S.I. No. 44/1967 - Solicitors' Accounts Regulations, 1967.

S.I. No. 44 of 1967.

SOLICITORS' ACCOUNTS REGULATIONS, 1967.

The Incorporated Law Society of Ireland in exercise of the powers conferred on them by sections 4 , 5 , 66 and 71 of the Solicitors Act, 1954 , and of every other power thereunto them enabling and with the concurrence of the President of the High Court hereby make the following regulations.

PART I. PRELIMINARY.

1. These regulations may be cited as the Solicitors' Accounts Regulations, 1967.

2. (1) In these regulations, unless the context otherwise requires:—

" Accountant " means (a) a person approved by the Council, who is a member of either the Institute of Chartered Accountants in Ireland or the Association of Certified and Corporate Accountants, (b) any other person who is considered by the Council to have adequate qualifications or experience in the auditing of accounts and, where the context so admits or requires, includes a firm of accountants;

" accountant's certificate " has the meaning given to it by paragraph 10 (2) of these regulations;

" accounting period " means the period of one year ending on the accounting date;

" accounting date " means the date in each year selected by a solicitor and notified by him to the Society pursuant to paragraph 10 (1) of these regulations;

" bank " means any of the banks mentioned in the First Schedule;

" client " means any person on whose account a solicitor holds or receives client's money;

" client account " means a current or deposit account in a bank in the name of the solicitor in the title of which the word " client " appears;

" client's money " means money which a solicitor receives as a solicitor or agent or in connection with his practice as a solicitor on account of some other person, but does not include (a) money to which he is, or in the case of a firm, one or more of the partners are, alone entitled, or (b) money held or received on account of a trust of which the solicitor is a solicitor-trustee;

" the Principal Act " means the Solicitors Act, 1954 ;

" solicitor-trustee " means a solicitor who is a sole trustee or who is co-trustee only with a partner, clerk, or servant of his, or with more than one of such persons;

" trust bank account " means a current or deposit account in the title of which the word trustee or executor appears kept at a bank in the names of the trustee or trustees of the trust and kept solely for money subject to a particular trust of which the solicitor is solicitor-trustee;

" trust money " means money which a solicitor receives and which is subject to a trust of which the solicitor is a trustee whether or not he is solicitor-trustee of such trust.

(2) An accountant as herein defined shall be deemed to be a duly qualified accountant for the purposes of Section 66 of the Principal Act. Other expressions in these regulations have the meanings assigned to them by the Solicitors Acts, 1954 and 1960, and the term solicitor includes a firm of solicitors.

(3) The Interpretation Act, 1937 , applies to these regulations in the same manner as it applies to an Act of the Oireachtas except in so far as it may be inconsistent with the Act or these regulations.

(4) These regulations shall come into operation on the 9th day of March, 1967. On the coming into operation of these regulations the regulations mentioned in the Third Schedule hereto shall be revoked.

PART II. CLIENT ACCOUNTS.

3. A solicitor who receives client's money shall open and keep a client account at a bank. A solicitor may keep one or as many client accounts as he thinks fit.

4. A solicitor who receives client's money shall without unnecessary delay pay such money into a client account unless such money

(a) is received in the form of cash and is paid in cash without unnecessary delay to the client or on his behalf or

(b) is received in the form of a cheque or draft or other negotiable instrument which is endorsed over without unnecessary delay to the client or on his behalf or

(c) is paid without unnecessary delay into a separate banking account in the name of the client or some person named by the client or

(d) is money which the client has directed the solicitor to deal with otherwise or

(e) is money which the Council, upon application made to them by the solicitor, have specifically authorised in writing to be withheld from a client account.

5. No client's money shall be drawn from a client account except

(a) money properly required for a payment to or on behalf of a client whose money has been paid into that account or

(b) money properly required for or towards payment of a debt due to the solicitor from a client whose money has been paid into that account or in reimbursement of money expended by the solicitor on behalf of such a client or

(c) money properly required for or towards payment of costs incurred or commission due by a client whose money has been paid into that account or

(d) money for immediate transfer to another client account in the same or another bank or

(e) money paid into the account by mistake or

(f) money which, upon an application made to them by a solicitor, the Council specifically authorise in writing to be withdrawn

and all such withdrawals, save only those made by virtue of sub-paragraph (a) of this paragraph shall be made only by

(i) a cheque drawn in favour of the solicitor or

(ii) a transfer to a bank account in the name of the solicitor.

