THE TRUST ACCOUNTING MODULES WITHIN ALL OF OUR PRODUCTS

ARE COMPLIANT WITH THE TRUST ACCOUNT LAWS & REGULATIONS FOR MANY COUNTRIES

Compliance Update

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OTA+ - Australia Compliance Matrix

Please Note: The following information is a guide to show what rules and sub rules of the Trust Account Regulations OTA+ 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
Link to the source document


Date Checked: 18th June 2025

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 OTA+ 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 OTA'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 OTA. 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




Division 2 - Trust money and trust accounts


35


Maintenance of general trust account

-(1)

A general trust account established in a jurisdiction



-(a)

-(b)

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


-(2)

This rule does not apply to a general trust account established in a participating jurisdiction before the commencement day for that jurisdiction, so long as the account name did not breach any requirement of the legislation of that jurisdiction before that day.

User Responsible


36


Receipting of trust money

-(1)

A law practice must make out a receipt as soon as practicable



-(a)

-(b)

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.

User Responsible

User Responsible


-(2)

The receipt must contain the following particulars



-(a)

the date the receipt is made out and, if different, the date of receipt of the money,

Compliant


-(b)

the number of the receipt,

Compliant


-(c)

the amount of money received,

Compliant


-(d)

the form in which the money was received,

Compliant


-(e)

the name of the person from whom the money was received,

Compliant


-(f)

details clearly identifying the name of the client in respect of whom the money was received and the matter description and matter reference,

Compliant


-(g)

particulars sufficient to identify the reason for which the money was received,

Compliant


-(h)

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",

Compliant


-(i)

the name of the person who made out the receipt.

Compliant


-(3)

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.

Compliant


-(4)

The receipt must be given, on request, to the person from whom the trust money was received.

Compliant


-(5)

Receipts must be consecutively numbered and issued in consecutive sequence.

Compliant


-(6)

If a receipt is cancelled, the original receipt must be kept.

Compliant


-(7)

This rule does not apply to controlled money.

Compliant

OTA+ uses holding accounts to deal with controlled money


37


Deposit records for trust money

-(1)

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.

Compliant

Deposit Slip


-(2)

The following particulars must be recorded on the deposit record

Compliant



-(a)

the date of the deposit,

Compliant


-(b)

the amount of the deposit,

Compliant


-(c)

whether the deposit consists of cheques or cash (and the amount of each),

Compliant


-(d)

for each cheque,

Compliant


---(i)

the name of the drawer of the cheque, and

Compliant


---(ii)

the name and branch (or BSB number) of the ADI on which the cheque is drawn, and

Compliant


---(iii)

the amount of the cheque.

Compliant


-(3)

The deposit record must be made out in duplicate.

Compliant



-(4)

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.

Compliant

Duplicate in database


38


Computerised accounting systems--copies of trust records

-(1)

This rule applies if a law practice maintains trust records by means of a computerised accounting system.




-(2)

A law practice must maintain and keep, in printed form or in readable and printable form, the following copies of trust records

Compliant



-(a)

a copy of trust account receipts and payments cash books as at the end of each named month,

Compliant


-(b)

a copy of reconciliation statements as at the end of each named month,

Compliant


-(c)

a copy of lists of trust account ledgers and their balances as at the end of each named month,

Compliant


-(d)

a copy of lists of controlled money accounts and their balances as at the end of each named month.

Compliant


-(3)

A law practice must




-(a)

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

Compliant


-(b)

on request by an investigator carrying out a function described in section 368 of the Uniform Law, provide to the investigator a printed copy of trust ledger account and controlled money account details.

User Responsible


-(4)

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.

User Responsible



-(5)

Except as provided by rule 40, the law practice must ensure that copies of trust records prepared under subrule (2) cannot be modified afterwards.

Compliant


39


Computerised accounting systems--chronological record of information to be made

-(1)

This rule applies if a law practice maintains trust records by means of a computerised accounting system.




