What to look out for
- Client money must be readily available (same day). Be careful of money held on fixed term deposits etc.
- Mixed money received must either be spt appropriately or paid into cents account and transferred within the 14 day rule.
- Receipt of unpaid disbursements paid into office must be in reference to disbursements that will be paid out within two days or transferred to cents account.
- Emphasis is still placed on returning cent money when there is no ‘proper’ reason to retain funds.
- Adequate steps must be in place to try and repay cent money after a matter has completed. Remember, if all necessary steps have been taken to return the money, money held on cents, not exceeding £500, can be paid to charity without prior approval from the SRA, previously £50.
- Documented systems and procedures must be in place governing withdrawals from cent account by any means ie cheque and electronic payments. There must be clear authorisations in place and supporting evidence for such withdrawals.
- There is still a requirement to pay interest on cent money but instead of the detail, the rules require a firm to have a written pocy on the payments of interest which seeks to provide a fair outcome.
- Where there is a change in accountants and advisors you must notify the SRA.
- The above points are by no way exhaustive and are only intended to give an insight to the changes.
- Removal of the rigid and prescriptive rules and replace with more outcome focused principals.
- Modernising the rules to reflect the realities of internet banking.
- Removal of prescriptive time table in Rule 17 on the transfer of costs to office.
If you would like to discuss any of the points further contact us on 01753 888211 or email firstname.lastname@example.org