Practice as an REL from an office in England and Wales of an Exempt European Practice

Version 19 of the Handbook was published on 1 October 2017. For more information, please click "History" above.

Part 7: Practice as an REL from an office in England and Wales of an Exempt European Practice

Rule 47: Purpose of the overseas accounts provisions [Deleted]

Rule 47A: Purpose of rules applying to RELs in Exempt European Practices

47A.1

The purpose of applying different accounts provisions to the practice of an REL from an office in England and Wales of an Exempt European Practice is to ensure similar protection for client monies but by way of rules which recognise that the body in which the REL is practising is not itself a regulated entity.

Rule 48: Application and Interpretation

48.1

Part 7 of these rules applies to your practice as an REL from an office in England and Wales of an Exempt European Practice.

48.2

The SRA Handbook Glossary 2012 shall apply and, unless the context otherwise requires:

(a)

all italicised terms shall be defined; and

(b)

all terms shall be interpreted,

in accordance with the Glossary.

Rule 49: Interest [Deleted]

Rule 50: Accounts [Deleted]

Rule 50A: Client money

50A.1

You must comply with this Part if you have held or received client money.

50A.2

In all dealings with client money, you must:

(a)

keep client money separate from money which is not client money;

(b)

on receipt, pay client money into a client account without undue delay and keep it there, unless the client has agreed otherwise, or it is paid directly to a third party in the execution of a trust under which it is held;

(c)

ensure by use of proper accounting systems and processes that client money is used for client's matters only and for the purposes for which it has been paid;

(d)

use money held as trustee of a trust for the purposes of that trust only;

(e)

establish and maintain proper accounting systems and proper internal controls over those systems to ensure compliance with these rules;

(f)

return client money to the person on whose behalf the money is held promptly, as soon as there is no longer any proper reason to retain those funds;

(g)

keep accounting records to show accurately the position with regard to the money held for each client and trust for a minimum period of six years;

(h)

Account for interest on client money in accordance with rule 22.

Rule 50B: Accountants' Reports

50B.1

You must obtain an accountant's report in respect of any period during which you or the Exempt European Practice from which you practice have held or received client money unless you fall within any of the exceptions contained in rule 32A.1A.

50B.2

You must comply with the rules in Part 6 in relation to any accountant's report that you are required to obtain under rule 50B.1.

Rule 51: Production of documents, information and explanations

51.1

You must promptly comply with:

(a)

a written notice from the SRA that you must produce for inspection by the appointee of the SRA all documents held by you or held under your control and all information and explanations requested:

(i)

in connection with your practice; or

(ii)

in connection with any trust of which you are, or formerly were, a trustee;

for the purpose of ascertaining whether any person subject to Part 7 of these rules is complying with or has complied with any provision of this Part of these rules, or on whether the account has been used for or in connection with a breach of any of the Principles or other SRA Handbook requirements made or issued by the SRA; and

(b)

a notice given by the SRA in accordance with section 44B or 44BA of the SA or section 93 of the LSA for the provision of documents, information or explanations.

51.2

You must provide any necessary permissions for information to be given so as to enable the appointee of the SRA to:

(a)

prepare a report on the documents produced under rule 51.1 above; and

(b)

seek verification from clients, staff and the banks, building societies or other financial institutions used by you.

51.3

You must comply with all requests from the SRA or its appointee as to:

(a)

the form in which you produce any documents you hold electronically; and

(b)

photocopies of any documents to take away.

51.4

A notice under this rule is deemed to be duly served:

(a)

on the date on which it is delivered to or left at your address;

(b)

on the date on which it is sent electronically to your e-mail or fax address; or

(c)

48 hours (excluding Saturdays, Sundays and Bank Holidays) after it has been sent by post or document exchange to your last notified practising address.

Rule 52: Waivers

52.1

The SRA may waive in writing in any particular case or cases any of the provisions of Part 7 of the rules, may place conditions on, and may revoke, any waiver.

Guidance note

(i)

Applications for waivers should be made to the Professional Ethics Guidance Team. You will need to show that your circumstances are exceptional in order for a waiver to be granted.