  • (iii)

    The SRA’s monitoring and investigation powers are exercised by Forensic Investigations.

  • (iv)

    Reasons are never given for a visit by Forensic Investigations, so as:

    • (a)

      to safeguard the SRA’s sources of information; and

    • (b)

      not to alert a defaulting manager or employee to conceal or compound his or her misappropriations.

  • (v)

    [deleted]