Trustpak - Australia Compliance Matrix

Please Note: The following information is a guide to show what rules and sub rules of the Trust Account Regulations Trustpak complies with, some of the items are dependent on the User and this is stated as "User Responsible"



SOURCE: New South Wales Consolidated Regulations - LEGAL PROFESSION UNIFORM GENERAL RULES 2015
CHAPTER: 4 - BUSINESS PRACTICE AND PROFESSIONAL CONDUCT

Date Checked: 1st Oct 2016

NOTE: This information is NOT to be used as a reference to Government Trust Account Regulations it is meant only as a guide to show you which part of the regulations Trustpak is compliant with, we cannot guarantee the accuracy of this information beyond the "Date Checked" however we will do our best to keep this matrix up to date. Please note it is the responsibility of each user to make sure they are compliant with the regulations. The information provided here is intended to help with that process.
NOTE: Incorrect installations and modifications to installations may effect Trustpak's compliance with these regulations.

Note: In New South Wales and Victoria, lawyers and law practices are subject to the same framework of Legal Profession Uniform Rules made by the Legal Services Council.

DISCLAIMER: This information is provided with the understanding that the laws governing trust accounting, legal ethics and professional responsibility are always changing. This information is not a substitute for legal advice and may not be suitable in a particular situation. You must make your own judgement on the actual compliance of Trustpak. Infobiz Solutions Pty Ltd, their employees and their representatives, and the author shall not be liable for any damages resulting from any error, inaccuracy, or omission.

Rule
Sub Rule
Description
Compliance
Notes




Division 2 - Trust money and trust accounts


35.


Maintenance of general trust account


(1)
- (a)
- (b)

A general trust account established in a jurisdiction
must be established with an authorised ADI, and
must include in its name the name of the law practice or the business name under which the law practice engages in legal practice, and the expression "law practice trust account" or "law practice trust a/c".


User Responsible
User Responsible

36.


Receipting of trust money


(1)
- (a)
- (b)

(2)
- (a)
- (b)
- (c)
- (d)
- (e)
- (f)

- (g)
- (h)

- (i)
(3)


(4)

(5)
(6)
(7)

A law practice must make out a receipt as soon as practicable:
after trust money is received, or
in the case of trust money received by direct deposit, after the law practice receives or accesses notice or confirmation of the deposit from the ADI concerned.
The receipt must contain the following particulars:
the date the receipt is made out and, if different, the date of receipt of the money
the number of the receipt,
the amount of money received,
the form in which the money was received,
the name of the person from whom the money was received
details clearly identifying the name of the client in respect of whom the money was received and the matter description and matter reference,
particulars sufficient to identify the reason for which the money was received,
the name of the law practice or the business name under which the law practice engages in legal practice and the expression "trust account" or "trust a/c"
the name of the person who made out the receipt.
The receipt must be made out in duplicate unless, when the receipt is made out the particulars referred to in subrule (2) are recorded by a computerised accounting system in the trust account receipts cash book.
The receipt must be given, on request, to the person from whom the trust money was received.
Receipts must be consecutively numbered and issued in consecutive sequence.
If a receipt is cancelled, the original receipt must be kept.
This rule does not apply to controlled money.


User Responsible
User Responsible


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant


Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
























Trustpak uses holding accounts to deal with controlled money

37.


Deposit records for trust money


(1)


(2)
- (a)
- (b)
- (c)
- (d)
--- (i)
--- (ii)
--- (iii)
(3)
(4)

If a law practice receives trust money that is required to be paid into a general trust account and the money is not paid into a general trust account by direct deposit, a deposit record must be produced to the ADI at the time the deposit is made.
The following particulars must be recorded on the deposit record:
the date of the deposit,
the amount of the deposit,
whether the deposit consists of cheques or cash (and the amount of each),
for each cheque:
the name of the drawer of the cheque, and
the name and branch (or BSB number) of the ADI on which the cheque is drawn, and
the amount of the cheque.
The deposit record must be made out in duplicate.
The duplicate deposit record must be kept for each deposit to the general trust account and must be kept in a deposit book or be otherwise securely filed in the order in which the deposits were made.

Trustpak Compliant



Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Deposit Slip











Duplicate in database

38.


Computerised accounting systems-copies of trust records


(1)

(2)

- (a)

- (b)
- (c)

- (d)

(3)
- (a)

- (b)

(4)

This rule applies if a law practice maintains trust records by means of a computerised accounting system.
A law practice must maintain and keep, in printed form or in readable and printable form, the following copies of trust records:
a copy of trust account receipts and payments cash books as at the end of each named month,
a copy of reconciliation statements as at the end of each named month,
a copy of lists of trust account ledgers and their balances as at the end of each named month,
a copy of lists of controlled money accounts and their balances as at the end of each named month.
A law practice must:
print a paper copy of trust ledger accounts, the register of controlled money and the trust account transfer journal before they are deleted from the system, and
on request by an investigator appointed under Chapter 7 of the Uniform Law, provide to the investigator a printed copy of trust ledger account and controlled money account details.
The copies of trust records as at the end of a named month under subrule (2) must be prepared within 15 working days after the named month.

-

Trustpak Compliant

Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

Trustpak Compliant


Trustpak Compliant

User Responsible

User Responsible











39.


Computerised accounting systems-chronological record of information to be made


(1)

(2)


- (a)
- (b)
- (c)
- (d)
- (e)

This rule applies if a law practice maintains trust records by means of a computerised accounting system.
A law practice must maintain and keep a record, compiled in chronological sequence, of the creation, amendment or deletion of information in its computerised accounting system in relation to each of the following:
client name,
client address,
matter reference,
matter description,
ledger account number or other descriptor.

-

Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant











40.


Computerised accounting systems-requirements regarding systems


(1)

(2)
- (a)




- (b)
--- (i)
--- (ii)
- (c)

- (d)

- (e)


- (f)

This rule applies if a law practice maintains trust records by means of a computerised accounting system.
A law practice must ensure that:
its computerised accounting system is not capable of accepting, in respect of a trust ledger account, the entry of a transaction resulting in a debit balance to the account, unless a contemporaneous record of the transaction is made in a manner that enables the production in a permanent form, on demand, of a separate chronological report of all occurrences of that kind, and
the system is not capable of deleting a trust ledger unless:
the balance of the account is zero and all outstanding cheques have been presented, and
when the account is deleted, a copy of the account is kept in a permanent form, and
any entry in a record produced in a permanent form appears in chronological sequence, and
each page of each printed or printable record is numbered sequentially or is printed or printable in such a way that no page can be extracted, and
its computerised accounting system is not capable of amending the particulars of a transaction already recorded otherwise than by a transaction separately recorded that makes the amendment, and
its computerised accounting system requires input in every field of a data entry screen intended to receive information required by these Rules to be included in trust records.

-


Trustpak Compliant




Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant

Trustpak Compliant


Trustpak Compliant














41.


Computerised accounting systems-back-ups


(1)

(2)
- (a)

- (b)
- (c)

This rule applies if a law practice maintains trust records by means of a computerised accounting system.
For the purposes of section 147 of the Uniform Law, a law practice must ensure that:
a back-up copy of all records required under the Uniform Law and these Rules is made at least once each month, and
each back-up copy is kept by the law practice, and
a complete set of back-up copies is kept in a separate location so that any incident that may adversely affect the records would not also affect the back-up copy.




User Responsible

User Responsible
User Responsible







Trustpak allows off-site Backup to Google Drive



42.


Withdrawal of trust money for payment of legal costs

User Responsible


(1)




(2)

(3)

- (a)

- (b)



--- (i)
--- (ii)

- (c)
(4)

- (a)

- (b)
--- (i)
--- (ii)

(5)
- (a)

- (b)
--- (i)
--- (ii)

(6)


- (a)

- (b)

- (c)

(7)
- (a)

--- (i)
--- (ii)


- (b)
--- (i)
--- (ii)


(8)

This rule prescribes, for the purposes of Division 2 of Part 4.2 of the Uniform Law (see section 144 (2) (b) of that Law), the procedure for the withdrawal of trust money held in a general trust account or controlled money account of a law practice for payment of legal costs owing to the law practice by the person for whom the trust money was paid into the account.
The trust money may be withdrawn in accordance with the procedure set out in any applicable subrule of this rule.
The law practice may withdraw the trust money if the law practice has given the person a bill relating to the money and referring to the proposed withdrawal, and:
if the person does not, at the end of the period of 7 business days after the person was given the bill, object to the amount specified in the bill, or
if the person objects to the amount specified in the bill within the period of 7 business days after being given the bill but has not referred the matter to the designated local regulatory authority or for costs assessment, and the period of 30 days after the later of the following dates has expired:
the date on which the person was given the bill,
the date on which the person received an itemised bill following a request made in accordance with section 187 of the Uniform Law, or
if the money otherwise becomes legally payable.
The law practice may withdraw the trust money (whether or not the law practice has given the person a bill relating to the money):
if the money is withdrawn in accordance with instructions that have been received by the law practice and that authorise the withdrawal, and
if, before effecting the withdrawal, the law practice gives or sends to the person:
a request for payment, referring to the proposed withdrawal, or
a written notice of withdrawal.
Note : See also subrule (7), which relates to subrule (4).
The law practice may withdraw the trust money:
if the money is owed to the law practice by way of reimbursement of money already paid by the law practice on behalf of the person, and
if, before effecting the withdrawal, the law practice gives or sends to the person:
a request for payment, referring to the proposed withdrawal, or
a written notice of withdrawal.
Note : See also subrule (8), which relates to subrule (5).
If the law practice has given the person who is a commercial or government client a bill specifying the amount payable by the person for legal costs, the law practice may withdraw the money so long as:
the money is withdrawn in accordance with a costs agreement between the law practice and the person, and
the costs agreement complies with the legislation under which it is made and authorises the withdrawal, and
before effecting the withdrawal, the law practice gives or sends to the person a request for payment, referring to the proposed withdrawal.
In relation to subrule (4):
if the authorisation referred to in subrule (4) (a) authorises withdrawal of part only of the money:
the law practice may withdraw the money to that extent only, and
if the law practice has given the person a bill relating to the money as referred to in subrule (3) (a)-subrule (3) (b) (i) and (ii) are taken to apply to the remaining part of the amount specified in the bill, and
instructions referred to in subrule (4):
if given in writing, must be kept as a permanent record, or
if not given in writing, must be confirmed in writing either before, or not later than 5 working days after, the law practice effects the withdrawal and a copy must be kept as a permanent record.
For the purposes of subrule (5), money is taken to have been paid by the law practice on behalf of the person when the relevant account of the law practice has been debited.
Note : Rule 73 provides for the giving of bills.



















43.


Method of payment


(1)

- (a)

- (b)
- (c)
--- (i)

--- (ii)
(2)

- (a)
- (b)
--- (i)
--- (ii)

--- (iii)
(3)
- (a)


- (b)

(4)
- (a)
- (b)
- (c)


- (d)

- (e)


- (f)
- (g)
(5)

If a withdrawal of trust money from a general trust account of a law practice is made by cheque, the cheque:
must be made payable to or to the order of a specified person or persons and must not be made payable to bearer or to cash, and
must be crossed "not negotiable" and
must include:
the name of the law practice or the business name under which the law practice engages in legal practice, and
the expression "law practice trust account" or "law practice trust a/c".
A cheque must be signed by, or an electronic funds transfer must be effected under, the direction or authority of:
an authorised principal of the law practice, or
if such a principal is not available:
an authorised legal practitioner associate, or
an authorised Australian legal practitioner who holds an Australian practising certificate authorising the receipt of trust money, or
two or more authorised associates jointly.
A written record of the required particulars:
must be kept of each payment made by cheque or electronic funds transfer, unless those particulars are recorded by a computerised accounting system in the trust account payments cash book at the time the cheque is issued or the transfer is effected, and
must be kept in a way that is sufficient to enable the accuracy of the particulars recorded by the computerised accounting system to be verified.
For the purposes of subrule (3), the
the date and number of the cheque or electronic funds transfer,
the amount ordered to be paid by the cheque or electronic funds transfer,
in the case of a cheque, the name of the person to whom the payment is to be made or, if the cheque is made payable to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment,
in the case of an electronic funds transfer, the name and number of the account to which the amount was transferred and relevant BSB number,
details clearly identifying the name of the person on whose behalf the payment was made and the matter reference, or in the case of a payment to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment,
details clearly identifying the ledger account to be debited,
particulars sufficient to identify the reason for the payment.
Written records relating to payments by cheque or electronic funds transfer (including cheque or transfer requisitions) must be kept in the order in which the cheques or transfers were issued or effected.



User Respomsible



Trustpak Compliant

Trustpak Compliant
User Responsible








Trustpak Compliant


Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant

Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant











44.


Trust account receipts cash books


(1)


- (a)

- (b)
- (c)
- (d)
- (e)
- (f)

- (g)
- (h)
(2)

(3)

A law practice that maintains a general trust account must keep a trust account receipts cash book in which the following particulars must be recorded in respect of each receipt of trust money:
the date a receipt was made out for the money and, if different, the date of receipt of the money,
the receipt number,
the amount of money received,
the form in which the money was received,
the name of the person from whom the money was received,
details clearly identifying the name of the client in respect of whom the money was received and the matter description and matter reference,
particulars sufficient to identify the reason for which the money was received,
details clearly identifying the ledger account to be credited.
The date and amount of each deposit in the general trust account must be recorded in the trust account receipts cash book.
The particulars in respect of receipts must be recorded in the order in which the receipts are made out and must be recorded within 5 working days of the receipt being made out.




Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant

















45.


Trust account payments cash book


(1)


- (a)
- (b)
- (c)


- (d)
--- (i)

--- (ii)


- (g)

- (h)
(2)
- (a)
- (b)

A law practice that maintains a general trust account must keep a trust account payments cash book in which the following particulars are recorded in respect of each payment of trust money:
the date and number of the cheque or electronic funds transfer,
the amount ordered to be paid by the cheque or the amount transferred,
in the case of a cheque, the name of the person to whom the payment is to be made or, if the cheque is made payable to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment,
in the case of an electronic funds transfer:
the name and number of the account to which the amount was transferred and the relevant BSB number, and
the name of the person to whom the payment was made or, in the case of a payment to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment,
details clearly identifying the name of the person on whose behalf the payment was made, the matter description and the appropriate ledger reference,
particulars sufficient to identify the reason for payment.
The particulars in respect of payments must be recorded:
in the order in which the payments are made, and
within 5 working days of the day the payment was made.




Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant
Trustpak Compliant

Trustpak Compliant


Trustpak Compliant

Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

















46.


Journal transfers


(1)



- (a)

--- (i)
--- (ii)

--- (iii)
- (b)
(2)

(3)

- (a)
- (b)


- (c)


- (d)
- (e)
(4)
(5)

Trust money may be transferred by journal entry from one trust ledger account in a law practice's trust ledger to another trust ledger account in the trust ledger, but only if the law practice is entitled to withdraw the money and pay it to the other trust ledger account and:
the transfer is authorised in writing by an authorised principal of the law practice or if such a principal is not available:
an authorised legal practitioner associate of the law practice, or
an authorised Australian legal practitioner who holds an Australian practising certificate authorising the receipt of trust money, or
two or more authorised associates jointly, or
the transfer is authorised in writing by an external intervener for the law practice.
A law practice must keep a trust account transfer journal if it transfers trust money by journal entry.
The following particulars must be recorded in the trust account transfer journal in respect of each transfer of trust money by journal entry:
the date of the transfer,
the trust ledger account from which the money is transferred (including the appropriate ledger reference, the name of the person on whose behalf the transfer was made and the matter description),
the trust ledger account to which the money is transferred (including the appropriate ledger reference, the name of the person on whose behalf the transfer was made and the matter description),
the amount transferred,
particulars sufficient to identify the reason for the transfer.
Journal pages or entries must be consecutively numbered.
A law practice must keep particulars of the authorisation for each transfer of trust money by journal entry, whether in the trust account transfer journal or in some other way.

User Respomsible



User Respomsible

User Respomsible
User Responsible

User Responsible
User Responsible
Trustpak Compliant



Trustpak Compliant
Trustpak Compliant


Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant











47.


Recording transactions in trust ledger accounts



(1)


(2)

- (a)
- (b)
- (c)

(3)

- (a)
- (b)
- (c)
- (d)
- (e)
--- (i)

--- (ii)


--- (iii)

--- (iv)

(4)
- (a)
- (b)

(5)

A law practice that maintains a general trust account must keep a trust account ledger containing separate trust ledger accounts in relation to each person in each matter for which trust money has been received by the practice.
The following particulars must be recorded, and kept up to date, in the title of a trust ledger account:
the name of the person for or on behalf of whom the trust money was paid,
the person's address,
particulars sufficient to identify the matter in relation to which the trust money was received.
The following particulars must be recorded for each transaction in the trust ledger account:
the date of the transaction,
the appropriate reference number and transaction type,
particulars sufficient to identify the reason for the transaction,
the amount of money in the transaction,
if the transaction type is:
a receipt-the provider of the amount and the date the amount was received if that date is different from the date of receipt,
a payment by cheque-the payee or, in the case of a cheque made payable to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment,
a payment by electronic funds transfer-the account name and number and the relevant BSB number of the ADI and the name of the person receiving the benefit of the payment,
a journal entry-the appropriate ledger reference, the name of the person on whose behalf the transfer was made and the matter description.
Transactions relating to trust money must be recorded in the trust ledger account:
in the order in which the transactions occur, and
within 5 working days of the day the receipt was made out, the payment was made or the transfer was effected, as the case requires.
The trust ledger account balance is to be recorded in the trust ledger account after each receipt, payment or transfer of trust money.






Trustpak Compliant
Trustpak Compliant
Trustpak Compliant



Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant

Trustpak Compliant


Trustpak Compliant

Trustpak Compliant


User Responsible
User Responsible

Trustpak Compliant











48.


Reconciliation of trust records



(1)

(2)

- (a)
--- (i)

--- (ii)
- (b)
--- (i)

--- (ii)


--- (iii)
(3)

(4)

A law practice that maintains one or more general trust accounts must reconcile the trust records relating to each account.
The trust records relating to a general trust account are to be reconciled as at the end of each named month by preparing:
a statement:
reconciling the general trust account balance as shown in ADI records with the balance of the practice's trust account cash books, and
showing the date the statement was prepared, and
a statement:
reconciling the balance of the trust ledger accounts with the balance of the practice's trust account cash books, and
containing a list of the practice's trust ledger accounts showing the name, identifying reference and balance of each and a short description of the matter to which each relates, and
showing the date the statement was prepared.
The statements must be prepared within 15 working days after the end of the month concerned.
The statements must be kept by the law practice.






Trustpak Compliant

Trustpak Compliant

Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
User Responsible

Trustpak Compliant


















Trustpak saves a copy of the reconciliation

49.


Trust ledger account in name of law practice or legal practitioner associate



(1)

(2)
- (a)


- (b)


(3)



(4)

A law practice must not maintain a trust ledger account in the name of the practice or a legal practitioner associate of the practice except as authorised by this rule.
A law practice may maintain in its trust ledger:
a trust ledger account in the practice’s name, but only for the purpose of aggregating in the account, by transfer from other accounts in the trust ledger, money properly due to the practice for legal costs, and
a trust ledger account in a legal practitioner associate’s name, but only in respect of money in which the associate has a personal and beneficial interest as a vendor, purchaser, lessor or lessee or in another similar capacity.
In a case to which subrule (2) (a) applies, the law practice must ensure that the money in the trust ledger account is withdrawn from the general trust account not later than one month after the day on which the money was transferred to the trust ledger account.
In a case to which subrule (2) (b) applies, the law practice must ensure that the money in the trust ledger account is withdrawn from the general trust account at the conclusion of the matter to which the money relates.




Trustpak Compliant


Trustpak Compliant


User Responsible



Trustpak Compliant












50.


Notification requirements regarding general trust accounts

User Responsible

All sub rules are user responsible

51.


Law practice closing down, closing office or ceasing to receive or hold trust money

User Responsible

All sub rules are user responsible

52.


Trust account statements



(1)


(2)
- (a)
- (b)
- (c)

(3)
- (a)

- (b)
(4)
- (a)

- (b)


- (c)
(5)


- (a)

- (b)


(6)



- (a)
- (b)

A law practice must give a trust account statement to each person for whom or on whose behalf trust money (other than transit money and written direction money) is held or controlled by the law practice or an associate of the practice.
Where relevant, the law practice must give the person a separate statement for:
each trust ledger account, and
each record of controlled money movements, and
each record of dealings with the money that is the subject of a power to which the law practice or an associate of the law practice is a party.
A trust account statement is to contain particulars of:
all the information required to be kept under the Uniform Law or these Rules in relation to the trust money included in the relevant ledger account or record, and
the remaining balance (if any) of the money.
A trust account statement is to be given:
as soon as practicable after completion of the matter to which the ledger account or record relates, and
as soon as practicable after the person for whom or on whose behalf the money is held or controlled makes a reasonable request for the statement during the course of the matter, and
except as provided by subrule (5) or (6), as soon as practicable after 30 June in each year.
The law practice is not required to give a trust account statement under subrule (4) (c) in respect of a ledger account or record if at 30 June the balance of the ledger account or record is zero and:
no transaction affecting the ledger account or record has taken place within the previous 12 months, or
a trust account statement has been furnished within the previous 12 months and no transaction affecting the ledger account or record has taken place since the last statement was furnished.
Without limiting subrule (5), the law practice is not required to give a trust account statement under subrule (4) (c) in respect of a ledger account or record kept in a jurisdiction if at 30 June immediately before the commencement day for that jurisdiction:
the ledger account or record has been open for less than 6 months, or
a trust account statement has been furnished within the previous 12 months and there has been no subsequent transaction affecting the ledger account or record,
but this subrule expires immediately before the first anniversary of that commencement day.
The law practice must keep a copy of a trust account statement given under this rule.





Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant

Trustpak Compliant

User Responsible

User Responsible


User Responsible



User Responsible

User Responsible






User Responsible
User Responsible



User Responsible












53.


Trust account statements for commercial or government clients

User Responsible

All sub rules are user responsible

54.


Statements regarding receipt or holding of trust money

User Responsible

All sub rules are user responsible

55.


Trust money subject to specific powers

User Responsible

All sub rules are user responsible

56.


Authority to receive trust money

User Responsible

All sub rules are user responsible

57.


Disclosure of accounts used to hold money

User Responsible

All sub rules are user responsible

58.


When, how and where money is received

User Responsible

All sub rules are user responsible

59.


Register of investments



(1)


- (a)
- (b)
- (c)
- (d)
- (e)
- (f)
- (g)
- (h)
- (i)
- (j)
(2)

If a law practice invests trust money for or on behalf of a client, the law practice must maintain a register of investments of trust money that records the following information in relation to each investment:
the name in which the investment is held,
the name of the person on whose behalf the investment is made,
the person's address,
particulars sufficient to identify the investment,
the amount invested,
the date the investment was made,
particulars sufficient to identify the source of the investment,
details of any documents evidencing the investment,
details of any interest received from the investment or credited directly to the investment,
details of the repayment of the investment and any interest, on maturity or otherwise.
This rule does not require particulars to be recorded in the register if the particulars are required to be recorded elsewhere by another rule.




Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant












60.


Register of powers and estates in relation to trust money

User Responsible

All sub rules are user responsible

Rule
Sub Rule
Description
Compliance
Notes




Division 3 - Controlled money


61.


Maintenance of controlled money account



(1)

- (a)
- (b)
- (c)

A controlled money account must be maintained under an account name that includes the following particulars:
the name of the law practice concerned,
the expression "controlled money account" or the abbreviation "CMA" or "CMA/c",
particulars that are sufficient to identify the purpose of the account and to distinguish the account from any other account maintained by the law practice.



Trustpak Compliant
Trustpak Compliant
Trustpak Compliant





62.


Receipt of controlled money



(1)


(2)


(3)

(4)


- (a)
- (b)
- (c)
- (d)
- (e)

- (f)
- (g)

- (h)
- (i)
- (j)
(2)

If a law practice receives controlled money, it must operate a single controlled money receipt system for the receipt of controlled money for all its controlled money accounts.
A law practice must make out a receipt as soon as possible after receiving controlled money or, in relation to a direct deposit, after receiving notice or confirmation of the deposit from the relevant ADI.
On request from the person from whom controlled money is received, the law practice must give that person a copy of the receipt.
The receipt must be made out in duplicate, unless at the time the receipt is made out those particulars are recorded by a computerised accounting system in the register of controlled money, and must contain the following particulars:
the date the receipt is made out and, if different, the date of receipt of the money
the amount of money received,
the form in which the money was received,
the name of the person from whom the money was received
details clearly identifying the name of the client in respect of whom the money was received and the matter description and matter reference,
particulars sufficient to identify the reason for which the money was received,
the name of the law practice, or the business name under which the law practice engages in legal practice, and the expression "controlled money receipt",
the name of the person who made out the receipt.
the number of the receipt,
This rule does not require particulars to be recorded in the register if the particulars are required to be recorded elsewhere by another rule.

Trustpak Compliant


User Responsible


User Responsible

Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant












63.


Withdrawal of controlled money from controlled money account



(1)


(2)

- (a)
- (b)
--- (i)

--- (ii)


--- (iii)
(3)
(4)



(5)
- (a)
- (b)
- (c)


- (d)

- (e)

- (f)
- (g)
(6)

Despite any directions to the contrary, a law practice must not withdraw controlled money from a controlled money account otherwise than by cheque or electronic funds transfer.
A withdrawal of money from a controlled money account of a law practice must be effected by, under the direction of or with the authority of:
an authorised principal of the law practice, or
if such a principal is not available:
a legal practitioner associate authorised by the law practice to effect, direct or give authority for this purpose, or
an Australian legal practitioner who holds an Australian practising certificate authorising the receipt of trust money and who is authorised by the law practice to effect, direct or give authority for this purpose, or
two or more associates of the law practice jointly.
A written record of the required particulars must be kept of each withdrawal.
If, at the time the withdrawal is made, the required particulars are recorded by a computerised accounting system, a written record must be kept that is sufficient to enable the accuracy of the particulars recorded by the computerised accounting system to be verified.
For the purposes of this rule, the "required particulars" are as follows:
the date and number of the transaction,
the amount withdrawn,
in the case of a withdrawal by cheque, the name of the person to whom payment is to be made or, if the cheque is made payable to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment,
in the case of a withdrawal by electronic funds transfer, the name and number of the account to which the amount was transferred and the relevant BSB number,
details clearly identifying the name of the person on whose behalf the payment was made and the matter reference,
particulars sufficient to identify the reason for which the payment was made,
the person or persons effecting, directing or authorising the withdrawal.
The particulars are to be recorded in the order in which the withdrawals are made and are to be recorded separately for each controlled money account.

Trustpak Compliant


User Responsible

User Responsible

User Responsible

User Responsible


User Responsible
Trustpak Compliant
Trustpak Compliant




Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant

Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant












64.


Register of controlled money



(1)


(2)

(3)

- (a)
- (b)
- (c)
- (d)
(4)

- (a)
- (b)
- (c)
- (d)
- (e)
- (f)
- (g)
- (h)

(5)


(6)

(7)


(8)

- (a)
--- (i)
--- (ii)

--- (iii)
- (b)
(9)

If a law practice receives controlled money, it must maintain a register of controlled money for the records of controlled money movements for all its controlled money accounts.
A separate record of controlled money movements must be maintained for each controlled money account.
A record of controlled money movements for a controlled money account must record the following information:
the name of the person on whose behalf the controlled money is held,
the person's address,
particulars sufficient to identify the matter,
any changes to the information referred to in paragraphs (a)-(c).
The following particulars must be recorded in a record of controlled money movements for a controlled money account:
the date the controlled money was received,
the number of the receipt,
the date the money was deposited in the controlled money account,
the name of and other details clearly identifying the controlled money account,
the amount of controlled money deposited,
details of the deposit sufficient to identify the deposit,
interest received,
details of any payments from the controlled money account, including the particulars required to be recorded under these Rules.
Subject to subrule (6), particulars of receipts and payments must be entered in the register as soon as practicable after the controlled money is received by the law practice or any payment is made.
Interest and other income received in respect of controlled money must be entered in the register as soon as practicable after the law practice is notified of its receipt.
The law practice must keep as part of its trust records all supporting information (including ADI statements and notifications of interest received) relating to controlled money.
Within 15 working days after each named month, the law practice must prepare and keep in permanent form a statement as at the end of the named month:
containing a list of the practice's controlled money accounts showing:
the name, number and balance of each account in the register, and
the name of the person on whose behalf the controlled money in each account was held, and
a short description of the matter to which each account relates, and
showing the date the statement was prepared.
The statement required to be prepared each month under subrule (8) must be reviewed by a principal of the law practice who is authorised to receive trust money and that review must be evidenced on the statement.

Trustpak Compliant


Trustpak Compliant



Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

User Responsible


User Responsible

User Responsible


User Responsible


Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
User Responsible

These are holding accounts

Each CMA has a seperate ledger






SOURCE: NORTHERN TERRITORY OF AUSTRALIA - LEGAL PROFESSION REGULATIONS 2014
PART: 6 - Trust money and trust accounts

Date Checked: 25th May 2018

NOTE: This information is NOT to be used as a reference to Government Trust Account Regulations it is meant only as a guide to show you which part of the regulations Trustpak is compliant with, we cannot guarantee the accuracy of this information beyond the "Date Checked" however we will do our best to keep this matrix up to date. Please note it is the responsibility of each user to make sure they are compliant with the regulations. The information provided here is intended to help with that process.
NOTE: Incorrect installations and modifications to installations may effect Trustpak's compliance with these regulations.

DISCLAIMER: This information is provided with the understanding that the laws governing trust accounting, legal ethics and professional responsibility are always changing. This information is not a substitute for legal advice and may not be suitable in a particular situation. You must make your own judgement on the actual compliance of Trustpak. Infobiz Solutions Pty Ltd, their employees and their representatives, and the author shall not be liable for any damages resulting from any error, inaccuracy, or omission.

Reg
Sub Reg
Description
Compliance
Notes




Division 2 -- Computerised accounting systems


36.


Application of Division


This Division applies if a law practice maintains trust records (including records relating to controlled money) by means of a computerised accounting system.


37.


Copies of trust records to be printed


(1)
- (a)


- (b)

- (c)

- (d)

- (e)

- (f)

(2)


(3)

(4)

The law practice must print a paper copy of trust records as follows:
trust account cash books are to be printed monthly as at the end of each named month, unless a copy of the books as at the end of the named month is kept in electronic form that is readable or reportable on demand;
reconciliation statements prepared under regulation 53 must be printed as at the end of each named month
lists of trust account ledgers and their balances must be printed monthly as at the end of each named month;
lists of controlled money accounts and their balances must be printed monthly as at the end of each named month;
trust ledger accounts, the register of controlled money and the trust account transfer journal must be printed before they are archived or deleted from the system;
trust ledger account and controlled money account details must be printed on request by and provided to an investigator as defined in section 618 of the Act.
The trust records printed monthly as at the end of a named month under subregulation (1)(a) to (d) must be printed within 15 working days after the named month.
The paper copies printed under subregulation (1) must be kept by the law practice, except if they are printed on request under that subregulation.
The electronic copy of the trust account cash books under subregulation (1)(a) must be kept by the law practice.


Trustpak Compliant


Trustpak Compliant

Trustpak Compliant

Trustpak Compliant

Trustpak Compliant

Trustpak Compliant

User Responsible


User Responsible

User Responsible


Copy saved automatically









38.


Chronological record of information to be made


(1)


- (a)
- (b)
- (c)
- (d)
- (e)
(2)

The law practice must maintain a record, compiled in chronological sequence, of the creation, amendment or deletion of information in its computerised accounting system in relation to the following:
client name;
client address;
matter reference;
matter description;
ledger account number or other descriptor.
The record must be kept by the law practice.

Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant












39.


Requirements regarding computer accounting systems


(1)


(2)

- (a)

- (b)
(3)

(4)

(5)


(6)

The law practice must ensure its computerised accounting system is not capable of accepting, in respect of a trust ledger account, the entry of a transaction resulting in a debit balance to the account.
The law practice must ensure that the system is not capable of deleting a trust ledger account unless:
the balance of the account is zero and all outstanding cheques have been presented; and
when the account is deleted, a copy of the account is kept in a permanent form.
The law practice must ensure any entry in a record produced in a permanent form appears in chronological sequence.
The law practice must ensure each page of each printed record is numbered sequentially or is printed in such a way that no page can be extracted.
The law practice must ensure its computerised accounting system is not capable of amending the particulars of a transaction already recorded otherwise than by a transaction separately recorded that makes the amendment.
The law practice must ensure its computerised accounting system requires input in every field of a data entry screen intended to receive information required by this Part to be included in trust records.

Trustpak Compliant


Trustpak Compliant

Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

Trustpak Compliant

Trustpak Compliant


Trustpak Compliant








Copy in the archive




40.


Back-ups


(1)
- (a)

- (b)
- (c)

The law practice must ensure:
a back-up copy of all records required by this Part is made not less frequently than once each month; and
each back-up copy is kept by the law practice; and
a complete set of back-up copies is kept in a separate location so that any incident that may adversely affect the records would not also affect the back-up copy.


User Responsible

User Responsible
User Responsible





Trustpak allows off-site Backup to Google Drive



Reg
Sub Reg
Description
Compliance
Notes




Division 3 -- General trust accounts


41.


Establishment of general trust account

All User Responsible


(1)




(2)
- (a)

- (b)
- (c)
--- (i)

--- (ii)

- (d)
(3)

(4)

A law practice may at any time establish a general trust account that satisfies the requirements of this regulation, but must, as soon as practicable after receiving trust money that is required to be paid into a general trust account, establish a general trust account that satisfies those requirements if the practice does not already have such a general trust account.
A general trust account satisfies the requirements of this regulation if:
the account is established in this jurisdiction, before or after the commencement of this regulation, with an approved ADI; and
the account is and is to be maintained in this jurisdiction; and
the name of the account includes: --
the name of the law practice or the business name under which the law practice engages in legal practice; and
the expression "law practice trust account" or "law practice trust a/c";
and
the account is of a kind that is for the time being approved by the Law Society.
Subregulation (2)(c) does not apply to an account established in this jurisdiction before the commencement of this regulation.
Subregulation (2)(c)(ii) does not require the repetition of the words "law practice" if those words form part of the name or business name of the law practice.

42.


Receipting of trust money


(1)

(2)
(3)
- (a)
- (b)


(4)



(5)
- (a)
- (b)
- (c)
- (d)
- (e)

- (f)
- (g)

- (h)
--- (i)

(6)

(7)
(8)

This regulation applies if a law practice receives trust money that is required to be paid into a general trust account.
After receiving the trust money, the law practice must make out a receipt.
The receipt must be made out as soon as practicable:
after the trust money is received, except as provided by paragraph (b); or
in the case of trust money received by direct deposit – after the law practice receives or accesses notice or confirmation (in written or electronic form) of the deposit from the ADI concerned.
The receipt, containing the required particulars, must be made out in duplicate, whether by way of making a carbon copy or otherwise, unless at the time the receipt is made out those particulars are recorded by computer program in the trust account receipts cash book.
For subregulation (4), the required particulars are as follows:
the date the receipt is made out and, if different, the date of receipt of the money;
the amount of money received;
the form in which the money was received;
the name of the person from whom the money was received;
details clearly identifying the name of the client in respect of whom the money was received and the matter description and matter reference;
particulars sufficient to identify the purpose for which the money was received;
the name of the law practice, or the business name under which the law practice engages in legal practice, and the expression "trust account" or "trust a/c";
the name of the person who made out the receipt;
the number of the receipt.

The original receipt must be delivered, on request, to the person from whom the trust money was received.
Receipts must be consecutively numbered and issued in consecutive sequence.
If a receipt is cancelled or not delivered, the original receipt must be kept.



User Responsible
User Responsible









Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
User Responsible

Trustpak Compliant
Trustpak Compliant

























43.


Deposit records for trust money


(1)


(2)

(3)
- (a)
- (b)
- (c)
- (d)
--- (i)
--- (ii)
--- (iii)
(4)

(5)

This regulation applies if a law practice receives trust money that is required to be paid into a general trust account and the money is not paid into a general trust account by direct deposit.
A deposit record must be produced to the approved ADI when the deposit is made.
The following particulars must be recorded on the deposit record:
the date of the deposit;
the amount of the deposit;
whether the deposit consists of cheques, notes or coins (and the amount of each);
for each cheque:
the name of the drawer of the cheque; and
the name and branch (or BSB number) of the ADI on which the cheque is drawn; and
the amount of the cheque.
The deposit record must be made out in duplicate, whether by way of making a carbon copy or otherwise.
The duplicate deposit record must be kept for each deposit to the general trust account and must be kept in a deposit book or be otherwise securely filed in the order in which the deposits were made.




Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant




Deposit Slip









Duplicate in database

Duplicate in database

44.


Direction for non-deposit of trust money in general trust account


For section 246(4) of the Act, the period for which a written direction mentioned in section 246(2)(a) of the Act must be kept is 7 years after finalisation of the matter to which the direction relates.

User Responsible

45.