PART III. TRUST ACCOUNTS.

6. A solicitor-trustee who receives trust money shall open and keep a trust bank account.

7. A solicitor-trustee who receives trust money shall without unnecessary delay pay such money into a trust bank account unless such money

(a) is received either in the form of cash which is paid in cash in the proper execution of the trust to a third party or

(b) is received in the form of a cheque or draft or other negotiable instrument which is endorsed over in the proper execution of the trust to a third party or

8. No money shall be drawn from a trust bank account except

(a) money properly required for a payment in the execution of the particular trust or

(b) money paid into the account by mistake or

(c) money which upon an application made to them by the solicitor the Council specifically authorise in writing to be withdrawn.

9. A solicitor who is a trustee (not being a solicitor-trustee) and who receives trust money shall, without unnecessary delay, pay such money into a bank account in the names of the trustees kept solely for money subject to the trust, unless such trust money is temporarily paid into a client account.

PART IV. ACCOUNTANTS' CERTIFICATES.

10. (1) The accounting date shall be a fixed date in each practice year selected by a solicitor and the solicitor shall, within three months from the date on which these regulations apply to him, notify the Society of such date. The accounting date shall also be stated in the annual declaration made by a solicitor for the purpose of obtaining a practising certificate.

(2) Every solicitor to whom these regulations apply shall deliver to the Society within six months of the accounting date in each practice year, or within such further period as the Society may permit, a certificate by an accountant (in these regulations referred to as an accountant's certificate) in either form A or form B in the Second Schedule hereto, or in such other form as may be approved by the Society, in respect of the accounting period.

11. In order to enable him to issue an accountant's certificate in form A in respect of a solicitor an accountant shall not normally be required to do more than

(a) make a general test examination of the books of account of the solicitor and

(b) satisfy himself that a client account, and where appropriate, a trust bank account, is kept and

(c) make a general test examination of the bank pass books, bank statements and deposit receipts kept in relation to the practice and

(d) make a comparison, as of not fewer than two dates, not less than three months apart in the period covered by the accountant's certificate and selected by the accountant, between the liabilities of the solicitor to his clients as shown by the books of account and the balance standing to the credit of the client account and, where appropriate, the trust bank account and satisfy himself that such balance or balances are not less than the total of the sums required to be kept on client account or trust bank account in accordance with the Solicitors' Accounts Regulations in operation for the time being and

(e) obtain such information and explanations as he may require arising out of such examination.

12. In order to enable him to issue an accountant's certificate in form B an accountant shall make such audit, inquiry and investigation of the books, accounts and documents of the solicitor or his firm as will enable him to issue the certificate.

13. An accountant's certificate shall not be required in the case of

(a) a solicitor in the whole time service of the State or

(b) a solicitor in the part time service of the State so far as regards moneys received, held or paid by him in the course of such service or

(c) a solicitor who has satisfied the Society that he has at no time during the accounting period held or received client's money or trust money or

(d) any other solicitor who satisfies the Society that an accountant's certificate is unnecessary.

14. The Council may in any case, on cause satisfactory to them being shown, extend the period of six months within which an accountant's certificate is required.

15. (1) A solicitor shall at all times keep properly written up such books and accounts as may be necessary to show all his dealings with and particulars of and information as to

(a) monies received, held or paid by him for or on account of each individual client and

(b) all money dealt with by him through a client account and

(d) all money dealt with by him through a trust bank account.

(2) A solicitor shall preserve for at least ten years from the date of the last entry therein all books and accounts kept by him under this paragraph.

(3) The minimum books which a solicitor shall keep in connection with his practice are

(a) a cash book, or books, showing monies received and paid, ruled with two separate principal money columns on each side, one for transactions on client account and one for transactions on office account and, where appropriate, trust bank account or, alternatively, at the solicitor's option, two separate cash books, one for transactions on client account and, where appropriate, trust bank account, and one for transactions on office account and

(b) a ledger or ledgers kept so as to distinguish clearly between transactions on client account and trust bank account and transactions on office account and

(c) a record of bank lodgments of monies received by the solicitor in connection with his practice, distinguishing between lodgments made to client account or trust bank account and lodgments made to other accounts.

