Solicitors Accounts I: Handling Client Money
Description
A comprehensive overview of the Solicitors Regulation Authority (SRA) Accounts Rules, focusing on the rigorous standards for managing client funds in the legal profession. Key requirements include the strict separation of client money from business money in designated client accounts, mandated by Rule 4.1, to protect client interests and maintain public trust. The documents define crucial terms like client money (Rule 2.1) and disbursements, clarifying when anticipated costs transition from client funds to business funds. Furthermore, the sources emphasize that client accounts must not be used to provide general banking facilities (Rule 3.3), a prohibition supported by significant case law to prevent money laundering and insolvency risks. Finally, they outline rules for promptly transferring client money into the client account (Rule 2.3), ensuring funds are available on demand (Rule 2.4), detailing the specific circumstances for lawful withdrawals (Rule 5), and the obligation to account for a fair sum of interest on held funds (Rule 7).
United States