Manner of withdrawal of trust money

All User Responsible


(1)

(2)
- (a)
- (b)
(3)



(4)

(5)

(6)

A law practice must not withdraw trust money from a general trust account otherwise than by cheque or electronic funds transfer.
Without limiting subregulation (1), the following are specifically prohibited:
cash withdrawals;
ATM withdrawals or transfers;
telephone banking withdrawals or transfers.
If a law practice that is an Australian legal practitioner who is a sole practitioner, or an incorporated legal practice, contravenes subregulation (1), the practitioner or practice is guilty of an offence.
Maximum penalty: 100 penalty units.
If a law practice that is a law firm or multi-disciplinary partnership contravenes subregulation (1), each principal of the practice is guilty of an offence.
Maximum penalty: 100 penalty units.
An offence against subregulation (3) or (4) is an offence of strict liability.
This regulation has effect despite anything to the contrary in any directions given to the law practice concerned, even if the directions are given by a person who is otherwise legally entitled to give the law practice directions in respect of dealings with controlled money.

46.


Payment by cheque


(1)

(2)
- (a)

- (b)
- (c)
--- (i)

--- (ii)
(3)
- (a)
- (b)
--- (i)
--- (ii)

--- (iii)
(4)




(5)



(6)
- (a)
- (b)
- (c)


- (d)

- (e)
- (f)
(7)

(8)

(9)

(10)

This regulation applies to the withdrawal of trust money from a general trust account of a law practice by cheque.
A cheque must: -
be made payable to or to the order of a specified person or persons and not to bearer or cash; and
be crossed "not negotiable"; and
include:
the name of the law practice or the business name under which the law practice engages in legal practice; and
the expression "law practice trust account" or "law practice trust a/c".
A cheque must be signed:
by an authorised principal of the law practice; or
if a principal referred to in paragraph (a) is not available:
by an authorised legal practitioner associate; or
by an authorised Australian legal practitioner who holds an unrestricted practising certificate authorising the receipt of trust money; or
by 2 or more authorised associates jointly.
A written record of the required particulars (which may be in the form of a cheque butt) must be kept of each payment made by cheque, whether by way of making a carbon copy or otherwise, unless at the time the cheque is issued those particulars are recorded by computer program in the trust account payments cash book.
If at the time the cheque is issued the required particulars are recorded by computer program in the trust account payments cash book, a written record must be kept that is sufficient to enable the accuracy of the particulars recorded by the computer program to be verified.
For subregulations (4) and (5), the required particulars are as follows:
the date and number of the cheque;
the amount ordered to be paid by the cheque;
the name of the person to whom the payment is to be made or, in the case of a cheque made payable to an ADI, the name of the ADI and the name of the person receiving the benefit of the payment;
details clearly identifying the name of the person on whose behalf the payment was made and the matter reference;
details clearly identifying the ledger account to be debited;
particulars sufficient to identify the purpose for which the payment was made.
Written records relating to payments by cheque (including cheque requisitions) must be kept in the order in which the cheques were issued.
Subregulation (2)(c) does not apply to an account established in this jurisdiction before the commencement of this regulation.
Subregulation (2)(c)(ii) does not require the repetition of the words "law practice" if those words form part of the name or business name of the law practice.
In this regulation:
"associate" means an associate of the law practice.
"authorised" means authorised by the law practice to sign cheques drawn on the general trust account.




User Respomsible

User Responsible

User Responsible

Trustpak Compliant

User Responsible
User Responsible




User Responsible




User Responsible




Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
User Responsible

User Responsible

User Responsible











47.


Payment by electronic funds transfer


(1)

(2)

- (a)
- (b)
--- (i)
--- (ii)

--- (iii)
(3)


(4)



(5)

- (a)
- (b)
- (c)

- (d)


- (e)

- (f)
- (g)
(6)


(7)

This regulation applies to the withdrawal of trust money from a general trust account of a law practice by electronic funds transfer.
An electronic funds transfer must be effected by, under the direction of or with the authority of: -
an authorised principal of the law practice; or
if a principal referred to in paragraph (a) is not available: -
an authorised legal practitioner associate; or
an authorised Australian legal practitioner who holds an unrestricted practising certificate authorising the receipt of trust money; or
two or more authorised associates jointly.
A written record of the required particulars must be kept of each payment unless at the time the electronic funds transfer is effected those particulars are recorded by computer program in the trust account payments cash book.
If at the time the electronic funds transfer is effected the required particulars are recorded by computer program in the trust account payments cash book, a written record must be kept that is sufficient to enable the accuracy of the particulars recorded by the computer program to be verified.
For the purposes of subregulations (5) and (6), the required particulars are as follows:
the date and number of the transaction;
the amount transferred;
the name and number of the account to which the amount was transferred and relevant BSB number;
the name of the person to whom the payment was made or, for a payment to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;
details clearly identifying the name of the person on whose behalf the payment was made and the matter reference;
details clearly identifying the ledger account to be debited;
particulars sufficient to identify the purpose for which the payment was made.
Written records relating to payments by electronic funds transfer (including transfer requisitions) must be kept in the order in which the transfers were effected.
In this regulation - "associate" means an associate of the law practice; "authorised" means authorised by the law practice to effect, direct or give authority for an electronic funds transfer from the general trust account.





User Respomsible
User Respomsible




User Respomsible


Trustpak Compliant





Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant


Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
User Respomsible


User Respomsible











48.


Recording transactions in trust account cash books




- (a)
- (b)

A law practice that maintains a general trust account must keep the following trust account cash books:

a trust account receipts cash book in accordance with regulation 49;
a trust account payments cash book in accordance with regulation 50.



Trustpak Compliant
Trustpak Compliant

49.


Trust account receipts cash book


(1)

- (a)

- (b)
- (c)
- (d)
- (e)
- (f)

- (g)
- (h)
(2)

(3)

(4)

The following particulars must be recorded in a law practice's trust account receipts cash book in respect of each receipt of trust money:
the date a receipt was made out for the money and, if different, the date of receipt of the money;
the receipt number;
the amount of money received;
the form in which the money was received;
the name of the person from whom the money was received;
details clearly identifying the name of the client in respect of whom the money was received and the matter description and matter reference;
particulars sufficient to identify the purpose for which the money was received;
details clearly identifying the ledger account to be credited.
The date and amount of each deposit in the general trust account must be recorded in the trust account receipts cash book.
The particulars in respect of receipts must be recorded in the order in which the receipts are made out.
The particulars in respect of a receipt must be recorded within 5 working days counting from and including the day the receipt was made out.



Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant

User Responsible

















50.


Trust account payments cash book


(1)

- (a)
- (b)
- (c)


- (d)

- (e)
- (f)
(2)


- (a)
- (b)
- (c)

- (d)


- (e)

- (f)
- (g)
(3)

(4)

The following particulars must be recorded in a law practice's trust account payments cash book in respect of each payment of trust money by cheque:
the date and number of the cheque;
the amount ordered to be paid by the cheque;
the name of the person to whom the payment is to be made or, in the case of a cheque made payable to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;
details clearly identifying the name of the person on whose behalf the payment was made and the matter reference;
details clearly identifying the ledger account to be debited;
particulars sufficient to identify the purpose for which the payment was made.
The following particulars must be recorded in a law practice's trust accounts payments cash book in respect of each payment of trust money by electronic funds transfer:
the date and number of the transaction;
the amount transferred;
the name and number of the account to which the amount was transferred and the relevant BSB number;
the name of the person to whom the payment was made or, in the case of a payment to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;
details clearly identifying the name of the person on whose behalf the payment was made and the matter reference;
details clearly identifying the ledger account to be debited;
particulars sufficient to identify the purpose for which the payment was made.
The particulars in respect of payments must be recorded in the order in which the payments are made.
The particulars in respect of a payment must be recorded within 5 working days counting from and including the day the payment was made.



Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant


Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

User Responsible

















51.


Recording transactions in trust ledger accounts


(1)


(2)
- (a)
- (b)
- (c)

(3)
(4)

- (a)

- (b)
- (c)
- (d)
- (e)
(5)

- (a)
- (b)
- (c)


- (d)
(6)

- (a)
- (b)
- (c)

- (d)


- (e)
(7)

- (a)
- (b)
- (c)
- (d)

- (e)
(8)

(9)


(10)

A law practice that maintains a general trust account must keep a trust account ledger containing separate trust ledger accounts in relation to each client of the practice in each matter for which trust money has been received by the practice.
The following particulars must be recorded in the title of a trust ledger account:
the name of the person for or on behalf of whom the trust money was paid;
the person's address;
particulars sufficient to identify the matter in relation to which the trust money was received.
Details of any changes in the title of a trust ledger account must be recorded.
The following particulars must be recorded in the trust ledger account in respect of each receipt of trust money for the matter:
the date a receipt was made out for the money and, if different, the date of receipt of the money;
the receipt number;
the amount of money received;
the name of the person from whom the money was received;
particulars sufficient to identify the purpose for which the money was received.
The following particulars must be recorded in the trust ledger account in respect of each payment of trust money by cheque:
the date and number of the cheque;
the amount ordered to be paid by the cheque;
the name of the person to whom the payment is to be made or, in the case of a cheque made payable to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;
particulars sufficient to identify the purpose for which the payment was made.
The following particulars must be recorded in the trust ledger account in respect of each payment of trust money by electronic funds transfer:
the date and number of the transaction;
the amount transferred;
the name and number of the account to which the amount was transferred and the relevant BSB number;
the name of the person to whom the payment was made or, in the case of a payment to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;
particulars sufficient to identify the purpose for which the payment was made.
The following particulars must be recorded in the trust ledger account in respect of each transfer of trust money effected by a journal entry:
the date of the transfer;
the amount transferred;
the journal reference number;
the name of the other trust ledger account from which or to which the money was transferred;
particulars sufficient to identify the purpose for which the payment was made.
Transactions relating to trust money must be recorded in the trust ledger account in the order in which the transactions occur.
The particulars in respect of a receipt, payment or transfer of trust money must be recorded within 5 working days counting from and including the day the receipt was made out, the payment was made or the transfer was effected, as the case requires.
The trust ledger account balance must be recorded in the trust ledger account after each receipt, payment or transfer of trust money.

Trustpak Compliant



Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant


Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant


Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

User Respomsible


Trustpak Compliant


52.


Journal transfers


(1)


- (a)

- (b)
--- (i)
--- (ii)
--- (iii)


--- (iv)

(3)



- (a)
- (b)

- (c)

- (d)
- (e)

(4)
(5)


(6)

Trust money may be transferred by journal entry from one trust ledger account in a law practice's trust ledger to another trust ledger account in the trust ledger, but only if:
the law practice is entitled to withdraw the money and pay it to the other trust ledger account; and
the transfer has been authorised in writing by:
if the law practice is constituted by a sole practitioner – the sole practitioner; or
a manager or receiver for the law practice; or
a person who is duly authorised by the law practice or by a manager or receiver for the law practice to sign cheques drawn on the general trust account without a co-signatory; or
two or more persons who are duly authorised by the law practice or by a manager or receiver for the law practice to sign cheques drawn on the general trust account jointly.
A law practice must keep a trust account transfer journal if it transfers trust money by journal entry.
The following particulars must be recorded in the trust account transfer journal in respect of each transfer of trust money by journal entry:
the date of the transfer;
the trust ledger account from which the money is transferred (including its identifying reference);
the trust ledger account to which the money is transferred (including its identifying reference);
the amount transferred;
particulars sufficient to identify the purpose for which the transfer is made, the matter reference and a short description of the matter.
Journal pages or entries must be consecutively numbered.
A law practice must keep particulars of the authorisation for each transfer of trust money by journal entry, whether in the trust account transfer journal or in some other way.
In this regulation: "responsible person", in relation to a law practice, means a person who has authority to deal with trust money of the law practice.






User Respomsible







User Responsible



Trustpak Compliant
Trustpak Compliant

Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant



























User Name Saved

53.


Reconciliation of trust records



(1)

(2)

- (a)
--- (i)

--- (ii)
- (b)
--- (i)

--- (ii)


--- (iii)
(3)

(4)

A law practice that maintains one or more general trust accounts must reconcile the trust records relating to each account.
The trust records relating to a general trust account must be reconciled as at the end of each named month by preparing:
a statement:
reconciling the general trust account balance as shown in ADI records with the balance of the practice's trust account cash books; and
showing the date the statement was prepared; and
a statement:
reconciling the balance of the trust ledger accounts with the balance of the practice's trust account cash books; and
containing a list of the practice's trust ledger accounts showing the name, identifying reference and balance of each and a short description of the matter to which each relates; and
showing the date the statement was prepared.
The statements must be prepared within 15 working days after the end of the month concerned.
The statements must be kept by the law practice.






Trustpak Compliant

Trustpak Compliant

Trustpak Compliant

Trustpak Compliant


Trustpak Compliant
User Responsible

Trustpak Compliant


















Trustpak saves a copy of the reconciliation

54.


Trust ledger account in name of law practice or legal practitioner associate



(1)


(2)
- (a)


- (b)


(3)



(4)

A law practice must not maintain a trust ledger account in the name of the practice or a legal practitioner associate of the practice except as authorised by this regulation.
A law practice may maintain in its trust ledger:
a trust ledger account in the practice's name, but only for the purpose of aggregating in the account, by transfer from other accounts in the trust ledger, money properly due to the practice for legal costs; and
a trust ledger account in a legal practitioner associate's name, but only in respect of money in which the associate has a personal and beneficial interest as a vendor, purchaser, lessor or lessee or in another similar capacity.
In a case to which subregulation (2)(a) applies, the law practice must ensure that the money in the trust ledger account is withdrawn from the general trust account not later than one month after the day on which the money was transferred to the trust ledger account.
In a case to which subregulation (2)(b) applies, the law practice must ensure that the money in the trust ledger account is withdrawn from the general trust account at the conclusion of the matter to which the money relates.





Trustpak Compliant


Trustpak Compliant


User Responsible



Trustpak Compliant












55.


Notification requirements regarding general trust accounts

User Responsible

All sub rules are user responsible


(1)

(2)
- (a)

--- (i)
--- (ii)



- (b)

--- (i)
--- (ii)


(4)

(5)

(6)

Within 14 days after establishing a general trust account, a law practice must give the Law Society written notice of that fact.
A law practice
either before, or within 14 days after, authorising or terminating the authority of an associate of the practice or an Australian legal practitioner:
to sign cheques drawn on a general trust account of the practice; or
otherwise to effect, direct or give authority for the withdrawal of money from a general trust account of the practice; must give the Society written notice of that fact (including the name and address of the associate or practitioner and indicating, in the case of an associate, whether the associate is an employee of the practice); and
during July of each year, must give the Society written notice of the associates and Australian legal practitioners (including their names and addresses) who are authorised, as at 1 July of that year:
to sign cheques drawn on a general trust account of the practice; or
otherwise to effect, direct or give authority for the withdrawal of money from a general trust account of the practice.
Within 14 days after the closure of a general trust account maintained by it, a law practice must give the Society written notice of that fact.
A notice under this regulation given by a law practice must include particulars sufficient to identify the general trust accounts of the practice.
In this regulation - "law practice" includes a former law practice and the persons who were principals of a law practice immediately before the law practice ceased to exist as a law practice or to engage in legal practice in this jurisdiction.



























Reg
Sub Reg
Description
Compliance
Notes




Division 4 - Controlled money


56.


Maintenance of controlled money accounts (Schedule 2 clause 15 of Act)



(1)

- (a)
- (b)
- (c)

(2)

For section 248(4) of the Act, a controlled money account must be maintained under an account name that includes the following particulars:
the name of the law practice concerned;
the expression "controlled money account" or the abbreviation "CMA" or "CMA/c";
such particulars as are sufficient to identify the purpose of the account and to distinguish the account from any other account maintained by the law practice.
This regulation does not apply to an account established in this jurisdiction before the commencement of this regulation.



Trustpak Compliant
Trustpak Compliant
Trustpak Compliant





57.


Receipt of controlled money



(1)
(2)

(3)
(4)
- (a)
- (b)


(5)



(6)
- (a)
- (b)
- (c)
- (d)
- (e)

- (f)
- (g)


- (h)

- (i)
- (j)
(7)


(8)

(9)
(10)
(11)

This regulation applies if a law practice receives controlled money.
The law practice must operate a single controlled money receipt system for the receipt of controlled money for all its controlled money accounts.
After receiving controlled money, the law practice must make out a receipt.
The receipt must be made out as soon as practicable:
after the controlled money is received, except as provided by paragraph (b); or
in the case of controlled money received by direct deposit – after the law practice receives or accesses notice or confirmation (in written or electronic form) of the deposit from the ADI concerned.
The receipt, containing the required particulars, must be made out in duplicate, whether by way of making a carbon copy or otherwise, unless at the time the receipt is made out those particulars are recorded by computer program in the register of controlled money.
For subregulation (5), the required particulars are as follows:
the date the receipt is made out and, if different, the date of receipt of the money;
the amount of money received;
the form in which the money was received;
the name of the person from whom the money was received;
details clearly identifying the name of the person on whose behalf the money was received and the matter description and matter reference;
particulars sufficient to identify the purpose for which the money was received;
the name of and other details clearly identifying the controlled money account to be credited, unless the account has not been established by the time the receipt is made out;
the name of the law practice, or the business name under which the law practice engages in legal practice, and the expression "controlled money receipt";
the name of the person who made out the receipt;
the number of the receipt.
If the controlled money account to be credited has not been established by the time the receipt is made out, the name of and other details clearly identifying the account when established must be included on the duplicate receipt (if any).
The original receipt must be delivered, on request, to the person from whom the controlled money was received.
Receipts must be consecutively numbered and issued in consecutive sequence.
If a receipt is cancelled or not delivered, the original receipt must be kept.
A receipt is not required to be made out for any interest or other income received from the investment of controlled money and credited directly to a controlled money account.

Trustpak Compliant


User Responsible

User Responsible
User Responsible


Trustpak Compliant




Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant


Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
User Responsible


User Responsible

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant












58.


Deposit of controlled money


For section 248(5) of the Act, the prescribed period for which a written direction referred to in section 248(1) of the Act must be kept is 7 years after finalisation of the matter to which the direction relates.

User Responsible

59.


Manner of withdrawal of controlled money

User Responsible


(1)

(2)
- (a)
- (b)
- (c)
(3)

(4)

(5)
(6)

A law practice must not withdraw controlled money from a controlled money account otherwise than by cheque or electronic funds transfer.
Without limiting subregulation (1), the following are specifically prohibited:
cash withdrawals;
ATM withdrawals or transfers;
telephone banking withdrawals or transfers.
If a law practice that is an Australian legal practitioner who is a sole practitioner, or an incorporated legal practice, contravenes subregulation (1), the practitioner or practice is guilty of an offence.
Maximum penalty: 100 penalty units.
If a law practice that is a law firm or multi-disciplinary partnership contravenes subregulation (1), each principal of the practice is guilty of an offence.
Maximum penalty: 100 penalty units.
An offence against subregulation (3) or (4) is an offence of strict liability.
This regulation has effect despite anything to the contrary in any directions given to the law practice concerned, even if the directions are given by a person who is otherwise legally entitled to give the law practice directions in respect of dealings with controlled money.

60.


Withdrawal of controlled money must be authorised



(1)

- (a)
- (b)
--- (i)
--- (ii)

--- (iii)
(2)


(3)


(4)
- (a)
- (b)
- (c)


- (d)

- (e)

- (f)
- (g)
(5)

(6)

A withdrawal of money from a controlled money account of a law practice must be effected by, under the direction of or with the authority of:
an authorised principal of the law practice; or
if a principal referred to in paragraph (a) is not available:
an authorised legal practitioner associate; or
an authorised Australian legal practitioner who holds an unrestricted practising certificate authorising the receipt of trust money; or
two or more authorised associates jointly.
A written record of the required particulars must be kept of each withdrawal unless at the time the withdrawal is made those particulars are recorded by computer program.
If at the time the withdrawal is made the required particulars are recorded by computer program, a written record must be kept that is sufficient to enable the accuracy of the particulars recorded by the computer program to be verified.
For subregulations (2) and (3), the required particulars are as follows:
the date and number of the transaction;
the amount withdrawn;
in the case of a transfer made by electronic funds transfer – the name and number of the account to which the amount was transferred and the relevant BSB number;
the name of the person to whom payment is to be made or, in the case of a payment to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;
details clearly identifying the name of the person on whose behalf the payment was made and the matter reference;
particulars sufficient to identify the purpose for which the payment was made;
the person or persons effecting, directing or authorising the withdrawal.
The particulars must be recorded in the order in which the payments are recorded and must be recorded separately for each controlled money account.
In this regulation: "associate" means an associate of the law practice. "authorised" means authorised by the law practice to effect, direct or give authority for a withdrawal of money from the controlled money account.

User Responsible







Trustpak Compliant


Trustpak Compliant



Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant

Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant












61.


Register of controlled money



(1)


(2)

(3)

- (a)
- (b)
- (c)
- (d)
(4)

- (a)
- (b)
- (c)
- (d)
- (e)
- (f)
- (g)
- (h)

(5)



(6)


(7)


(8)

- (a)
--- (i)
--- (ii)

--- (iii)
- (b)

A law practice that receives controlled money must maintain a register of controlled money consisting of the records of controlled money movements for the controlled money accounts of the practice.
A separate record of controlled money movements must be maintained for each controlled money account.
A record of controlled money movements for a controlled money account must record the following information:
the name of the person on whose behalf the controlled money is held;
the person's address;
particulars sufficient to identify the matter;
any changes to the information referred to in paragraphs (a) to (c).
The following particulars must be recorded in a record of controlled money movements for a controlled money account:
the date the controlled money was received;
the number of the receipt;
the date the money was deposited in the controlled money account;
the name of and other details clearly identifying the controlled money account;
the amount of controlled money deposited;
details of the deposit sufficient to identify the deposit;
interest received;
details of any payments from the controlled money account, including the particulars required to be recorded under regulation 60(4).
With the exception of interest and other income received in respect of controlled money, particulars of receipts and payments must be entered in the register as soon as practicable after the controlled money is received by the law practice or any payment is made.
Interest and other income received in respect of controlled money must be entered in the register as soon as practicable after the law practice is notified of its receipt.
The law practice must retain as part of its trust records all supporting information (including ADI statements and notifications of interest received) relating to controlled money.
Within 15 working days after each named month, the law practice must prepare and keep as a permanent record a statement as at the end of the named month:
containing a list of the practice's controlled money accounts showing:
the name, number and balance of each account in the register; and
the name of the person on whose behalf the controlled money in each account was held; and
a short description of the matter to which each account relates; and
showing the date the statement was prepared.

Trustpak Compliant


Trustpak Compliant



Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

User Responsible



User Responsible


User Responsible


User Responsible

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

These are holding accounts

Each CMA has a seperate ledger







Reg
Sub Reg
Description
Compliance
Notes




Division 5 - Transit Money


62.


Information to be recorded about transit money


(1)
(2)

This regulation has effect for section 249 of the Act.
A law practice must, in respect of transit money received by the practice, record and retain brief particulars sufficient to identify the relevant transaction and any purpose for which the money was received.

User Resonsible
User Resonsible





Reg
Sub Reg
Description
Compliance
Notes




Division 6 - Trust Money Generally


63.


Trust account statements



(1)


(2)


(3)


(4)



(5)
- (a)

- (b)
(6)
- (a)

- (b)


- (c)

(7)

- (a)
- (b)

- (c)

(8)

A law practice must furnish a trust account statement to each person for whom or on whose behalf trust money (other than transit money) is held or controlled by the law practice or an associate of the practice.
In the case of trust money in respect of which the law practice is required to maintain a trust ledger account, the practice must furnish a separate statement for each trust ledger account.
In the case of controlled money in respect of which the law practice is required to maintain a record of controlled money movements, the practice must furnish a separate statement for each record.
In the case of trust money subject to a power given to the law practice or an associate of the practice in respect of which the practice is required to keep a record of all dealings with the money to which the practice or associate is a party, the practice must furnish a separate statement for each record.
A trust account statement is to contain particulars of: --
all the information required to be kept under this Part in relation to the trust money included in the relevant ledger account or record; and
the remaining balance (if any) of the money.
A trust account statement must be furnished: --
as soon as practicable after completion of the matter to which the ledger account or record relates; or
as soon as practicable after the person for whom or on whose behalf the money is held or controlled makes a reasonable request for the statement during the course of the matter; or
except as provided by subregulation (7), as soon as practicable after 30 June in each year.
The law practice is not required to furnish a trust account statement under subregulation (6)(c) in respect of a ledger account or record if at 30 June: --
the ledger account or record has been open for less than 6 months; or
the balance of the ledger account or record is zero and no transaction affecting the account has taken place within the previous 12 months; or
a trust account statement has been furnished within the previous 12 months and there has been no subsequent transaction affecting the ledger account or record.
The law practice must retain a copy of a trust account statement furnished under this regulation.

Trustpak Compliant


Trustpak Compliant


Trustpak Compliant


Trustpak Compliant




Trustpak Compliant

Trustpak Compliant

User Responsible

User Responsible


User Responsible




Trustpak maintains a separate ledger for each matter

SOURCE: QUEENSLAND - Queensland Consolidated Regulations - LEGAL PROFESSION REGULATION 2017
PART 3.3 - TRUST MONEY AND TRUST ACCOUNTS

Date Checked: 25th May 2018

NOTE: This information is NOT to be used as a reference to Government Trust Account Regulations it is meant only as a guide to show you which part of the regulations Trustpak is compliant with, we cannot guarantee the accuracy of this information beyond the "Date Checked" however we will do our best to keep this matrix up to date. Please note it is the responsibility of each user to make sure they are compliant with the regulations. The information provided here is intended to help with that process.
NOTE: Incorrect installations and modifications to installations may effect Trustpak's compliance with these regulations.

DISCLAIMER: This information is provided with the understanding that the laws governing trust accounting, legal ethics and professional responsibility are always changing. This information is not a substitute for legal advice and may not be suitable in a particular situation. You must make your own judgement on the actual compliance of Trustpak. Infobiz Solutions Pty Ltd, their employees and their representatives, and the author shall not be liable for any damages resulting from any error, inaccuracy, or omission.

Reg
Sub Reg
Description
Compliance
Notes




Division 1 -- Trust Money and Trust Accounts


28.


Application of Division


(1)
- (a)

- (b)

- (c)

--- (i)
--- (ii)



(2)

This division applies to a law practice in relation to: --
trust money received by the practice in this jurisdiction, unless the practice has an office in one or more other jurisdictions but not in this jurisdiction; and
trust money received by the practice in another jurisdiction, if the practice has an office in this jurisdiction but in no other jurisdiction; and
trust money received by the practice in another jurisdiction, if the practice has an office in: --
this jurisdiction; and
one or more other jurisdictions but not in the jurisdiction in which the money was received;
unless the money is dealt with under the corresponding law of a jurisdiction in which the practice has an office.
However, sections 29 to 32 apply only to a law practice that keeps trust records, including records relating to controlled money, using a computerised accounting system.


29.


Keeping and printing trust records


(1)

- (a)

- (b)

- (c)

- (d)

(2)
- (a)

- (b)


(3)

(4)

The law practice must maintain and keep, in printed form or in readable and printable form, the following copies of trust records: --
a copy of trust account receipts and payments cash books as at the end of each named month;
a copy of reconciliation statements prepared under section 44 as at the end of each named month;
a copy of lists of trust ledger accounts and their balances as at the end of each named month;
a copy of lists of controlled money accounts and their balances as at the end of each named month.
The law practice must: --
print a paper copy of trust ledger accounts, the controlled money movement records and the trust transfer journal before they are archived or deleted from the system; and
on request by an investigator, provide to the investigator a printed copy of trust ledger accounts and controlled money account details.
The copies of trust records, as at the end of a named month under subsection (1) (a) to (d), must be prepared within 15 working days after the end of the named month.
The paper copies printed under subsection (2) must be kept by the law practice, unless they have been provided on request under that subsection.



Trustpak Compliant

Trustpak Compliant

Trustpak Compliant

Trustpak Compliant


User Responsible

User Responsible

User Responsible


User Responsible



Copy saved automatically









30.


Chronological record of information to be made


(1)


- (a)
- (b)
- (c)
- (d)
- (e)
(2)

The law practice must make a record, compiled in chronological sequence, of the creation, amendment or deletion of information in its computerised accounting system in relation to the following: --
client name;
client address;
matter reference;
matter description;
ledger account number or other descriptor.
The law practice must keep the record.

Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant












31.


Requirements regarding computer accounting systems


(1)




(2)

- (a)

- (b)
(3)

(4)

(5)


(6)

The law practice must ensure its computerised accounting system is not capable of accepting, in relation to a trust ledger account, the entry of a transaction resulting in a debit balance to the account, unless a contemporaneous record of the transaction is made in a way that enables the production in a permanent form, on demand, of a separate chronological report of all occurrences of that kind.
The law practice must ensure the system is not capable of deleting a trust ledger account unless: --
the balance of the account is zero and all outstanding cheques have been presented; and
when the account is deleted, a copy of the account is kept in a permanent form.
The law practice must ensure any entry in a record produced in a permanent form appears in chronological sequence.
The law practice must ensure each page of each printed record is numbered sequentially or is printed in a way that no page can be extracted.
The law practice must ensure its computerised accounting system is not capable of amending the particulars of a transaction already recorded otherwise than by a transaction separately recorded that makes the amendment.
The law practice must ensure its computerised accounting system requires input in every field of a data entry screen intended to receive information required by this division to be included in trust records.

Trustpak Compliant


Trustpak Compliant

Trustpak Compliant

Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

Trustpak Compliant

Trustpak Compliant


Trustpak Compliant








Copy in the archive




32.


Backups


(1)
- (a)

- (b)
- (c)

The law practice must ensure:
a backup copy of all records required by this division is made at least once each month; and
each backup copy is kept by the law practice; and
a complete set of backup copies is kept in a separate location that prevents any incident, that may adversely affect the records, from affecting the backup copy.


User Responsible

User Responsible
User Responsible





Trustpak allows off-site Backup to Google Drive



33.


Establishment of general trust account—Act, s 247

All User Responsible


(1)


(2)

(3)
- (a)
- (b)
- (c)
--- (i)

--- (ii)
- (d)
(3)

(4)

A law practice must, after receiving trust money that is required to be paid into a general trust account, establish a compliant general trust account if the practice does not already have a compliant general trust account.
Subsection (1) does not prevent a law practice from establishing a compliant general trust account at any time.
A general trust account is "compliant" if: --
the account is established in this jurisdiction, at any time, with an approved ADI; and
the account is and will be kept in this jurisdiction; and
the name of the account includes: --
the name of the law practice or the business name under which the law practice engages in legal practice; and
the expression ‘law practice trust account’ or ‘law practice trust a/c’; and
the account is of a kind that is, for the time being, approved by the law society.
Subsection (3) (c) does not apply to an account established in this jurisdiction before 1 July 2007.
Subsection (3) (c)(ii) does not require the repetition of the words ‘law practice’ if those words form part of the name or business name of the law practice.

34.


Receipting of trust money


(1)

(2)
(3)
- (a)
- (b)


(4)



(5)
- (a)
- (b)
- (c)
- (d)
- (e)

- (f)
- (g)

- (h)
- (i)

(6)

(7)
(8)

This section applies if a law practice receives trust money that is required to be paid into a general trust account.
After receiving the trust money, the law practice must make out a receipt.
The receipt must be made: --
after the trust money is received, except as provided by paragraph (b); or
for trust money received by direct deposit—after the law practice receives or accesses notice or confirmation, in written or electronic form, of the deposit from the ADI concerned.
The receipt, containing the required particulars, must be made out in duplicate, whether by way of making a carbon copy or otherwise, unless at the time the receipt is made out the required particulars are recorded by computer program in the trust account receipts cash book.
For subsection (4) , the following particulars are
the date the receipt is made out and, if different, the date of receipt of the money;
the amount of money received;
the form in which the money was received;
the name of the person from whom the money was received;
details clearly identifying the name of the client in relation to whom the money was received and the matter description and matter reference;
particulars sufficient to identify the purpose for which the money was received;
the name of the law practice, or the business name under which the law practice engages in legal practice, and the expression ‘trust account’ or ‘trust a/c’;
the name of the person who made out the receipt;
the number of the receipt.

The original receipt must be delivered, on request, to the person from whom the trust money was received.
Receipts must be consecutively numbered and issued in consecutive sequence.
If a receipt is cancelled or not delivered, the original receipt must be kept.



User Responsible
User Responsible









Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
User Responsible

Trustpak Compliant
Trustpak Compliant

























35.


Deposit records for trust money


(1)


(2)

(3)
- (a)
- (b)
- (c)
- (d)
--- (i)
--- (ii)
--- (iii)
(4)

(5)

This section applies if a law practice receives trust money that is required to be paid into a general trust account and the money is not paid into a general trust account by direct deposit.
A deposit record must be produced to the approved ADI at the time the deposit is made.
The following particulars must be recorded on the deposit record: --
the date of the deposit;
the amount of the deposit;
whether the deposit consists of cheques, notes or coins, and the amount of each;
for each cheque: --
the name of the drawer of the cheque; and
the name and branch, or BSB number, of the ADI on which the cheque is drawn; and
the amount of the cheque.
The deposit record must be made out in duplicate, whether by way of making a carbon copy or otherwise.
The duplicate deposit record must be kept for each deposit to the general trust account and must be kept in a deposit book or be otherwise securely filed in the order in which the deposits were made.




Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant




Deposit Slip









Duplicate in database

Duplicate in database

36.


Period for keeping direction for non-deposit of trust money in general trust account—Act, s 248

(1)

For section 248 (3) of the Act , the prescribed period is the period: --
beginning when the law practice receives the written direction; and
ending 7 years after finalisation of the matter to which the direction relates.

User Responsible

37.


Payment by cheque


(1)

(2)
- (a)

- (b)
- (c)
--- (i)

--- (ii)
(3)
- (a)
- (b)
--- (i)
--- (ii)

--- (iii)
(4)




(5)



(6)
- (a)
- (b)
- (c)


- (d)

- (e)
- (f)
(7)

(8)

(9)

(10)

This section applies to the withdrawal of trust money from a general trust account of a law practice by cheque.
The cheque -
must be made payable to or to the order of a stated person or persons and not to bearer or cash; and
must be crossed ‘not negotiable’; and
must include: --
the name of the law practice or the business name under which the law practice engages in legal practice; and
the expression ‘law practice trust account’ or ‘law practice trust a/c’.
The cheque must be signed: --
by an authorised principal of the law practice; or
if a principal mentioned in paragraph (a) is not available: --
by an authorised legal practitioner associate; or
by an authorised Australian legal practitioner who holds an unrestricted practising certificate authorising the receipt of trust money; or
by 2 or more authorised associates jointly.
A written record of the required particulars (including a record in the form of a cheque butt) must be kept of each payment made by cheque, whether by way of making a carbon copy or otherwise, unless at the time the cheque is issued those particulars are recorded by computer program in the trust account payments cash book.
If, at the time the cheque is issued, the required particulars are recorded by computer program in the trust account payments cash book, a written record must be kept that is sufficient to enable the accuracy of the particulars recorded by the computer program to be verified.
For subsections (4) and (5), the following particulars are: --
the date and number of the cheque;
the amount ordered to be paid by the cheque;
the name of the person to whom the payment is to be made or, for a cheque made payable to an ADI, the name of the ADI and the name of the person receiving the benefit of the payment;
details clearly identifying the name of the person on whose behalf the payment was made and the matter reference;
details clearly identifying the ledger account to be debited;
particulars sufficient to identify the purpose for which the payment was made.
Written records relating to payments by cheque, including cheque requisitions, must be kept in the order in which the cheques were issued.
Subsection (2) (c) does not apply to an account established in this jurisdiction before 1 July 2007.
Subsection (2) (c)(ii) does not require the repetition of the words ‘law practice’ if those words form part of the name or business name of the law practice.
In this section: --
"authorised" means authorised by the law practice to sign cheques drawn on the general trust account.




User Respomsible

User Responsible

User Responsible

Trustpak Compliant

User Responsible
User Responsible




User Responsible




User Responsible




Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
User Responsible

User Responsible

User Responsible











38.


Payment by electronic funds transfer


(1)

(2)

- (a)
- (b)
--- (i)
--- (ii)

--- (iii)
(3)


(4)



(5)

- (a)
- (b)
- (c)

- (d)


- (e)

- (f)
- (g)
(6)


(7)

This section applies to the withdrawal of trust money from a general trust account of a law practice by electronic funds transfer.
An electronic funds transfer must be effected by, under the direction of or with the authority of: --
an authorised principal of the law practice; or
if a principal mentioned in paragraph (a) is not available: --
an authorised legal practitioner associate; or
an authorised Australian legal practitioner who holds an unrestricted practising certificate authorising the receipt of trust money; or
2 or more authorised associates jointly.
A written record of the required particulars must be kept of each payment unless at the time the electronic funds transfer is effected those particulars are recorded by computer program in the trust account payments cash book.
If at the time the electronic funds transfer is effected the required particulars are recorded by computer program in the trust account payments cash book, a written record must be kept that is sufficient to enable the accuracy of the particulars recorded by the computer program to be verified.
For subsections (3) and (4), the following particulars are "required particulars": --
the date and number of the transaction;
the amount transferred;
the name and number of the account to which the amount was transferred and relevant BSB number;
the name of the person to whom the payment was made or, for a payment to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;
details clearly identifying the name of the person on whose behalf the payment was made and the matter reference;
details clearly identifying the ledger account to be debited;
particulars sufficient to identify the purpose for which the payment was made.
Written records relating to payments by electronic funds transfer, including transfer requisitions, must be kept in the order in which the transfers were effected.
In this section: -- "authorised" means authorised by the law practice to effect, direct or give authority for an electronic funds transfer from the general trust account.





User Respomsible
User Respomsible




User Respomsible


Trustpak Compliant





Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant


Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
User Respomsible


User Respomsible











39.