16. Where

(a) an accountant has been found guilty by the disciplinary tribunal of his professional body of professional misconduct or dishonourable conduct or

(b) the council are of the opinion that an accountant has negligently issued a certificate which is untrue in any material respect or which fails to draw attention to any matter which ought to be brought to the attention of the Council

the Council may, at their discretion, refuse to accept further accountants' certificates given by him. In coming to their decision the Council shall take into consideration any observations or explanations made or given by such accountant or made on his behalf by a professional body of which he is a member.

PART V. GENERAL.

17. Money drawn from a client account for a client or trust shall not exceed the total of the money held for the time being in such account on account of such client or trust.

18. (1) Every solicitor practising on his own account and every solicitor-trustee shall, whenever required by the Council prepare or cause to be prepared and shall submit to the Council within such time, not being less than seven days, as the Council shall require by notice in writing, such accounting statement as will show in summary form the true balances of all monies received and due in respect of all clients and trusts, or, if so required, in respect of any particular client or trust, and where and how at the date of such statement such balances are held in safe keeping and available for payment.

(2) If any sum is due by a client or trust to such solicitor or such solicitor-trustee in respect of costs which have not been taxed or otherwise ascertained, the sum to be included in the accounting statement shall be the gross amount received by the solicitor or solicitor-trustee for or on behalf of such client or trust (less any credits which may have been agreed or ascertained), and a note shall be appended stating that costs are due and stating the estimated amount thereof, without prejudice to the taxation of any bill of costs in the absence of agreement.

(3) Without prejudice to its generality, the term " monies " in this paragraph includes bearer bonds, securities passing by delivery and all other type of negotiable securities.

(4) A solicitor shall, if required by the Council, lodge with such accounting statement as is mentioned in sub-paragraph (1) hereof, or at any later time named by the Council, a certificate by an accountant stating (a) that he has examined the books, accounts, and documents of the solicitor and the said accounting statement, (b) whether or not he be satisfied that the said books, accounts and accounting statement have been properly kept and prepared in accordance with these regulations and whether they record truly the financial position of the solicitor towards all clients and trusts (c) if he is not satisfied as aforesaid, the matters in respect of which he is not so satisfied and also certifying the balance on the solicitor's client account and any trust bank account.

(5) A certificate by an accountant may, if the Council shall so direct, be restricted so as to relate only to one or more named clients or trusts.

19. Each partner of a firm of solicitors shall be responsible for securing compliance by the firm with the provisions of these regulations.

20. (1) In order to ascertain whether these regulations have been complied with, the Council, acting either on their own motion or on a written complaint lodged with them, may require any solicitor to produce at a time and place to be fixed by the Council his books of account, bank statements or passbooks, statements of account, vouchers and any other necessary documents, including accounting statements prepared under paragraph 18 hereof, for the inspection of an accountant who shall be nominated by the solicitor within seven days from receipt of notice of such requirement, and, if approved by the Council appointed by them or, in default of such nomination and approval, of an accountant appointed by the Council and such accountant shall prepare for the information of the Council a report on the result of such inspection. The Council may at any time terminate the authority of an accountant and appoint another to carry out or complete an inspection and report.

(2) Upon being required so to do a solicitor shall produce such books of account, bank passbooks, statements of account, vouchers and other documents at the time and place fixed and shall afford to such accountant all other facilities which may be necessary for completing his inspection and report.

(3) Before instituting an inspection on a written complaint, the Council may require the payment by the person lodging the complaint, of a reasonable sum to be fixed by the Council to cover the costs and expenses of the inspection and of the solicitor against whom the complaint is made. The Council may deal with any sum so paid in such manner as they think fit.

(4) In this paragraph the term accountant includes any authorised representative of the accountant.

21. Every requirement, authorisation and notification to be made or given by the Council to a solicitor under these regulations shall be made in writing under the hand of the registrar or the secretary of the Society or such person as may be appointed by Council for the purpose and may, without prejudice to any other method of service authorised by the Solicitors Acts, 1954 and 1960, be sent by registered post to the last address of the solicitor appearing on the register of the solicitors and when so made and sent shall be deemed to have been received by the solicitor within forty-eight hours of the time of posting.

