The Solicitors Accounts Rules & Residual Balances - Exploring the Tricky Scenarios

Introduction

Since the requirement to actively deal with residual client balances was introduced into the SRA Accounts Rules back in 2009, the SRA has been paying close attention to what firms are doing to return client funds.

It is important that firms have clear plans in place to deal with all client funds when there is no reason to retain them, and firms need to be careful that they do not inadvertently find themselves providing prohibited banking facilities to clients when they are holding onto client money.

The Accounts Rules and latest accompanying guidance from the SRA and Law Society have brought this into even sharper focus, so it is important to understand the requirements.

Presented by SRA Accounts Rules specialist Luke Dickinson, this practical workshop will include case studies on how to deal with tricky residual balance scenarios.

What You Will Learn

This course will cover the following:

• What are residual balances?
• How do they arise?
• Why are they a concern to the SRA?
• SRA and latest Law Society guidance relevant to residual balances
• The potential relationship between residual balances and prohibited banking facilities
• What you can expect from your reporting accountant’s review of residual balances
• How to identify and deal with residual balances
• What if the client cannot be located?
• How to deal with a qualified accountant’s report on the subject
• What the COFA should be doing to review and deal with balances
• Case studies and problem scenarios