Recording transactions in trust account cash books




- (a)
- (b)

A law practice that keeps a general trust account must keep the following trust account cash books: --

a trust account receipts cash book in accordance with section 40;
a trust account payments cash book in accordance with section 41.



Trustpak Compliant
Trustpak Compliant

40.


Trust account receipts cash book


(1)

- (a)

- (b)
- (c)
- (d)
- (e)
- (f)

- (g)
- (h)
(2)

(3)

(4)

The following particulars must be recorded in a law practice’s trust account receipts cash book in relation to each receipt of trust money: --
the date a receipt was made out for the money and, if different, the date of receipt of the money;
the receipt number;
the amount of money received;
the form in which the money was received;
the name of the person from whom the money was received;
details clearly identifying the name of the client in relation to whom the money was received and the matter description and matter reference;
particulars sufficient to identify the purpose for which the money was received;
details clearly identifying the ledger account to be credited.
The date and amount of each deposit in the general trust account must be recorded in the trust account receipts cash book.
The particulars in relation to receipts must be recorded in the order in which the receipts are made out.
The particulars in relation to a receipt must be recorded within the period of 5 working days starting on, and inclusive of, the day the receipt was made out.



Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant

User Responsible

















41.


Trust account payments cash book


(1)

- (a)
- (b)
- (c)


- (d)

- (e)
- (f)
(2)


- (a)
- (b)
- (c)

- (d)


- (e)

- (f)
- (g)
(3)

(4)

The following particulars must be recorded in a law practice’s trust account payments cash book in relation to each payment of trust money by cheque: --
the date and number of the cheque;
the amount ordered to be paid by the cheque;
the name of the person to whom the payment is to be made or, for a cheque made payable to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;
details clearly identifying the name of the person on whose behalf the payment was made and the matter reference;
details clearly identifying the ledger account to be debited;
particulars sufficient to identify the purpose for which the payment was made.
The following particulars must be recorded in a law practice’s trust accounts payments cash book in relation to each payment of trust money by electronic funds transfer: --
the date and number of the transaction;
the amount transferred;
the name and number of the account to which the amount was transferred and the relevant BSB number;
the name of the person to whom the payment was made or, for a payment to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;
details clearly identifying the name of the person on whose behalf the payment was made and the matter reference;
details clearly identifying the ledger account to be debited;
particulars sufficient to identify the purpose for which the payment was made.
The particulars in relation to payments must be recorded in the order in which the payments are made.
The particulars in relation to a payment must be recorded within the period of 5 working days starting on, and inclusive of, the day the payment was made.



Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant


Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

User Responsible

















42.


Recording transactions in trust ledger accounts


(1)


(2)
- (a)
- (b)
- (c)

(3)
(4)

- (a)

- (b)
- (c)
- (d)
- (e)
(5)

- (a)
- (b)
- (c)


- (d)
(6)

- (a)
- (b)
- (c)

- (d)


- (e)
(7)

- (a)
- (b)
- (c)
- (d)

- (e)
(8)

(9)


(10)

A law practice that keeps a general trust account must keep a trust account ledger containing separate trust ledger accounts in relation to each client of the practice in each matter for which trust money has been received by the practice.
The following particulars must be recorded in the title of a trust ledger account: --
the name of the person for or on behalf of whom the trust money was paid;
the person’s address;
particulars sufficient to identify the matter in relation to which the trust money was received.
Details of any changes in the title of a trust ledger account must be recorded.
The following particulars must be recorded in the trust ledger account in relation to each receipt of trust money for the matter: --
the date a receipt was made out for the money and, if different, the date of receipt of the money;
the receipt number;
the amount of money received;
the name of the person from whom the money was received;
particulars sufficient to identify the purpose for which the money was received.
The following particulars must be recorded in the trust ledger account in relation to each payment of trust money by cheque: --
the date and number of the cheque;
the amount ordered to be paid by the cheque;
the name of the person to whom the payment is to be made or, for a cheque made payable to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;
particulars sufficient to identify the purpose for which the payment was made.
The following particulars must be recorded in the trust ledger account in relation to each payment of trust money by electronic funds transfer: --
the date and number of the transaction;
the amount transferred;
the name and number of the account to which the amount was transferred and the relevant BSB number;
the name of the person to whom the payment was made or, for a payment to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;
particulars sufficient to identify the purpose for which the payment was made.
The following particulars must be recorded in the trust ledger account in relation to each transfer of trust money effected by a journal entry: --
the date of the transfer;
the amount transferred;
the journal reference number;
the name of the other trust ledger account from which or to which the money was transferred;
particulars sufficient to identify the purpose for which the payment was made.
Transactions relating to trust money must be recorded in the trust ledger account in the order in which the transactions occur.
The particulars in relation to a receipt, payment or transfer of trust money must be recorded within the period of 5 working days starting on, and inclusive of, the day the receipt was made out, the payment was made or the transfer was effected.
The trust ledger account balance must be recorded in the trust ledger account after each receipt, payment or transfer of trust money.

Trustpak Compliant



Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant


Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant


Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

User Respomsible


Trustpak Compliant


43.


Journal transfers


(1)


- (a)

- (b)
(2)
- (a)
- (b)
--- (i)
--- (ii)
--- (iii)
- (c)

(3)

(4)

- (a)
- (b)

- (c)

- (d)
- (e)

(5)
(6)


(7)

Trust money may be transferred by journal entry from 1 trust ledger account in a law practice’s trust ledger to another trust ledger account in the trust ledger, but only if: --
the law practice is entitled to withdraw the money and pay it to the other trust ledger account; and
subsection (2) is complied with.
The transfer must be authorised in writing—
by an authorised principal of the law practice; or
if a principal mentioned in paragraph (a) is not available: --
by an authorised legal practitioner associate; or
by an authorised Australian legal practitioner who holds an unrestricted practising certificate authorising the receipt of trust money; or
by 2 or more authorised associates jointly; or
by an external intervener for the practice.
A law practice must keep a trust account transfer journal if it transfers trust money by journal entry.
The following particulars must be recorded in the trust account transfer journal in relation to each transfer of trust money by journal entry: --
the date of the transfer;
the trust ledger account from which the money is transferred, including its identifying reference;
the trust ledger account to which the money is transferred, including its identifying reference;
the amount transferred;
particulars sufficient to identify the purpose for which the transfer is made, the matter reference and a short description of the matter.
Journal pages or entries must be consecutively numbered.
A law practice must keep particulars of the authorisation for each transfer of trust money by journal entry, whether in the trust account transfer journal or in some other way.
In this section: - "authorised" means authorised by the law practice or an external intervener for the practice to effect, direct or give authority for the transfer of trust money by journal entry from 1 trust ledger account in the practice’s trust ledger to another trust ledger account in the trust ledger.




User Responsible

User Responsible












Trustpak Compliant
Trustpak Compliant

Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant




























User Name Saved

44.


Reconciliation of trust records



(1)

(2)

- (a)
--- (i)

--- (ii)
- (b)
--- (i)

--- (ii)


--- (iii)
(3)
- (a)
- (b)
- (c)
- (d)

A law practice that keeps 1 or more general trust accounts must reconcile the trust records relating to each account.
The trust records relating to a general trust account are to be reconciled as at the end of each named month by preparing: --:
a statement
reconciling the general trust account balance as shown in ADI records with the balance of the practice’s trust account cash books; and
showing the date the statement was prepared; and
a statement:
reconciling the balance of the trust ledger accounts with the balance of the practice’s trust account cash books; and
containing a list of the practice’s trust ledger accounts showing the name, identifying reference and balance of each and a short description of the matter to which each relates; and
showing the date the statement was prepared.
The statements must be: --
prepared within 15 working days after the end of the month concerned; and
reviewed by a principal of the law practice; and
annotated in a way that evidences the completion of the review; and
kept by the law practice.

Trustpak Compliant

Trustpak Compliant


Trustpak Compliant

Trustpak Compliant

Trustpak Compliant

Trustpak Compliant


Trustpak Compliant




















Trustpak saves a copy of the reconciliation

45.


Trust ledger account in name of law practice or legal practitioner associate



(1)

(2)
- (a)


- (b)


(3)


(4)

Subject to this section, a law practice must not keep a trust ledger account in the name of the practice or a legal practitioner associate of the practice.
A law practice may keep in its trust ledger: --
a trust ledger account in the practice’s name if the account is used only for aggregating in the account, by transfer from other accounts in the trust ledger, money properly due to the practice for legal costs; and
a trust ledger account in a legal practitioner associate’s name if the account is used only in relation to money in which the associate has a personal and beneficial interest as a vendor, purchaser, lessor or lessee or in another similar capacity.
If subsection (2) (a) applies, the law practice must ensure the money in the trust ledger account is withdrawn from the general trust account within 1 month after the day on which the money was transferred to the trust ledger account.
If subsection (2) (b) applies, the law practice must ensure the money in the trust ledger account is withdrawn from the general trust account at the conclusion of the matter to which the money relates.




Trustpak Compliant


Trustpak Compliant


User Responsible


User Responsible












46.


Notification requirements regarding general trust accounts

User Responsible

All sub rules are user responsible


(1)

(2)
- (a)

- (b)

--- (i)
--- (ii)

(3)


(4)
- (a)
- (b)
--- (i)

--- (ii)

- (c)

(5)



- (a)
- (b)



- (a)
- (b)


- (a)
- (b)

Within 14 days after a general trust account event, a law practice must give the law society written notice of the event.
A law practice must: --
either before, or within 14 days after, an authorisation event, give the law society written notice of the event; and
during July of each year, give the law society written notice of the associates and Australian legal practitioners who are authorised, as at 1 July of that year: --
to sign cheques drawn on a general trust account of the practice; or
otherwise to effect, direct or give authority for the withdrawal of money from a general trust account of the practice.
Subsection (2) (b) does not apply to a law practice in relation to a year if an external examiner’s report for the practice for the financial period ending 31 March of that year has been given to the law society under section 274 of the Act .
A notice under this section must: --
include particulars sufficient to identify the general trust accounts of the law practice; and
for a notice mentioned in subsection (2) (a): --
include the name and address of an associate or practitioner who is the subject of the notice; and
state whether an associate, who is the subject of the notice, is an employee of the law practice; and
for a notice mentioned in subsection (2) (b)—include the names and addresses of the associates and Australian legal practitioners.
In this section: --
"authorisation event" , in relation to a law practice, means authorisation or termination of the authority of an associate or an Australian legal practitioner: --

to sign cheques drawn on a general trust account of the practice; or
otherwise to effect, direct or give authority for the withdrawal of money from a general trust account of the practice.

"general trust account event", in relation to a law practice, means: --
the establishment of a general trust account by the law practice; or
the closure of a general trust account kept by the law practice.

"law practice"includes a former law practice and the persons who were principals of a law practice immediately before the law practice ceased to exist as a law practice or to engage in legal practice in this jurisdiction.



























47.


Way in which controlled money accounts must be kept—Act, s 251



(1)

- (a)
- (b)
- (c)

(2)

For section 251 (4) of the Act , a controlled money account must be kept under an account name that includes the following particulars: --
the name of the law practice concerned;
the expression ‘controlled money account’ or the abbreviation ‘CMA’ or ‘CMA/c’;
other particulars that are sufficient to identify the purpose of the account and to distinguish the account from any other account kept by the law practice.
This section does not apply to an account established in this jurisdiction before 1 July 2007.



Trustpak Compliant
Trustpak Compliant
Trustpak Compliant




Edit the 'CMA' or 'CMA/c' into the name

48.


Receipt of controlled money



(1)
(2)

(3)
(4)
- (a)
- (b)


(5)



(6)
- (a)
- (b)
- (c)
- (d)
- (e)

- (f)
- (g)


- (h)

- (i)
- (j)
(7)


(8)

(9)
(10)
(11)

This section applies if a law practice receives controlled money.
The law practice must operate a single controlled money receipt system for the receipt of controlled money for all its controlled money accounts.
After receiving controlled money, the law practice must make out a receipt.
The receipt must be made out: --
after the controlled money is received, except as provided by paragraph (b); or
for controlled money received by direct deposit—after the law practice receives or accesses notice or confirmation, in written or electronic form, of the deposit from the ADI concerned.
The receipt, containing the required particulars, must be made out in duplicate, whether by way of making a carbon copy or otherwise, unless at the time the receipt is made out those particulars are recorded by computer program in the register of controlled money.
For subsection (5) , the following particulars are "required particulars": --
the date the receipt is made out and, if different, the date of receipt of the money;
the amount of money received;
the form in which the money was received;
the name of the person from whom the money was received;
details clearly identifying the name of the person on whose behalf the money was received and the matter description and matter reference;
particulars sufficient to identify the purpose for which the money was received;
the name of and other details clearly identifying the controlled money account to be credited, unless the account has not been established by the time the receipt is made out;
the name of the law practice, or the business name under which the law practice engages in legal practice, and the expression ‘controlled money receipt’;
the name of the person who made out the receipt;
the number of the receipt.
If the controlled money account to be credited has not been established by the time the receipt is made out, the name of and other details clearly identifying the account when established must be included on the duplicate receipt (if any).
The original receipt must be delivered, on request, to the person from whom the controlled money was received.
Receipts must be consecutively numbered and issued in consecutive sequence.
If a receipt is cancelled or not delivered, the original receipt must be kept.
A receipt is not required to be made out for any interest or other income received from the investment of controlled money and credited directly to a controlled money account.


Trustpak Compliant

User Responsible

User Responsible
User Responsible


Trustpak Compliant




Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant


Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
User Responsible


User Responsible

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant












49.


Period for keeping direction for deposit of controlled money—Act, s 251


(6)

- (a)
- (b)

For section 251 (5) of the Act , the prescribed period in relation to a written direction is the period: --
beginning when the law practice receives the written direction; and
ending 7 years after finalisation of the matter to which the direction relates.

User Responsible

50.


Withdrawal of controlled money



(1)

(2)
(3)

- (a)
- (b)
--- (i)
--- (ii)

--- (iii)
(2)


(3)


(4)
- (a)
- (b)
- (c)


- (d)

- (e)

- (f)
- (g)
(5)

(6)

This section applies to the withdrawal of money from a controlled money account of a law practice.
The withdrawal must be effected by cheque or electronic funds transfer.
Also, the withdrawal must be effected by, under the direction of or with the authority of: --
an authorised principal of the law practice; or
if a principal mentioned in paragraph (a) is not available: --
an authorised legal practitioner associate; or
an authorised Australian legal practitioner who holds an unrestricted practising certificate authorising the receipt of trust money; or
2 or more authorised associates jointly.
A written record of the required particulars must be kept of each withdrawal unless at the time the withdrawal is made those particulars are recorded by computer program.
If at the time the withdrawal is made the required particulars are recorded by computer program, a written record must be kept that is sufficient to enable the accuracy of the particulars recorded by the computer program to be verified.
For subsections (4) and (5), the following are "required particulars": --
the date and number of the transaction;
the amount withdrawn;
for a transfer made by electronic funds transfer—the name and number of the account to which the amount was transferred and the relevant BSB number;
the name of the person to whom payment is to be made or, for a payment to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;
details clearly identifying the name of the person on whose behalf the payment was made and the matter reference;
particulars sufficient to identify the purpose for which the payment was made;
the person or persons effecting, directing or authorising the withdrawal.
The particulars are to be recorded in the order in which the payments are recorded and are to be recorded separately for each controlled money account.
In this section: "authorised" means authorised by the law practice to effect, direct or give authority for a withdrawal of money from the controlled money account.

User Responsible










Trustpak Compliant


Trustpak Compliant



Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant

Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant












51.


Register of controlled money



(1)


(2)

(3)

- (a)
- (b)
- (c)
- (d)
(4)

- (a)
- (b)
- (c)
- (d)
- (e)
- (f)
- (g)
- (h)

(5)


(6)

(7)


(8)

- (a)
--- (i)
--- (ii)

--- (iii)
- (b)
(9)
- (a)
- (b)

A law practice that receives controlled money must keep a register of controlled money consisting of the records of controlled money movements for the controlled money accounts of the practice.
A separate record of controlled money movements must be kept for each controlled money account.
A record of controlled money movements for a controlled money account must record the following information: --
the name of the person on whose behalf the controlled money is held;
the person’s address;
particulars sufficient to identify the matter;
any changes to the information mentioned in paragraphs (a) to (c).
The following particulars must be recorded in a record of controlled money movements for a controlled money account: --
the date the controlled money was received;
the number of the receipt;
the date the money was deposited in the controlled money account;
the name of and other details clearly identifying the controlled money account;
the amount of controlled money deposited;
details of the deposit sufficient to identify the deposit;
interest received;
details of any payments from the controlled money account, including the particulars required to be recorded under section 50.
With the exception of interest and other income received in relation to controlled money, particulars of receipts and payments must be entered in the register after the controlled money is received by the law practice or any payment is made.
Interest and other income received in relation to controlled money must be entered in the register after the law practice is notified of its receipt.
The law practice must keep as part of its trust records all supporting information, including ADI statements and notifications of interest received, relating to controlled money.
Within 15 working days after each named month, the law practice must prepare and keep as a permanent record a statement as at the end of the named month: --
containing a list of the practice’s controlled money accounts showing: --
the name, number and balance of each account in the register; and
the name of the person on whose behalf the controlled money in each account was held; and
a short description of the matter to which each account relates; and
showing the date the statement was prepared.
The statement must be: --
reviewed by a principal of the law practice; and
annotated in a way that evidences the completion of the review.

Trustpak Compliant


Trustpak Compliant



Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

User Responsible


User Responsible

User Responsible


User Responsible

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
User Responsible

These are holding accounts

Each CMA has a seperate ledger







52.


Way in which transit money must be accounted for—Act, s 253


(1)
(2)

This section applies if a law practice receives transit money.
For section 253 (2) of the Act , the law practice must record and keep brief particulars sufficient to identify the relevant transaction and any purpose for which the money was received.

User Resonsible
User Resonsible





53.


Trust account statements



(1)


(2)


(3)


(4)



(5)
- (a)

- (b)
(6)
- (a)
- (b)

- (c)
(7)

- (a)
- (b)

- (c)

(8)

A law practice must give a trust account statement to each person for whom or on whose behalf trust money, other than transit money, is held or controlled by the law practice or an associate.
For trust money in relation to which the law practice is required to keep a trust ledger account, the practice must give a separate statement for each trust ledger account.
For controlled money in relation to which the law practice is required to keep a record of controlled money movements, the practice must give a separate statement for each record.
For trust money subject to a power given to the law practice or an associate in relation to which the practice is required to keep a record of all dealings with the money to which the practice or associate is a party, the practice must give a separate statement for each record.
A trust account statement must contain particulars of: --
all the information required to be kept under this division in relation to the trust money included in the relevant ledger account or record; and
the remaining balance (if any) of the money.
A trust account statement must be given: --
after completion of the matter to which the ledger account or record relates; or
after the person for whom or on whose behalf the money is held or controlled makes a reasonable request for the statement during the course of the matter; or
subject to subsection (7) , after 30 June in each year.
The law practice is not required to give a trust account statement under subsection (6) (c) in relation to a ledger account or record if at 30 June: --
the ledger account or record has been open for less than 6 months; or
the balance of the ledger account or record is zero and no transaction affecting the account has taken place within the previous 12 months; or
a trust account statement has been given within the previous 12 months and there has been no subsequent transaction affecting the ledger account or record.
The law practice must keep a copy of a trust account statement given under this section.

Trustpak Compliant


Trustpak Compliant


Trustpak Compliant


Trustpak Compliant




Trustpak Compliant

Trustpak Compliant

User Responsible
User Responsible

User Responsible




Trustpak maintains a separate ledger for each matter

SOURCE: South Australian Current Regulations - LEGAL PRACTITIONERS REGULATIONS 2014
PART: 6 - Trust money and trust accounts

Date Checked: 25th May 2018

NOTE: This information is NOT to be used as a reference to Government Trust Account Regulations it is meant only as a guide to show you which part of the regulations Trustpak is compliant with, we cannot guarantee the accuracy of this information beyond the "Date Checked" however we will do our best to keep this matrix up to date. Please note it is the responsibility of each user to make sure they are compliant with the regulations. The information provided here is intended to help with that process.
NOTE: Incorrect installations and modifications to installations may effect Trustpak's compliance with these regulations.

DISCLAIMER: This information is provided with the understanding that the laws governing trust accounting, legal ethics and professional responsibility are always changing. This information is not a substitute for legal advice and may not be suitable in a particular situation. You must make your own judgement on the actual compliance of Trustpak. Infobiz Solutions Pty Ltd, their employees and their representatives, and the author shall not be liable for any damages resulting from any error, inaccuracy, or omission.

Reg
Sub Reg
Description
Compliance
Notes




Division 2 -- Computerised accounting systems


14.


Application of Division


This Division applies if a law practice maintains trust records (including records relating to controlled money) by means of a computerised accounting system.


15.


Copies of trust records to be printed


(1)
- (a)


- (b)



- (c)

- (d)

- (e)

- (f)

(2)


(3)


(4)

The law practice must print a paper copy of trust records as follows:
trust account receipts and payments cash books are to be printed monthly as at the end of each named month, unless a copy of the books as at the end of the named month is kept in electronic form that is readable or reportable on demand;
reconciliation statements prepared under regulation 31

are to be printed as at the end of each named month;

lists of trust account ledgers and their balances are to be printed monthly as at the end of each named month;
lists of controlled money accounts and their balances are to be printed monthly as at the end of each named month;
trust ledger accounts, the register of controlled money and the trust account transfer journal are to be printed before they are archived or deleted from the system;
trust ledger account and controlled money account details are to be printed on request by and provided to an investigator (within the meaning of Schedule 2 clause 1 of the Act).
The trust records printed monthly as at the end of a named month under subregulation (1)(a) must be printed within 15 business days after the named month.

The paper copies printed under subregulation (1) must be printed within 15 business days after the named month.

The electronic copy of the trust account cash books under subregulation (1)(a) is to be kept by the law practice.


Trustpak Compliant


Trustpak Compliant

Trustpak Compliant

Trustpak Compliant

Trustpak Compliant

Trustpak Compliant

User Responsible

User Responsible


User Responsible


User Responsible


Copy saved automatically









16.


Chronological record of information to be made


(1)


- (a)
- (b)
- (c)
- (d)
- (e)
(2)

The law practice must maintain a record, compiled in chronological sequence, of the creation, amendment or deletion of information in its computerised accounting system in relation to the following:
client name;
client address;
matter reference;
matter description;
ledger account number or other descriptor.
The record must be kept by the law practice.

Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant












17.


Requirements regarding computer accounting systems


(1)




(2)

- (a)
- (b)
(3)

(4)

(5)


(6)

The law practice must ensure that its computerised accounting system is not capable of accepting, in respect of a trust ledger account, the entry of a transaction resulting in a debit balance to the account, unless a contemporaneous record of the transaction is made in a manner that enables the production in a permanent form, on demand, of a separate chronological report of all occurrences of that kind.
The law practice must ensure that the system is not capable of deleting a trust ledger account unless:
the balance of the account is zero and all outstanding cheques have been presented; and
when the account is deleted, a copy of the account is kept in a permanent form.
The law practice must ensure that any entry in a record produced in a permanent form appears in a chronological sequence.
The law practice must ensure that each page of each printed record is numbered sequentially or is printed in such a way that no page can be extracted.
The law practice must ensure that its computerised accounting system is not capable of amending the particulars of a transaction already recorded otherwise than by a transaction separately recorded that makes the amendment.
The law practice must ensure that its computerised accounting system requires input in every field of a data entry screen intended to receive information required by this Part to be included in trust records.

Trustpak Compliant






Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant

Trustpak Compliant


Trustpak Compliant









Copy in the archive




18.


Back-ups


(1)
- (a)

- (b)
- (c)

The law practice must ensure that.
a back-up copy of all records required by this Part is made not less frequently than once each month; and
each back-up is kept by the law practice; and
a complete set of back‑up copies is kept in a separate location so that any incident that may adversely affect the records would not also affect the backup copy.


User Responsible

User Responsible
User Responsible





Trustpak allows off-site Backup to Google Drive



Reg
Sub Reg
Description
Compliance
Notes




Division 3 -- General trust accounts


19.


Establishment of general trust account

All User Responsible


(1)




(2)
- (a)

- (b)
- (c)
--- (i)

--- (ii)

- (d)
(3)

(4)

A law practice may at any time establish a general trust account that satisfies the requirements of this regulation, but must, as soon as practicable after receiving trust money that is required to be paid into a general trust account, establish a general trust account that satisfies those requirements if the practice does not already have such a general trust account.
A general trust account satisfies the requirements of this regulation if:
the account is established in this jurisdiction, before or after the commencement of this regulation, with an approved ADI (within the meaning of Schedule 2 of the Act); and
the account is and is to be maintained in this jurisdiction; and
the name of the account includes --
the name of the law practice or the business name under which the law practice engages in legal practice; and
the expression "law practice trust account" or "law practice trust a/c";
and
the account is of a kind that is for the time being approved by the Board.
Subregulation (2)(c) does not apply to an account established in this jurisdiction before the commencement of this regulation.
Subregulation (2)(c)(ii) does not require the repetition of the words "law practice" if those words form part of the name or business name of the law practice.

20.


Receipting of trust money


(1)

(2)
(3)
- (a)
- (b)


(4)



(5)
- (a)
- (b)
- (c)
- (d)
- (e)

- (f)
- (g)

- (h)
--- (i)

(6)

(7)
(8)

This regulation applies if a law practice receives trust money that is required to be paid into a general trust account.
After receiving the trust money, the law practice must make out a receipt.
The receipt must be made out as soon as practicable:
after the trust money is received, except as provided by paragraph (b); or
in the case of trust money received by direct deposit - after the law practice receives or accesses notice or confirmation (in written or electronic form) of the deposit from the ADI concerned.
The receipt, containing the required particulars, must be made out in duplicate, whether by way of making a carbon copy or otherwise, unless at the time the receipt is made out those particulars are recorded by computer program in the trust account receipts cash book.
For the purposes of subregulation (4), the required particulars are as follows:
the date the receipt is made out and, if different, the date of receipt of the money
the amount of money received,
the form in which the money was received,
the name of the person from whom the money was received
details clearly identifying the name of the client in respect of whom the money was received and the matter description and matter reference,
particulars sufficient to identify the reason for which the money was received,
the name of the law practice or the business name under which the law practice engages in legal practice and the expression "trust account" or "trust a/c"
the name of the person who made out the receipt.
the number of the receipt,

The original receipt is to be delivered, on request, to the person from whom the trust money was received.
Receipts must be consecutively numbered and issued in consecutive sequence.
If a receipt is cancelled, the original receipt must be kept.



User Responsible
User Responsible









Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
User Responsible

Trustpak Compliant
Trustpak Compliant

























21.


Deposit records for trust money


(1)


(2)

(3)
- (a)
- (b)
- (c)
- (d)
--- (i)
--- (ii)
--- (iii)
(4)

(5)

This regulation applies if a law practice receives trust money that is required to be paid into a general trust account and the money is not paid into a general trust account by direct deposit.
A deposit record must be produced to the approved ADI at the time the deposit is made.
The following particulars must be recorded on the deposit record:
the date of the deposit,
the amount of the deposit,
whether the deposit consists of cheques, notes or coins (and the amount of each);
for each cheque:
the name of the drawer of the cheque, and
the name and branch (or BSB number) of the ADI on which the cheque is drawn, and
the amount of the cheque.
The deposit record must be made out in duplicate, whether by way of making a carbon copy or otherwise.
The duplicate deposit record must be kept for each deposit to the general trust account and must be kept in a deposit book or be otherwise securely filed in the order in which the deposits were made.




Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant




Deposit Slip









Duplicate in database

Duplicate in database

22.


Direction for non-deposit of trust money in general trust account (Schedule 2 clause 12 of Act)


For the purposes of Schedule 2 clause 12(3) of the Act, the prescribed period for which a written direction referred to in Schedule 2 clause 12(1)(a) of the Act is to be kept is 7 years after finalisation of the matter to which the direction relates.

User Responsible

23.


Written record to be kept of verbal direction to disburse trust money


If the person on whose behalf trust money is held gives a verbal direction for the money to be disbursed, a contemporaneous written record of the direction must be made by the law practice setting out the date and time that the direction was given and the purpose of the disbursement.

User Responsible

24.


Payment by cheque


(1)

(2)
- (a)

- (b)
- (c)
--- (i)

--- (ii)
(3)
- (a)
- (b)
--- (i)
--- (ii)

--- (iii)
(4)
- (a)

- (b)



(5)

(6)



(7)



(8)

- (a)
- (b)
- (c)


- (d)

- (e)
- (f)

(9)

(10)

(11)

(12)

This regulation applies to the withdrawal of trust money from a general trust account of a law practice by cheque.
A cheque -
must be made payable to or to the order of a specified person or persons and not to bearer or cash; and
must be crossed "not negotiable" and
must include:
the name of the law practice or the business name under which the law practice engages in legal practice, and
the expression "law practice trust account" or "law practice trust a/c".
A cheque must be signed by:
by an authorised principal of the law practice, or
if a principal referred to in paragraph (a) is not available:
by an authorised legal practitioner associate, or
by an authorised legal practitioner who holds a practising certificate that does not prohibit the receipt of trust money; or
by 2 or more authorised associates jointly.
A person referred to in subregulation (3) must not sign a cheque unless:
he or she has seen a written direction, given by the person on whose behalf the trust money is held, authorising the disbursement; or
if the money is being disbursed in accordance with a verbal direction given by the person on whose behalf the trust money is held—he or she has made a contemporaneous written record of the direction or seen a contemporaneous written record of the direction made by the person to whom the direction was given.
Subregulation (4) does not apply if the trust money is disbursed in accordance with an order of a court or as otherwise authorised by law.
A written record of the required particulars (which may be in the form of a cheque butt) must be kept of each payment made by cheque, whether by way of making a carbon copy or otherwise, unless at the time the cheque is issued those particulars are recorded by computer program in the trust account payments cash book.
If at the time the cheque is issued the required particulars are recorded by computer program in the trust account payments cash book, a written record must be kept that is sufficient to enable the accuracy of the particulars recorded by the computer program to be verified.
For the purposes of subregulations (6) and (7) , the "required particulars" are as follows:
the date and number of the cheque;
the amount ordered to be paid by the cheque;
the name of the person to whom the payment is to be made or, in the case of a cheque made payable to an ADI, the name of the ADI and the name of the person receiving the benefit of the payment;
details clearly identifying the name of the person on whose behalf the payment was made and the matter reference;
details clearly identifying the ledger account to be debited;
particulars sufficient to identify the purpose for which the payment was made.
the name of the person or persons effecting, directing or authorising the payment.
Written records relating to payments by cheque (including cheque requisitions) must be kept in the order in which the cheques were issued.
Subregulation (2)(c) does not apply to an account established in this jurisdiction before the commencement of this regulation.
Subregulation (2)(c)(ii) does not require the repetition of the words "law practice" if those words form part of the name or business name of the law practice.
In this regulation - "associate" means an associate of the law practice; "authorised" means authorised by the law practice to sign cheques drawn on the general trust account.




User Respomsible

User Responsible

User Responsible

Trustpak Compliant

User Responsible
User Responsible




User Responsible






User Responsible

Trustpak Compliant



Trustpak Compliant





Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

User Responsible











25.


Payment by electronic funds transfer


(1)

(2)

- (a)
- (b)
--- (i)
--- (ii)

--- (iii)
(3)

- (a)

- (b)



(4)

(5)


(6)



(7)

- (a)
- (b)
- (c)

- (d)


- (e)

- (f)
- (g)
- (h)
(8)

(9)

(10)

This regulation applies to the withdrawal of trust money from a general trust account of a law practice by electronic funds transfer.
An electronic funds transfer must be effected by, under the direction of or with the authority of -
an authorised principal of the law practice; or
if a principal referred to in paragraph (a) is not available: -
an authorised legal practitioner associate, or
an authorised legal practitioner who holds a practising certificate that does not prohibit the receipt of trust money; or
2 or more authorised associates jointly.
A person referred to in subregulation (3) must not effect, direct or authorise an electronic funds transfer unless
he or she has seen a written direction, given by the person on whose behalf the trust money is held, authorising the disbursement; or
if the money is being disbursed in accordance with a verbal direction given by the person on whose behalf the trust money is held—he or she has made a contemporaneous written record of the direction or seen a contemporaneous written record of the direction made by the person to whom the direction was given.
Subregulation (3) does not apply if the trust money is disbursed in accordance with an order of a court or as otherwise authorised by law.
A written record of the required particulars must be kept of each payment unless at the time the electronic funds transfer is effected those particulars are recorded by computer program in the trust account payments cash book.
If at the time the electronic funds transfer is effected the required particulars are recorded by computer program in the trust account payments cash book, a written record must be kept that is sufficient to enable the accuracy of the particulars recorded by the computer program to be verified.
For the purposes of subregulations (5) and (6), the required particulars are as follows:
the date and number of the transaction;
the amount transferred;
the name and number of the account to which the amount was transferred and relevant BSB number;
the name of the person to whom the payment was made or, for a payment to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;
details clearly identifying the name of the person on whose behalf the payment was made and the matter reference;
details clearly identifying the ledger account to be debited;
particulars sufficient to identify the purpose for which the payment was made.
the name of the person or persons effecting, directing or authorising the payment.
Any written confirmation that an electronic funds transfer has been made must be retained by the law practice.
Written records relating to payments by electronic funds transfer (including transfer requisitions) must be kept in the order in which the transfers were effected.
In this regulation - "associate" means an associate of the law practice; "authorised" means authorised by the law practice to effect, direct or give authority for an electronic funds transfer from the general trust account.





User Respomsible
User Respomsible




User Respomsible







User Respomsible

Trustpak Compliant


Trustpak Compliant





Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant


Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
User Respomsible

User Responsible











26.


Recording transactions in trust account cash books




- (a)
- (b)

A law practice that maintains a general trust account must keep the following trust account cash books:

a trust account receipts cash book in accordance with regulation 27;
a trust account payments cash book in accordance with regulation 28.



Trustpak Compliant
Trustpak Compliant

27.


Trust account receipts cash book


(1)

- (a)

- (b)
- (c)
- (d)
- (e)
- (f)

- (g)
- (h)
(2)

(3)

(4)

The following particulars must be recorded in a law practice’s trust account receipts cash book in respect of each receipt of trust money
the date a receipt was made out for the money and, if different, the date of receipt of the money,
the receipt number,
the amount of money received,
the form in which the money was received,
the name of the person from whom the money was received,
details clearly identifying the name of the client in respect of whom the money was received and the matter description and matter reference,
particulars sufficient to identify the reason for which the money was received,
details clearly identifying the ledger account to be credited.
The date and amount of each deposit in the general trust account must be recorded in the trust account receipts cash book.
The particulars in respect of receipts must be recorded in the order in which the receipts are made out.
The particulars in respect of a receipt must be recorded within 5 business days counting from and including the day the receipt was made out.



Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant

User Responsible

















28.


Trust account payments cash book


(1)

- (a)
- (b)
- (c)


- (d)

- (e)
- (f)
(2)


- (a)
- (b)
- (c)

- (d)


- (e)

- (f)
- (g)
(3)

(4)

The following particulars must be recorded in a law practice’s trust account payments cash book in respect of each payment of trust money by cheque
the date and number of the cheque;
the amount ordered to be paid by the cheque;
the name of the person to whom the payment is to be made or, in the case of a cheque made payable to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;
details clearly identifying the name of the person on whose behalf the payment was made and the matter reference;
details clearly identifying the ledger account to be debited;
particulars sufficient to identify the purpose for which the payment was made.
The following particulars must be recorded in a law practice’s trust accounts payments cash book in respect of each payment of trust money by electronic funds transfer
the date and number of the transaction;
the amount transferred;
the name and number of the account to which the amount was transferred and the relevant BSB number;
the name of the person to whom the payment was made or, in the case of a payment to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;
details clearly identifying the name of the person on whose behalf the payment was made and the matter reference;
details clearly identifying the ledger account to be debited;
particulars sufficient to identify the purpose for which the payment was made.
The particulars in respect of payments must be recorded in the order in which the payments are made.
The particulars in respect of a payment must be recorded within 5 business days counting from and including the day the payment was made.



Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant


Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

User Responsible

















29.


Recording transactions in trust ledger accounts


(1)


(2)
- (a)
- (b)
- (c)

(3)
(4)

- (a)

- (b)
- (c)
- (d)
- (e)
(5)

- (a)
- (b)
- (c)


- (d)
(6)

- (a)
- (b)
- (c)

- (d)


- (e)
(7)

- (a)
- (b)
- (c)
- (d)

- (e)
(8)

(9)


(10)

A law practice that maintains a general trust account must keep a trust account ledger containing separate trust ledger accounts in relation to each client of the practice in each matter for which trust money has been received by the practice.
The following particulars must be recorded in the title of a trust ledger account:
the name of the person for or on behalf of whom the trust money was paid;
the person's address;
particulars sufficient to identify the matter in relation to which the trust money was received.
Details of any changes in the title of a trust ledger account must be recorded.
The following particulars must be recorded in the trust ledger account in respect of each receipt of trust money for the matter
the date a receipt was made out for the money and, if different, the date of receipt of the money;
the receipt number;
the amount of money received;
the name of the person from whom the money was received;
particulars sufficient to identify the purpose for which the money was received.
The following particulars must be recorded in the trust ledger account in respect of each payment of trust money by cheque:
the date and number of the cheque;
the amount ordered to be paid by the cheque;
the name of the person to whom the payment is to be made or, in the case of a cheque made payable to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;
particulars sufficient to identify the purpose for which the payment was made.
The following particulars must be recorded in the trust ledger account in respect of each payment of trust money by electronic funds transfer
the date and number of the transaction;
the amount transferred;
the name and number of the account to which the amount was transferred and the relevant BSB number;
the name of the person to whom the payment was made or, in the case of a payment to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;
particulars sufficient to identify the purpose for which the payment was made.
The following particulars must be recorded in the trust ledger account in respect of each transfer of trust money effected by a journal entry
the date of the transfer;
the amount transferred;
the journal reference number;
the name of the other trust ledger account from which or to which the money was transferred;
particulars sufficient to identify the purpose for which the payment was made.
Transactions relating to trust money must be recorded in the trust ledger account in the order in which the transactions occur.
The particulars in respect of a receipt, payment or transfer of trust money must be recorded within 5 business days counting from and including the day the receipt was made out, the payment was made or the transfer was effected, as the case requires.
The trust ledger account balance is to be recorded in the trust ledger account after each receipt, payment or transfer of trust money.

