Case studies: Improper use of client account as a banking facility

6 August 2018

The following case studies concentrate on setting out our views on the application of rule 14.5 of the SRA Accounts Rules 2011 to the facts presented rather than attempting to cover all the other considerations or risks. We have picked up on some issues where we think it appropriate, but this is not a comprehensive review of all of the potential regulatory issues involved. Full consideration should be given in each case to all existing legal and other requirements. The case studies should be read in conjunction with our warning notice on improper use of client account as a banking facility, issued on 18 December 2014 updated on 6 August 2018.

We would expect law firms to understand (and document where necessary) all relevant risk factors involved in a transaction such as, amongst other matters, conflicts of interest or acting by implication for any unrepresented parties. Law firms will also need to comply with other regulatory and legal requirements for example, undertaking appropriate client and other due diligence.

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