-(2)

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

Compliant



-(a)

client name,

Compliant


-(b)

client address,

Compliant


-(c)

matter reference,

Compliant


-(d)

matter description,

Compliant


-(e)

ledger account number or other descriptor.

Compliant


40


Computerised accounting systems--requirements regarding systems

-(1)

This rule applies if a law practice maintains trust records by means of a computerised accounting system.




-(2)

A law practice must ensure that




-(a)

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

Compliant


-(b)

the system is not capable of deleting a trust ledger unless

Compliant


---(i)

the balance of the account is zero and all outstanding cheques have been presented, and

Compliant


---(ii)

when the account is deleted, a copy of the account is kept in a permanent form, and

Compliant


-(c)

any entry in a record produced in a permanent form appears in chronological sequence, and

Compliant


-(d)

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

Compliant


-(e)

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

Compliant


-(f)

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.

Compliant


41


Computerised accounting systems--back-ups

-(1)

This rule applies if a law practice maintains trust records by means of a computerised accounting system.




-(2)

For the purposes of section 147 of the Uniform Law, a law practice must ensure that




-(a)

a back-up copy of all records required under the Uniform Law and these Rules is made at least once each month, and

Compliant

Daily Backups


-(b)

each back-up copy is kept by the law practice, and

Compliant

Kept by IBS.


-(c)

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.

Compliant

Automatic cloud Backup to seperate AWS Data Centres min 30 kms apart.


42


Withdrawal of trust money for payment of legal costs


User Responsible


-(1)

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.




-(2)

The trust money may be withdrawn in accordance with the procedure set out in any applicable subrule of this rule.




-(3)

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




-(a)

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




-(b)

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




---(i)

the date on which the person was given the bill,




---(ii)

the date on which the person received an itemised bill following a request made in accordance with section 187 of the Uniform Law, or




-(c)

if the money otherwise becomes legally payable.




-(4)

The law practice may withdraw the trust money (whether or not the law practice has given the person a bill relating to the money)


See also subrule (7), which relates to subrule (4).


-(a)

if the money is withdrawn in accordance with instructions that have been received by the law practice and that authorise the withdrawal, and




-(b)

if, before effecting the withdrawal, the law practice gives or sends to the person




---(i)

a request for payment, referring to the proposed withdrawal, or




---(ii)

a written notice of withdrawal.




-(5)

The law practice may withdraw the trust money


See also subrule (8), which relates to subrule (5).


-(a)

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




-(b)

if, before effecting the withdrawal, the law practice gives or sends to the person




---(i)

a request for payment, referring to the proposed withdrawal, or




---(ii)

a written notice of withdrawal.




-(6)

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




-(a)

the money is withdrawn in accordance with a costs agreement between the law practice and the person, and




-(b)

the costs agreement complies with the legislation under which it is made and authorises the withdrawal, and




-(c)

before effecting the withdrawal, the law practice gives or sends to the person a request for payment, referring to the proposed withdrawal.




-(7)

In relation to subrule (4)




-(a)

if the authorisation referred to in subrule (4)(a) authorises withdrawal of part only of the money




---(i)

the law practice may withdraw the money to that extent only, and




---(ii)

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




-(b)

instructions referred to in subrule (4)




---(i)

if given in writing, must be kept as a permanent record, or




---(ii)

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.




-(8)

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.


Rule 73 provides for the giving of bills.


43


Method of payment

-(1)

If a withdrawal of trust money from a general trust account of a law practice is made by cheque, the cheque




-(a)

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

User Responsible



-(b)

must be crossed "not negotiable" and




-(c)

must include




---(i)

the name of the law practice or the business name under which the law practice engages in legal practice, and

Compliant



---(ii)

the expression "law practice trust account" or "law practice trust a/c".

Compliant



-(2)

A cheque must be signed by, or an electronic funds transfer must be effected under, the direction or authority of

User Responsible



-(a)

an authorised principal of the law practice, or




-(b)

if such a principal is not available




---(i)

an authorised legal practitioner associate, or

Compliant



---(ii)

an authorised Australian legal practitioner who holds an Australian practising certificate authorising the receipt of trust money, or

Compliant



---(iii)

two or more authorised associates jointly.

