The SRA Handbook is no longer in effect. It was replaced by the SRA Standards and Regulations on 25 November 2019.

SRA Handbook

Rule 2C: Dealings with client money

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Version 16 of the Handbook was published on 01/04/2016. For more information, please click 'History' Above

Rule 2C: Dealings with client money

2C.1

In all dealings with client money (overseas), you as a responsible authorised body must ensure that your overseas practice:

(a)

keeps client money (overseas), separate from money which is not client money (overseas);

(b)

on receipt, pays client money (overseas) into a client account (overseas) without undue delay and keeps 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)

ensures by use of proper accounting systems and processes that client money (overseas) is used for the relevant client's matters only and for the purposes for which they have been paid;

(d)

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

(e)

establishes and maintains proper accounting systems and proper internal controls over those systems to ensure compliance with these rules;

(f)

returns client money (overseas) 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)

keeps 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; and

(h)

accounts for interest on client money (overseas) in accordance with local law and customs of the jurisdiction in which you or your overseas practice are practising and otherwise when it is fair and reasonable to do so in all circumstances.