Trustpak Compliant



Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant


Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant


Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

User Respomsible


Trustpak Compliant


30.


Journal transfers


(1)


- (a)

- (b)
(2)
- (a)
- (b)
--- (i)
--- (ii)

--- (iii)
- (c)
(3)




(4)

(5)

- (a)
- (b)

- (c)

- (d)
- (e)

(6)
(7)

Trust money may be transferred by journal entry from one trust ledger account in a law practice's trust ledger to another trust ledger account in the trust ledger, but only if:
the law practice is entitled to withdraw the money and pay it to the other trust ledger account; and
subregulation (2) is complied with.
The transfer must be authorised in writing
by an authorised principal of the law practice; or
if a principal referred to in paragraph (a) is not available
by an authorised legal practitioner associate; or
by an authorised legal practitioner who holds a practising certificate that does not prohibit the receipt of trust money; or
by 2 or more authorised associates jointly; or
by a supervisor or manager appointed in relation to the practice.
In a paragraph of subregulation (2) associate means an associate of a law practice; authorised means authorised by the law practice or an external intervener for the practice to effect, direct or give authority for the transfer of trust money by journal entry from one trust ledger account in the practice's trust ledger to another trust ledger account in the trust ledger;
A law practice must keep a trust account transfer journal if it transfers trust money by journal entry.
The following particulars must be recorded in the trust account transfer journal in respect of each transfer of trust money by journal entry:
the date of the transfer,
the trust ledger account from which the money is transferred (including its identifying reference);
the trust ledger account to which the money is transferred (including its identifying reference);
the amount transferred,
particulars sufficient to identify the purpose for which the transfer is made, the matter reference and a short description of the matter.
Journal pages or entries must be consecutively numbered.
A law practice must keep particulars of the authorisation for each transfer of trust money by journal entry, whether in the trust account transfer journal or in some other way.







User Respomsible







User Responsible




Trustpak Compliant

Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

































User Name Saved

31.


Reconciliation of trust records



(1)

(2)

- (a)
--- (i)

--- (ii)
- (b)
--- (i)

--- (ii)


--- (iii)
(3)

(4)

A law practice that maintains 1 or more general trust accounts must reconcile the trust records relating to each account.
The trust records relating to a general trust account are to be reconciled as at the end of each named month by preparing:
a statement:
reconciling the general trust account balance as shown in ADI records with the balance of the practice's trust account cash books, and
showing the date the statement was prepared, and
a statement:
reconciling the balance of the trust ledger accounts with the balance of the practice's trust account cash books; and
containing a list of the practice's trust ledger accounts showing the name, identifying reference and balance of each and a short description of the matter to which each relates; and
showing the date the statement was prepared.
The statements must be prepared within 15 business days after the end of the month concerned.
The statements must be kept by the law practice.






Trustpak Compliant

Trustpak Compliant

Trustpak Compliant

Trustpak Compliant


Trustpak Compliant
User Responsible

Trustpak Compliant


















Trustpak saves a copy of the reconciliation

32.


Trust ledger account in name of law practice or legal practitioner associate



(1)


(2)
- (a)


- (b)


(3)



(4)

A law practice must not maintain a trust ledger account in the name of the practice or a legal practitioner associate of the practice except as authorised by this regulation.
A law practice may maintain in its trust ledger:
a trust ledger account in the practice's name, but only for the purpose of aggregating in the account, by transfer from other accounts in the trust ledger, money properly due to the practice for legal costs; and
a trust ledger account in a legal practitioner associate's name, but only in respect of money in which the associate has a personal and beneficial interest as a vendor, purchaser, lessor or lessee or in another similar capacity.
In a case to which subregulation (2)(a) applies, the law practice must ensure that the money in the trust ledger account is withdrawn from the general trust account not later than 1 month after the day on which the money was transferred to the trust ledger account.
In a case to which subregulation (2)(b) applies, the law practice must ensure that the money in the trust ledger account is withdrawn from the general trust account at the conclusion of the matter to which the money relates.





Trustpak Compliant


Trustpak Compliant


User Responsible



Trustpak Compliant












33.


Notification requirements regarding general trust accounts

User Responsible

All sub rules are user responsible


(1)

(2)

(3)
- (a)

--- (i)
--- (ii)


- (b)

--- (i)
--- (ii)


(4)

(5)

(6)

Within 14 days after establishing a general trust account, a law practice must give the Society written notice of that fact.
Subregulation (1) does not apply to a general trust account established before the commencement of this regulation.
A law practice
either before, or within 14 days after, authorising or terminating the authority of an associate of the practice
to sign cheques drawn on a general trust account of the practice; or
otherwise to effect, direct or give authority for the withdrawal of money from a general trust account of the practice, must give the Society written notice of that fact (including the name and address of the associate or practitioner and indicating, in the case of an associate, whether the associate is an employee of the practice); and
during April of each year, must give the Society written notice of the associates (including their names and addresses) who are authorised, as at 31 March of that year
to sign cheques drawn on a general trust account of the practice; or
otherwise to effect, direct or give authority for the withdrawal of money from a general trust account of the practice.
A law practice must, within 14 days after closing a general trust account maintained by the practice, give the Society written notice of the closure.
A notice under this regulation given by a law practice must include particulars sufficient to identify the general trust accounts of the practice.
In this regulation - "law practice" includes a former law practice and the persons who were principals of a law practice immediately before the law practice ceased to exist as a law practice or to engage in legal practice in this jurisdiction.



























Reg
Sub Reg
Description
Compliance
Notes




Division 4 - Controlled money


34.


Maintenance of controlled money accounts (Schedule 2 clause 15 of Act)



(1)

- (a)
- (b)
- (c)

(2)

For the purposes of Schedule 2 clause 15(4) of the Act, a controlled money account must be maintained under an account name that includes the following particulars:
the name of the law practice concerned,
the expression "controlled money account" or the abbreviation "CMA" or "CMA/c",
such particulars as are sufficient to identify the purpose of the account and to distinguish the account from any other account maintained by the law practice.
This regulation does not apply to an account established in this jurisdiction before the commencement of this regulation.



Trustpak Compliant
Trustpak Compliant
Trustpak Compliant





35.


Receipt of controlled money



(1)
(2)

(3)
(4)
- (a)
- (b)


(5)



(6)
- (a)
- (b)
- (c)
- (d)
- (e)

- (f)
- (g)

- (h)

- (i)
- (j)
(7)


(8)

(9)
(10)
(11)

This regulation applies if a law practice receives controlled money.
The law practice must operate a single controlled money receipt system for the receipt of controlled money for all its controlled money accounts.
After receiving controlled money, the law practice must make out a receipt.
The receipt must be made out as soon as practicable:
after the controlled money is received, except as provided by paragraph (b); or
in the case of controlled money received by direct deposit - after the law practice receives or accesses notice or confirmation (in written or electronic form) of the deposit from the ADI concerned.
The receipt, containing the required particulars, must be made out in duplicate, whether by way of making a carbon copy or otherwise, unless at the time the receipt is made out those particulars are recorded by computer program in the register of controlled money.
For the purposes of subregulation (5), the required particulars are as follows
the date the receipt is made out and, if different, the date of receipt of the money
the amount of money received,
the form in which the money was received,
the name of the person from whom the money was received
details clearly identifying the name of the client in respect of whom the money was received and the matter description and matter reference,
particulars sufficient to identify the reason for which the money was received,
the name of and other details clearly identifying the controlled money account to be credited, unless the account has not been established by the time the receipt is made out;
the name of the law practice, or the business name under which the law practice engages in legal practice, and the expression "controlled money receipt";
the name of the person who made out the receipt.
the number of the receipt,
If the controlled money account to be credited has not been established by the time the receipt is made out, the name of and other details clearly identifying the account when established must be included on the duplicate receipt (if any).
The original receipt must be delivered, on request, to the person from whom the controlled money was received.
Receipts must be consecutively numbered and issued in consecutive sequence.
If a receipt is cancelled or not delivered, the original receipt must be kept.
A receipt is not required to be made out for any interest or other income received from the investment of controlled money and credited directly to a controlled money account.

Trustpak Compliant


User Responsible

User Responsible
User Responsible


Trustpak Compliant




Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
User Responsible


User Responsible

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant












36.


Deposit of controlled money (Schedule 2 clause 15 of Act)


For the purposes of Schedule 2 clause 15(5) of the Act, the prescribed period for which a written direction referred to in Schedule 2 clause 15(1) of the Act is to be kept is 7 years after finalisation of the matter to which the direction relates.

User Responsible

37.


Withdrawal of controlled money must be authorised



(1)

- (a)
- (b)
--- (i)
--- (ii)

--- (iii)
(2)


(3)


(4)

- (a)
- (b)
- (c)


- (d)

- (e)
- (f)
- (g)
(5)
(6)

A withdrawal of money from a controlled money account of a law practice must be effected by, under the direction of or with the authority of
an authorised principal of the law practice, or
if a principal referred to in paragraph (a) is not available:
an authorised legal practitioner associate; or
an authorised legal practitioner who holds a practising certificate that does not prohibit the receipt of trust money; or
2 or more authorised associates jointly.
A written record of the required particulars must be kept of each withdrawal unless at the time the withdrawal is made those particulars are recorded by computer program.
If at the time the withdrawal is made the required particulars are recorded by computer program, a written record must be kept that is sufficient to enable the accuracy of the particulars recorded by the computer program to be verified.
For the purposes of subregulations (2) and (3) , the required particulars are as follows:
the date and number of the transaction,
the amount withdrawn,
in the case of a withdrawal by cheque, the name of the person to whom payment is to be made or, if the cheque is made payable to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment,
details clearly identifying the name of the person on whose behalf the payment was made and the matter reference,
particulars sufficient to identify the reason for which the payment was made,
the person or persons effecting, directing or authorising the withdrawal.
The particulars are to be recorded in the order in which the payments are recorded and are to be recorded separately for each controlled money account.
In this regulation - "associate" means an associate of the law practice; "authorised" means authorised by the law practice to effect, direct or give authority for a withdrawal of money from the controlled money account.



User Responsible
User Responsible




User Responsible


Trustpak Compliant




Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant

Trustpak Compliant

Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant












38.


Register of controlled money



(1)


(2)

(3)

- (a)
- (b)
- (c)
- (d)
(4)

- (a)
- (b)
- (c)
- (d)
- (e)
- (f)
- (g)
- (h)

(5)



(6)

(7)


(8)

- (a)
--- (i)
--- (ii)

--- (iii)
- (b)

A law practice that receives controlled money must maintain a register of controlled money consisting of the records of controlled money movements for the controlled money accounts of the practice.
A separate record of controlled money movements must be maintained for each controlled money account.
A record of controlled money movements for a controlled money account must record the following information:
the name of the person on whose behalf the controlled money is held,
the person's address,
particulars sufficient to identify the matter,
any changes to the information referred to in paragraphs (a) to (c).
The following particulars must be recorded in a record of controlled money movements for a controlled money account:
the date the controlled money was received,
the number of the receipt,
the date the money was deposited in the controlled money account,
the name of and other details clearly identifying the controlled money account,
the amount of controlled money deposited,
details of the deposit sufficient to identify the deposit,
interest received,
details of any payments from the controlled money account, including the particulars required to be recorded under regulation 37(4)
With the exception of interest and other income received in respect of controlled money, particulars of receipts and payments must be entered in the register as soon as practicable after the controlled money is received by the law practice or any payment is made.
Interest and other income received in respect of controlled money must be entered in the register as soon as practicable after the law practice is notified of its receipt.
The law practice must keep as part of its trust records all supporting information (including ADI statements and notifications of interest received) relating to controlled money.
Within 15 business days after each named month, the law practice must prepare and keep as a permanent record a statement as at the end of the named month:
containing a list of the practice's controlled money accounts showing:
the name, number and balance of each account in the register, and
the name of the person on whose behalf the controlled money in each account was held, and
a short description of the matter to which each account relates, and
showing the date the statement was prepared.

Trustpak Compliant


Trustpak Compliant



Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

User Responsible



User Responsible

User Responsible


User Responsible


Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

These are holding accounts

Each CMA has a seperate ledger







39.


Information to be recorded about transit money (Schedule 2 clause 17 of Act)


For the purposes of Schedule 2 clause 17(2) of the Act, a law practice must, in respect of transit money received by the practice, record and keep brief particulars sufficient to identify the relevant transaction and any purpose for which the money was received.

User Responsible

40.


Trust account statements



(1)


(2)


(3)


(4)



(5)
- (a)

- (b)
(6)
- (a)

- (b)

- (c)
(7)

- (a)
- (b)

- (c)

(8)

A law practice must furnish a trust account statement to each person for whom or on whose behalf trust money (other than transit money) is held or controlled by the law practice or an associate of the practice.
In the case of trust money in respect of which the law practice is required to maintain a trust ledger account, the practice must furnish a separate statement for each trust ledger account.
In the case of controlled money in respect of which the law practice is required to maintain a record of controlled money movements, the practice must furnish a separate statement for each record.
In the case of trust money subject to a power given to the law practice or an associate of the practice in respect of which the practice is required to keep a record of all dealings with the money to which the practice or associate is a party, the practice must furnish a separate statement for each record.
A trust account statement is to contain particulars of --
all the information required to be kept under this Part in relation to the trust money included in the relevant ledger account or record; and
the remaining balance (if any) of the money.
A trust account statement is to be furnished --
as soon as practicable after completion of the matter to which the ledger account or record relates; or
as soon as practicable after the person for whom or on whose behalf the money is held or controlled makes a reasonable request for the statement during the course of the matter; or
except as provided by subregulation (7), as soon as practicable after 30 June in each year.
The law practice is not required to furnish a trust account statement under subregulation (6)(c) in respect of a ledger account or record if at 30 June --
the ledger account or record has been open for less than 6 months; or
the balance of the ledger account or record is 0 and no transaction affecting the account has taken place within the previous 12 months; or
a trust account statement has been furnished within the previous 12 months and there has been no subsequent transaction affecting the ledger account or record.
The law practice must keep a copy of a trust account statement furnished under this regulation.

Trustpak Compliant


Trustpak Compliant


Trustpak Compliant


Trustpak Compliant




Trustpak Compliant

Trustpak Compliant

User Responsible

User Responsible

User Responsible




Trustpak maintains a separate ledger for each matter

SOURCE: TASMANIA - Tasmanian Consolidated Regulations - LEGAL PROFESSION REGULATIONS 2008
PART 3 - Trust Money and Trust Accounts

Date Checked: 29th May 2018

NOTE: This information is NOT to be used as a reference to Government Trust Account Regulations it is meant only as a guide to show you which part of the regulations Trustpak is compliant with, we cannot guarantee the accuracy of this information beyond the "Date Checked" however we will do our best to keep this matrix up to date. Please note it is the responsibility of each user to make sure they are compliant with the regulations. The information provided here is intended to help with that process.
NOTE: Incorrect installations and modifications to installations may effect Trustpak's compliance with these regulations.

DISCLAIMER: This information is provided with the understanding that the laws governing trust accounting, legal ethics and professional responsibility are always changing. This information is not a substitute for legal advice and may not be suitable in a particular situation. You must make your own judgement on the actual compliance of Trustpak. Infobiz Solutions Pty Ltd, their employees and their representatives, and the author shall not be liable for any damages resulting from any error, inaccuracy, or omission.

Reg
Sub Reg
Description
Compliance
Notes




PART 3 - Trust Money and Trust Accounts


20.


Interpretation


In this Part: --
BSB number (Bank State Branch number) means the number assigned to identify a particular branch of a particular ADI;

matter description means a brief phrase or expression assigned by a law practice to describe a matter;

matter reference means a brief phrase or expression assigned by a law practice to describe a matter;

trust money means trust money in respect of which this Part for the time being applies.

21.


Conditions on approval of ADIs

All User Responsible


(1)




- (a)

- (b)

- (c)
- (d)

- (e)
(2)

For the purposes of section 273(2) of the Act, the kinds of conditions that may be imposed on an approval of an ADI under section 273 of the Act are conditions that provide for, or conditions that require arrangements to be negotiated and entered into between the ADI and the prescribed authority that provide for, any one or more of the following:
the payment of interest to the prescribed authority on the whole or any part of deposits in trust accounts;
the manner in which the prescribed authority is informed of amounts held in trust accounts;
the auditing of balances in trust accounts;
the keeping of any trust accounts or only trust accounts of a particular class (for example, controlled money accounts);
any matters relevant to paragraphs (a) , (b) , (c) and (d).
An ADI approved under the Legal Profession Act 1993 is on the commencement of these regulations taken to have been approved under section 273 of the Act.

22.


Application of regulations 23 , 24 , 25 and 26



Regulations 23, 24, 25 and 26 apply where a law practice maintains trust records (including records relating to controlled money) by means of a computerised accounting system.


23.


Copies of trust records to be printed


(1)
- (a)


- (b)

- (c)

- (d)

- (e)

- (f)

(2)


(3)

(4)

The law practice must print a paper copy of trust records as follows: --
trust account receipts and payments cash books are to be printed monthly as at the end of each named month, unless a copy of the books as at the end of the named month is kept in electronic form that is readable or reportable on demand;
reconciliation statements under regulation 38 (Reconciliation of trust records) are to be printed as at the end of each named month;
lists of trust account ledgers and their balances are to be printed monthly as at the end of each named month;
lists of controlled money accounts and their balances are to be printed monthly as at the end of each named month;
trust ledger accounts, the register of controlled money and the trust account transfer journal are to be printed before they are archived or deleted from the system;
trust ledger account and controlled money account details are to be printed on request by and provided to an investigator as defined in section 569 of the Act.
The trust records printed monthly as at the end of a named month under subregulation (1)(a) , (b) , (c) and (d) must be printed within 15 working days after the named month.
The paper copies printed under subregulation (1) are to be kept by the law practice, except where they are printed on request under that subregulation.
The electronic copy of the trust account cash books under subregulation (1)(a) is to be kept by the law practice.


Trustpak Compliant


Trustpak Compliant

Trustpak Compliant

Trustpak Compliant

User Responsible

User Responsible

User Responsible


User Responsible

User Responsible


Copy saved automatically









24.


Chronological record of information to be made


(1)


- (a)
- (b)
- (c)
- (d)
- (e)
(2)

The law practice must maintain a record, compiled in chronological sequence, of the creation, amendment or deletion of information in its computerised accounting system in relation to the following: --
client name;
client address;
matter reference;
matter description;
ledger account number or other descriptor.
The record is to be kept by the law practice.

Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant












25.


Requirements regarding computer accounting systems


(1)





(2)

- (a)

- (b)
(3)

(4)

(5)


(6)

The law practice must ensure that its computerised accounting system is not capable of accepting, in respect of a trust ledger account, the entry of a transaction resulting in a debit balance to the account, unless a contemporaneous record of the transaction is made in a manner that enables the production in a permanent form, on demand, of a separate chronological report of all occurrences of that kind.
The law practice must ensure that the system is not capable of deleting a trust ledger account unless: --
the balance of the account is zero and all outstanding cheques have been presented; and
when the account is deleted, a copy of the account is kept in a permanent form.
The law practice must ensure that any entry in a record produced in a permanent form appears in chronological sequence.
The law practice must ensure that each page of each printed record is numbered sequentially or is printed in such a way that no page can be extracted.
The law practice must ensure that its computerised accounting system is not capable of amending the particulars of a transaction already recorded otherwise than by a transaction separately recorded that makes the amendment.
The law practice must ensure that its computerised accounting system requires input in every field of a data entry screen intended to receive information required by this Part to be included in trust records.

Trustpak Compliant





Trustpak Compliant

Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

Trustpak Compliant

Trustpak Compliant


Trustpak Compliant








Copy in the archive



Copy in the archive

26.


Back-ups


(1)
- (a)

- (b)
- (c)

The law practice must ensure that: --
a back-up copy of all records required by this Part is made not less frequently than once each month; and
each back-up copy is kept by the law practice; and
a complete set of back-up copies is kept in a separate location so that any incident that may adversely affect the records would not also affect the back-up copy.


User Responsible

User Responsible
User Responsible





Trustpak allows off-site Backup to Google Drive



27.


Establishment of general trust account

All User Responsible


(1)




(2)
- (a)
- (b)
- (c)
--- (i)

--- (ii)
- (d)

(3)

(4)

A law practice may at any time establish a general trust account that satisfies the requirements of this regulation, but must, as soon as practicable after receiving trust money that is required to be paid into a general trust account, establish a general trust account that satisfies those requirements if the practice does not already have such a general trust account.
A general trust account satisfies the requirements of this regulation if: --
the account is established in this jurisdiction, before or after the commencement of this regulation, with an approved ADI; and
the account is and is to be maintained in this jurisdiction; and
the name of the account includes: --
the name of the law practice or the business name under which the law practice engages in legal practice; and
the expression "law practice trust account" or "law practice trust a/c" ; and
the account is of a kind that is for the time being approved by the prescribed authority.
Subregulation (2)(c) does not apply to an account established in this jurisdiction before the commencement of this regulation.
Subregulation (2)(c)(ii) does not require the repetition of the words "law practice" if those words form part of the name or business name of the law practice.

28.


Receipting of trust money


(1)

(2)
(3)
- (a)
- (b)


(4)



(5)
- (a)
- (b)
- (c)
- (d)
- (e)

- (f)
- (g)

- (h)
- (i)

(6)

(7)
(8)

This regulation applies if a law practice receives trust money that is required to be paid into a general trust account.
After receiving the trust money, the law practice must make out a receipt.
The receipt must be made out as soon as practicable: --
after the trust money is received, except as provided by paragraph (b) ; or
in the case of trust money received by direct deposit, after the law practice receives or accesses notice or confirmation (in written or electronic form) of the deposit from the ADI concerned.
The receipt, containing the required particulars, must be made out in duplicate, whether by way of making a carbon copy or otherwise, unless at the time the receipt is made out those particulars are recorded by computer program in the trust account receipts cash book.
For the purposes of subregulation (4) , the "required particulars" are as follows: --
the date the receipt is made out and, if different, the date of receipt of the money;
the amount of money received;
the form in which the money was received;
the name of the person from whom the money was received;
details clearly identifying the name of the client in respect of whom the money was received and the matter description and matter reference;
particulars sufficient to identify the purpose for which the money was received;
the name of the law practice, or the business name under which the law practice engages in legal practice, and the expression "trust account" or "trust a/c" ;
the name of the person who made out the receipt;
the number of the receipt.

The original receipt is to be delivered, on request, to the person from whom the trust money was received.
Receipts must be consecutively numbered and issued in consecutive sequence.
If a receipt is cancelled or not delivered, the original receipt must be kept.



User Responsible
User Responsible




Trustpak Compliant




Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

User Responsible

Trustpak Compliant
Trustpak Compliant

























29.


Deposit records for trust money


(1)


(2)

(3)
- (a)
- (b)
- (c)
- (d)
--- (i)
--- (ii)
--- (iii)
(4)

(5)

This regulation applies if a law practice receives trust money that is required to be paid into a general trust account and the money is not paid into a general trust account by direct deposit.
A deposit record must be produced to the approved ADI at the time the deposit is made.
The following particulars must be recorded on the deposit record: --
the date of the deposit;
the amount of the deposit;
whether the deposit consists of cheques, notes or coins (and the amount of each);
for each cheque: --
the name of the drawer of the cheque; and
the name and branch (or BSB number) of the ADI on which the cheque is drawn; and
the amount of the cheque.
The deposit record must be made out in duplicate, whether by way of making a carbon copy or otherwise.
The duplicate deposit record must be kept for each deposit to the general trust account and must be kept in a deposit book or be otherwise securely filed in the order in which the deposits were made.




Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant




Deposit Slip









Duplicate in database

Duplicate in database

30.


Direction for non-deposit of trust money in general trust account

(1)

For the purposes of section 242(3) of the Act, the prescribed period for which a written direction referred to in section 242(1)(a) of the Act is to be kept is 7 years after finalisation of the matter to which the direction relates.

User Responsible

31.


Payment by cheque


(1)

(2)
- (a)

- (b)
- (c)
--- (i)

--- (ii)
(3)
- (a)
- (b)
--- (i)
--- (ii)

--- (iii)
(4)




(5)



(6)

- (a)
- (b)
- (c)


- (d)

- (e)
- (f)
(7)

(8)

(9)

(10)

This regulation applies to the withdrawal of trust money from a general trust account of a law practice by cheque.
A cheque : --
must be made payable to or to the order of a specified person or persons and not to bearer or cash; and
must be crossed ‘not negotiable’; and
must include: --
the name of the law practice or the business name under which the law practice engages in legal practice; and
the expression ‘law practice trust account’ or ‘law practice trust a/c’.
A cheque must be signed: --
by an authorised principal of the law practice; or
if a principal mentioned in paragraph (a) is not available: --
by an authorised legal practitioner associate; or
by an authorised Australian legal practitioner who holds an unrestricted practising certificate authorising the receipt of trust money; or
by two or more authorised associates jointly.
A written record of the required particulars (which may be in the form of a cheque butt) must be kept of each payment made by cheque, whether by way of making a carbon copy or otherwise, unless at the time the cheque is issued those particulars are recorded by computer program in the trust account payments cash book.
If at the time the cheque is issued the required particulars are recorded by computer program in the trust account payments cash book, a written record must be kept that is sufficient to enable the accuracy of the particulars recorded by the computer program to be verified.
For the purposes of subregulations (4) and (5) , the "required particulars" are as follows: --
the date and number of the cheque;
the amount ordered to be paid by the cheque;
the name of the person to whom the payment is to be made or, in the case of a cheque made payable to an ADI, the name of the ADI and the name of the person receiving the benefit of the payment;
details clearly identifying the name of the person on whose behalf the payment was made and the matter reference;
details clearly identifying the ledger account to be debited;
particulars sufficient to identify the purpose for which the payment was made.
Written records relating to payments by cheque (including cheque requisitions) must be kept in the order in which the cheques were issued.
Subregulation (2)(c) does not apply to an account established in this jurisdiction before the commencement of this regulation.
Subregulation (2)(c)(ii) does not require the repetition of the words "law practice" if those words form part of the name or business name of the law practice.
In this regulation: --
associate means an associate of the law practice;
authorised means authorised by the law practice to sign cheques drawn on the general trust account.




User Respomsible

User Responsible

User Responsible

User Responsible

User Responsible
User Responsible




User Responsible




User Responsible





Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
User Responsible

User Responsible

User Responsible











32.


Payment by electronic funds transfer


(1)

(2)

- (a)
- (b)
--- (i)
--- (ii)

--- (iii)
(3)


(4)



(5)

- (a)
- (b)
- (c)

- (d)


- (e)

- (f)
- (g)
(6)


(7)

This regulation applies to the withdrawal of trust money from a general trust account of a law practice by electronic funds transfer.
An electronic funds transfer must be effected by, under the direction of or with the authority of: --
an authorised principal of the law practice; or
if a principal referred to in paragraph (a) is not available: --
an authorised legal practitioner associate; or
an authorised Australian legal practitioner who holds an unrestricted practising certificate authorising the receipt of trust money; or
two or more authorised associates jointly.
A written record of the required particulars must be kept of each payment unless at the time the electronic funds transfer is effected those particulars are recorded by computer program in the trust account payments cash book.
If at the time the electronic funds transfer is effected the required particulars are recorded by computer program in the trust account payments cash book, a written record must be kept that is sufficient to enable the accuracy of the particulars recorded by the computer program to be verified.
For the purposes of subregulations (3) and (4) , the "required particulars" are as follows: --
the date and number of the transaction;
the amount transferred;
the name and number of the account to which the amount is transferred and relevant BSB number;
the name of the person to whom the payment was made or, in the case of a payment to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;
details clearly identifying the name of the person on whose behalf the payment was made and the matter reference;
details clearly identifying the ledger account to be debited;
particulars sufficient to identify the purpose for which the payment was made.
Written records relating to payments by electronic funds transfer (including transfer requisitions) must be kept in the order in which the transfers were effected.
In this regulation: --
associate means an associate of the law practice;
authorised means authorised by the law practice to effect, direct or give authority for an electronic funds transfer from the general trust account.





User Respomsible
User Respomsible




User Respomsible


User Respomsible





Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant


Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
User Respomsible














33.


Recording transactions in trust account cash books




- (a)
- (b)

A law practice that maintains a general trust account must keep the following trust account cash books: --

a trust account receipts cash book in accordance with regulation 34;
a trust account payments cash book in accordance with regulation 35.



Trustpak Compliant
Trustpak Compliant

34.


Trust account receipts cash book


(1)

- (a)

- (b)
- (c)
- (d)
- (e)
- (f)

- (g)
- (h)
(2)

(3)

(4)

The following particulars must be recorded in a law practice's trust account receipts cash book in respect of each receipt of trust money:
the date a receipt was made out for the money and, if different, the date of receipt of the money;
the receipt number;
the amount of money received;
the form in which the money was received;
the name of the person from whom the money was received;
details clearly identifying the name of the client in relation to whom the money was received and the matter description and matter reference;
particulars sufficient to identify the purpose for which the money was received;
details clearly identifying the ledger account to be credited.
The date and amount of each deposit in the general trust account must be recorded in the trust account receipts cash book.
The particulars in respect of receipts must be recorded in the order in which the receipts are made out.
The particulars in respect of a receipt must be recorded within 5 working days counting from and including the day the receipt was made out.



Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant

User Responsible

















35.


Trust account payments cash book


(1)

- (a)
- (b)
- (c)


- (d)

- (e)
- (f)
(2)


- (a)
- (b)
- (c)

- (d)


- (e)

- (f)
- (g)
(3)

(4)

The following particulars must be recorded in a law practice's trust account payments cash book in respect of each payment of trust money by cheque: --
the date and number of the cheque;
the amount ordered to be paid by the cheque;
the name of the person to whom the payment is to be made or, in the case of a cheque made payable to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;
details clearly identifying the name of the person on whose behalf the payment was made and the matter reference;
details clearly identifying the ledger account to be debited;
particulars sufficient to identify the purpose for which the payment was made.
The following particulars must be recorded in a law practice's trust accounts payment cash book in respect of each payment of trust money by electronic funds transfer: --
the date and number of the transaction;
the amount transferred;
the name and number of the account to which the amount was transferred and the relevant BSB number;
the name of the person to whom the payment was made or, in the case of a payment to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;
details clearly identifying the name of the person on whose behalf the payment was made and the matter reference;
details clearly identifying the ledger account to be debited;
particulars sufficient to identify the purpose for which the payment was made.
The particulars in respect of payments must be recorded in the order in which the payments are made.
The particulars in respect of a payment must be recorded within 5 working days counting from and including the day the payment was made.



Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant


Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

User Responsible

















36.


Recording transactions in trust ledger accounts


(1)


(2)
- (a)
- (b)
- (c)

(3)
(4)

- (a)

- (b)
- (c)
- (d)
- (e)
(5)

- (a)
- (b)
- (c)


- (d)
(6)

- (a)
- (b)
- (c)

- (d)


- (e)
(7)

- (a)
- (b)
- (c)
- (d)

- (e)
(8)

(9)


(10)

A law practice that maintains a general trust account must keep a trust account ledger containing separate trust ledger accounts in relation to each client of the practice in each matter for which trust money has been received by the practice.
The following particulars must be recorded in the title of a trust ledger account: --
the name of the person for or on behalf of whom the trust money was paid;
the person’s address;
particulars sufficient to identify the matter in relation to which the trust money was received.
Details of any changes in the title of a trust ledger account must be recorded.
The following particulars must be recorded in the trust ledger account in respect of each receipt of trust money for the matter: --
the date a receipt was made out for the money and, if different, the date of receipt of the money;
the receipt number;
the amount of money received;
the name of the person from whom the money was received;
particulars sufficient to identify the purpose for which the money was received.
The following particulars must be recorded in the trust ledger account in respect of each payment of trust money by cheque: --
the date and number of the cheque;
the amount ordered to be paid by the cheque;
the name of the person to whom the payment is to be made or, in the case of a cheque made payable to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;
particulars sufficient to identify the purpose for which the payment was made.
The following particulars must be recorded in the trust ledger account in respect of each payment of trust money by electronic funds transfer: --
the date and number of the transaction;
the amount transferred;
the name and number of the account to which the amount was transferred and the relevant BSB number;
the name of the person to whom the payment was made or, in the case of a payment to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;
particulars sufficient to identify the purpose for which the payment was made.
The following particulars must be recorded in the trust ledger account in respect of each transfer of trust money effected by a journal entry: --
the date of the transfer;
the amount transferred;
the journal reference number;
the name of the other trust ledger account from which or to which the money was transferred;
particulars sufficient to identify the purpose for which the payment was made.
Transactions relating to trust money must be recorded in the trust ledger account in the order in which the transactions occur.
The particulars in respect of a receipt, payment or transfer of trust money must be recorded within 5 working days counting from and including the day the receipt was made out, the payment was made or the transfer was effected, as the case requires.
The trust ledger account balance is to be recorded in the trust ledger account after each receipt, payment or transfer of trust money.

Trustpak Compliant



Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant


Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant


Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

User Respomsible


Trustpak Compliant


37.


Journal transfers


(1)


- (a)

- (b)
(2)
- (a)
- (b)
--- (i)
--- (ii)
--- (iii)
- (c)

(3)






(4)

(5)

- (a)
- (b)

- (c)

- (d)
- (e)

(6)
(7)

Trust money may be transferred by journal entry from one trust ledger account in a law practice's trust ledger to another trust ledger account in the trust ledger, but only if: --
the law practice is entitled to withdraw the money and pay it to the other trust ledger account; and
subregulation (2) is complied with.
The transfer must be authorised in writing: --
by an authorised principal of the law practice; or
if a principal referred to in paragraph (a) is not available: --
by an authorised legal practitioner associate; or
by an authorised Australian legal practitioner who holds an unrestricted practising certificate authorising the receipt of trust money; or
by two or more authorised associates jointly; or
by an external intervener for the practice.
In a paragraph of subregulation (2)
associate means an associate of the law practice;
authorised means authorised by the law practice or an external intervener for the practice to effect, direct or give authority for the transfer of trust money by journal entry from one trust ledger account in the practice's trust ledger to another trust ledger account in the trust ledger;
external intervener has the same meaning as in section 520 of the Act.
A law practice must keep a trust account transfer journal if it transfers trust money by journal entry.
The following particulars must be recorded in the trust account transfer journal in respect of each transfer of trust money by journal entry: --
the date of the transfer;
the trust ledger account from which the money is transferred (including its identifying reference);
the trust ledger account to which the money is transferred (including its identifying reference);
the amount transferred;
particulars sufficient to identify the purpose for which the transfer is made, the matter reference and a short description of the matter.
Journal pages or entries must be consecutively numbered.
A law practice must keep particulars of the authorisation for each transfer of trust money by journal entry, whether in the trust account transfer journal or in some other way.




User Responsible

User Responsible















Trustpak Compliant

Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant



































User Name Saved

38.


Reconciliation of trust records



(1)

(2)

- (a)
--- (i)

--- (ii)
- (b)
--- (i)

--- (ii)


--- (iii)
(3)

(4)

A law practice that maintains one or more general trust accounts must reconcile the trust records relating to each account.
The trust records relating to a general trust account are to be reconciled as at the end of each named month by preparing: --:
a statement
reconciling the general trust account balance as shown in ADI records with the balance of the practice's trust account cash books; and
showing the date the statement was prepared; and
a statement:
reconciling the balance of the trust ledger accounts with the balance of the practice's trust account cash books; and
containing a list of the practice's trust ledger accounts showing the name, identifying reference and balance of each and a short description of the matter to which each relates; and
showing the date the statement was prepared.
The statements must be prepared within 15 working days after the end of the month concerned.
The statements must be kept by the law practice.

Trustpak Compliant

Trustpak Compliant


Trustpak Compliant

Trustpak Compliant

Trustpak Compliant

Trustpak Compliant


Trustpak Compliant
User Responsible

User Responsible


















Trustpak saves a copy of the reconciliation

39.


Trust ledger account in name of law practice or legal practitioner associate



(1)


(2)
- (a)


- (b)


(3)



(4)

A law practice must not maintain a trust ledger account in the name of the practice or a legal practitioner associate of the practice except as authorised by this regulation.
A law practice may maintain in its trust ledger: --
a trust ledger account in the practice's name, but only for the purpose of aggregating in the account, by transfer from other accounts in the trust ledger, money properly due to the practice for legal costs; and
a trust ledger account in a legal practitioner associate's name, but only in respect of money in which the associate has a personal and beneficial interest as a vendor, purchaser, lessor or lessee or in another similar capacity.
In a case to which subregulation (2)(a) applies, the law practice must ensure that the money in the trust ledger account is withdrawn from the general trust account not later than one month after the day on which the money was transferred to the trust ledger account.
In a case to which subregulation (2)(b) applies, the law practice must ensure that the money in the trust ledger account is withdrawn from the general trust account at the conclusion of the matter to which the money relates.