Compliant



-(3)

A written record of the required particulars




-(a)

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

Compliant



-(b)

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.

Compliant



-(4)

For the purposes of subrule (3), the "required particulars" are as follows




-(a)

the date and number of the cheque or electronic funds transfer,

Compliant



-(b)

the amount ordered to be paid by the cheque or electronic funds transfer,

Compliant



-(c)

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,

Compliant



-(d)

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,

Compliant



-(e)

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,

Compliant



-(f)

details clearly identifying the ledger account to be debited,

Compliant



-(g)

particulars sufficient to identify the reason for the payment.

Compliant



-(5)

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.

Compliant


44


Trust account receipts cash books

-(1)

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




-(a)

the date a receipt was made out for the money and, if different, the date of receipt of the money,

Compliant



-(b)

the receipt number,

Compliant



-(c)

the amount of money received,

Compliant



-(d)

the form in which the money was received,

Compliant



-(e)

the name of the person from whom the money was received,

Compliant



-(f)

details clearly identifying the name of the client in respect of whom the money was received and the matter description and matter reference,

Compliant



-(g)

particulars sufficient to identify the reason for which the money was received,

Compliant



-(h)

details clearly identifying the ledger account to be credited.

Compliant



-(2)

The date and amount of each deposit in the general trust account must be recorded in the trust account receipts cash book.

Compliant



-(3)

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.

Compliant


45


Trust account payments cash book

-(1)

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




-(a)

the date and number of the cheque or electronic funds transfer,

Compliant



-(b)

the amount ordered to be paid by the cheque or the amount transferred,

Compliant



-(c)

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,

Compliant



-(d)

in the case of an electronic funds transfer

Compliant



---(i)

the name and number of the account to which the amount was transferred and the relevant BSB number, and

Compliant



---(ii)

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,

Compliant



-(e)

details clearly identifying the name of the person on whose behalf the payment was made, the matter description and the appropriate ledger reference,

Compliant



-(f)

particulars sufficient to identify the reason for payment.

Compliant



-(2)

The particulars in respect of payments must be recorded




-(a)

in the order in which the payments are made, and

Compliant



-(b)

within 5 working days of the day the payment was made.

Compliant


46


Journal transfers

-(1)

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

User Responsible



-(a)

the transfer is authorised in writing by an authorised principal of the law practice or if such a principal is not available

User Responsible



---(i)

an authorised legal practitioner associate of the law practice, or

User Responsible



---(ii)

an authorised Australian legal practitioner who holds an Australian practising certificate authorising the receipt of trust money, or

User Responsible



---(iii)

two or more authorised associates jointly, or

User Responsible



-(b)

the transfer is authorised in writing by an external intervener for the law practice.

User Responsible



-(2)

A law practice must keep a trust account transfer journal if it transfers trust money by journal entry.

Compliant



-(3)

The following particulars must be recorded in the trust account transfer journal in respect of each transfer of trust money by journal entry

Compliant



-(a)

the date of the transfer,

Compliant



-(b)

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),

Compliant



-(c)

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),

Compliant



-(d)

the amount transferred,

Compliant



-(e)

particulars sufficient to identify the reason for the transfer.

Compliant



-(4)

Journal pages or entries must be consecutively numbered.

Compliant



-(5)

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.

Compliant


47


Recording transactions in trust ledger accounts

-(1)

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.




-(2)

The following particulars must be recorded, and kept up to date, in the title of a trust ledger account




-(a)

the name of the person for or on behalf of whom the trust money was paid,

Compliant



-(b)

the person's address,

Compliant



-(c)

particulars sufficient to identify the matter in relation to which the trust money was received.

