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Change tracker – Appendix 1: Flowchart – effect of Solicitors' Accounts Rules 1998

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Tabular version

 
 

The Solicitors' Accounts Rules 1998 have been replaced on the 6 October 2011 by the SRA Accounts Rules 2011 as part of the introduction of outcomes-focused regulation.

Go to SRA Handbook

Appendix 1 of the Solicitors' Accounts Rules was 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.

This document uses hypertext links in order to present a text representation of the flowchart used in the Solicitors' Accounts Rules Booklet 1998.

A diagram of the flowchart (PDF 292KB) is available.

Preliminary Questions

1. Is money held or received by a solicitor
In a purely personal capacity? go to A
In course of practice? go to 2 or, for a solicitor operating a client's own account, go to F4
2. How is the money held?
The solicitor is alone entitled to the money go to I
In his or her capacity as solicitor on account of a person or trust for whom solicitor is acting go to III3
As stakeholder go to III
As liquidator, trustee in bankruptcy or Court of Protection deputy go to IV
As trustee of an occupational pension scheme go to IVV
As the holder of a joint account go to VI
3. Is the solicitor a controlled trustee?
Solicitor is sole trustee or trustee only with one or more partners or employees (a controlled trust) go to II
Solicitor is not a controlled trustee go to III
4. Is the solicitor operating a client's own account?
Yes go to F
No go to 1

Nature of money

I. Office money Go to B
II. Controlled trust money Go to C [Deleted]
III. Client money Go to C
IV. Client Money Go to D
V. Client money or controlled trust money Go to D[Deleted]
VI. Client money Go to E

Treatment under the Solicitors' Accounts Rules 1998

A. Not subject to Accounts Rules - must not be paid into a client account
B. Must not be paid into a client account unless allowed under rule 19 (receipt and transfer of costs)
C. Must be paid into a client account
D. Modified application of Accounts Rules - see rule 9
E. Limited application of Accounts Rules - see rule 10
F. Not client money but subject to limited application of Accounts Rules - see rule 11
For all other aspects of the Solicitors Accounts Rules go to 1