User Responsible


User Responsible


User Responsible



User Responsible












40.


Notification requirements regarding general trust accounts

User Responsible

All sub rules are user responsible


(1)

(2)
- (a)


--- (i)
--- (ii)

- (b)

--- (i)
--- (ii)

(3)


(4)
- (a)
- (b)
--- (i)

--- (ii)

- (c)

(5)

(6)

Within 14 days after establishing a general trust account, a law practice must give the prescribed authority written notice of that fact.
A law practice: --
either before, or within 14 days after, authorising or terminating the authority of an associate of the practice or an Australian legal practitioner: --
to sign cheques drawn on a general trust account of the practice; or
otherwise to effect, direct or give authority for the withdrawal of money from a general trust account of the practice:-
must give the prescribed authority written notice of that fact (including the name and address of the associate or practitioner and indicating, in the case of an associate, whether the associate is an employee of the practice); and
before 31 July in each year, must give the prescribed authority written notice of the associates and Australian legal practitioners (including their names and addresses) who are authorised, as at 1 July of that year –
to sign cheques drawn on a general trust account of the practice; or
otherwise to effect, direct or give authority for the withdrawal of money from a general trust account of the practice.
Within 14 days after the closure of a general trust account maintained by it, a law practice must give the prescribed authority written notice of that fact.
A notice under this regulation given by a law practice must include particulars sufficient to identify the general trust accounts of the practice.
A law practice that, immediately before the commencement of this regulation, has given written notice to the prescribed authority establishing a general trust account is, on that commencement, taken to have given notice under this regulation.
In this regulation –
"law practice" includes a former law practice and the persons who were principals of a law practice immediately before the law practice ceased to exist as a law practice or to engage in legal practice in this jurisdiction.



























41.


Interstate legal practitioner becoming authorised to withdraw from local trust account: notification

All User Responsible


(1)



(2)
(3)
- (a)
- (b)

- (c)
- (d)
--- (i)
--- (ii)
--- (iii)
--- (iv)
- (e)

(4)

(5)

This regulation has effect for the purposes of section 409 of the Act and applies to an interstate legal practitioner who (whether alone or with a co-signatory) becomes authorised to withdraw money from a local trust account of a law practice.
The practitioner must notify the prescribed authority of the authorisation.
The notification must include the following particulars:
the practitioner's name;
the jurisdiction in which the practitioner's only or most recent current Australian practising certificate was granted;
the practitioner's principal business address;
details of the local trust account, including the following:
the name of the law practice operating the account;
the practice's principal business address;
the name of the ADI with which the account is held;
the names of any other signatories to the account;
the date on which the practitioner became authorised to withdraw money from the trust account.
The practitioner must notify the prescribed authority of any change to the particulars referred to in subregulation (3).
A notification under this regulation must be in writing and must be sent or delivered to the business address of the prescribed authority before the end of the period of 7 days starting on the day the practitioner becomes authorised to withdraw money from the local trust account or the change occurs, as the case requires.

42.


Maintenance of controlled money accounts



(1)

- (a)
- (b)
- (c)

(2)

For the purposes of section 245(4) of the Act, a controlled money account must be maintained under an account name that includes the following particulars: --
the name of the law practice concerned;
the expression "controlled money account" or the abbreviation "CMA" or "CMA/c" ;
such particulars as are sufficient to identify the purpose of the account and to distinguish the account from any other account maintained by the law practice.
This regulation does not apply to an account established in this jurisdiction before the commencement of this regulation.



Trustpak Compliant
Trustpak Compliant
Trustpak Compliant




Edit the 'CMA' or 'CMA/c' into the name

43.


Receipt of controlled money



(1)
(2)

(3)
(4)
- (a)
- (b)


(5)



(6)
- (a)
- (b)
- (c)
- (d)
- (e)

- (f)
- (g)


- (h)

- (i)
- (j)
(7)


(8)

(9)
(10)
(11)

This regulation applies if a law practice receives controlled money.
The law practice must operate a single controlled money receipt system for the receipt of controlled money for all its controlled money accounts.
After receiving controlled money, the law practice must make out a receipt.
The receipt must be made out as soon as practicable: --
after the controlled money is received, except as provided by paragraph (b) ; or
in the case of controlled money received by direct deposit, after the law practice receives or accesses notice or confirmation (in written or electronic form) of the deposit from the ADI concerned.
The receipt, containing the required particulars, must be made out in duplicate, whether by way of making a carbon copy or otherwise, unless at the time the receipt is made out those particulars are recorded by computer program in the register of controlled money.
For the purposes of subregulation (5) , the "required particulars" are as follows: --
the date the receipt is made out and, if different, the date of receipt of the money;
the amount of money received;
the form in which the money was received;
the name of the person from whom the money was received;
details clearly identifying the name of the person on whose behalf the money was received and the matter description and matter reference;
particulars sufficient to identify the purpose for which the money was received;
the name of and other details clearly identifying the controlled money account to be credited, unless the account has not been established by the time the receipt is made out;
the name of the law practice, or the business name under which the law practice engages in legal practice, and the expression "controlled money receipt" ;
the name of the person who made out the receipt;
the number of the receipt.
If the controlled money account to be credited has not been established by the time the receipt is made out, the name of and other details clearly identifying the account when established must be included on the duplicate receipt (if any).
The original receipt is to be delivered, on request, to the person from whom the controlled money was received.
Receipts must be consecutively numbered and issued in consecutive sequence.
If a receipt is cancelled or not delivered, the original receipt must be kept.
A receipt is not required to be made out for any interest or other income received from the investment of controlled money and credited directly to a controlled money account.


Trustpak Compliant

User Responsible

User Responsible
User Responsible


Trustpak Compliant




Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant


Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
User Responsible


User Responsible

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant












44.


Deposit of controlled money


(1)

For the purposes of section 245(5) of the Act, the prescribed period for which a written direction referred to in section 245(1) of the Act is to be kept is 7 years after finalisation of the matter to which the direction relates.

User Responsible

45.


Withdrawal of controlled money must be authorised



(1)

- (a)
- (b)
--- (i)
--- (ii)

--- (iii)
(2)


(3)


(4)

- (a)
- (b)
- (c)


- (d)

- (e)

- (f)
- (g)
(5)

(6)

A withdrawal of money from a controlled money account of a law practice must be effected by, under the direction of or with the authority of –
an authorised principal of the law practice; or
if a principal referred to in paragraph (a) is not available: --
an authorised legal practitioner associate; or
an authorised Australian legal practitioner who holds an unrestricted practising certificate authorising the receipt of trust money; or
two or more authorised associates jointly.
A written record of the required particulars must be kept of each withdrawal unless at the time the withdrawal is made those particulars are recorded by computer program.
If at the time the withdrawal is made the required particulars are recorded by computer program, a written record must be kept that is sufficient to enable the accuracy of the particulars recorded by the computer program to be verified.
For the purposes of subregulations (2) and (3) , the "required particulars" are as follows: --
the date and number of the transaction;
the amount withdrawn;
in the case of a transfer made by electronic funds transfer, the name and number of the account to which the amount was transferred and the relevant BSB number;
the name of the person to whom payment is to be made or, in the case of a payment to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;
details clearly identifying the name of the person on whose behalf the payment was made and the matter reference;
particulars sufficient to identify the purpose for which the payment was made;
the person or persons effecting, directing or authorising the withdrawal.
The particulars are to be recorded in the order in which the payments are recorded and are to be recorded separately for each controlled money account.
In this regulation: --
associate means an associate of the law practice;
authorised means authorised by the law practice to effect, direct or give authority for a withdrawal of money from the controlled money account.

User Responsible










User Responsible


Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant

Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant












46.


Register of controlled money



(1)


(2)

(3)

- (a)
- (b)
- (c)
- (d)
(4)

- (a)
- (b)
- (c)
- (d)
- (e)
- (f)
- (g)
- (h)

(5)



(6)


(7)


(8)

- (a)
--- (i)
--- (ii)

--- (iii)
- (b)

A law practice that receives controlled money must maintain a register of controlled money consisting of the records of controlled money movements for the controlled money accounts of the practice.
A separate record of controlled money movements must be maintained for each controlled money account.
A record of controlled money movements for a controlled money account must record the following information: --
the name of the person on whose behalf the controlled money is held;
the person’s address;
particulars sufficient to identify the matter;
any changes to the information referred to in paragraphs (a) , (b) and (c).
The following particulars must be recorded in a record of controlled money movements for a controlled money account: --
the date the controlled money was received;
the number of the receipt;
the date the money was deposited in the controlled money account;
the name of and other details clearly identifying the controlled money account;
the amount of controlled money deposited;
details of the deposit sufficient to identify the deposit;
interest received;
details of any payments from the controlled money account, including the particulars required to be recorded under regulation 45(4).
With the exception of interest and other income received in respect of controlled money, particulars of receipts and payments must be entered in the register as soon as practicable after the controlled money is received by the law practice or any payment is made.
Interest and other income received in respect of controlled money must be entered in the register as soon as practicable after the law practice is notified of its receipt.
The law practice must keep as part of its trust records all supporting information (including ADI statements and notifications of interest or other income received) relating to controlled money.
Within 15 working days after each named month, the law practice must prepare and keep as a permanent record a statement as at the end of the named month: --
containing a list of the practice's controlled money accounts showing: --
the name, number and balance of each account in the register; and
the name of the person on whose behalf the controlled money in each account was held; and
a short description of the matter to which each account relates; and
showing the date the statement was prepared.

Trustpak Compliant


Trustpak Compliant



Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

User Responsible



User Responsible


User Responsible


User Responsible

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

These are holding accounts

Each CMA has a seperate ledger







47.


Information to be recorded about transit money


(1)
(2)

This regulation has effect for the purposes of section 247 of the Act.
A law practice must, in respect of transit money received by the practice, record and keep brief particulars sufficient to identify the relevant transaction and any purpose for which the money was received.

User Resonsible
User Resonsible





48.


Trust account statements



(1)


(2)


(3)


(4)



(5)
- (a)

- (b)
(6)
- (a)

- (b)


(7)

- (a)
- (b)

- (c)

(8)

A law practice must furnish a trust account statement to each person for whom or on whose behalf trust money (other than transit money) is held or controlled by the law practice or an associate of the practice.
In the case of trust money in respect of which the law practice is required to maintain a trust ledger account, the practice must furnish a separate statement for each trust ledger account.
In the case of controlled money in respect of which the law practice is required to maintain a record of controlled money movements, the practice must furnish a separate statement for each record.
In the case of trust money subject to a power given to the law practice or an associate of the practice in respect of which the practice is required to keep a record of all dealings with the money to which the practice or associate is a party, the practice must furnish a separate statement for each record.
A trust account statement is to contain particulars of: --
all the information required to be kept under this Part in relation to the trust money included in the relevant ledger account or record; and
the remaining balance (if any) of the money.
A trust account statement is to be furnished: --
as soon as practicable after completion of the matter to which the ledger account or record relates; or
as soon as practicable after the person for whom or on whose behalf the money is held or controlled makes a reasonable request for the statement during the course of the matter.
A law practice is to furnish a trust account statement under subregulation (1) as soon as practicable after 30 June in each year unless at that date: --
the ledger account or record has been open for less than 6 months; or
the balance of the ledger account or record is zero and no transaction affecting the account has taken place within the previous 12 months; or
a trust account statement has been furnished within the previous 12 months and there has been no subsequent transaction affecting the ledger account or record.
The law practice must keep a copy of a trust account statement furnished under this regulation.

Trustpak Compliant


Trustpak Compliant


Trustpak Compliant


Trustpak Compliant




Trustpak Compliant

Trustpak Compliant

User Responsible

User Responsible


User Responsible




Trustpak maintains a separate ledger for each matter

SOURCE: New South Wales Consolidated Regulations - LEGAL PROFESSION UNIFORM GENERAL RULES 2015
CHAPTER: 4 - BUSINESS PRACTICE AND PROFESSIONAL CONDUCT

Date Checked: 1st Oct 2016

NOTE: This information is NOT to be used as a reference to Government Trust Account Regulations it is meant only as a guide to show you which part of the regulations Trustpak is compliant with, we cannot guarantee the accuracy of this information beyond the "Date Checked" however we will do our best to keep this matrix up to date. Please note it is the responsibility of each user to make sure they are compliant with the regulations. The information provided here is intended to help with that process.
NOTE: Incorrect installations and modifications to installations may effect Trustpak's compliance with these regulations.

Note: In New South Wales and Victoria, lawyers and law practices are subject to the same framework of Legal Profession Uniform Rules made by the Legal Services Council.

DISCLAIMER: This information is provided with the understanding that the laws governing trust accounting, legal ethics and professional responsibility are always changing. This information is not a substitute for legal advice and may not be suitable in a particular situation. You must make your own judgement on the actual compliance of Trustpak. Infobiz Solutions Pty Ltd, their employees and their representatives, and the author shall not be liable for any damages resulting from any error, inaccuracy, or omission.

Rule
Sub Rule
Description
Compliance
Notes




Division 2 - Trust money and trust accounts


35.


Maintenance of general trust account


(1)
- (a)
- (b)

A general trust account established in a jurisdiction
must be established with an authorised ADI, and
must include in its name the name of the law practice or the business name under which the law practice engages in legal practice, and the expression "law practice trust account" or "law practice trust a/c".


User Responsible
User Responsible

36.


Receipting of trust money


(1)
- (a)
- (b)

(2)
- (a)
- (b)
- (c)
- (d)
- (e)
- (f)

- (g)
- (h)

- (i)
(3)


(4)

(5)
(6)
(7)

A law practice must make out a receipt as soon as practicable:
after trust money is received, or
in the case of trust money received by direct deposit, after the law practice receives or accesses notice or confirmation of the deposit from the ADI concerned.
The receipt must contain the following particulars:
the date the receipt is made out and, if different, the date of receipt of the money
the number of the receipt,
the amount of money received,
the form in which the money was received,
the name of the person from whom the money was received
details clearly identifying the name of the client in respect of whom the money was received and the matter description and matter reference,
particulars sufficient to identify the reason for which the money was received,
the name of the law practice or the business name under which the law practice engages in legal practice and the expression "trust account" or "trust a/c"
the name of the person who made out the receipt.
The receipt must be made out in duplicate unless, when the receipt is made out the particulars referred to in subrule (2) are recorded by a computerised accounting system in the trust account receipts cash book.
The receipt must be given, on request, to the person from whom the trust money was received.
Receipts must be consecutively numbered and issued in consecutive sequence.
If a receipt is cancelled, the original receipt must be kept.
This rule does not apply to controlled money.


User Responsible
User Responsible


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant


Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
























Trustpak uses holding accounts to deal with controlled money

37.


Deposit records for trust money


(1)


(2)
- (a)
- (b)
- (c)
- (d)
--- (i)
--- (ii)
--- (iii)
(3)
(4)

If a law practice receives trust money that is required to be paid into a general trust account and the money is not paid into a general trust account by direct deposit, a deposit record must be produced to the ADI at the time the deposit is made.
The following particulars must be recorded on the deposit record:
the date of the deposit,
the amount of the deposit,
whether the deposit consists of cheques or cash (and the amount of each),
for each cheque:
the name of the drawer of the cheque, and
the name and branch (or BSB number) of the ADI on which the cheque is drawn, and
the amount of the cheque.
The deposit record must be made out in duplicate.
The duplicate deposit record must be kept for each deposit to the general trust account and must be kept in a deposit book or be otherwise securely filed in the order in which the deposits were made.

Trustpak Compliant



Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Deposit Slip











Duplicate in database

38.


Computerised accounting systems-copies of trust records


(1)

(2)

- (a)

- (b)
- (c)

- (d)

(3)
- (a)

- (b)

(4)

This rule applies if a law practice maintains trust records by means of a computerised accounting system.
A law practice must maintain and keep, in printed form or in readable and printable form, the following copies of trust records:
a copy of trust account receipts and payments cash books as at the end of each named month,
a copy of reconciliation statements as at the end of each named month,
a copy of lists of trust account ledgers and their balances as at the end of each named month,
a copy of lists of controlled money accounts and their balances as at the end of each named month.
A law practice must:
print a paper copy of trust ledger accounts, the register of controlled money and the trust account transfer journal before they are deleted from the system, and
on request by an investigator appointed under Chapter 7 of the Uniform Law, provide to the investigator a printed copy of trust ledger account and controlled money account details.
The copies of trust records as at the end of a named month under subrule (2) must be prepared within 15 working days after the named month.

-

Trustpak Compliant

Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

Trustpak Compliant


Trustpak Compliant

User Responsible

User Responsible











39.


Computerised accounting systems-chronological record of information to be made


(1)

(2)


- (a)
- (b)
- (c)
- (d)
- (e)

This rule applies if a law practice maintains trust records by means of a computerised accounting system.
A law practice must maintain and keep a record, compiled in chronological sequence, of the creation, amendment or deletion of information in its computerised accounting system in relation to each of the following:
client name,
client address,
matter reference,
matter description,
ledger account number or other descriptor.

-

Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant











40.


Computerised accounting systems-requirements regarding systems


(1)

(2)
- (a)




- (b)
--- (i)
--- (ii)
- (c)

- (d)

- (e)


- (f)

This rule applies if a law practice maintains trust records by means of a computerised accounting system.
A law practice must ensure that:
its computerised accounting system is not capable of accepting, in respect of a trust ledger account, the entry of a transaction resulting in a debit balance to the account, unless a contemporaneous record of the transaction is made in a manner that enables the production in a permanent form, on demand, of a separate chronological report of all occurrences of that kind, and
the system is not capable of deleting a trust ledger unless:
the balance of the account is zero and all outstanding cheques have been presented, and
when the account is deleted, a copy of the account is kept in a permanent form, and
any entry in a record produced in a permanent form appears in chronological sequence, and
each page of each printed or printable record is numbered sequentially or is printed or printable in such a way that no page can be extracted, and
its computerised accounting system is not capable of amending the particulars of a transaction already recorded otherwise than by a transaction separately recorded that makes the amendment, and
its computerised accounting system requires input in every field of a data entry screen intended to receive information required by these Rules to be included in trust records.

-


Trustpak Compliant




Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant

Trustpak Compliant


Trustpak Compliant














41.


Computerised accounting systems-back-ups


(1)

(2)
- (a)

- (b)
- (c)

This rule applies if a law practice maintains trust records by means of a computerised accounting system.
For the purposes of section 147 of the Uniform Law, a law practice must ensure that:
a back-up copy of all records required under the Uniform Law and these Rules is made at least once each month, and
each back-up copy is kept by the law practice, and
a complete set of back-up copies is kept in a separate location so that any incident that may adversely affect the records would not also affect the back-up copy.




User Responsible

User Responsible
User Responsible







Trustpak allows off-site Backup to Google Drive



42.


Withdrawal of trust money for payment of legal costs

User Responsible


(1)




(2)

(3)

- (a)

- (b)



--- (i)
--- (ii)

- (c)
(4)

- (a)

- (b)
--- (i)
--- (ii)

(5)
- (a)

- (b)
--- (i)
--- (ii)

(6)


- (a)

- (b)

- (c)

(7)
- (a)

--- (i)
--- (ii)


- (b)
--- (i)
--- (ii)


(8)

This rule prescribes, for the purposes of Division 2 of Part 4.2 of the Uniform Law (see section 144 (2) (b) of that Law), the procedure for the withdrawal of trust money held in a general trust account or controlled money account of a law practice for payment of legal costs owing to the law practice by the person for whom the trust money was paid into the account.
The trust money may be withdrawn in accordance with the procedure set out in any applicable subrule of this rule.
The law practice may withdraw the trust money if the law practice has given the person a bill relating to the money and referring to the proposed withdrawal, and:
if the person does not, at the end of the period of 7 business days after the person was given the bill, object to the amount specified in the bill, or
if the person objects to the amount specified in the bill within the period of 7 business days after being given the bill but has not referred the matter to the designated local regulatory authority or for costs assessment, and the period of 30 days after the later of the following dates has expired:
the date on which the person was given the bill,
the date on which the person received an itemised bill following a request made in accordance with section 187 of the Uniform Law, or
if the money otherwise becomes legally payable.
The law practice may withdraw the trust money (whether or not the law practice has given the person a bill relating to the money):
if the money is withdrawn in accordance with instructions that have been received by the law practice and that authorise the withdrawal, and
if, before effecting the withdrawal, the law practice gives or sends to the person:
a request for payment, referring to the proposed withdrawal, or
a written notice of withdrawal.
Note : See also subrule (7), which relates to subrule (4).
The law practice may withdraw the trust money:
if the money is owed to the law practice by way of reimbursement of money already paid by the law practice on behalf of the person, and
if, before effecting the withdrawal, the law practice gives or sends to the person:
a request for payment, referring to the proposed withdrawal, or
a written notice of withdrawal.
Note : See also subrule (8), which relates to subrule (5).
If the law practice has given the person who is a commercial or government client a bill specifying the amount payable by the person for legal costs, the law practice may withdraw the money so long as:
the money is withdrawn in accordance with a costs agreement between the law practice and the person, and
the costs agreement complies with the legislation under which it is made and authorises the withdrawal, and
before effecting the withdrawal, the law practice gives or sends to the person a request for payment, referring to the proposed withdrawal.
In relation to subrule (4):
if the authorisation referred to in subrule (4) (a) authorises withdrawal of part only of the money:
the law practice may withdraw the money to that extent only, and
if the law practice has given the person a bill relating to the money as referred to in subrule (3) (a)-subrule (3) (b) (i) and (ii) are taken to apply to the remaining part of the amount specified in the bill, and
instructions referred to in subrule (4):
if given in writing, must be kept as a permanent record, or
if not given in writing, must be confirmed in writing either before, or not later than 5 working days after, the law practice effects the withdrawal and a copy must be kept as a permanent record.
For the purposes of subrule (5), money is taken to have been paid by the law practice on behalf of the person when the relevant account of the law practice has been debited.
Note : Rule 73 provides for the giving of bills.



















43.


Method of payment


(1)

- (a)

- (b)
- (c)
--- (i)

--- (ii)
(2)

- (a)
- (b)
--- (i)
--- (ii)

--- (iii)
(3)
- (a)


- (b)

(4)
- (a)
- (b)
- (c)


- (d)

- (e)


- (f)
- (g)
(5)

If a withdrawal of trust money from a general trust account of a law practice is made by cheque, the cheque:
must be made payable to or to the order of a specified person or persons and must not be made payable to bearer or to cash, and
must be crossed "not negotiable" and
must include:
the name of the law practice or the business name under which the law practice engages in legal practice, and
the expression "law practice trust account" or "law practice trust a/c".
A cheque must be signed by, or an electronic funds transfer must be effected under, the direction or authority of:
an authorised principal of the law practice, or
if such a principal is not available:
an authorised legal practitioner associate, or
an authorised Australian legal practitioner who holds an Australian practising certificate authorising the receipt of trust money, or
two or more authorised associates jointly.
A written record of the required particulars:
must be kept of each payment made by cheque or electronic funds transfer, unless those particulars are recorded by a computerised accounting system in the trust account payments cash book at the time the cheque is issued or the transfer is effected, and
must be kept in a way that is sufficient to enable the accuracy of the particulars recorded by the computerised accounting system to be verified.
For the purposes of subrule (3), the
the date and number of the cheque or electronic funds transfer,
the amount ordered to be paid by the cheque or electronic funds transfer,
in the case of a cheque, the name of the person to whom the payment is to be made or, if the cheque is made payable to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment,
in the case of an electronic funds transfer, the name and number of the account to which the amount was transferred and relevant BSB number,
details clearly identifying the name of the person on whose behalf the payment was made and the matter reference, or in the case of a payment to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment,
details clearly identifying the ledger account to be debited,
particulars sufficient to identify the reason for the payment.
Written records relating to payments by cheque or electronic funds transfer (including cheque or transfer requisitions) must be kept in the order in which the cheques or transfers were issued or effected.



User Respomsible



Trustpak Compliant

Trustpak Compliant
User Responsible








Trustpak Compliant


Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant

Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant











44.


Trust account receipts cash books


(1)


- (a)

- (b)
- (c)
- (d)
- (e)
- (f)

- (g)
- (h)
(2)

(3)

A law practice that maintains a general trust account must keep a trust account receipts cash book in which the following particulars must be recorded in respect of each receipt of trust money:
the date a receipt was made out for the money and, if different, the date of receipt of the money,
the receipt number,
the amount of money received,
the form in which the money was received,
the name of the person from whom the money was received,
details clearly identifying the name of the client in respect of whom the money was received and the matter description and matter reference,
particulars sufficient to identify the reason for which the money was received,
details clearly identifying the ledger account to be credited.
The date and amount of each deposit in the general trust account must be recorded in the trust account receipts cash book.
The particulars in respect of receipts must be recorded in the order in which the receipts are made out and must be recorded within 5 working days of the receipt being made out.




Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant

















45.


Trust account payments cash book


(1)


- (a)
- (b)
- (c)


- (d)
--- (i)

--- (ii)


- (g)

- (h)
(2)
- (a)
- (b)

A law practice that maintains a general trust account must keep a trust account payments cash book in which the following particulars are recorded in respect of each payment of trust money:
the date and number of the cheque or electronic funds transfer,
the amount ordered to be paid by the cheque or the amount transferred,
in the case of a cheque, the name of the person to whom the payment is to be made or, if the cheque is made payable to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment,
in the case of an electronic funds transfer:
the name and number of the account to which the amount was transferred and the relevant BSB number, and
the name of the person to whom the payment was made or, in the case of a payment to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment,
details clearly identifying the name of the person on whose behalf the payment was made, the matter description and the appropriate ledger reference,
particulars sufficient to identify the reason for payment.
The particulars in respect of payments must be recorded:
in the order in which the payments are made, and
within 5 working days of the day the payment was made.




Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant
Trustpak Compliant

Trustpak Compliant


Trustpak Compliant

Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

















46.


Journal transfers


(1)



- (a)

--- (i)
--- (ii)

--- (iii)
- (b)
(2)

(3)

- (a)
- (b)


- (c)


- (d)
- (e)
(4)
(5)

Trust money may be transferred by journal entry from one trust ledger account in a law practice's trust ledger to another trust ledger account in the trust ledger, but only if the law practice is entitled to withdraw the money and pay it to the other trust ledger account and:
the transfer is authorised in writing by an authorised principal of the law practice or if such a principal is not available:
an authorised legal practitioner associate of the law practice, or
an authorised Australian legal practitioner who holds an Australian practising certificate authorising the receipt of trust money, or
two or more authorised associates jointly, or
the transfer is authorised in writing by an external intervener for the law practice.
A law practice must keep a trust account transfer journal if it transfers trust money by journal entry.
The following particulars must be recorded in the trust account transfer journal in respect of each transfer of trust money by journal entry:
the date of the transfer,
the trust ledger account from which the money is transferred (including the appropriate ledger reference, the name of the person on whose behalf the transfer was made and the matter description),
the trust ledger account to which the money is transferred (including the appropriate ledger reference, the name of the person on whose behalf the transfer was made and the matter description),
the amount transferred,
particulars sufficient to identify the reason for the transfer.
Journal pages or entries must be consecutively numbered.
A law practice must keep particulars of the authorisation for each transfer of trust money by journal entry, whether in the trust account transfer journal or in some other way.

User Respomsible



User Respomsible

User Respomsible
User Responsible

User Responsible
User Responsible
Trustpak Compliant



Trustpak Compliant
Trustpak Compliant


Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant











47.


Recording transactions in trust ledger accounts



(1)


(2)

- (a)
- (b)
- (c)

(3)

- (a)
- (b)
- (c)
- (d)
- (e)
--- (i)

--- (ii)


--- (iii)

--- (iv)

(4)
- (a)
- (b)

(5)

A law practice that maintains a general trust account must keep a trust account ledger containing separate trust ledger accounts in relation to each person in each matter for which trust money has been received by the practice.
The following particulars must be recorded, and kept up to date, in the title of a trust ledger account:
the name of the person for or on behalf of whom the trust money was paid,
the person's address,
particulars sufficient to identify the matter in relation to which the trust money was received.
The following particulars must be recorded for each transaction in the trust ledger account:
the date of the transaction,
the appropriate reference number and transaction type,
particulars sufficient to identify the reason for the transaction,
the amount of money in the transaction,
if the transaction type is:
a receipt-the provider of the amount and the date the amount was received if that date is different from the date of receipt,
a payment by cheque-the payee or, in the case of a cheque made payable to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment,
a payment by electronic funds transfer-the account name and number and the relevant BSB number of the ADI and the name of the person receiving the benefit of the payment,
a journal entry-the appropriate ledger reference, the name of the person on whose behalf the transfer was made and the matter description.
Transactions relating to trust money must be recorded in the trust ledger account:
in the order in which the transactions occur, and
within 5 working days of the day the receipt was made out, the payment was made or the transfer was effected, as the case requires.
The trust ledger account balance is to be recorded in the trust ledger account after each receipt, payment or transfer of trust money.






Trustpak Compliant
Trustpak Compliant
Trustpak Compliant



Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant

Trustpak Compliant


Trustpak Compliant

Trustpak Compliant


User Responsible
User Responsible

Trustpak Compliant











48.


Reconciliation of trust records



(1)

(2)

- (a)
--- (i)

--- (ii)
- (b)
--- (i)

--- (ii)


--- (iii)
(3)

(4)

A law practice that maintains one or more general trust accounts must reconcile the trust records relating to each account.
The trust records relating to a general trust account are to be reconciled as at the end of each named month by preparing:
a statement:
reconciling the general trust account balance as shown in ADI records with the balance of the practice's trust account cash books, and
showing the date the statement was prepared, and
a statement:
reconciling the balance of the trust ledger accounts with the balance of the practice's trust account cash books, and
containing a list of the practice's trust ledger accounts showing the name, identifying reference and balance of each and a short description of the matter to which each relates, and
showing the date the statement was prepared.
The statements must be prepared within 15 working days after the end of the month concerned.
The statements must be kept by the law practice.






Trustpak Compliant

Trustpak Compliant

Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
User Responsible

Trustpak Compliant


















Trustpak saves a copy of the reconciliation

49.


Trust ledger account in name of law practice or legal practitioner associate



(1)

(2)
- (a)


- (b)


(3)



(4)

A law practice must not maintain a trust ledger account in the name of the practice or a legal practitioner associate of the practice except as authorised by this rule.
A law practice may maintain in its trust ledger:
a trust ledger account in the practice’s name, but only for the purpose of aggregating in the account, by transfer from other accounts in the trust ledger, money properly due to the practice for legal costs, and
a trust ledger account in a legal practitioner associate’s name, but only in respect of money in which the associate has a personal and beneficial interest as a vendor, purchaser, lessor or lessee or in another similar capacity.
In a case to which subrule (2) (a) applies, the law practice must ensure that the money in the trust ledger account is withdrawn from the general trust account not later than one month after the day on which the money was transferred to the trust ledger account.
In a case to which subrule (2) (b) applies, the law practice must ensure that the money in the trust ledger account is withdrawn from the general trust account at the conclusion of the matter to which the money relates.




Trustpak Compliant


Trustpak Compliant


User Responsible



Trustpak Compliant












50.


Notification requirements regarding general trust accounts

User Responsible

All sub rules are user responsible

51.


Law practice closing down, closing office or ceasing to receive or hold trust money

User Responsible

All sub rules are user responsible

52.


Trust account statements



(1)


(2)
- (a)
- (b)
- (c)

(3)
- (a)

- (b)
(4)
- (a)

- (b)


- (c)
(5)


- (a)

- (b)


(6)



- (a)
- (b)

A law practice must give a trust account statement to each person for whom or on whose behalf trust money (other than transit money and written direction money) is held or controlled by the law practice or an associate of the practice.
Where relevant, the law practice must give the person a separate statement for:
each trust ledger account, and
each record of controlled money movements, and
each record of dealings with the money that is the subject of a power to which the law practice or an associate of the law practice is a party.
A trust account statement is to contain particulars of:
all the information required to be kept under the Uniform Law or these Rules in relation to the trust money included in the relevant ledger account or record, and
the remaining balance (if any) of the money.
A trust account statement is to be given:
as soon as practicable after completion of the matter to which the ledger account or record relates, and
as soon as practicable after the person for whom or on whose behalf the money is held or controlled makes a reasonable request for the statement during the course of the matter, and
except as provided by subrule (5) or (6), as soon as practicable after 30 June in each year.
The law practice is not required to give a trust account statement under subrule (4) (c) in respect of a ledger account or record if at 30 June the balance of the ledger account or record is zero and:
no transaction affecting the ledger account or record has taken place within the previous 12 months, or
a trust account statement has been furnished within the previous 12 months and no transaction affecting the ledger account or record has taken place since the last statement was furnished.
Without limiting subrule (5), the law practice is not required to give a trust account statement under subrule (4) (c) in respect of a ledger account or record kept in a jurisdiction if at 30 June immediately before the commencement day for that jurisdiction:
the ledger account or record has been open for less than 6 months, or
a trust account statement has been furnished within the previous 12 months and there has been no subsequent transaction affecting the ledger account or record,
but this subrule expires immediately before the first anniversary of that commencement day.
The law practice must keep a copy of a trust account statement given under this rule.





Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant

Trustpak Compliant

User Responsible

User Responsible


User Responsible



User Responsible

User Responsible






User Responsible
User Responsible



User Responsible












53.


Trust account statements for commercial or government clients

User Responsible

All sub rules are user responsible

54.


Statements regarding receipt or holding of trust money

User Responsible

All sub rules are user responsible

55.


Trust money subject to specific powers

User Responsible

All sub rules are user responsible

56.


Authority to receive trust money

User Responsible

All sub rules are user responsible

57.


Disclosure of accounts used to hold money

User Responsible

All sub rules are user responsible

58.


When, how and where money is received

User Responsible

All sub rules are user responsible

59.


Register of investments



(1)


- (a)
- (b)
- (c)
- (d)
- (e)
- (f)
- (g)
- (h)
- (i)
- (j)
(2)

If a law practice invests trust money for or on behalf of a client, the law practice must maintain a register of investments of trust money that records the following information in relation to each investment:
the name in which the investment is held,
the name of the person on whose behalf the investment is made,
the person's address,
particulars sufficient to identify the investment,
the amount invested,
the date the investment was made,
particulars sufficient to identify the source of the investment,
details of any documents evidencing the investment,
details of any interest received from the investment or credited directly to the investment,
details of the repayment of the investment and any interest, on maturity or otherwise.
This rule does not require particulars to be recorded in the register if the particulars are required to be recorded elsewhere by another rule.




Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant












60.


Register of powers and estates in relation to trust money

User Responsible

All sub rules are user responsible

Rule
Sub Rule
Description
Compliance
Notes




Division 3 - Controlled money


61.


Maintenance of controlled money account



(1)

- (a)
- (b)
- (c)

A controlled money account must be maintained under an account name that includes the following particulars:
the name of the law practice concerned,
the expression "controlled money account" or the abbreviation "CMA" or "CMA/c",
particulars that are sufficient to identify the purpose of the account and to distinguish the account from any other account maintained by the law practice.



Trustpak Compliant
Trustpak Compliant
Trustpak Compliant





62.


Receipt of controlled money



(1)


(2)


(3)

(4)


- (a)
- (b)
- (c)
- (d)
- (e)

- (f)
- (g)

- (h)
- (i)
- (j)
(2)

If a law practice receives controlled money, it must operate a single controlled money receipt system for the receipt of controlled money for all its controlled money accounts.
A law practice must make out a receipt as soon as possible after receiving controlled money or, in relation to a direct deposit, after receiving notice or confirmation of the deposit from the relevant ADI.
On request from the person from whom controlled money is received, the law practice must give that person a copy of the receipt.
The receipt must be made out in duplicate, unless at the time the receipt is made out those particulars are recorded by a computerised accounting system in the register of controlled money, and must contain the following particulars:
the date the receipt is made out and, if different, the date of receipt of the money
the amount of money received,
the form in which the money was received,
the name of the person from whom the money was received
details clearly identifying the name of the client in respect of whom the money was received and the matter description and matter reference,
particulars sufficient to identify the reason for which the money was received,
the name of the law practice, or the business name under which the law practice engages in legal practice, and the expression "controlled money receipt",
the name of the person who made out the receipt.
the number of the receipt,
This rule does not require particulars to be recorded in the register if the particulars are required to be recorded elsewhere by another rule.

Trustpak Compliant


User Responsible


User Responsible

Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant












63.