Compliant



-(3)

The following particulars must be recorded for each transaction in the trust ledger account




-(a)

the date of the transaction,

Compliant



-(b)

the appropriate reference number and transaction type,

Compliant



-(c)

particulars sufficient to identify the reason for the transaction,

Compliant



-(d)

the amount of money in the transaction,

Compliant



-(e)

if the transaction type is

Compliant



---(i)

a receipt--the provider of the amount and the date the amount was received if that date is different from the date of receipt,

Compliant



---(ii)

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,

Compliant



---(iii)

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,

Compliant



---(iv)

a journal entry--the appropriate ledger reference, the name of the person on whose behalf the transfer was made and the matter description.

Compliant



-(4)

Transactions relating to trust money must be recorded in the trust ledger account




-(a)

in the order in which the transactions occur, and

User Responsible



-(b)

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.

User Responsible



-(5)

The trust ledger account balance is to be recorded in the trust ledger account after each receipt, payment or transfer of trust money.

Compliant


48


Reconciliation of trust records

-(1)

A law practice that maintains one or more general trust accounts must reconcile the trust records relating to each account.




-(2)

The trust records relating to a general trust account are to be reconciled as at the end of each named month by preparing




-(a)

a statement




---(i)

reconciling the general trust account balance as shown in ADI records with the balance of the practice's trust account cash books, and

Compliant



---(ii)

showing the date the statement was prepared, and

Compliant



-(b)

a statement




---(i)

reconciling the balance of the trust ledger accounts with the balance of the practice's trust account cash books, and

Compliant



---(ii)

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

Compliant



---(iii)

showing the date the statement was prepared.

Compliant



-(3)

The statements must be prepared within 15 working days after the end of the month concerned.

User Responsible



-(4)

The statements must be kept by the law practice.

Compliant

OTA+ saves a copy of the reconciliation


49


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

-(1)

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.




-(2)

A law practice may maintain in its trust ledger




-(a)

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

Compliant



-(b)

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.

Compliant



-(3)

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.

User Responsible



-(4)

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.

Compliant


50


Notification requirements regarding general trust accounts


User Responsible


All subrules are User Responsible


51


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


User Responsible


All subrules are User Responsible


52


Trust account statements

-(1)

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.




-(2)

Where relevant, the law practice must give the person a separate statement for




-(a)

each trust ledger account, and

Compliant



-(b)

each record of controlled money movements, and

Compliant



-(c)

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.

Compliant



-(3)

A trust account statement is to contain particulars of




-(a)

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

Compliant



-(b)

the remaining balance (if any) of the money.

Compliant



-(4)

A trust account statement is to be given




-(a)

as soon as practicable after completion of the matter to which the ledger account or record relates, and

User Responsible



-(b)

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

User Responsible



-(c)

except as provided by subrule (5) or (6), as soon as practicable after 30 June in each year.

User Responsible



-(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 if at 30 June the balance of the ledger account or record is zero and




-(a)

no transaction affecting the ledger account or record has taken place within the previous 12 months, or

User Responsible



-(b)

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.

User Responsible



-(6)

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




-(a)

the ledger account or record has been open for less than 6 months, or

User Responsible



-(b)

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.

User Responsible



-(7)

The law practice must keep a copy of a trust account statement given under this rule.



53


Trust account statements for commercial or government clients


User Responsible


All subrules are User Responsible


54


Statements regarding receipt or holding of trust money


User Responsible


All subrules are User Responsible


55


Trust money subject to specific powers


User Responsible


All subrules are User Responsible


56


Authority to receive trust money


User Responsible


All subrules are User Responsible


57


Disclosure of accounts used to hold money


User Responsible


All subrules are User Responsible


58


When, how and where money is received


User Responsible


All subrules are User Responsible


59


Register of investments

-(1)

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




-(a)

the name in which the investment is held,

Compliant



-(b)

the name of the person on whose behalf the investment is made,

Compliant



-(c)

the person's address,

Compliant



-(d)

particulars sufficient to identify the investment,

Compliant



-(e)

the amount invested,

Compliant



-(f)

the date the investment was made,

Compliant



-(g)

particulars sufficient to identify the source of the investment,

Compliant



-(h)

details of any documents evidencing the investment,

Compliant



-(i)

details of any interest received from the investment or credited directly to the investment,

Compliant



-(j)

details of the repayment of the investment and any interest, on maturity or otherwise.

