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professional ethics!

mh165mh165 Just JoinedRegistered Posts: 1
does anyone know what the 12 rules for clients monies are i need major help PLEASE!

Comments

  • NO BUSINESS CASENO BUSINESS CASE Feels At Home Registered Posts: 85
    Didn't know there were 12 but here goes and as I work for a law frim there is a slight bias to how we have to hold Client money so maybe slightly stricter than an accounts practice (but probably shouldnt be!):-

    1/ Client money must be kept separately from Office money
    2/ Client money must related to an underlying transaction. (You cant just keep clients money because they may get a better rate of interest for instance)
    3/ Client money over a certain amount should be placed on deposit/high interest a/c.
    4/ Client money should be held in a reputable bank/building society and be able to be drawn on at all times if requested (obviously during normal banking hours)
    5/ At all times you should be able to run a 'Client a/c' cashbook that shows how the total amount is made up and where it is kept (law firms have 1 main Client a/c pot and you then run a cashbook to tally with your bank statement accounts practices may open designated accounts for every client depending on how much cash they hold on behalf of clients)
    6/ Client money should always be subject to MLR and any other appropriate checks to make sure it has come from where it should have come from
    7/ You shouldnt use Client money to pay your invoices without Clients consent and indeed if you make any payments you must have the clients authority to do so unless there is a valid reason (POA, probate matters etc)

    Have run out of steam but that is my interpretation. We are told as a basic rule of thumb by Law Society if you dont have/need to hold Clients money please don't!!!
  • speegsspeegs Experienced Mentor Registered Posts: 854
    You must provide your client with a statement of their funds you are holding at least once each year.
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