Withdrawal of controlled money from controlled money account



(1)


(2)

- (a)
- (b)
--- (i)

--- (ii)


--- (iii)
(3)
(4)



(5)
- (a)
- (b)
- (c)


- (d)

- (e)

- (f)
- (g)
(6)

Despite any directions to the contrary, a law practice must not withdraw controlled money from a controlled money account otherwise than by cheque or electronic funds transfer.
A withdrawal of money from a controlled money account of a law practice must be effected by, under the direction of or with the authority of:
an authorised principal of the law practice, or
if such a principal is not available:
a legal practitioner associate authorised by the law practice to effect, direct or give authority for this purpose, or
an Australian legal practitioner who holds an Australian practising certificate authorising the receipt of trust money and who is authorised by the law practice to effect, direct or give authority for this purpose, or
two or more associates of the law practice jointly.
A written record of the required particulars must be kept of each withdrawal.
If, at the time the withdrawal is made, the required particulars are recorded by a computerised accounting system, a written record must be kept that is sufficient to enable the accuracy of the particulars recorded by the computerised accounting system to be verified.
For the purposes of this rule, the "required particulars" are as follows:
the date and number of the transaction,
the amount withdrawn,
in the case of a withdrawal by cheque, the name of the person to whom payment is to be made or, if the cheque is made payable to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment,
in the case of a withdrawal by electronic funds transfer, the name and number of the account to which the amount was transferred and the relevant BSB number,
details clearly identifying the name of the person on whose behalf the payment was made and the matter reference,
particulars sufficient to identify the reason for which the payment was made,
the person or persons effecting, directing or authorising the withdrawal.
The particulars are to be recorded in the order in which the withdrawals are made and are to be recorded separately for each controlled money account.

Trustpak Compliant


User Responsible

User Responsible

User Responsible

User Responsible


User Responsible
Trustpak Compliant
Trustpak Compliant




Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant

Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant












64.


Register of controlled money



(1)


(2)

(3)

- (a)
- (b)
- (c)
- (d)
(4)

- (a)
- (b)
- (c)
- (d)
- (e)
- (f)
- (g)
- (h)

(5)


(6)

(7)


(8)

- (a)
--- (i)
--- (ii)

--- (iii)
- (b)
(9)

If a law practice receives controlled money, it must maintain a register of controlled money for the records of controlled money movements for all its controlled money accounts.
A separate record of controlled money movements must be maintained for each controlled money account.
A record of controlled money movements for a controlled money account must record the following information:
the name of the person on whose behalf the controlled money is held,
the person's address,
particulars sufficient to identify the matter,
any changes to the information referred to in paragraphs (a)-(c).
The following particulars must be recorded in a record of controlled money movements for a controlled money account:
the date the controlled money was received,
the number of the receipt,
the date the money was deposited in the controlled money account,
the name of and other details clearly identifying the controlled money account,
the amount of controlled money deposited,
details of the deposit sufficient to identify the deposit,
interest received,
details of any payments from the controlled money account, including the particulars required to be recorded under these Rules.
Subject to subrule (6), particulars of receipts and payments must be entered in the register as soon as practicable after the controlled money is received by the law practice or any payment is made.
Interest and other income received in respect of controlled money must be entered in the register as soon as practicable after the law practice is notified of its receipt.
The law practice must keep as part of its trust records all supporting information (including ADI statements and notifications of interest received) relating to controlled money.
Within 15 working days after each named month, the law practice must prepare and keep in permanent form a statement as at the end of the named month:
containing a list of the practice's controlled money accounts showing:
the name, number and balance of each account in the register, and
the name of the person on whose behalf the controlled money in each account was held, and
a short description of the matter to which each account relates, and
showing the date the statement was prepared.
The statement required to be prepared each month under subrule (8) must be reviewed by a principal of the law practice who is authorised to receive trust money and that review must be evidenced on the statement.

Trustpak Compliant


Trustpak Compliant



Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

User Responsible


User Responsible

User Responsible


User Responsible


Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
User Responsible

These are holding accounts

Each CMA has a seperate ledger






SOURCE: Western Australian Current Regulations - LEGAL PROFESSION REGULATIONS 2009
RULE: 4 - Trust money and trust accounts

Date Checked: 1st Oct 2016

NOTE: This information is NOT to be used as a reference to Government Trust Account Regulations it is meant only as a guide to show you which part of the regulations Trustpak is compliant with, we cannot guarantee the accuracy of this information beyond the "Date Checked" however we will do our best to keep this matrix up to date. Please note it is the responsibility of each user to make sure they are compliant with the regulations. The information provided here is intended to help with that process.
NOTE: Incorrect installations and modifications to installations may effect Trustpak's compliance with these regulations.

DISCLAIMER: This information is provided with the understanding that the laws governing trust accounting, legal ethics and professional responsibility are always changing. This information is not a substitute for legal advice and may not be suitable in a particular situation. You must make your own judgement on the actual compliance of Trustpak. Infobiz Solutions Pty Ltd, their employees and their representatives, and the author shall not be liable for any damages resulting from any error, inaccuracy, or omission.

Rule
Sub Rule
Description
Compliance
Notes




Division 2 -- Computerised accounting systems


35.


Application of Division


This Division applies where a law practice maintains trust records (including records relating to controlled money) by means of a computerised accounting system.


36.


Trust records, paper copies of required


(1)
- (a)


- (b)

- (c)

- (d)

- (e)

- (f)

(2)

(3)

(4)

The law practice must print a paper copy of trust records as follows:
trust account receipts and payments cash books are to be printed monthly as at the end of each month, unless a copy of the books as at the end of the month is kept in electronic form that is readable or reportable on demand;
reconciliation statements prepared under regulation 51 are to be printed as at the end of each month;
lists of trust account ledgers and their balances are to be printed monthly as at the end of each month;
lists of controlled money accounts and their balances are to be printed monthly as at the end of each month;
trust ledger accounts, the register of controlled money and the trust account transfer journal are to be printed before they are archived or deleted from the system;
trust ledger account and controlled money account details are to be printed on request by and provided to an investigator as defined in section 205(1) of the Act.
The trust records printed monthly as at the end of a month under subregulation (1)(a) to (d) must be printed within 15 working days after the end of the month.
The paper copies printed under subregulation (1) must be kept by the law practice, except where they are printed on request under that subregulation.
The electronic copy of the trust account cash books under subregulation (1)(a) must be kept by the law practice.


Trustpak Compliant


Trustpak Compliant

Trustpak Compliant

Trustpak Compliant

Trustpak Compliant

Trustpak Compliant

User Responsible

User Responsible

User Responsible


Copy saved automatically









37.


Chronological record of certain information required


(1)


- (a)
- (b)
- (c)
- (d)
- (e)
(2)

The law practice must maintain a record, compiled in chronological sequence, of the creation, amendment or deletion of information in its computerised accounting system in relation to the following:
client name;
client address;
matter reference;
matter description;
ledger account number or other descriptor.
The record must be kept by the law practice.

Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant












38.


Requirements as to systems etc.


(1)




(2)

- (a)
- (b)
(3)

(4)

(5)


(6)

The law practice must ensure that its computerised accounting system is not capable of accepting, in respect of a trust ledger account, the entry of a transaction resulting in a debit balance to the account, unless a contemporaneous record of the transaction is made in a manner that enables the production in a permanent form, on demand, of a separate chronological report of all occurrences of that kind.
The law practice must ensure that the system is not capable of deleting a trust ledger account unless:
the balance of the account is zero and all outstanding cheques have been presented; and
when the account is deleted, a copy of the account is kept in a permanent form.
The law practice must ensure that any entry in a record produced in a permanent form appears in a chronological sequence.
The law practice must ensure that each page of each printed record is numbered sequentially or is printed in such a way that no page can be extracted.
The law practice must ensure that its computerised accounting system is not capable of amending the particulars of a transaction already recorded otherwise than by a transaction separately recorded that makes the amendment.
The law practice must ensure that its computerised accounting system requires input in every field of a data entry screen intended to receive information required by this Part to be included in trust records.

Trustpak Compliant






Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant

Trustpak Compliant


Trustpak Compliant









Copy in the archive




39.


Back-ups, requirements as to


(1)
- (a)

- (b)
- (c)

The law practice must ensure that.
a back-up copy of all records required by this Part is made not less frequently than once each month; and
each back-up is kept by the law practice; and
a complete set of back‑up copies is kept in a separate location so that any incident that may adversely affect the records would not also affect the back‑up copy.


User Responsible

User Responsible
User Responsible





Trustpak allows off-site Backup to Google Drive



Rule
Sub Rule
Description
Compliance
Notes




Division 3 -- General trust accounts


40.


How account to be established and maintained (Act s. 214(2))
All User Responsible


(1)




(2)
- (a)

- (b)
- (c)
--- (i)

--- (ii)

- (d)
(3)

(4)

A law practice may at any time establish a general trust account that satisfies the requirements of this regulation, but must, as soon as practicable after receiving trust money that is required to be paid into a general trust account, establish a general trust account that satisfies those requirements if the practice does not already have such a general trust account.
A general trust account satisfies the requirements of this regulation if:
the account is established in this jurisdiction, before or after the commencement of this regulation, with an ADI; and
the account is and is to be maintained in this jurisdiction; and
the name of the account includes —
the name of the law practice or the business name under which the law practice engages in legal practice; and
the expression "law practice trust account" or "law practice trust a/c";
and
the account is of a kind that is for the time being approved by the Board.
Subregulation (2)(c) does not apply to an account established in this jurisdiction before the commencement of this regulation.
Subregulation (2)(c)(ii) does not require the repetition of the words "law practice" if those words form part of the name or business name of the law practice.

41.


Trust money received, how to be receipted


(1)

(2)
(3)
- (a)
- (b)


(4)



(5)
- (a)
- (b)
- (c)
- (d)
- (e)

- (f)
- (g)

- (h)
--- (i)
(3)


(4)

(5)
(6)
(7)

This regulation applies if a law practice receives trust money that is required to be paid into a general trust account.
After receiving the trust money, the law practice must make out a receipt.
The receipt must be made out as soon as practicable:
after the trust money is received, except as provided by paragraph (b); or
in the case of trust money received by direct deposit - after the law practice receives or accesses notice or confirmation (in written or electronic form) of the deposit from the ADI concerned.
The receipt, containing the required particulars, must be made out in duplicate, whether by way of making a carbon copy or otherwise, unless at the time the receipt is made out those particulars are recorded by computer program in the trust account receipts cash book.
For the purposes of subregulation (4), the required particulars are as follows:
the date the receipt is made out and, if different, the date of receipt of the money
the amount of money received,
the form in which the money was received,
the name of the person from whom the money was received
details clearly identifying the name of the client in respect of whom the money was received and the matter description and matter reference,
particulars sufficient to identify the reason for which the money was received,
the name of the law practice or the business name under which the law practice engages in legal practice and the expression "trust account" or "trust a/c"
the name of the person who made out the receipt.
the number of the receipt,
The receipt must be made out in duplicate unless, when the receipt is made out the particulars referred to in subrule (2) are recorded by a computerised accounting system in the trust account receipts cash book.
The receipt must be given, on request, to the person from whom the trust money was received.
Receipts must be consecutively numbered and issued in consecutive sequence.
If a receipt is cancelled, the original receipt must be kept.
This rule does not apply to controlled money.



User Responsible
User Responsible
User Responsible








Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


User Responsible

Trustpak Compliant
Trustpak Compliant

























42.


Trust money not paid to general trust account by direct deposit, how to be dealt with


(1)


(2)
(3)
- (a)
- (b)
- (c)
- (d)
--- (i)
--- (ii)
--- (iii)
(4)

(5)

This regulation applies if a law practice receives trust money that is required to be paid into a general trust account and the money is not paid into a general trust account by direct deposit.
A deposit record must be produced to the ADI at the time the deposit is made.
The following particulars must be recorded on the deposit record:
the date of the deposit,
the amount of the deposit,
whether the deposit consists of cheques or cash (and the amount of each),
for each cheque:
the name of the drawer of the cheque, and
the name and branch (or BSB number) of the ADI on which the cheque is drawn, and
the amount of the cheque.
The deposit record must be made out in duplicate, whether by way of making a carbon copy or otherwise.
The duplicate deposit record must be kept for each deposit to the general trust account and must be kept in a deposit book or be otherwise securely filed in the order in which the deposits were made.

Trustpak Compliant




Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Deposit Slip











Duplicate in database

43.


Period prescribed (Act s. 215(4))


For the purposes of section 215(4) of the Act, the period for which a written direction mentioned in section 215(2)(a) of the Act must be kept is 7 years after the finalisation of the matter to which the direction relates.

User Responsible

44.


Withdrawal of trust money by electronic funds transfer, how to be dealt with


(1)



(2)

(3)
- (a)

- (b)
- (c)
--- (i)

--- (ii)
(4)
- (a)
- (b)
--- (i)
--- (ii)

--- (iii)
(5)




(6)



(7)

- (a)
- (b)
- (c)


- (d)

- (e)
- (f)
(8)

(9)

(10)

In this regulation
associate means an associate of a law practice;
authorised means authorised by the law practice to effect, direct or give authority for an electronic funds transfer from the general trust account.
This regulation applies to the withdrawal of trust money from a general trust account of a law practice by cheque.
A cheque -
must be made payable to or to the order of a specified person or persons and must not be made payable to bearer or to cash, and
must be crossed "not negotiable" and
must include:
the name of the law practice or the business name under which the law practice engages in legal practice, and
the expression "law practice trust account" or "law practice trust a/c".
A cheque must be signed by:
by an authorised principal of the law practice, or
if such a principal is not available:
by an authorised legal practitioner associate, or
by an authorised Australian legal practitioner who holds an Australian practising certificate authorising the receipt of trust money, or
by 2 or more authorised associates jointly.
A written record of the required particulars (including a record in the form of a cheque butt) must be kept of each payment made by cheque, whether by way of making a carbon copy or otherwise, unless at the time the cheque is issued those particulars are recorded by computer program in the trust account payments cash book.
If, at the time the cheque is issued, the required particulars are recorded by computer program in the trust account payments cash book, a written record must be kept that is sufficient to enable the accuracy of the particulars recorded by the computer program to be verified.
For the purposes of subregulations (5) and (6), the required particulars are as follows:
the date and number of the cheque;
the amount ordered to be paid by the cheque;
the name of the person to whom the payment is to be made or, in the case of a cheque made payable to an ADI, the name of the ADI and the name of the person receiving the benefit of the payment;
details clearly identifying the name of the person on whose behalf the payment was made and the matter reference;
details clearly identifying the ledger account to be debited;
particulars sufficient to identify the purpose for which the payment was made.
Written records relating to payments by cheque (including cheque requisitions) must be kept in the order in which the cheques were issued.
Subregulation (3)(c) does not apply to an account established in this jurisdiction before the commencement of this regulation.
Subregulation (3)(c)(ii) does not require the repetition of the words "law practice" if those words form part of the name or business name of the law practice.








User Respomsible

User Responsible

User Responsible






Trustpak Compliant


Trustpak Compliant




Trustpak Compliant





Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
User Responsible

User Responsible

User Responsible











45.


Withdrawal of trust money by electronic funds transfer, how to be dealt with


(1)



(2)

(3)

- (a)
- (b)
--- (i)
--- (ii)

--- (iii)
(4)


(5)



(6)

- (a)
- (b)
- (c)

- (d)


- (e)

- (f)
- (g)
(7)

In this regulation
associate means an associate of a law practice;
authorised means authorised by the law practice to effect, direct or give authority for an electronic funds transfer from the general trust account.
This regulation applies to the withdrawal of trust money from a general trust account of a law practice by electronic funds transfer.
An electronic funds transfer must be effected by, under the direction of or with the authority of -
an authorised principal of the law practice; or
if such a principal is not available: -
an authorised legal practitioner associate, or
an authorised Australian legal practitioner who holds an unrestricted practising certificate authorising the receipt of trust money; or
2 or more authorised associates jointly.
A written record of the required particulars must be kept of each payment unless at the time the electronic funds transfer is effected those particulars are recorded by computer program in the trust account payments cash book.
If at the time the electronic funds transfer is effected the required particulars are recorded by computer program in the trust account payments cash book, a written record must be kept that is sufficient to enable the accuracy of the particulars recorded by the computer program to be verified.
For the purposes of subregulations (5) and (6), the required particulars are as follows:
the date and number of the transaction;
the amount transferred;
the name and number of the account to which the amount was transferred and relevant BSB number;
the name of the person to whom the payment was made or, for a payment to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;
details clearly identifying the name of the person on whose behalf the payment was made and the matter reference;
details clearly identifying the ledger account to be debited;
particulars sufficient to identify the purpose for which the payment was made.
Written records relating to payments by electronic funds transfer (including transfer requisitions) must be kept in the order in which the transfers were effected.









User Respomsible

User Responsible

User Responsible

Trustpak Compliant


Trustpak Compliant





Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant


Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
User Responsible











46.


Trust account cash books required




- (a)
- (b)

A law practice that keeps a general trust account must keep the following trust account cash books

a trust account receipts cash book in accordance with regulation 47;
a trust account payments cash book in accordance with regulation 48.

47.


Trust account receipts cash book, content of etc.


(1)

- (a)

- (b)
- (c)
- (d)
- (e)
- (f)

- (g)
- (h)
(2)

(3)

(4)

The following particulars must be recorded in a law practice’s trust account receipts cash book in respect of each receipt of trust money
the date a receipt was made out for the money and, if different, the date of receipt of the money,
the receipt number,
the amount of money received,
the form in which the money was received,
the name of the person from whom the money was received,
details clearly identifying the name of the client in respect of whom the money was received and the matter description and matter reference,
particulars sufficient to identify the reason for which the money was received,
details clearly identifying the ledger account to be credited.
The date and amount of each deposit in the general trust account must be recorded in the trust account receipts cash book.
The particulars in respect of receipts must be recorded in the order in which the receipts are made out.
The particulars in respect of a receipt must be recorded within 5 working days counting from and including the day the receipt was made out.



Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant

User Responsible

















48.


Trust account payments cash book, content of etc.


(1)

- (a)
- (b)
- (c)


- (d)

- (e)
- (f)
(2)


- (a)
- (b)
- (c)

- (d)


- (e)

- (f)
- (g)
(3)

(4)

The following particulars must be recorded in a law practice’s trust account payments cash book in respect of each payment of trust money by cheque
the date and number of the cheque;
the amount ordered to be paid by the cheque;
the name of the person to whom the payment is to be made or, in the case of a cheque made payable to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;
details clearly identifying the name of the person on whose behalf the payment was made and the matter reference;
details clearly identifying the ledger account to be debited;
particulars sufficient to identify the purpose for which the payment was made.
The following particulars must be recorded in a law practice’s trust accounts payments cash book in respect of each payment of trust money by electronic funds transfer
the date and number of the transaction;
the amount transferred;
the name and number of the account to which the amount was transferred and the relevant BSB number;
the name of the person to whom the payment was made or, in the case of a payment to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;
details clearly identifying the name of the person on whose behalf the payment was made and the matter reference;
details clearly identifying the ledger account to be debited;
particulars sufficient to identify the purpose for which the payment was made.
The particulars in respect of payments must be recorded in the order in which the payments are made.
The particulars in respect of a payment must be recorded within 5 working days counting from and including the day the payment was made.



Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant


Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

User Responsible

















49.


Trust ledger accounts, content of etc.


(1)


(2)
- (a)
- (b)
- (c)

(3)
(4)

- (a)

- (b)
- (c)
- (d)
- (e)
(5)

- (a)
- (b)
- (c)


- (d)
(6)

- (a)
- (b)
- (c)

- (d)


- (e)
(7)

- (a)
- (b)
- (c)
- (d)

- (e)
(8)

(9)


(10)

A law practice that maintains a general trust account must keep a trust account ledger containing separate trust ledger accounts in relation to each client of the practice in each matter for which trust money has been received by the practice.
The following particulars must be recorded in the title of a trust ledger account:
the name of the person for or on behalf of whom the trust money was paid;
the person's address;
particulars sufficient to identify the matter in relation to which the trust money was received.
Details of any changes in the title of a trust ledger account must be recorded.
The following particulars must be recorded in the trust ledger account in respect of each receipt of trust money for the matter
the date a receipt was made out for the money and, if different, the date of receipt of the money;
the receipt number;
the amount of money received;
the name of the person from whom the money was received;
particulars sufficient to identify the purpose for which the money was received.
The following particulars must be recorded in the trust ledger account in respect of each payment of trust money by cheque:
the date and number of the cheque;
the amount ordered to be paid by the cheque;
the name of the person to whom the payment is to be made or, in the case of a cheque made payable to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;
particulars sufficient to identify the purpose for which the payment was made.
The following particulars must be recorded in the trust ledger account in respect of each payment of trust money by electronic funds transfer
the date and number of the transaction;
the amount transferred;
the name and number of the account to which the amount was transferred and the relevant BSB number;
the name of the person to whom the payment was made or, in the case of a payment to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;
particulars sufficient to identify the purpose for which the payment was made.
The following particulars must be recorded in the trust ledger account in respect of each transfer of trust money effected by a journal entry
the date of the transfer;
the amount transferred;
the journal reference number;
the name of the other trust ledger account from which or to which the money was transferred;
particulars sufficient to identify the purpose for which the payment was made.
Transactions relating to trust money must be recorded in the trust ledger account in the order in which the transactions occur.
The particulars in respect of a receipt, payment or transfer of trust money must be recorded within 5 working days counting from and including the day the receipt was made out, the payment was made or the transfer was effected, as the case requires.
The trust ledger account balance is to be recorded in the trust ledger account after each receipt, payment or transfer of trust money.

Trustpak Compliant



Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant


Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant


Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

User Respomsible


Trustpak Compliant


50.


Transfers of trust money by journal entry, requirements for


(1)


- (a)

- (b)
(2)
- (a)
- (b)
--- (i)
--- (ii)

--- (iii)

- (c)
(3)






(4)

(5)

- (a)
- (b)

- (c)

- (d)
- (e)

(6)
(7)

Trust money may be transferred by journal entry from one trust ledger account in a law practice’s trust ledger to another trust ledger account in the trust ledger, but only if:
the law practice is entitled to withdraw the money and pay it to the other trust ledger account; and
subregulation (2) is complied with.
The transfer must be authorised in writing
by an authorised principal of the law practice; or
if a principal referred to in paragraph (a) is not available
by an authorised legal practitioner associate; or
by an authorised Australian legal practitioner who holds an unrestricted practising certificate authorising the receipt of trust money; or
by 2 or more authorised associates jointly;
or
by an external intervener for the practice.
For the purposes of subregulation (2)
associate means an associate of a law practice;
authorised means authorised by the law practice or an external intervener for the practice to effect, direct or give authority for the transfer of trust money by journal entry from one trust ledger account in the practice’s trust ledger to another trust ledger account in the trust ledger;
external intervener has the same meaning as in section 471 of the Act.
A law practice must keep a trust account transfer journal if it transfers trust money by journal entry.
The following particulars must be recorded in the trust account transfer journal in respect of each transfer of trust money by journal entry:
the date of the transfer,
the trust ledger account from which the money is transferred (including its identifying reference);
the trust ledger account to which the money is transferred (including its identifying reference);
the amount transferred,
particulars sufficient to identify the purpose for which the transfer is made, the matter reference and a short description of the matter.
Journal pages or entries must be consecutively numbered.
A law practice must keep particulars of the authorisation for each transfer of trust money by journal entry, whether in the trust account transfer journal or in some other way.

User Respomsible


User Respomsible

User Respomsible

User Responsible

User Responsible
User Responsible

User Responsible

User Responsible







Trustpak Compliant

Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant











51.


Reconciliation of trust records, when required



(1)

(2)

- (a)
--- (i)

--- (ii)
- (b)
--- (i)

--- (ii)


--- (iii)
(3)

(4)

A law practice that maintains one or more general trust accounts must reconcile the trust records relating to the only or each account.
The trust records relating to a general trust account are to be reconciled as at the end of each month by preparing:
a statement:
reconciling the general trust account balance as shown in ADI records with the balance of the practice's trust account cash books, and
showing the date the statement was prepared, and
a statement:
reconciling the balance of the trust ledger accounts with the balance of the practice's trust account cash books; and
containing a list of the practice's trust ledger accounts showing the name, identifying reference and balance of each and a short description of the matter to which each relates; and
showing the date the statement was prepared.
The statements must be prepared within 15 working days after the end of the month concerned.
The statements must be kept by the law practice.






Trustpak Compliant

Trustpak Compliant

Trustpak Compliant

Trustpak Compliant


Trustpak Compliant
User Responsible

Trustpak Compliant


















Trustpak saves a copy of the reconciliation

52.


Trust ledger account in name of law practice or legal practitioner associate, when permitted



(1)


(2)
- (a)


- (b)


(3)



(4)

A law practice must not maintain a trust ledger account in the name of the practice or a legal practitioner associate of the practice except as authorised by this regulation.
A law practice may maintain in its trust ledger:
a trust ledger account in the practice's name, but only for the purpose of aggregating in the account, by transfer from other accounts in the trust ledger, money properly due to the practice for legal costs; and
a trust ledger account in a legal practitioner associate's name, but only in respect of money in which the associate has a personal and beneficial interest as a vendor, purchaser, lessor or lessee or in another similar capacity.
In a case to which subregulation (2)(a) applies, the law practice must ensure that the money in the trust ledger account is withdrawn from the general trust account not later than one month after the day on which the money was transferred to the trust ledger account.
In a case to which subregulation (2)(b) applies, the law practice must ensure that the money in the trust ledger account is withdrawn from the general trust account at the conclusion of the matter to which the money relates.





Trustpak Compliant


Trustpak Compliant


User Responsible



Trustpak Compliant












53.


Board to be notified of opening etc. of general trust account

User Responsible

All sub rules are user responsible




Division 4 - Controlled money


54.


How controlled money accounts to be maintained (Act s. 218(4))



(1)

- (a)
- (b)
- (c)

(2)

For the purposes of section 218(4) of the Act, a controlled money account must be maintained under an account name that includes the following particulars:
the name of the law practice concerned,
the expression "controlled money account" or the abbreviation "CMA" or "CMA/c",
such particulars as are sufficient to identify the purpose of the account and to distinguish the account from any other account maintained by the law practice.
This regulation does not apply to an account established in this jurisdiction before the commencement of this regulation.



Trustpak Compliant
Trustpak Compliant
Trustpak Compliant





55.


Controlled money received, how to be receipted



(1)
(2)

(3)
(4)
- (a)
- (b)


(5)



(6)
- (a)
- (b)
- (c)
- (d)
- (e)

- (f)
- (g)

- (h)

- (i)
- (j)
(7)


(8)

(9)
(10)
(11)

This regulation applies if a law practice receives controlled money.
The law practice must operate a single controlled money receipt system for the receipt of controlled money for all its controlled money accounts.
After receiving controlled money, the law practice must make out a receipt.
The receipt must be made out as soon as practicable:
after the controlled money is received, except as provided by paragraph (b); or
in the case of controlled money received by direct deposit - after the law practice receives or accesses notice or confirmation (in written or electronic form) of the deposit from the ADI concerned.
The receipt, containing the required particulars, must be made out in duplicate, whether by way of making a carbon copy or otherwise, unless at the time the receipt is made out those particulars are recorded by computer program in the register of controlled money.
For the purposes of subregulation (5), the required particulars are as follows
the date the receipt is made out and, if different, the date of receipt of the money
the amount of money received,
the form in which the money was received,
the name of the person from whom the money was received
details clearly identifying the name of the client in respect of whom the money was received and the matter description and matter reference,
particulars sufficient to identify the reason for which the money was received,
the name of and other details clearly identifying the controlled money account to be credited, unless the account has not been established by the time the receipt is made out;
the name of the law practice, or the business name under which the law practice engages in legal practice, and the expression "controlled money receipt";
the name of the person who made out the receipt.
the number of the receipt,
If the controlled money account to be credited has not been established by the time the receipt is made out, the name of and other details clearly identifying the account when established must be included on the duplicate receipt (if any).
The original receipt must be delivered, on request, to the person from whom the controlled money was received.
Receipts must be consecutively numbered and issued in consecutive sequence.
If a receipt is cancelled or not delivered, the original receipt must be kept.
A receipt is not required to be made out for any interest or other income received from the investment of controlled money and credited directly to a controlled money account.

Trustpak Compliant


User Responsible

User Responsible
User Responsible


Trustpak Compliant




Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
User Responsible


User Responsible

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant












56.


Period prescribed (Act s. 218(5))


For the purposes of section 218(5) of the Act, the prescribed period for which a written direction referred to in section 218(1) of the Act is to be kept is 7 years after finalisation of the matter to which the direction relates.

User Responsible

57.


Withdrawal of controlled money from controlled money account



(1)



(2)

- (a)
- (b)
--- (i)
--- (ii)

--- (iii)
(3)
(4)



(5)
- (a)
- (b)
- (c)


- (d)

- (e)

- (f)
- (g)
(6)

In this regulation
associate means an associate of a law practice;
authorised means authorised by the law practice to effect, direct or give authority for a withdrawal of money from the controlled money account.
A withdrawal of money from a controlled money account of a law practice must be effected by, under the direction of or with the authority of:
an authorised principal of the law practice, or
if such a principal is not available:
an authorised legal practitioner associate; or
an authorised Australian legal practitioner who holds an unrestricted practising certificate authorising the receipt of trust money; or
2 or more authorised associates jointly.
A written record of the required particulars must be kept of each withdrawal.
If, at the time the withdrawal is made, the required particulars are recorded by a computerised accounting system, a written record must be kept that is sufficient to enable the accuracy of the particulars recorded by the computerised accounting system to be verified.
For the purposes of this rule, the "required particulars" are as follows:
the date and number of the transaction,
the amount withdrawn,
in the case of a withdrawal by cheque, the name of the person to whom payment is to be made or, if the cheque is made payable to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment,
in the case of a withdrawal by electronic funds transfer, the name and number of the account to which the amount was transferred and the relevant BSB number,
details clearly identifying the name of the person on whose behalf the payment was made and the matter reference,
particulars sufficient to identify the reason for which the payment was made,
the person or persons effecting, directing or authorising the withdrawal.
The particulars are to be recorded in the order in which the withdrawals are made and are to be recorded separately for each controlled money account.







User Responsible

User Responsible
User Responsible

User Responsible
Trustpak Compliant
User Responsible




Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant

Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant












58.


Register of controlled money



(1)


(2)

(3)

- (a)
- (b)
- (c)
- (d)
(4)

- (a)
- (b)
- (c)
- (d)
- (e)
- (f)
- (g)
- (h)

(5)



(6)

(7)


(8)

- (a)
--- (i)
--- (ii)

--- (iii)
- (b)

If a law practice receives controlled money, it must maintain a register of controlled money for the records of controlled money movements for all its controlled money accounts.
A separate record of controlled money movements must be maintained for each controlled money account.
A record of controlled money movements for a controlled money account must record the following information:
the name of the person on whose behalf the controlled money is held,
the person's address,
particulars sufficient to identify the matter,
any changes to the information referred to in paragraphs (a)-(c).
The following particulars must be recorded in a record of controlled money movements for a controlled money account:
the date the controlled money was received,
the number of the receipt,
the date the money was deposited in the controlled money account,
the name of and other details clearly identifying the controlled money account,
the amount of controlled money deposited,
details of the deposit sufficient to identify the deposit,
interest received,
details of any payments from the controlled money account, including the particulars required to be recorded under these Rules.
With the exception of interest and other income received in respect of controlled money, particulars of receipts and payments must be entered in the register as soon as practicable after the controlled money is received by the law practice or any payment is made.
Interest and other income received in respect of controlled money must be entered in the register as soon as practicable after the law practice is notified of its receipt.
The law practice must keep as part of its trust records all supporting information (including ADI statements and notifications of interest received) relating to controlled money.
Within 15 working days after each month, the law practice must prepare and keep as a permanent record a statement as at the end of the month:
containing a list of the practice's controlled money accounts showing:
the name, number and balance of each account in the register, and
the name of the person on whose behalf the controlled money in each account was held, and
a short description of the matter to which each account relates, and
showing the date the statement was prepared.

Trustpak Compliant


Trustpak Compliant



Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

User Responsible



User Responsible

User Responsible


User Responsible


Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

These are holding accounts

Each CMA has a seperate ledger






Trustpak - New Zealand Compliance Matrix

Please Note: The following information is a guide to show what rules and sub rules of the Trust Account Regulations Trustpak complies with, some of the items are dependent on the User and this is stated as "User Responsible"


SOURCE: New Zealand Legislation: Lawyers and Conveyancers Act (Trust Account) Regulations 2008 (SR 2008/183)
URL http://www.legislation.govt.nz/regulation/public/2008/0183/latest/DLM1387282.html?search=ts_regulation_lawyers&sr=1
Pursuant to section 115 of the Lawyers and Conveyancers Act 2006

Date Checked: 22nd May 2018

NOTE: This information is NOT to be used as a reference to Government Trust Account Regulations it is meant only as a guide to show you which part of the regulations we consider Trustpak is compliant with, we cannot guarantee the accuracy of this information beyond the "Date Checked" however we will do our best to keep this matrix up to date. Please note it is the responsibility of each user to make sure they are compliant with the regulations. The information provided here is intended to help with that process.
NOTE: Incorrect installations and modifications to installations may effect Trustpak's compliance with these regulations.

DISCLAIMER: This information is provided with the understanding that the laws governing trust accounting, legal ethics and professional responsibility are always changing. This information is not a substitute for legal advice and may not be suitable in a particular situation. You must make your own judgement on the actual compliance of Trustpak. Infobiz Solutions Pty Ltd, their employees and their representatives, and the author shall not be liable for any damages resulting from any error, inaccuracy, or omission.

Regulation
Sub Clause
Description
Compliance
Notes




Part 1 -- Duties relating to trust accounts of practices


4.


Duties of practices to give notice under section 112(2) of Act

User Responsible

5.


Trust bank accounts

User Responsible

6.


Trust accounts not to be overdrawn


(1)



(2)

(3)



(4)

If the trust accounts held by a practice for a particular client, taken as a whole, would, but for compliance with this subclause, be overdrawn, the practice must immediately lend to that client the amount necessary to prevent the trust accounts of that client being overdrawn.
Any amount lent by a practice to a client under subclause (1) must be lent directly, or indirectly through an advance account, from the practice’s own funds.
No advance account of the practice, or other account representing a sole practitioner’s, partner’s, or voting shareholder’s own interest in the trust accounts, may be overdrawn at any time.

In this regulation, advance account means an account (however described) in which funds of a practice are kept for the purpose of loans to clients whose trust accounts would otherwise be overdrawn.

User Responsible



User Responsible

User Responsible



User Responsible

Switch in Trustpak to prevent overdrawn client trust accounts.



Switch in Trustpak to prevent overdrawn trust control accounts.

In Trustpak a control account could be used for these purposes.

7.


Restriction on certain transactions involving money of clients of practice

User Responsible

8.


Restriction on use of trust accounts for personal transactions


(1)

- (a)
- (b)
- (c)

(2)

- (a)



- (b)

The trust accounts of a practice must not be used for the private or household transactions of --
the sole practitioner, partners, or voting shareholders; or
any employee of the practice; or
any spouse or civil union partner of the sole practitioner, partners, voting shareholders, or employees.
Despite subclause (1), the trust accounts of a practice may be used for the property or investment transactions of any person referred to in that subclause if they are—
kept in a separate ledger account in the name of the person concerned; and



dealt with in all respects as if the person was a client.



User Responsible
User Responsible
User Responsible



Trustpak Compliant



Trustpak Compliant









Create a client account in Trustpak for these purposes

Create a client account in Trustpak for these purposes

9.


Restriction on debiting trust accounts with fees


(1)

- (a)


- (b)



(2)


(3)

No trust account may be debited with any fees of a practice (except commission properly chargeable on the collection of money and disbursements) unless --
a dated invoice has been issued in respect of those fees, and a copy of the invoice is available for inspection by the inspectorate; or

an authority in writing in that behalf, signed and dated by the client, specifying the sum to be so applied and the particular purpose to which it is to be applied has been obtained and is available for inspection by the inspectorate.

If fees are debited under subclause (1)(a), an invoice must be delivered or posted to the person who has a legal or beneficial interest in the trust account to be debited before or immediately after the fees are debited.
For the purposes of subclause (2), a practitioner or partner in the practice is not to be treated as having a legal or beneficial interest in the trust account to be debited, solely because the practitioner or partner issues the invoice in respect of that trust account.



User Responsible


User Responsible



User Responsible


User Responsible



This would be done from your business accounting software
An authority form can be created in Trustpak which auto fills the clients details.




10.


Fees and disbursements paid in advance of invoice


(1)


- (a)


- (b)

All money paid to a practice in respect of professional services for which an invoice has not been issued, whether described as a retainer or otherwise, must be retained in a trust account until it is --
disbursed on the client’s behalf; or


applied in payment of fees in accordance with regulation 9.




Trustpak Compliant


User Responsible




Create a new file in Trustpak to receive and disburse client money





Regulation
Sub Clause
Description
Compliance
Notes




Part 2 -- Trust account records


11.


Trust account records


(1)


(2)



(3)

- (a)
- (b)



(4)
(5)

- (a)

- (b)

It is the duty of every practice required by section 112(1) of the Act to keep records in respect of trust accounts to do so in such a manner as to enable them to be conveniently and properly reviewed by the inspectorate.
Trust account records must be up to date, clearly show the amount of the trust money held for each client, and as far as practicable be secure against retrospective alteration or deletion.

All entries in the client ledger accounts, and in other records that are the source of such entries, must --
be dated; and
include references that identify their source or destination and enable them to be traced backward and forward.


All entries in the journal must include sufficient detail to make their purpose evident.
Trust account records relating to a client must be retained for a period of at least 6 years from the date of the last transaction recorded in them, but --
may be retained after the first 3 years, in the form of microfilm, imaging, or other similar technology; or
in the case of computer-generated trust account records originated by the practitioner, may be retained in the form of electronic storage, microfilm, imaging, or similar technology.

Trustpak Compliant


Trustpak Compliant





Trustpak Compliant
Trustpak Compliant



Trustpak Compliant


User Responsible

Trustpak Compliant

Trustpak produces all of the reports required for the auditors.
A separate ledger is maintained for each client, no ledger entries can be altered or deleted.