Compliant



-(2)

This rule does not require particulars to be recorded in the register if the particulars are required to be recorded elsewhere by another rule.



60


Register of powers and estates in relation to trust money


User Responsible


All subrules are user responsible

Rule
Paragraph
Description
Compliance
Notes




Division 3 - Controlled money


61


Maintenance of controlled money account

-(1)

A controlled money account must be maintained under an account name that includes the following particulars




-(a)

the name of the law practice concerned,

Compliant



-(b)

the expression "controlled money account" or the abbreviation "CMA" or "CMA/c",

Compliant



-(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.

Compliant


62


Receipt of controlled money

-(1)

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.

Compliant



-(2)

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.

User Responsible



-(3)

On request from the person from whom controlled money is received, the law practice must give that person a copy of the receipt.

User Responsible



-(4)

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

Compliant



-(a)

the date the receipt is made out and, if different, the date of receipt of the money,

Compliant



-(b)

the amount of money received,

Compliant



-(c)

the form in which the money was received,

Compliant



-(d)

the name of the person from whom the money was received,

Compliant



-(e)

details clearly identifying the name of the person on whose behalf the money was received and the matter description and matter reference,

Compliant



-(f)

particulars sufficient to identify the reason for which the money was received,

Compliant



-(g)

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,

Compliant



-(h)

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",

Compliant



-(i)

the name of the person who made out the receipt,

Compliant



-(j)

the number of the receipt.

Compliant



-(5)

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).




-(6)

Receipts must be consecutively numbered and issued in consecutive sequence.




-(7)

If a receipt is cancelled or not delivered, the original receipt must be kept.




-(8)

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.



63


Withdrawal of controlled money from controlled money account

-(1)

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.

Compliant



-(2)

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

User Responsible



-(a)

an authorised principal of the law practice, or

User Responsible



-(b)

if such a principal is not available

User Responsible



---(i)

a legal practitioner associate authorised by the law practice to effect, direct or give authority for this purpose, or

User Responsible



---(ii)

when an authorised practitioner referred to in subparagraph (i) is not available--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

User Responsible



---(iii)

when the authorised practitioners referred to in subparagraph (i) or (ii) are both not available--two or more associates of the law practice jointly who are authorised by the law practice to effect, direct or give authority for this purpose.

User Responsible



-(3)

A written record of the required particulars must be kept of each withdrawal.

Compliant



-(4)

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.

Compliant



-(5)

For the purposes of this rule, the "required particulars" are as follows

Compliant



-(a)

the date and number of the transaction,

Compliant



-(b)

the amount withdrawn,

Compliant



-(c)

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,

Compliant



-(d)

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,

Compliant



-(e)

details clearly identifying the name of the person on whose behalf the payment was made and the matter reference,

Compliant



-(f)

particulars sufficient to identify the reason for which the payment was made,

Compliant



-(g)

the person or persons effecting, directing or authorising the withdrawal.

Compliant



-(6)

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.

Compliant


64


Register of controlled money

-(1)

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.

Compliant

These are holding accounts


-(2)

A separate record of controlled money movements must be maintained for each controlled money account.

Compliant

Each CMA has a seperate ledger


-(3)

A record of controlled money movements for a controlled money account must record the following information




-(a)

the name of the person on whose behalf the controlled money is held,

Compliant



-(b)

the person's address,

Compliant



-(c)

particulars sufficient to identify the matter,

Compliant



-(d)

any changes to the information referred to in paragraphs (a)-(c).