22. Nothing in these regulations shall deprive a solicitor of any recourse or right, whether by way of lien, set-off, counter-claim, charge or otherwise against monies standing to the credit of a client account or a trust bank account.

23. Subject to the provisions of section 66 (3) of the Principal Act and of these regulations these regulations apply to every solicitor who receives client's money or trust money.

FIRST SCHEDULE

The Bank of Ireland	The National City Bank Limited.
Guinness & Mahon Ltd.	The Northern Bank Limited.
The Hibernian Bank Ltd.	The Provincial Bank of Ireland Limited.
The Munster & Leinster Bank Limited.	The Royal Bank of Ireland Limited.
The National Bank of Ireland Limited.	The Ulster Bank Limited.

SECOND SCHEDULE

ACCOUNTANT'S CERTIFICATE FORM A.

To (a)

Dear Sir(s)

Having made a general test examination of the books of account, bank passbooks, bank statements and deposit receipts in relation to your practice as solicitor(s) carried on at (b)...............................

............................................................ ............................................................ ...........................................................

............................................................ ............................................................ ..........................................................

as produced to me/us for the accounting period beginning on the.................. day of...............................19...... and ending on the.................. day of .......................................19...... and having made a comparison as of the.............................. day of.................................... 19...... and the ................................. day of ................. 19...... (c) between your liabilities to clients as shown by your books of account and thebalance or balances to credit of your client account and trust bank account I am/we are satisfied from such examination and comparison and from the information and explanations given to me/us that, subject to the matters set out on the back hereof, you have complied with the Solicitors' Accounts Regulations 1967.

Dated this................................. day of ................................. 19......

Signature................................................

Professional Qualifications............................................................ ...

Address................................................

NOTES.

(a) State full name of the solicitor or firm of solicitors in respect of whom the certificate is issued.

(b) When the solicitor has two or more places of business he may at his option lodge a separate certificate for each office or one certificate to cover all. All addresses should be stated in the certificate if only one certificate is issued.

(c) These may be any dates selected by the accountant, during the accounting period covered by the certificate not less than three months apart.

ACCOUNTANT'S CERTIFICATE FORM B

To (a)

of (b)

Dear Sir(s)

I/we certify that in compliance with paragraph 12 of the Solicitors' Accounts Regulations, 1967 I/we have examined the books, accounts and documents kept in relation to your practice as solicitor(s) for the accounting period beginning on the .....................day of.................................19...... and ending on the ..................... day of .......................................19...... and that I am/we are satisfied, subject to the matters set out on the back hereof from such examination and from the information and explanations given to me/us that during the said accounting period you have complied with the Solicitors' Accounts Regulations 1967.

Dated this ........................ day of........................19......

Signature............................................................ .............

Professional Qualifications............................................................ ............................................................ .............

Address............................................................ ............................................................ ........................

............................................................ ............................................................ ............................................................ .

NOTES.

(a) State full name of the solicitor or firm of solicitors in respect of whom the certificate is issued.

THIRD SCHEDULE

The Solicitors' Accounts Regulations, 1955 ( S.I. No. 218 of 1955 ).

The Solicitors' Accounts Regulations, 1956 ( S.I. No. 308 of 1956 ).

The Solicitors' Accounts Regulations, 1957 ( S.I. No. 252 of 1957 ).

The Solicitors' Accounts (Amendment) Regulations, 1958 ( S.I. No. 193 of 1958 )

The Solicitors' Accounts (Amendment) Regulations, 1961 ( S.I. No. 51 of 1961 ).

The Solicitors' Accounts (Amendment) Regulations, 1965 ( S.I. No. 163 of 1965 ).

The Solicitors' Accounts (Amendment) Regulations, 1966 ( S.I. No. 75 of 1966 ).

The Solicitors' Accounts (Amendment No. 2) Regulations, 1966 ( S.I. No. 193 of 1966 ).

Dated this 2nd day of March, 1967.

Signed on behalf of the Incorporated Law Society of Ireland.

PATRICK O'DONNELL,

President of the Incorporated Law Society of Ireland.

I concur in the making of the above regulations.

ANDREAS O'KEEFFE,

President of the High Court.

EXPLANATORY NOTE.

These regulations consolidate the Solicitors' Accounts Regulations 1955-1966 and make certain necessary amendments therein.