All ledger entries can be traced back to their source and forward to their disbursement
Journals entries allow full entry of details for purpose of the journal


Closed files are archived and may still be accessed for ledger enquires and reports.

12.


Receipt and payment of trust money


(1)


- (a)


- (b)



(2)

(3)


(4)

- (a)


- (b)


(5)


(6)
- (a)


- (b)

- (c)

- (d)


(7)


- (a)
- (b)

- (c)

Every receipt, payment, transfer, and balance of trust money must be recorded in a trust account ledger with a separate ledger account for each client and --

the recording must as far as practicable be secure against retrospective alteration or deletion; and

no ledger account may contain money of more than 1 client, but a client’s account may be subdivided into various matters.


For the purposes of subclause (1), a joint client must be treated as a single client.

Any trust money received by a practice must be recorded promptly and accurately in that practice’s trust account receipt records and the relevant client ledger account.

For the purposes of subclause (3), each such entry of the receipt of trust money must state --
the amount, date, purpose, and source of the receipt; and


the client for whom the trust money is to be held.


Where trust money is paid in cash to a practice, or the payer of the trust money so requests, a receipt must be given to the payer (trust receipt) and a copy of the trust receipt must be retained by the practice in electronic or paper form.
A practice may make transfers or payments from a client’s trust money only if --
the client’s ledger account has sufficient funds and they are available for that purpose; and


the practice obtains the client’s instruction or authority for the transfer or payment, and retains that instruction or authority (if in writing) or a written record of it; and
payments to a third party are made in a form that permits the crediting of the money only to the account of the intended payee; and
transfers to another client are by way of trust journal entry.


Each practice must provide to each client for whom trust money is held a complete and understandable statement of all trust money handled for the client, all transactions in the client’s account, and the balance of the client’s account,
in respect of ongoing investment transactions, at intervals of not more than 12 months; and
in respect of all transactions that are not completed within 12 months, at intervals of not more than 12 months; and
in respect of all other transactions, promptly after or prior to the completion of the transaction.

Trustpak Compliant


Trustpak Compliant


Trustpak Compliant



Trustpak Compliant

User Responsible




Trustpak Compliant


Trustpak Compliant


Trustpak Compliant



Trustpak Compliant


User Responsible

User Responsible

Trustpak Compliant



Trustpak Compliant

Trustpak Compliant
Trustpak Compliant

Trustpak Compliant

Every file has a separate ledger detailing receipts, payments and transfers
No ledger transactions may be altered or deleted

A client may have several matters and each matter has it own separate ledger

Matters for joint clients are treated as a single client.





Receipts detail amount, date, purpose, and source of money receipted.
Matter reference and name of the client are detailed on the receipts
Trust receipts may be printed or re-printed for any receipt

Trustpak by default does not allow overdrawn client ledgers




Trustpak journal allows you to transfer money to another client
Print a statement showing all transactions and the current balance
Print statement anytime
Print statement anytime

Print statement anytime

13.


Form and approval of trust receipts


(1)
- (a)

- (b)

(2)

(3)
- (a)
- (b)
- (c)
- (d)
- (e)
- (f)
- (g)

- (h)
- (i)

Where a practice produces its trust receipts by computer, --
every issue of a trust receipt must be recorded electronically; and

the computer system must, as far as practicable, ensure that the electronic record cannot be altered or deleted.
Where a practice obtains trust receipt forms from an outside supplier, the supplier must first be approved by the relevant society.
All trust receipts must be numbered sequentially and must include the following:
the name of the practice:
the person from whom the trust money is received:
the person to be credited with the trust money:
a brief description of the purpose for which the trust money is received:
the amount, in words and figures, of trust money received:
the date of issue of the trust receipt:
the signature of the practitioner, cashier, or other person authorised by the practice to sign trust receipts:
the words “official receipt form for trust moneys”:
an indication whether the trust money is received by cheque, cash, or bank transfer.


Trustpak Compliant

Trustpak Compliant

User Responsible


Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
User Responsible

Trustpak Compliant
Trustpak Compliant


All trust receipt issues may be input
Trustpak records cannot be altered or deleted



14.


Trust bank accounts


(1)

(2)

Each practice must ensure that each trust bank account is reconciled with the trust ledger as at the end of every month.
The reconciliations must be completed by the tenth working day of the following month (except when the following month is January, in which case they must be completed by the 15th working day of January).

Trustpak Compliant

User Responsible

Trustpak by default is set for monthly reconciliation
Trustpak may be reconciled on any day

15.


Cessation of practice

User Responsible

Regulation
Sub Clause
Description
Compliance
Notes




Part 3 -- Trust account supervisors, reporting, and training


User Responsible





Part 4 -- Audit of practitioners’ trust accounts


User Responsible





Part 5 -- Inspectorates


User Responsible





Part 6 -- Reviews by inspectorates


User Responsible





Part 7 -- Investigations of affairs of practices


User Responsible





Part 8 -- Financial assurance schemes


User Responsible





Part 9 -- Miscellaneous provisions


User Responsible

Trustpak - South Africa Compliance Matrix

Please Note: The following information is a guide to show what rules and sub rules of the Trust Account Regulations Trustpak complies with, some of the items are dependent on the User and this is stated as "User Responsible"


SOURCE: South Africa Legislation: The RULES FOR THE ATTORNEYS’ PROFESSION - 1st of March 2016
http://www.lssa.org.za/legal-practitioners/policy-documents/misc/uniform-rules-for-the-attorneys--profession
PART V of The RULES FOR THE ATTORNEYS’ PROFESSION - ACCOUNTING RULES

Date Checked: 11th July 2018

NOTE: This information is NOT to be used as a reference to Government Trust Account Regulations it is meant only as a guide to show you which part of the regulations we consider Trustpak is compliant with, we cannot guarantee the accuracy of this information beyond the "Date Checked" however we will do our best to keep this matrix up to date. Please note it is the responsibility of each user to make sure they are compliant with the regulations. The information provided here is intended to help with that process.
NOTE: Incorrect installations and modifications to installations may effect Trustpak's compliance with these regulations.

DISCLAIMER: This information is provided with the understanding that the laws governing trust accounting, legal ethics and professional responsibility are always changing. This information is not a substitute for legal advice and may not be suitable in a particular situation. You must make your own judgement on the actual compliance of Trustpak. Infobiz Solutions Pty Ltd, their employees and their representatives, and the author shall not be liable for any damages resulting from any error, inaccuracy, or omission.

Rule
Sub Rule
Description
Compliance
Notes




PART V - ACCOUNTING RULES




Main office


35













35





35



35


35


35

.1












.2




.3


.3.1

.3.2

.4

If a firm at any time administers and controls its practice as a whole from premises in two or more buildings which, in the opinion of the Council, do not constitute such a single composite entity as is contemplated in the definition of 'main office' in rule 1, the Council may require the firm to declare to it in writing, within a time stipulated by the Council, which one or more of those buildings as may constitute such an entity in the opinion of the Council, contains or contain its main office, and thereafter that firm shall administer and control its practice as a whole from the premises so declared. It is specifically provided, however, that if a firm which has its main office within the area of jurisdiction of the Council of another society establishes more than one branch office within the area of jurisdiction of the Council, that firm must declare to the Council which of such branch offices is to be regarded as its main office within the area of jurisdiction of that Council; and the provisions of this rule 35, changed appropriately, will apply in respect of that office.

The Council may make such enquiry as it deems fit, including inspection of the premises concerned, and the practising member concerned shall furnish the Council with such information and render such assistance as it may require to enable it to form an opinion in terms of rule 35.1.

A declaration made by a practising member under rule 35.1 shall remain effective until such time as he or she:

moves his or her main office from the premises which are the subject of the declaration; or

makes a declaration in terms of rule 35.1 in respect of other premises.

Should a firm fail to make a declaration under rule 35.1 within the time stipulated by the Council, the Council may by notice in writing to the firm determine which of the premises concerned constitutes its main office, whereupon the remaining provisions of rules 35.1, 35.2 and 35.3 shall apply as though those premises had been so declared by the firm.

Rule 35.1 to Rule 35.4 All User Responsible



















Accounting Requirements - General


35






35



35



35



35



35


35

.5






.5.1


.5.2


.5.3

.5.3.1

.5.3.2

.5.3.3

.5.3.4

A firm shall keep in an official language of the Republic such accounting records as are necessary to enable the firm to satisfy its obligations in terms of the Act, these rules and any other law with respect to the preparation of financial statements that present fairly and in accordance with an acceptable financial reporting framework in South Africa the state of affairs and business of the firm and to explain the transactions and financial position of the firm including, without derogation from the generality of this rule:

records showing all assets and liabilities as required in terms of sections 78(4) and 78(6) of the Act;

records containing entries from day to day of all monies received and paid by it on its own account, as required by sections 78(4) and 78(6) of the Act;

records containing particulars and information of:

all monies received, held and paid by it for and on account of any person;

all monies invested by it in terms of section 78(2) or section 78(2A) of the Act;

any interest referred to in section 78(3) of the Act which is paid over or credited to it;

any interest credited to or in respect of any separate trust savings.

Rule 35.5 to Rule 35.5.3.4 General Accounting and other user responsible items.



















Acceptable financial reporting framework


35

35


35



35


35

.6

.6.1

.6.1.1


.6.1.2

.6.2

For purposes of these rules:

acceptable financial reporting frameworks which are to be recognised and applied are:

"IFRS" being International Financial Reporting Standards as issued from time to time by the International Reporting Standards Board, or its successor body;

"IFRS for SMEs", being IFRS for Small and Medium Enterprises.

In determining what is meant by "acceptable financial reporting frameworks" regard shall be had, inter alia, to any rulings of the Council published to members with respect to specific additional disclosures required to be made in the financial statements or trust account schedules.

IFRS applies to General Accounting



















Distinguishing between trust account and business account transactions:


35

.7

The accounting records shall distinguish in readily discernible form between business account transactions and trust account transactions.

User Responsible




Retention of accounting records and files


35


35


35




35




35

.8


.8.1


.8.2




.8.2.1



.8.2.2

A firm shall retain its accounting records, and all files and documents relating to matters dealt with by the firm on behalf of clients:

for at least five years from the date of the last entry recorded in each particular book or other document of record or file;

save with the prior written consent of the Council, or when removed therefrom under other lawful authority, at no place other than its main office, a branch office or, in the case of electronic accounting records or files, the location at which such accounting records or files are ordinarily hosted; provided that:

in the case of electronic accounting records or files hosted offsite, such records or files shall always be reasonably secured and shall remain immediately accessible to authorised persons from the office of the firm, and to the Council; and

in the case of a branch office, only insofar as they relate to any part of its practice conducted at that branch office.

Rule 35.8 to Rule 35.8.2.2 User Responsible



















Updating accounting records


35

.9

A firm shall update and balance its accounting records monthly and shall be deemed to comply with this rule if, inter alia, its accounting records have been written up by the last day of the following month.

User Responsible however Trustpak defaults to monthly reconciliation.




Trust money to be kept separate from other money


35




35



35



35


35


35

.10




.10.1


.10.2


.10.2.1

.10.2.2

.10.2.3

Trust money shall in no circumstances be deposited in or credited to a business banking account. Money other than trust money found in a trust banking account at any time shall be transferred to a business banking account without undue delay. A firm shall be deemed to have complied sufficiently with this rule if it:

makes transfers from its trust banking account to its business banking account at least once a month; and

ensures that, when making a transfer from its trust banking account to its business banking account:

the amount transferred is identifiable with, and does not exceed, the amount due to it;

the trust creditor from whose account the transfer is made is identified; and

the balance of any amount due to it remaining in its trust banking account is capable of identification with corresponding entries appearing in its trust ledger.

User responsible, Trustpak transfers done via Control Accounts.


Transfer to bus acc done via Control Accounts




All business transfers done via Control Accounts
Journal to control

All Amounts connected to file matters.












Full History kept

Audit history retained.

Client details on all file matters.



Accounting to clients


35



35



35


35




35

.11



.11.1.1


.11.1.2

.11.1.3



.11.1.4

Every firm shall, within a reasonable time after the performance or earlier termination of any mandate, account to its client in writing and retain a copy of each such account for not less than five years; each account shall contain details of:

all amounts received by it in connection with the matter concerned, appropriately explained;

all disbursements and other payments made by it in connection with the matter;

all fees and other charges charged to or raised against the client and, where any fee represents an agreed fee, a statement that such fee was agreed upon and the amount so agreed;

the amount owing to or by the client.

Ledger history statement available for each file matter.

Purpose Recorded


All payments recorded.

General Accounting


General Accounting










Payment to clients


35

.12

A firm shall, unless otherwise instructed, pay any amount due to a client within a reasonable time.

User Responsible




Accounting Requirements - Trust Account Transactions


35

35


35




35

35


35



35



35





35

.13.1

.13.2


.13.3




.13.4

.13.4.1


.13.4.2



.13.5



.13.6





.13.7

A firm shall maintain its accounting records in terms of the Act and these rules.

A firm shall report to the society forthwith, in writing, any loss, theft or destruction of any such records.

A firm shall, in the case of the accounting records being computerised, make monthly back-ups which shall be kept in a safe, fireproof place remote from the firm or, in the case of accounting records being in the form of manual books of account, by ensuring that, outside normal business hours, such records are kept in a safe place.

If the firm keeps any of its accounting records in electronic form, the firm shall:

provide adequate precautions against loss of the records as a result of damage to or failure of the media in which the records are maintained; and

ensure that the records are at all times capable of being retrieved to a readable and printable form, including by converting the records from legacy to later systems or software from time to time.

A firm shall, where the firm utilises electronic banking in respect of payments from the trust account, keep a proper audit trail, which shall include verification of the payee's banking account details.

The firm's accounting records shall not, save with the prior written consent of Council or under lawful authority, and except for electronic records in terms of rule 35.13.2 and backups of computerised records, be maintained at any place other than its main office or branch office, but in the latter instance, only insofar as they relate to any part of its practice conducted at that branch.

A firm shall ensure:

User Responsible

User responsible


Trustpak backups to Google Drive.





Offsite backup to Google Drive.

Export data via reports to data files.


Full audit history & saved deposit slips.


User Responsible.










Internal controls


35


35

35

35


35

.13.7.1


.13.7.1.1

.13.7.1.2

.13.7.1.3


.13.7.1.4

that adequate internal controls are implemented to ensure compliance with these rules and to ensure that trust funds are safeguarded; and in particular to ensure -

that the design of the internal controls is appropriate to address identified risks;

that the internal controls have been implemented as designed

that the internal controls which have been implemented operate effectively throughout the period;

that the effective operation of the internal controls is monitored regularly by designated persons in the firm having the appropriate authority;

User Responsible


User Responsble

User Responsible

User Responsible


User Responsible










Prompt depositing of trust monies


35

.13.7.1.5

that all money received by it on account of any person is deposited intact into its trust banking account on the date of its receipt or the first banking day following its receipt on which it might reasonably be expected that it would be banked;

User Responsible




Transfers for trust investment account


35

.13.7.1.6

unless the firm has received written authorisation for the payment of any guarantees issued by a bank on the strength of a trust investment, that any amount withdrawn by it from a trust investment account is deposited promptly by it in its trust banking account.

User Responsible




Trust balances not to exceed trust moneys


35

.13.8

A firm shall ensure that the total amount of money in its trust banking account, trust investment account and trust cash at any date shall not be less than the total amount of the credit balances of the trust creditors shown in its accounting records.

User Responsible




Trust accounts not to be in debit


35

.13.9

A firm shall ensure that no account of any trust creditor is in debit.

Trustpak by default does not allow overdrawn trust accounts.




Reports to society of non-compliance


35




35

.13.10




.13.11

A firm shall immediately report in writing to the society should the total amount of money in its trust bank accounts and money held as trust cash be less than the total amount of credit balances of the trust creditors shown in its accounting records, together with a written explanation of the reason for the debit and proof of rectification.

A firm shall immediately report in writing to the society should an account of any trust creditor be in debit, together with a written explanation of the reason for the debit and proof of rectification.

User Responsible




User Responsible






Trustpak by default does not allow overdrawn trust accounts.



Transfer from trust bank account to business bank account


35

.13.12

A firm shall employ and maintain a system to ensure that the requirements of these rules are not infringed when amounts are transferred from its trust banking account to its business banking account.

User Responsible

Trustpak maintains a control account for business transfers.



Deposits on account of charges


35

.13.13

Amounts received by a firm in advance to cover a prospective liability for services rendered or to be rendered or for disbursements (including counsel's fees) to be made must be deposited forthwith to the credit of its trust banking account.

User Responsible

Trustpak issues receipts for funds received.



Withdrawals from trust banking account


35

35

35




35

35

35

.13.14

.13.14.1

.13.14.2




.13.14.2.1

.13.14.2.2

.13.14.2.3

Withdrawals from a firm's trust banking account shall be made only:

to or for a trust creditor, or

as transfers to the firm's business banking account, provided that such transfers shall be made only in respect of money due to the firm; and provided that no transfer from its trust banking account to its business banking account is made in respect of any disbursement (including counsel's fees or fees of the firm) unless:

the disbursements have actually been made and debited by the firm; or

a contractual obligation has arisen on the part of the firm to pay the disbursement; or

fees and disbursement have been correctly debited in its accounting records



User Responsible

User Responsible




User Responsible

User Responsible

User Responsible










Payments from trust banking account


35


35


35

.13.15.1


.13.15.2


.13.15.3

Any cheque drawn on a firm's trust banking account shall be made payable to or to the order of a payee specifically designated.

Payments from the trust banking account of a firm shall only be by cheque or electronic transfer.

No withdrawals from the trust banking account of a firm may be made by way of cellular and telephone transacting.

User Responsible


Trustpak supports both payment types.

User Responsible

Trustpak prints cheques directly from the software



Interest accrued on trust banking account


35

.13.16

The trust interest earned on a firm's trust banking account shall be paid over to the Attorneys Fidelity Fund or its nominee at such times and in such manner as shall be prescribed.

User Responsible




Lists of balances


35







35


35

.14.1







.14.2


.14.3

Every firm shall extract at intervals of not more than three calendar months, and in a clearly legible manner, a list showing all persons on whose account money is held or has been received and the amount of all such moneys standing to the credit of each such person, who shall be identified therein by name, and shall total such list and compare the said total with the total of the balance standing to the credit of the firm's trust banking account, trust investment account and amounts held by it as trust cash, in order to ensure compliance with rule 35.13.7.

The balance listed in respect of each such account shall also be noted in some permanent, prominent and clear manner in the ledger account from which the balance was extracted.

Each such list shall be part of the accounting records of the firm to be retained for the five-year period referred to in rule 35.8.

Trustpak Compliant







Trustpak Compliant


Copies maybe printed at any time.

Trustpak list all clients Trust account ledgers in a single report.





Each account has its own detailed ledger report



Notification of trust banking account


35

35



35

.15.1

.15.2



.15.3

Every firm shall:

immediately notify the society in writing of the name and address of the bank or banks at which its trust banking account or accounts are kept and shall thereafter notify the Council immediately of any change in the name and address of such bank or banks;

whenever so required by the Council, furnish to the Council within ten days or such longer period as the Council may stipulate, a signed statement issued by the bank or banks with which it keeps its trust banking account or accounts and a signed statement issued by the bank with which the firm keeps any trust investment account, certifying the amount of the balance of such trust banking account or accounts or trust investment account at such date or dates as may be specified by the Council.



User Responsible



User Responsible




Trust account investments in terms of section 78(2A)


35


35


35


35


35

.16


.16.1


.16.2


.16.3


.17

A member, who invests funds on behalf of any person shall, in addition to all other requirements applicable to the holding or investment of trust money:

not invest such funds other than in a trust savings or other interest-bearing account with a bank;

obtain that person's written confirmation of the investment as soon as is reasonably possible, or notify him forthwith thereof in writing; and

forthwith cause the relevant trust savings or other interest-bearing account to be endorsed in terms of section 78(2A) of the Act.

A member shall not, in connection with any mandate which the member has accepted to invest trust funds, agree or arrange to receive from a bank any commission, fee or other reward, without having disclosed such commission, fee or reward to the client in writing.




User Responsible


User Responsible


User Responsible


User Responsible




Responsibility for ensuring compliance


35

.13.18

Every partner of a firm, and every director of a personal liability company, will be responsible for ensuring that the provisions of the Act and of those rules relating to trust accounts of the firm are complied with.

User Responsible

Trustpak - USA Compliance Matrix

Compliance is based on a state by state basis, laws and or regulations governing trust accounting may differ considerably between each state

Please Note: The following information is a guide to show what rules and sub rules of the Practice Laws Trustpak complies with, some of the items are dependent on the User and this is stated as "User Responsible"


Note: Our research of Trustpak USA compliance is based on Attorney/Lawyer Rules of General Trust accounts & IOLTA Trust Accounts.



SOURCE: CONNECTICUT - PRACTICE BOOK - RULES OF PROFESSIONAL CONDUCT RULE 1.15 Safekeeping Property
RULE: 1.15. - Safekeeping Property

Date Checked: 4th July 2018

NOTE: This information is NOT to be used as a reference to Government Trust Account Laws and or Regulations, it is meant only as a guide to show you which part of the regulations Trustpak is compliant with, we cannot guarantee the accuracy of this information beyond the "Date Checked" however we will do our best to keep this matrix up to date. Please note it is the responsibility of each user to make sure they are compliant with the regulations. The information provided here is intended to help with that process.

NOTE: Incorrect installations and modifications to installations may effect Trustpak's compliance with these regulations.

DISCLAIMER: This information is provided with the understanding that the laws governing trust accounting, legal ethics and professional responsibility are always changing. This information is not a substitute for legal advice and may not be suitable in a particular situation. You must make your own judgement on the actual compliance of Trustpak. Infobiz Solutions Pty Ltd, their employees and their representatives, and the author shall not be liable for any damages resulting from any error, inaccuracy, or omission.

Rule
Paragraph
Description
Compliance
Notes


1.15.



Safekeeping Property



(a)

As used in this Rule, the terms below shall have the following meanings:



- (1)



- (2)









- (3)





- (4)











- (5)







- (6)


- (7)

"Allowable reasonable fees" for IOLTA accounts are per check charges, per deposit charges, a fee in lieu of a minimum balance, federal deposit insurance fees, sweep fees, and a reasonable IOLTA account administrative or maintenance fee.

An "eligible institution" means (i) a bank or savings and loan association authorized by federal or state law to do business in Connecticut, the deposits of which are insured by an agency of the United States government, or (ii) an openend investment company registered with the United States Securities and Exchange Commission and authorized by federal or state law to do business in Connecticut. In addition, an eligible institution shall meet the requirements set forth in subsection (i) (3) below. The determination of whether or not an institution is an eligible institution shall be made by the organization designated by the judges of the superior court to administer the program pursuant to subsection (i) (4) below, subject to the dispute resolution process provided in subsection (i) (4) (E) below.

"Federal Funds Target Rate" means the target level for the federal funds rate set by the Federal Open Market Committee of the Board of Governors of the Federal Reserve System from time to time or, if such rate is no longer available, any comparable successor rate. If such rate or successor rate is set as a range, the term ``Federal Funds Target Rate'' means the upper limit of such range.

"Interest- or dividend-bearing account" means (i) an interest-bearing checking account, or (ii) an investment product which is a daily (overnight) financial institution repurchase agreement or an open-end money market fund. A daily financial institution repurchase agreement must be fully collateralized by U.S. Government Securities and may be established only with an eligible institution that is "well-capitalized" or "adequately capitalized" as those terms are defined by applicable federal statutes and regulations. An open-end money market fund must be invested solely in U.S. Government Securities or repurchase agreements fully collateralized by U.S. Government Securities, must hold itself out as a "money market fund" as that term is defined by federal statutes and regulations under the Investment Company Act of 1940 and, at the time of the investment, must have total assets of at least $250,000,000.

"IOLTA account" means an interest- or dividend- bearing account established by a lawyer or law firm for clients' funds at an eligible institution from which funds may be withdrawn upon request by the depositor without delay. An IOLTA account shall include only client or third person funds, except as permitted by subsection (i) (6) below. The determination of whether or not an interest- or dividend-bearing account meets the requirements of an IOLTA account shall be made by the organization designated by the judges of the superior court to administer the program pursuant to subsection (i) (4) below.

"Non-IOLTA account" means an interestor dividend-bearing account, other than an IOLTA account, from which funds may be withdrawn upon request by the depositor without delay.

"U.S. Government Securities" means direct obligations of the United States government, or obligations issued or guaranteed as to principal and interest by the United States or any agency or instrumentality thereof, including United States government-sponsored enterprises, as such term is defined by applicable federal statutes and regulations.

Term



Term









Term





Term











Term







Term


Term










(b)

A lawyer shall hold property of clients or third persons that is in a lawyer's possession in connection with a representation separate from the lawyer's own property. Funds shall be kept in a separate account maintained in the state where the lawyer's office is situated or elsewhere with the consent of the client or third person. Other property shall be identified as such and appropriately safeguarded. Complete records of such account funds and other property shall be kept by the lawyer and shall be preserved for a period of seven years after termination of the representation.

User Responsible


(c)

A lawyer may deposit the lawyer's own funds in a client trust account for the sole purposes of paying bank service charges on that account or obtaining a waiver of fees and service charges on the account, but only in an amount necessary for those purposes.

User Responsible


(d)

Absent a written agreement with the client otherwise, a lawyer shall deposit into a client trust account legal fees and expenses that have been paid in advance, to be withdrawn by the lawyer only as fees are earned or expenses incurred.

User Responsible


(e)

Upon receiving funds or other property in which a client or third person has an interest, a lawyer shall promptly notify the client or third person. Except as stated in this Rule or otherwise permitted by law or by agreement with the client or third person, a lawyer shall promptly deliver to the client or third person any funds or other property that the client or third person is entitled to receive and, upon request by the client or third person, shall promptly render a full accounting regarding such property.

User Responsible


(f)

When in the course of representation a lawyer is in possession of property in which two or more persons (one of whom may be the lawyer) have interests, the property shall be kept separate by the lawyer until any competing interests are resolved. The lawyer shall promptly distribute all portions of the property as to which the lawyer is able to identify the parties that have interests and as to which there are no competing interests. Where there are competing interests in the property or a portion of the property, the lawyer shall segregate and safeguard the property subject to the competing interests.

User Responsible


(g)

The word "interest(s)" as used in this subsection and subsections (e) and (f) means more than the mere assertion of a claim by a third party. In the event a lawyer is notified by a third party or a third party's agent of a claim to funds held by the lawyer on behalf of a client, but it is unclear to the lawyer whether the third party has a valid interest within the meaning of this Rule, the lawyer may make a written request that the third party or third party's agent provide the lawyer such reasonable information and/or documentation as needed to assist the lawyer in determining whether substantial grounds exist for the third party's claim to the funds. If the third party or third party's agent fails to comply with such a request within sixty days, the lawyer may distribute the funds in question to the client.

User Responsible


(h)

Notwithstanding subsections (b), (c), (d), (e) and (f), lawyers and law firms shall participate in the statutory program for the use of interest earned on lawyers' clients' funds accounts to provide funding for the delivery of legal services to the poor by nonprofit corporations whose principal purpose is providing legal services to the poor and for law school scholarships based on financial need. Lawyers and law firms shall place a client's or third person's funds in an IOLTA account if the lawyer or law firm determines, in good faith, that the funds cannot earn income for the client in excess of the costs incurred to secure such income. For the purpose of making this good faith determination of whether a client's funds cannot earn income for the client in excess of the costs incurred to secure such income, the lawyer or law firm shall consider the following factors:

User Responsible


- (1)

- (2)


- (3)


- (4)



- (5)


- (6)


- (7)

The amount of the funds to be deposited;

the expected duration of the deposit, including the likelihood of delay in resolving the relevant transaction, proceeding or matter for which the funds are held;

the rates of interest, dividends or yield at eligible institutions where the funds are to be deposited;

the costs associated with establishing and administering interest-bearing accounts or other appropriate investments for the benefit of the client, including service charges, minimum balance requirements or fees imposed by the eligible institutions;

the costs of the services of the lawyer or law firm in connection with establishing and maintaining the account or other appropriate investments;

the costs of preparing any tax reports required for income earned on the funds in the account or other appropriate investments; and

any other circumstances that affect the capability of the funds to earn income for the client in excess of the costs incurred to secure such income. No lawyer shall be subject to discipline for determining in good faith to deposit funds in the interest earned on lawyers' clients' funds account in accordance with this subsection.

User Responsible

User Responsible


User Responsible


User Responsible



User Responsible


User Responsible


User Responsible










(i)

An IOLTA account may only be established at an eligible institution that meets the following requirements:



- (1)

- (2)


--- (A)




--- (B)







--- (C)


- (3)



--- (A)





















--- (B)


--- (C)











- (4)







--- (A)



--- (B)
















--- (C)

--- (D)

--- (E)



- (5)



--- (A)





--- (B)


--- (C)




--- (D)




--- (E)

--- (F)




- (6)




--- (A)


--- (B)

No earnings from the IOLTA account shall be made available to a lawyer or law firm.

Lawyers or law firms depositing a client's or third person's funds in an IOLTA account shall direct the depository institution:

To remit interest or dividends, net of allowable reasonable fees, if any, on the average monthly balance in the account, or as otherwise computed in accordance with the institution's standard accounting practices, at least quarterly, to the organization designated by the judges of the superior court to administer this statutory program;

To transmit to the organization administering the program with each remittance a report that identifies the name of the lawyer or law firm for whom the remittance is sent, the amount of remittance attributable to each IOLTA account, the rate and type of interest or dividends applied, the amount of interest or dividends earned, the amount and type of fees and service charges deducted, if any, and the average account balance for the period for which the report is made and such other information as is reasonably required by such organization; and

To transmit to the depositing lawyer or law firm at the same time a report in accordance with the institution's normal procedures for reporting to its depositors.

Participation by banks, savings and loan associations, and investment companies in the IOLTA program is voluntary. An eligible institution that elects to offer and maintain IOLTA accounts shall meet the following requirements:

The eligible institution shall pay no less on its IOLTA accounts than the highest interest rate or dividend generally available from the institution to its non-IOLTA customers when the IOLTA account meets or exceeds the same minimum balance or other eligibility qualifications on its non- IOLTA accounts, if any. In determining the highest interest rate or dividend generally available from the institution to its non-IOLTA customers, an eligible institution may consider, in addition to the balance in the IOLTA account, factors customarily considered by the institution when setting interest rates or dividends for its non-IOLTA customers, provided that such factors do not discriminate between IOLTA accounts and non-IOLTA accounts and that these factors do not includethe fact that the account is an IOLTA account. In lieu of the rate set forth in the first sentence of this subparagraph, an eligible institution may pay a rate equal to the higher of either (i) one percent per annum, or (ii) sixty percent of the Federal Funds Target Rate. Such alternate rate shall be determined for each calendar quarter as of the first business day of such quarter and shall be deemed net of allowable reasonable fees and service charges. The eligible institution may offer, and the lawyer or law firm may request, a sweep account that provides a mechanism for the overnight investment of balances in the IOLTA account in an interest- or dividend-bearing account that is a daily financial institution repurchase agreement or a money market fund. Nothing in this Rule shall preclude an eligible institution from paying a higher interest rate or dividend than described above or electing to waive any fees and service charges on an IOLTA account. An eligible institution may choose to pay the higher interest or dividend rate on an IOLTA account in lieu of establishing it as a higher rate product.

Interest and dividends shall be calculated in accordance with the eligible institution's standard practices for non-IOLTA customers.

Allowable reasonable fees are the only fees and service charges that may be deducted by an eligible institution from interest earned on an IOLTA account. Allowable reasonable fees may be deducted from interest or dividends on an IOLTA account only at the rates and in accordance with the customary practices of the eligible institution for non-IOLTA customers. No fees or service charges other than allowable reasonable fees may be assessed against the accrued interest or dividends on an IOLTA account. Any fees and service charges other than allowable reasonable fees shall be the sole responsibility of, and may only be charged to, the lawyer or law firm maintaining the IOLTA account. Fees and service charges in excess of the interest or dividends earned on one IOLTA account for any period shall not be taken from interest or dividends earned on any other IOLTA account or accounts or from the principal of any IOLTA account.

The judges of the superior court, upon recommendation of the chief court administrator, shall designate an organization qualified under Sec. 501 (c) (3) of the Internal Revenue Code, or any subsequent corresponding Internal Revenue Code of the United States, as from time to time amended, to administer the program. The chief court administrator shall cause to be printed in the Connecticut Law Journal an appropriate announcement identifying the designated organization. The organization administering the program shall comply with the following:

Each June mail to each judge of the superior court and to each lawyer or law firm participating in the program a detailed annual report of all funds disbursed under the program including the amount disbursed to each recipient of funds;

Each June submit the following in detail to the chief court administrator for approval and comment by the Executive Committee of the superior court: (i) its proposed goals and objectives for the program; (ii) the procedures it has established to avoid discrimination in the awarding of grants; (iii) information regarding the insurance and fidelity bond it has procured; (iv) a description of the recommendations and advice it has received from the Advisory Panel established by General Statutes § 51-81c and the action it has taken to implement such recommendations and advice; (v) the method it utilizes to allocate between the two uses of funds provided for in § 51-81c and the frequency with which it disburses funds for such purposes; (vi) the procedures it has established to monitor grantees to ensure that any limitations or restrictions on the use of the granted funds have been observed by the grantees, such procedures to include the receipt of annual audits of each grantee showing compliance with grant awards and setting forth quantifiable levels of services that each grantee has provided with grant funds; (vii) the procedures it has established to ensure that no funds that have been awarded to grantees are used for lobbying purposes; and (viii) the procedures it has established to segregate funds to be disbursed under the program from other funds of the organization;

Allow the judicial branch access to its books and records upon reasonable notice;

Submit to audits by the judicial branch; and

Provide for a dispute resolution process for resolving disputes as to whether a bank, savings and loan association, or open-end investment company is an eligible institution within the meaning of this Rule.

Before an organization may be designated to administer this program, it shall file with the chief court administrator, and the judges of the superior court shall have approved, a resolution of the board of directors of such an organization which includes provisions:

Establishing that all funds the organization might receive pursuant to subsection (i) (2) (A) above will be exclusively devoted to providing funding for the delivery of legal services to the poor by nonprofit corporations whose principal purpose is providing legal services to the poor and for law school scholarships based on financial need and to the collection, management and distribution of such funds;

Establishing that all interest and dividends earned on such funds, less allowable reasonable fees, if any, shall be used exclusively for such purposes;

Establishing and describing the methods the organization will utilize to implement and administer the program and to allocate funds to be disbursed under the program, the frequency with which the funds will be disbursed by the organization for such purposes, and the segregation of such funds from other funds of the organization;

Establishing that the organization shall consult with and receive recommendations from the Advisory Panel established by General Statutes § 51-81c regarding the implementation and administration of the program, including the method of allocation and the allocation of funds to be disbursed under such program;

Establishing that the organization shall comply with the requirements of this Rule; and

Establishing that said resolution will not be amended, and the facts and undertakings set forth in it will not be altered, until the same shall have been approved by the judges of the superior court and ninety days have elapsed after publication by the chief court administrator of the notice of such approval in the Connecticut Law Journal.

Nothing in this subsection (i) shall prevent a lawyer or law firm from depositing a client's or third person's funds, regardless of the amount of such funds or the period for which such funds are expected to be held, in a separate non-IOLTA account established on behalf of and for the benefit of the client or third person. Such an account shall be established as:

A separate clients' funds account for the particular client or third person on which the interest or dividends will be paid to the client or third person; or

A pooled clients' funds account with subaccounting by the bank, savings and loan association or investment company or by the lawyer or law firm, which provides for the computation of interest or dividends earned by each client's or third person's funds and the payment thereof to the client or third person.

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Org. Administering







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Org. Administering

Org. Administering




User Responsible




Trustpak Compliant


Trustpak Compliant










(j)

A lawyer who practices in this jurisdiction shall maintain current financial records as provided in this Rule and shall retain the following records for a period of seven years after termination of the representation:

User Responsible


- (1)



- (2)




- (3)


- (4)


- (5)

- (6)

- (7)



- (8)




- (9)


- (10)

receipt and disbursement journals containing a record of deposits to and withdrawals from client trust accounts, specifically identifying the date, source, and description of each item deposited, as well as the date, payee and purpose of each disbursement;

ledger records for all client trust accounts showing, for each separate trust client or beneficiary, the source of all funds deposited, the names of all persons for whom the funds are or were held, the amount of such funds, the descriptions and amounts of charges or withdrawals, and the names of all persons or entities to whom such funds were disbursed;

copies of retainer and compensation agreements with clients as required by Rule 1.5 of the Rules of Professional Conduct;

copies of accountings to clients or third persons showing the disbursement of funds to them or on their behalf;

copies of bills for legal fees and expenses rendered to clients;

copies of records showing disbursements on behalf of clients;

the physical or electronic equivalents of all checkbook registers, bank statements, records of deposit, prenumbered canceled checks, and substitute checks provided by a financial institution;

records of all electronic transfers from client trust accounts, including the name of the person authorizing transfer, the date of transfer, the name of the recipient and confirmation from the financial institution of the trust account number from which money was withdrawn and the date and the time the transfer was completed;

copies of monthly trial balances and at least quarterly reconciliations of the client trust accounts maintained by the lawyer; and

copies of those portions of client files that are reasonably related to client trust account transactions.