Compliant



-(4)

The following particulars must be recorded in a record of controlled money movements for a controlled money account




-(a)

the date the controlled money was received,

Compliant



-(b)

the number of the receipt,

Compliant



-(c)

the date the money was deposited in the controlled money account,

Compliant



-(d)

the name of and other details clearly identifying the controlled money account,

Compliant



-(e)

the amount of controlled money deposited,

Compliant



-(f)

details of the deposit sufficient to identify the deposit,

Compliant



-(g)

interest received,

Compliant



-(h)

details of any payments from the controlled money account, including the particulars required to be recorded under rule 63(5).

Compliant



-(5)

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.

User Responsible



-(6)

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.

User Responsible



-(7)

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.

User Responsible



-(8)

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

User Responsible



-(a)

containing a list of the practice's controlled money accounts showing

Compliant



---(i)

the name, number and balance of each account in the register, and

Compliant



---(ii)

the name of the person on whose behalf the controlled money in each account was held, and

Compliant



---(iii)

a short description of the matter to which each account relates, and

Compliant



-(b)

showing the date the statement was prepared.

Compliant



-(9)

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.

User Responsible

OTA+ - 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 State Bar Practice Laws OTA+ complies with, some of the items are dependent on the User and this is stated as "User Responsible"


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


SOURCE: ALASKA RULES OF PROFESSIONAL CONDUCT
Rule 1.15 SAFEKEEPING PROPERTY Link to the source document
Alaska Bar Rules Rule 15.1. Maintenance of Trust Funds in Financial Institutions That Agree to Provide Overdraft Notification. Link to the source document


Date Checked: 18th June 2025

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 OTA+ 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 OTA'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 OTA. 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)

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 the third person. Other property shall be identified as the client's or the third person's and appropriately safeguarded. Complete records of these account funds and other property shall be kept by the lawyer and shall be preserved for a period of five years after termination of the representation.

Compliant

Records kept; funds separated


(b)

A lawyer may deposit the lawyer's own funds in a client trust account for the sole purpose of paying bank service charges on that account, and only in an amount necessary for that purpose.

Compliant

Admin deposits limited


(c)

A lawyer shall deposit funds received for future fees and expenses into a client trust account, to be withdrawn by the lawyer only as fees are earned or expenses incurred.

Compliant

Fees held until earned


(d)

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, 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 the funds or property.

Compliant

Notice and accounting enabled


(e)

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) claim conflicting interests, the property shall be kept separate by the lawyer until the dispute is resolved. The lawyer shall promptly distribute all portions of the property as to which the interests are not in dispute.

Compliant

Holds for disputes supported


(f)

Unless an election not to participate is submitted in accordance with the procedure set forth in paragraph (g), a lawyer or law firm shall establish and maintain an interest bearing insured depository account into which must be deposited funds of clients which are nominal in amount or are expected to be held for a short period of time, but only in compliance with the following provisions:

Compliant

IOLTA setup supported


-(1)

No earnings from such account shall be made available to the lawyer or law firm and the lawyer or law firm shall have no right or claim to such earnings.

Compliant



-(2)

Only funds of clients which are nominal in amount or are expected to be held for a short period of time may be deposited in such account. Funds which reasonably may be expected to generate in excess of one hundred dollars interest may not be deposited in such account.

Compliant



-(3)

The depository institution shall be directed by the lawyer or law firm establishing such account:

Compliant



--(A)

To remit earnings from such account, net of any service charges or fees, as computed in accordance with the institution's standard accounting practice to the Alaska Bar Foundation, Inc., at least quarter-annually; and

Compliant

Remittance tracked


--(B)

To transmit with each remittance of earnings a statement showing the name of the lawyer or law firm on whose account the remittance is sent and the rate of interest applied, with a copy of such statement to such lawyer or law firm.

Compliant

Reports stored


-(4)

The lawyer or law firm shall review the account at reasonable intervals to determine if changed circumstances required further action with respect to the funds of any client.