Trustpak Compliant



Trustpak Compliant




User Responsible


Trustpak Compliant


User Responsible

Trustpak Compliant

User Responsible



Trustpak Compliant




Trustpak Compliant


Trustpak Compliant

All details recorded



All details recorded







Client Statements


User Billing System

Client Statements

User Bank Responsible



All details recorded




Copy auto saved


All details recorded


(k)

With respect to client trust accounts required by this Rule:



- (1)



- (2)


- (3)

only a lawyer admitted to practice law in this jurisdiction or a person under the direct supervision of the lawyer shall be an authorized signatory or authorize transfers from a client trust account;

receipts shall be deposited intact and records of deposit should be sufficiently detailed to identify each item; and

withdrawals shall be made only by check payable to a named payee or by authorized electronic transfer and not to cash.

User Responsible



Trustpak Compliant


Trustpak Compliant





Sufficient detail recorded


Trustpak Supports Check & EFT


(l)

The records required by this Rule may be maintained by electronic, photographic, or other media provided that they otherwise comply with these Rules and that printed copies can be produced. These records shall be readily accessible to the lawyer.

Trustpak Compliant

All Reports Printable


(m)

Upon dissolution of a law firm or of any legal professional corporation, the partners shall make reasonable arrangements for the maintenance of client trust account records specified in this Rule.

User Responsible



(n)

Upon the sale of a law practice, the seller shall make reasonable arrangements for the maintenance of records specified in this Rule.

User Responsible
SOURCE: MARYLAND CODE AND COURT RULES - RULE 19 Chapter 400. Attorney Trust Accounts
RULE 19 Chapter 400. Attorney Trust Accounts

Date Checked: 4th July 2018

NOTE: This information is NOT to be used as a reference to Government Trust Account Laws and or Regulations, it is meant only as a guide to show you which part of the regulations Trustpak is compliant with, we cannot guarantee the accuracy of this information beyond the "Date Checked" however we will do our best to keep this matrix up to date. Please note it is the responsibility of each user to make sure they are compliant with the regulations. The information provided here is intended to help with that process.

NOTE: Incorrect installations and modifications to installations may effect Trustpak's compliance with these regulations.

DISCLAIMER: This information is provided with the understanding that the laws governing trust accounting, legal ethics and professional responsibility are always changing. This information is not a substitute for legal advice and may not be suitable in a particular situation. You must make your own judgement on the actual compliance of Trustpak. Infobiz Solutions Pty Ltd, their employees and their representatives, and the author shall not be liable for any damages resulting from any error, inaccuracy, or omission.

Rule
Paragraph
Description
Compliance
Notes


19.400



Attorney Trust Accounts


19-401


Applicability.

User Responsible


The Rules in this Chapter apply to all trust accounts required by law to be maintained by attorneys for the deposit of funds that belong to others, except that these Rules do not apply to a fiduciary account maintained by an attorney as personal representative, trustee, guardian, custodian, receiver, or committee, or as a fiduciary under a written instrument or order of court.






19-402


Definitions.


19-403


DUTY TO MAINTAIN ACCOUNT.

User Responsible


An attorney or the attorney's law firm shall maintain one or more attorney trust accounts for the deposit of funds received from any source for the intended benefit of clients or third persons. The account or accounts shall be maintained in this State, in the District of Columbia, or in a state contiguous to this State, and shall be with an approved financial institution. Unless an attorney maintains such an account, or is a member of or employed by a law firm that maintains such an account, an attorney may not receive and accept funds as an attorney from any source intended in whole or in part for the benefit of a client or third person.






19-404


TRUST ACCOUNT--REQUIRED DEPOSITS.

User Responsible


Except as otherwise permitted by rule or other law, all funds, including cash, received and accepted by an attorney or law firm in this State from a client or third person to be delivered in whole or in part to a client or third person, unless received as payment of fees owed the attorney by the client or in reimbursement for expenses properly advanced on behalf of the client, shall be deposited in an attorney trust account in an approved financial institution. This Rule does not apply to an instrument received by an attorney or law firm that is made payable solely to a client or third person and is transmitted directly to the client or third person.






19-405


DUTY OF ATTORNEY TO NOTIFY INSTITUTION.

User Responsible





(a)


(b)

An attorney may not exercise any authority to sign checks or disburse or withdraw funds from an attorney trust account until the attorney in writing:

Requests the financial institution to designate the account on its records as an attorney trust account, and

Authorizes the financial institution to report to Bar Counsel any dishonored instruments or overdrafts in the account as required by the agreement under Rule 19-411 between the institution and the Commission.





19-406


NAME AND DESIGNATION OF ACCOUNT

User Responsible


An attorney or law firm shall maintain each attorney trust account with a title that includes the name of the attorney or law firm and that clearly designates the account as “Attorney Trust Account”, “Attorney Escrow Account”, or “Clients' Funds Account” on all checks and deposit slips. The title shall distinguish the account from any other fiduciary account that the attorney or law firm may maintain and from any personal or business account of the attorney or law firm.






19-407


ATTORNEY TRUST ACCOUNT RECORD-KEEPING

All User Responsible


(a)


-- (1)




-- (2)


---- (A)



---- (B)




---- (C)






-- (3)


---- (A)





---- (B)


-- (4)


(b)







(c)






(d)

Creation of Records. The following records shall be created and maintained for the receipt and disbursement of funds of clients or of third persons:

Attorney Trust Account Identification. An identification of all attorney trust accounts maintained, including the name of the financial institution, account number, account name, date the account was opened, date the account was closed, and an agreement with the financial institution establishing each account and its interest-bearing nature.

Deposits and Disbursements. A record for each account that chronologically shows all deposits and disbursements, as follows:

for each deposit, a record made at or near the time of the deposit that shows (i) the date of the deposit, (ii) the amount, (iii) the identity of the client or third person for whom the funds were deposited, and (iv) the purpose of the deposit;

for each disbursement, including a disbursement made by electronic transfer, a record made at or near the time of disbursement that shows (i) the date of the disbursement, (ii) the amount, (iii) the payee, (iv) the identity of the client or third person for whom the disbursement was made (if not the payee), and (v) the purpose of the disbursement;

for each disbursement made by electronic transfer, a written memorandum authorizing the transaction and identifying the attorney responsible for the transaction.

Cross reference: See Rule 19-410 (c), which provides that a disbursement that would create a negative balance with respect to any individual client matter or with respect to all client matters in the aggregate is prohibited.

Client Matter Records. A record for each client matter in which the attorney receives funds in trust, as follows:

for each attorney trust account transaction, a record that shows (i) the date of the deposit or disbursement; (ii) the amount of the deposit or disbursement; (iii) the purpose for which the funds are intended; (iv) for a disbursement, the payee and the check number or other payment identification; and (v) the balance of funds remaining in the account in connection with the matter; and

an identification of the person to whom the unused portion of a fee or expense deposit is to be returned whenever it is to be returned to a person other than the client.

Record of Funds of the Attorney. A record that identifies the funds of the attorney held in each attorney trust account as permitted by Rule 19-408 (b).

Monthly Reconciliation. An attorney shall cause to be created a monthly reconciliation of all attorney trust account records, client matter records, records of funds of the attorney held in an attorney trust account as permitted by Rule 19-408 (b), and the adjusted month-end financial institution statement balance. The adjusted month-end financial institution statement balance is computed by adding subsequent deposits to and subtracting subsequent disbursements from the financial institution's month-end statement balance.

Electronic Records. Whenever the records required by this Rule are created or maintained using electronic means, there must be an ability to print a paper copy of the records upon a reasonable request to do so.

Committee note: Electronic records should be backed up regularly by an appropriate storage device.

Records to be Maintained. Financial institution month-end statements, any canceled checks or copies of canceled checks provided with a financial institution month-end statement, duplicate deposit slips or deposit receipts generated by the financial institution, and records created in accordance with section (a) of this Rule shall be maintained for a period of at least five years after the date the record was created.

Committee note: An attorney or law firm may satisfy the requirements of section (d) of this Rule by maintaining any of the following items: original records, photocopies, microfilm, optical imaging, electronic records, or any other medium that preserves the required data for the required period of time and from which a paper copy can be printed.












Trustpak Compliant



Trustpak Compliant




Trustpak Compliant


Trustpak Compliant






Trustpak Compliant





User Responsible


Trustpak Compliant


Trustpak Compliant







Trustpak Compliant



Trustpak Compliant


User Responsible





User Responsible












Recorded in database



Recorded in database




Trustpak Prints Remittance Advice

Trustpak by default does not allow overdrawn trust accounts




Recorded in database








Trustpak Holding Account


Trustpak Reconciliation







Trustpak Reports



Backup to Google Drive offsite

19-408


COMMINGLING OF FUNDS.

All User Responsible


(a)



(b)

-- (1)








-- (2)





-- (3)

General Prohibition. An attorney or law firm may deposit in an attorney trust account only those funds required to be deposited in that account by Rule 19-404 or permitted to be so deposited by section (b) of this Rule.

Exceptions.

An attorney or law firm shall either (A) deposit into an attorney trust account funds to pay any fees, service charges, or minimum balance required by the financial institution to open or maintain the account, including those fees that cannot be charged against interest due to the Maryland Legal Services Corporation Fund pursuant to Rule 19-411 (b)(1)(D), or (B) enter into an agreement with the financial institution to have any fees or charges deducted from an operating account maintained by the attorney or law firm. The attorney or law firm may deposit into an attorney trust account any funds expected to be advanced on behalf of a client and expected to be reimbursed to the attorney by the client.

An attorney or law firm may deposit into an attorney trust account funds belonging in part to a client and in part presently or potentially to the attorney or law firm. The portion belonging to the attorney or law firm shall be withdrawn promptly when the attorney or law firm becomes entitled to the funds, but any portion disputed by the client shall remain in the account until the dispute is resolved.

Funds of a client or beneficial owner may be pooled and commingled in an attorney trust account with the funds held for other clients or beneficial owners.





19-409


INTEREST ON FUNDS.

All User Responsible


(a)










(b)

-- (1)




-- (2)



-- (3)





-- (4)


-- (5)

---- (A)







---- (B)



---- (C)




---- (d)








---- (e)



---- (f)








---- (g)



---- (h)




---- (i)

Generally. Any interest paid on funds deposited in an attorney trust account, after deducting service charges and fees of the financial institution, shall be credited and belong to the client or third person whose funds are on deposit during the period the interest is earned, except to the extent that interest is paid to the Maryland Legal Services Corporation Fund as authorized by law. The attorney or law firm shall have no right or claim to the interest.

Cross reference: See Rule 19-411 (b)(1)(D) providing that certain fees may not be deducted from interest that otherwise would be payable to the Maryland Legal Services Corporation Fund.

Duty to Report IOLTA Participation.

Required as a Condition of Practice. As a condition precedent to the practice of law, each attorney admitted to practice in Maryland shall report annually in accordance with this Rule information concerning all IOLTA accounts, including name, address, location, and account number, on a form approved by the Court of Appeals.

Oversight of the Reporting Process. The Court of Appeals shall designate an employee of the Administrative Office of the Courts to oversee the reporting process set forth in this Rule.

Mailing by the Administrative Office of the Courts. On or before January 10 of each year, the Administrative Office of the Courts shall mail an IOLTA Compliance Report form to each attorney on the list maintained by the Client Protection Fund of the Bar of Maryland. The addresses on that list shall be used for all notices and correspondence pertaining to the reports.

Due Date. IOLTA Compliance Reports for each year shall be filed with the Administrative Office of the Courts on or before February 15 of that year.

Enforcement.

Notice of Default. As soon as practicable after May 1 of each year, the Administrative Office of the Courts shall notify each defaulting attorney of the attorney's failure to file a report. The notice shall (i) state that the attorney has not filed the IOLTA Compliance Report for that year, (ii) state that continued failure to file the Report may result in the entry of an order by the Court of Appeals prohibiting the attorney from practicing law in the State, and (iii) be sent by first-class mail. The mailing of the notice of default shall constitute service.

Additional Discretionary Notice of Default. In addition to the mailed notice, the Administrative Office of the Courts may give additional notice to defaulting attorneys by any of the means enumerated in Rule 19-606 (c).

List of Defaulting Attorneys. As soon as practicable after July 1 of each year but no later than August 1, the Administrative Office of the Courts shall prepare, certify, and file with the Court of Appeals a list that includes the name and address of each attorney engaged in the practice of law who has failed to file the IOLTA Compliance Report for that year.

Certification of Default; Order of Decertification. The Administrative Office of the Courts shall submit with the list a proposed Decertification Order stating the names and addresses of those attorneys who have failed to file their IOLTA Compliance Report. At the request of the Court of Appeals, the Administrative Office of the Courts also shall furnish additional information from its records or give further notice to the defaulting attorneys. If satisfied that the Administrative Office of the Courts has given the required notice to each attorney named on the proposed Decertification Order, the Court of Appeals shall enter a Decertification Order prohibiting each of them from practicing law in the State.

Mailing of Decertification Order. The Administrative Office of the Courts shall mail by first-class mail a copy of the Decertification Order to each attorney named in the Order. The mailing of the copy of the Decertification Order shall constitute service.

Recertification; Restoration to Good Standing. If an attorney thereafter files the outstanding IOLTA Compliance Report, the Administrative Office of the Courts shall request the Court of Appeals to enter an order that recertifies the attorney and restores the attorney to good standing. Upon entry of that order, the Administrative Office of the Courts promptly shall furnish confirmation to the attorney. After an attorney is recertified, the fact that the attorney had been decertified need not be disclosed by the attorney in response to a request for information as to whether the attorney has been the subject of a disciplinary or remedial proceeding.

Duty of Clerk of Court of Appeals. Upon entry of each Decertification Order and each order that recertifies an attorney and restores the attorney to good standing entered pursuant to this Rule, the Clerk of the Court of Appeals shall comply with Rule 19-761.

Certain Information Furnished to the Maryland Legal Services Corporation. The Administrative Office of the Courts promptly shall submit to the Maryland Legal Services Corporation the data from electronically submitted IOLTA Compliance Reports and, upon request, shall forward the paper Compliance Reports.

Confidentiality. Except as provided in subsection (b)(5)(H) of this Rule, IOLTA Compliance Reports, whether in paper or electronic form, are confidential and are not subject to inspection or disclosure under Code, General Provisions Article, § 4-301. The Administrative Office of the Courts shall not release the Reports to any person or agency, except as provided in this Rule or upon order of the Court of Appeals. Nonidentifying information and data contained in an attorney's IOLTA Compliance Report are not confidential.

Trustpak distributes interest



19-410


PROHIBITED TRANSACTIONS.

All User Responsible


(a)




(b)




(c)

Generally. An attorney or law firm may not borrow or pledge any funds required by the Rules in this Chapter to be deposited in an attorney trust account, obtain any remuneration from the financial institution for depositing any funds in the account, or use any funds for any unauthorized purpose.

No Cash Disbursements. An instrument drawn on an attorney trust account may not be drawn payable to cash or to bearer, and no cash withdrawal may be made from an automated teller machine or by any other method. All disbursements from an attorney trust account shall be made by check or electronic transfer.

Negative Balance Prohibited. No funds from an attorney trust account shall be disbursed if the disbursement would create a negative balance with regard to an individual client matter or all client matters in the aggregate.











Trustpak by default does not allow overdrawn trust accounts



19-411


Approval of Financial Institutions.

All User Responsible

19-412


Notice of Approved Institutions.

All User Responsible

19-413


Enforcement.

All User Responsible
SOURCE: NEW JERSEY COURTS - ATTORNEYS: PRACTICE OF LAW (1.21)
RULE: 1:21-6 - Recordkeeping; Sharing of Fees; Examination of Records

Date Checked: 30th June 2018

NOTE: This information is NOT to be used as a reference to Government Trust Account Laws and or Regulations, it is meant only as a guide to show you which part of the regulations Trustpak is compliant with, we cannot guarantee the accuracy of this information beyond the "Date Checked" however we will do our best to keep this matrix up to date. Please note it is the responsibility of each user to make sure they are compliant with the regulations. The information provided here is intended to help with that process.

NOTE: Incorrect installations and modifications to installations may effect Trustpak's compliance with these regulations.

DISCLAIMER: This information is provided with the understanding that the laws governing trust accounting, legal ethics and professional responsibility are always changing. This information is not a substitute for legal advice and may not be suitable in a particular situation. You must make your own judgement on the actual compliance of Trustpak. Infobiz Solutions Pty Ltd, their employees and their representatives, and the author shall not be liable for any damages resulting from any error, inaccuracy, or omission.

Rule
Paragraph
Description
Compliance
Notes


1:21-6



Recordkeeping; Sharing of Fees; Examination of Records



(a)

Required Trust and Business Accounts

All User Responsible


Every attorney who practices in this state shall maintain in a financial institution in New Jersey, in the attorney's own name, or in the name of a partnership of attorneys, or in the name of the professional corporation of which the attorney is a member, or in the name of the attorney or partnership of attorneys by whom employed:



- (1)




- (2)















a trust account or accounts, separate from any business and personal accounts and from any fiduciary accounts that the attorney may maintain as executor, guardian, trustee, or receiver, or in any other fiduciary capacity, into which trust account or accounts funds entrusted to the attorney's care shall be deposited; and

a business account into which all funds received for professional services shall be deposited.

One or more of the trust accounts shall be the IOLTA account or accounts required by Rule 1:28A.

Other than fiduciary accounts maintained by an attorney as executor, guardian, trustee, or receiver, or in any other similar fiduciary capacity, all attorney trust accounts, whether general or specific, as well as all deposit slips and checks drawn thereon, shall be prominently designated as an "Attorney Trust Account." Nothing herein shall prohibit any additional descriptive designation for a specific trust account. All business accounts, as well as all deposit slips and all checks drawn thereon, shall be prominently designated as an "Attorney Business Account," an "Attorney Professional Account," or an "Attorney Office Account." The IOLTA account or accounts shall each be designated "IOLTA Attorney Trust Account."

The names of institutions in which such primary attorney trust and business accounts are maintained and identification numbers of each account shall be recorded on the annual registration form filed with the annual payment, pursuant to Rule 1:20- 1(b) and Rule 1:28-2, to the Disciplinary Oversight Committee and the New Jersey Lawyers' Fund for Client Protection. Such information shall be available for use in accordance with paragraph (h) of this rule. For all IOLTA accounts, the account numbers, the name the account is under, and the depository institution shall be indicated on the registration statement. The signed annual registration statement required by Rule 1:20-1(c) shall constitute authorization to depository institutions to convert an existing non-interest bearing account to an IOLTA account.

























Trustpak Supports Multiple Trust Bank Accounts






Trustpak Supports Multiple Trust Bank Accounts


(b)

Account Location; Financial Institution's Reporting Requirements

All User Responsible











An attorney trust account shall be maintained only in New Jersey financial institutions approved by the Supreme Court, which shall annually publish a list of such approved institutions. A financial institution shall be approved if it shall file with the Supreme Court an agreement, in a form provided by the Court, to report to the Office of Attorney Ethics in the event any properly payable attorney trust account instrument is presented against insufficient funds, irrespective of whether the instrument is honored; any such agreement shall apply to all branches of the financial institution and shall not be canceled except on thirty days' notice in writing to the Office of Attorney Ethics. The agreement shall further provide that all reports made by the financial institution shall be in the following format: (1) in the case of a dishonored instrument, the report shall be identical to the overdraft notice customarily forwarded to the depositor; (2) in the case of instruments that are presented against insufficient funds but which instruments are honored, the report shall identify the financial institution, the attorney or law firm, the account number, the date of presentation for payment, and the date paid, as well as the amount of the overdraft created thereby. Such reports shall be made simultaneously with, and within the time provided by law for, notice of dishonor, if any; if an instrument presented against insufficient funds is honored, then the report shall be made within five banking days of the date of presentation for payment against insufficient funds.

In addition, each financial institution approved by the Supreme Court must cooperate with the IOLTA Program, and must offer an IOLTA account to any attorney who wishes to open one, and must from its income on such IOLTA accounts remit to the Fund the amount remaining after providing such institution a just and reasonable return equivalent to its return on similar non-IOLTA interest-bearing deposits. These remittances shall be monthly unless otherwise authorized by the Fund.

Nothing herein shall prevent an attorney from establishing a separate interestbearing account for an individual client in accordance with these rules, providing that all interest earned shall be the sole property of the client and may not be retained by the attorney.

In addition to the reports specified above, approved financial institutions shall agree to cooperate fully with the Office of Attorney Ethics and to produce any attorney trust account or attorney business account records on receipt of a subpoena therefor.

Digital images of these records may be maintained by financial institutions provided that: (a) imaged copies of checks shall, when printed (including, but not limited to, when images are provided to the attorney with a monthly statement or otherwise or when subpoenaed by the Office of Attorney Ethics), be limited to no more than two checks per page (showing the front and back of each check) and (b) all digital records shall be maintained for a period of seven years. Nothing herein shall preclude a financial institution from charging an attorney or law firm for the reasonable cost of producing the reports and records required by this Rule. Every attorney or law firm in this state shall be conclusively deemed to have consented to the reporting and production requirements mandated by this Rule.






















(c)

Required Bookkeeping Records.


- (1)



--- (a)





















--- (b)











--- (c)

--- (d)


--- (e)

--- (f)


--- (g)








--- (h)




--- (i)


- (2)

- (3)

Attorneys, partnerships of attorneys and professional corporations who practice in this state shall maintain in a current status and retain for a period of seven years after the event that they record:

appropriate receipts and disbursements journals containing a record of all deposits in and withdrawals from the accounts specified in paragraph (a) of this rule and of any other bank account which concerns or affects their practice of law, specifically identifying:
- the date, source and description of each item deposited
- as well as the date, payee and purpose of each disbursement.

- All trust account receipts shall be deposited intact and the duplicate deposit slip shall be sufficiently detailed to identify each item.

All trust account withdrawals shall be made only by attorney authorized financial institution transfers as stated below or by check payable to a named payee and not to cash.

Each electronic transfer out of an attorney trust account must be made on signed written instructions from the attorney to the financial institution.

The financial institution must confirm each authorized transfer by returning a document to the attorney showing the date of the transfer, the payee, and the amount.

Only an attorney admitted to practice law in this state shall be an authorized signatory on an attorney trust account, and only an attorney shall be permitted to authorize electronic transfers as above provided; and

- an appropriate ledger book, having at least one single page for each separate trust client,
- for all trust accounts, showing the source of all funds deposited in such accounts,
- the names of all persons for whom the funds are or were held,
- the amount of such funds,
- the description and amounts of charges or withdrawals from such accounts,
- and the names of all persons to whom such funds were disbursed.
- A regular trial balance of the individual client trust ledgers shall be maintained.

The total of the trial balance must agree with the control figure computed by taking the beginning balance, adding the total of moneys received in trust for the client, and deducting the total of all moneys disbursed; and

copies of all retainer and compensation agreements with clients; and

copies of all statements to clients showing the disbursement of funds to them or on their behalf; and

copies of all bills rendered to clients; and

copies of all records showing payments to attorneys, investigators or other persons, not in their regular employ, for services rendered or performed; and

originals of all checkbooks with running balances and check stubs, bank statements, prenumbered cancelled checks and duplicate deposit slips, except that, where the financial institution provides proper digital images or copies thereof to the attorney, then these digital images or copies shall be maintained;

all checks, withdrawals and deposit slips, when related to a particular client, shall include, and attorneys shall complete, a distinct area identifying the client's last name or file number of the matter; and

copies of all records, showing that at least monthly a reconciliation has been made of the cash balance derived from the cash receipts and cash disbursement journal totals, the checkbook balance, the bank statement balance and the client trust ledger sheet balances; and

copies of those portions of each client's case file reasonably necessary for a complete understanding of the financial transactions pertaining thereto.

ATM or cash withdrawals from all attorney trust accounts are prohibited.

No attorney trust account shall have any agreement for overdraft protection.

User Responsible



Trustpak Compliant


Trustpak Compliant
Trustpak Compliant

Trustpak Compliant


User Responsible


User Responsible


User Responsible


User Responsible



Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant



User Responsible

Trustpak Compliant


User Responsible

User Responsible







Trustpak Compliant



Trustpak Compliant




Trustpak Compliant


User Responsible

User Responsible































































File Description & File Notes


(d)

Type and Availability of Bookkeeping Records.

User Responsible


The financial books and other records required by paragraphs (a) and (c) of this rule shall be maintained in accordance with generally accepted accounting practice. Bookkeeping records may be maintained by computer provided they otherwise comply with this rule and provided further that printed copies and computer files in industry-standard formats can be made on demand in accordance with this section or section (h). They shall be located at the principal New Jersey office of each attorney, partnership or professional corporation and shall be available for inspection, checks for compliance with this Rule and copying at that location by a duly authorized representative of the Office of Attorney Ethics. When made available pursuant to this rule, all such books and records shall remain confidential except for the purposes thereof or by direction of the Supreme Court, and their contents shall not be disclosed by anyone in such a way as to violate the attorney client privilege.


(e)

Dissolutions.

User Responsible


Upon the dissolution of any partnership of attorneys or of any professional corporation, the former partners or shareholders shall make appropriate arrangements for the maintenance by one of them or by a successor firm of the records specified in paragraph (c) of this rule.



(f)

Attorneys Practicing With Foreign Attorneys or Firms.

User Responsible


All of the requirements of this rule shall be applicable to every attorney rendering legal services in this state regardless whether affiliated with or otherwise related in any way to an attorney, partnership, legal corporation, limited liability company, or limited liability partnership formed or registered in another state.



(g)

Attorneys Associated With Out of State Attorneys.

User Responsible


An attorney who practices in this state shall maintain and preserve for seven years a record of all fees received and expenses incurred in connection with any matter in which the attorney was associated with an attorney of another state.



(h)

Availability of Records.

User Responsible


Any of the records required to be kept by this rule shall be produced in response to a subpoena duces tecum issued in connection with an ethics investigation or hearing pursuant to R. 1:20-1 to 1:20-11, or shall be produced at the direction of the Disciplinary Review Board or the Supreme Court. They shall be available upon request for review and audit by the Office of Attorney Ethics. Every attorney shall be required to cooperate and to respond completely to questions by the Office of Attorney Ethics regarding all transactions concerning records required to be kept under this rule. When so produced, all such records shall remain confidential except for the purposes of the particular proceeding and their contents shall not be disclosed by anyone in such a way as to violate the attorney-client privilege. When produced or examined during the course of a disciplinary or random audit, both the attorney or law firm and the producers and licensors of computerized software shall be conclusively deemed to have consented to the use of said software by disciplinary authorities as evidence during the course of the disciplinary proceeding.



(i)

Disciplinary Action.

User Responsible


An attorney who fails to comply with the requirements of this rule in respect of the maintenance, availability and preservation of accounts and records or who fails to produce or to respond completely to questions regarding such records as required shall be deemed to be in violation of R.P.C. 1.15(d) and R.P.C. 8.1(b).



(j)

Unidentifiable and Unclaimed Trust Fund Accumulations and Trust Funds Held for Missing Owners.

User Responsible


When, for a period in excess of two years, an attorney's trust account contains trust funds which are either unidentifiable, unclaimed, or which are held for missing owners, such funds shall be so designated. A reasonable search shall then be made by the attorney to determine the beneficial owner of any unidentifiable or unclaimed accumulation, or the whereabouts of any missing owner. If the beneficial owner of an unidentified or unclaimed accumulation is determined, or if the missing beneficial owner is located, the funds shall be delivered to the beneficial owner when due. Trust funds which remain unidentifiable or unclaimed, and funds which are held for missing owners, after being designated as such, may, after the passage of one year during which time a diligent search and inquiry fails to identify the beneficial owner or the whereabouts of a missing owner, be paid to the Clerk of the Superior Court for deposit with the Superior Court Trust Fund. The Clerk shall hold the same in trust for the beneficial owners or for ultimate disposition as provided by order of the Supreme Court. All applications for payment to the Superior Court Clerk under this section shall be supported by a detailed affidavit setting forth specifically the facts and all reasonable efforts of search, inquiry and notice. The Clerk of the Superior Court may decline to accept funds where the petition does not evidence diligent search and inquiry or otherwise fails to conform with this section.

SOURCE: NEW YORK STATE UNIFIED COURTS SYSTEM - PART 1200 RULES OF PROFESSIONAL CONDUCT
RULE: 1.15. - Preserving Identity of Funds and Property of Others; Fiduciary Responsibility; Commingling and Misappropriation of Client Funds or Property; Maintenance of Bank Accounts; Record Keeping; Examination of Records

Date Checked: 4th July 2018

NOTE: This information is NOT to be used as a reference to Government Trust Account Laws and or Regulations, it is meant only as a guide to show you which part of the regulations Trustpak is compliant with, we cannot guarantee the accuracy of this information beyond the "Date Checked" however we will do our best to keep this matrix up to date. Please note it is the responsibility of each user to make sure they are compliant with the regulations. The information provided here is intended to help with that process.

NOTE: Incorrect installations and modifications to installations may effect Trustpak's compliance with these regulations.

DISCLAIMER: This information is provided with the understanding that the laws governing trust accounting, legal ethics and professional responsibility are always changing. This information is not a substitute for legal advice and may not be suitable in a particular situation. You must make your own judgement on the actual compliance of Trustpak. Infobiz Solutions Pty Ltd, their employees and their representatives, and the author shall not be liable for any damages resulting from any error, inaccuracy, or omission.

Rule
Paragraph
Description
Compliance
Notes


1.15.



Preserving Identity of Funds and Property of Others; Fiduciary Responsibility; Commingling and Misappropriation of Client Funds or Property; Maintenance of Bank Accounts; Record Keeping; Examination of Records



(a)

Prohibition Against Commingling and Misappropriation of Client Funds or Property.

All User Responsible


A lawyer in possession of any funds or other property belonging to another person, where such possession is incident to his or her practice of law, is a fiduciary, and must not misappropriate such funds or property or commingle such funds or property with his or her own.



(b)

Separate Accounts.

All User Responsible


- (1)
















- (2)






- (3)


- (4)




A lawyer who is in possession of funds belonging to another person incident to the lawyer’s practice of law shall maintain such funds in a banking institution within New York State that agrees to provide dishonored check reports in accordance with the provisions of 22 N.Y.C.R.R. Part 1300. “Banking institution” means a state or national bank, trust company, savings bank, savings and loan association or credit union. Such funds shall be maintained, in the lawyer’s own name, or in the name of a firm of lawyers of which the lawyer is a member, or in the name of the lawyer or firm of lawyers by whom the lawyer is employed, in a special account or accounts, separate from any business or personal accounts of the lawyer or lawyer’s firm, and separate from any accounts that the lawyer may maintain as executor, guardian, trustee or receiver, or in any other fiduciary capacity; into such special account or accounts all funds held in escrow or otherwise entrusted to the lawyer or firm shall be deposited; provided, however, that such funds may be maintained in a banking institution located outside New York State if such banking institution complies with 22 N.Y.C.R.R. Part 1300 and the lawyer has obtained the prior written approval of the person to whom such funds belong specifying the name and address of the office or branch of the banking institution where such funds are to be maintained.

A lawyer or the lawyer’s firm shall identify the special bank account or accounts required by Rule 1.15(b)(1) as an “Attorney Special Account,” “Attorney Trust Account,” or “Attorney Escrow Account,” and shall obtain checks and deposit slips that bear such title. Such title may be accompanied by such other descriptive language as the lawyer may deem appropriate, provided that such additional language distinguishes such special account or accounts from other bank accounts that are maintained by the lawyer or the lawyer’s firm.

Funds reasonably sufficient to maintain the account or to pay account charges may be deposited therein.

Funds belonging in part to a client or third person and in part currently or potentially to the lawyer or law firm shall be kept in such special account or accounts, but the portion belonging to the lawyer or law firm may be withdrawn when due unless the right of the lawyer or law firm to receive it is disputed by the client or third person, in which event the disputed portion shall not be withdrawn until the dispute is finally resolved.



































(c)

Notification of Receipt of Property; Safekeeping; Rendering Accounts; Payment or Delivery of Property

All User Responsible




- (1)


- (2)


- (3)



- (4)




A lawyer shall:

promptly notify a client or third person of the receipt of funds, securities, or other properties in which the client or third person has an interest;

identify and label securities and properties of a client or third person promptly upon receipt and place them in a safe deposit box or other place of safekeeping as soon as practicable;

maintain complete records of all funds, securities, and other properties of a client or third person coming into the possession of the lawyer and render appropriate accounts to the client or third person regarding them; and

promptly pay or deliver to the client or third person as requested by the client or third person the funds, securities, or other properties in the possession of the lawyer that the client or third person is entitled to receive.



Trustpak issues receipts for funds


















(d)

Required Bookkeeping Records.


- (1)

--- (i)










--- (ii)




--- (iii)

--- (iv)


--- (v)

--- (vi)


--- (vii)


--- (viii)


- (2)




- (3)

A lawyer shall maintain for seven years after the events that they record:

the records of all deposits in and withdrawals from the accounts specified in Rule 1.15(b) and of any other bank account that concerns or affects the lawyer’s practice of law; these records shall specifically identify:
- the date,
- source and
- description of each item deposited,
as well as
- the date,
- payee
- and purpose of each withdrawal or disbursement;

a record for special accounts, showing the source of all funds deposited in such accounts, the names of all persons for whom the funds are or were held, the amount of such funds, the description and amounts, and the names of all persons to whom such funds were disbursed;

copies of all retainer and compensation agreements with clients;

copies of all statements to clients or other persons showing the disbursement of funds to them or on their behalf;

copies of all bills rendered to clients;

copies of all records showing payments to lawyers, investigators or other persons, not in the lawyer’s regular employ, for services rendered or performed;

copies of all retainer and closing statements filed with the Office of Court Administration; and

all checkbooks and check stubs, bank statements, prenumbered canceled checks and duplicate deposit slips.

Lawyers shall make accurate entries of all financial transactions in their records of receipts and disbursements, in their special accounts, in their ledger books or similar records, and in any other books of account kept by them in the regular course of their practice, which entries shall be made at or near the time of the act, condition or event recorded.

For purposes of Rule 1.15(d), a lawyer may satisfy the requirements of maintaining “copies” by maintaining any of the following items: original records, photocopies, microfilm, optical imaging, and any other medium that preserves an image of the document that cannot be altered without detection.

User Responsible




Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant
Trustpak Compliant
Trustpak Compliant

Trustpak Compliant




Trustpak Compliant

Trustpak Compliant


User Responsible

User Responsible


User Responsible


Trustpak Compliant


User Responsible




User Responsible
























Lawyers Billing System

Disbursement Details Saved




Banks Statements User Responsible


(e)

Authorized Signatories.

User Responsible


All special account withdrawals shall be made only to a named payee and not to cash. Such withdrawals shall be made by check or, with the prior written approval of the party entitled to the proceeds, by bank transfer. Only a lawyer admitted to practice law in New York State shall be an authorized signatory of a special account.


(f)

Missing Clients.

User Responsible


Whenever any sum of money is payable to a client and the lawyer is unable to locate the client, the lawyer shall apply to the court in which the action was brought if in the unified court system, or, if no action was commenced in the unified court system, to the Supreme Court in the county in which the lawyer maintains an office for the practice of law, for an order directing payment to the lawyer of any fees and disbursements that are owed by the client and the balance, if any, to the Lawyers’ Fund for Client Protection for safeguarding and disbursement to persons who are entitled thereto.



(g)

Designation of Successor Signatories.

User Responsible


- (1)




- (2)








- (3)

Upon the death of a lawyer who was the sole signatory on an attorney trust, escrow or special account, an application may be made to the Supreme Court for an order designating a successor signatory for such trust, escrow or special account, who shall be a member of the bar in good standing and admitted to the practice of law in New York State.

An application to designate a successor signatory shall be made to the Supreme Court in the judicial district in which the deceased lawyer maintained an office for the practice of law. The application may be made by the legal representative of the deceased lawyer’s estate; a lawyer who was affiliated with the deceased lawyer in the practice of law; any person who has a beneficial interest in such trust, escrow or special account; an officer of a city or county bar association; or counsel for an attorney disciplinary committee. No lawyer may charge a legal fee for assisting with an application to designate a successor signatory pursuant to this Rule.

The Supreme Court may designate a successor signatory and may direct the safeguarding of funds from such trust, escrow or special account, and the disbursement of such funds to persons who are entitled thereto, and may order that funds in such account be deposited with the Lawyers’ Fund for Client Protection for safeguarding and disbursement to persons who are entitled thereto.



(h)

Dissolution of a Firm.

User Responsible


Upon the dissolution of any firm of lawyers, the former partners or members shall make appropriate arrangements for the maintenance, by one of them or by a successor firm, of the records specified in Rule 1.15(d).



(i)

Availability of Bookkeeping Records: Records Subject to Production in Disciplinary Investigations and Proceedings.

User Responsible


The financial records required by this Rule shall be located, or made available, at the principal New York State office of the lawyers subject hereto, and any such records shall be produced in response to a notice or subpoena duces tecum issued in connection with a complaint before or any investigation by the appropriate grievance or departmental disciplinary committee, or shall be produced at the direction of the appropriate Appellate Division before any person designated by it. All books and records produced pursuant to this Rule shall be kept confidential, except for the purpose of the particular proceeding, and their contents shall not be disclosed by anyone in violation of the attorney-client privilege.



(j)

Disciplinary Action.

User Responsible


A lawyer who does not maintain and keep the accounts and records as specified and required by this Rule, or who does not produce any such records pursuant to this Rule, shall be deemed in violation of these Rules and shall be subject to disciplinary proceedings.