Compliant



(g)

A lawyer shall indicate on the lawyer's annual bar dues notice whether the lawyer or the lawyer's law firm: 1) elects to maintain the account described in paragraph (f); 2) elects not to maintain the account described in paragraph (f); or 3) does not maintain a trust account. A lawyer or law firm who wishes to change a previous election may do so at any time by notifying the Alaska Bar Association in writing.

Compliant

IOLTA status recorded




Comment


A lawyer should hold property of others with the care required of a professional fiduciary. Securities should be kept in a safe deposit box, except when some other form of safekeeping is warranted by special circumstances. All property that is the property of clients or third persons, including prospective clients, must be kept separate from the lawyer's business and personal property and, if monies, in one or more trust accounts. Separate trust accounts may be warranted when administering estate monies or acting in similar fiduciary capacities. A lawyer should maintain on a current basis books and records in accordance with generally accepted accounting practice and comply with any recordkeeping rules established by law or court order. See, e.g., ABA Model Financial Recordkeeping Rule.




While normally it is impermissible to commingle the lawyer's own funds with client funds, paragraph (b) provides that it is permissible when necessary to pay bank service charges on that account. Accurate records must be kept regarding which part of the funds are the lawyer's.




Lawyers often receive funds from which the lawyer's fee will be paid. The lawyer is not required to remit to the client funds that the lawyer reasonably believes represent fees owed. If the fee is disputed, the disputed portion of the funds must be kept in a trust account and the lawyer should suggest means for prompt resolution of the dispute, such as arbitration. The undisputed portion of the funds shall be promptly distributed.




Paragraph (e) also recognizes that third parties may have lawful claims against specific funds or other property in a lawyer's custody, such as a client's creditor who has a lien on funds recovered in a personal injury action. A lawyer may have a duty under applicable law to protect such third-party claims against wrongful interference by the client. In such cases, when the third-party claim is not frivolous under applicable law, the lawyer must refuse to surrender the property to the client until the claims are resolved. A lawyer should not unilaterally assume to arbitrate a dispute between the client and the third party, but, when there are substantial grounds for dispute as to the person entitled to the funds, the lawyer may file an action to have a court resolve the dispute.




The obligations of a lawyer under this Rule are independent of those arising from activity other than rendering legal services. For example, a lawyer who serves only as an escrow agent is governed by the applicable law relating to fiduciaries even though the lawyer does not render legal services in the transaction and is not governed by this Rule.




A lawyers' fund for client protection provides a means through the collective efforts of the bar to reimburse persons who have lost money or property as a result of dishonest conduct of a lawyer. Where such a fund has been established, a lawyer must participate where it is mandatory, and, even when it is voluntary, the lawyer should participate.

Rule
Paragraph
Description
Compliance
Notes


15.1


Maintenance of Trust Funds in Financial Institutions That Agree to Provide Overdraft Notification.



(a)

Clearly Identified Trust Accounts in Financial Institutions Required.

User Responsible



-1

Lawyers subject to Alaska Rule of Professional Conduct 1.15 shall deposit all funds held in trust in accounts clearly identified as "trust" or "escrow" accounts, referred to herein as "trust accounts," and shall take all steps necessary to inform the depository institution of the purpose and identity of the accounts. Funds held in trust include funds held in any fiduciary capacity in connection with a representation, whether as trustee, agent, guardian, executor, or otherwise.

User Responsible



-2

Lawyers subject to Alaska Rule of Professional Conduct 1.15 shall maintain and preserve for a period of at least five years after termination of the representation, the records of the accounts, including checkbooks, canceled checks, check stubs, vouchers, ledgers, journals, closing statements, accountings or other statements of disbursements rendered to clients or other parties with regard to trust funds or similar equivalent records clearly and expressly reflecting the date, amount, source, and explanation for all receipts, withdrawals, deliveries, and disbursements of the funds or other property of a client.

Compliant

Record Retention


(b)

Overdraft Notification Agreement Required.

Financial Institution Responsibility




A financial institution may be a depository for lawyer trust accounts if it agrees in a form provided by the Bar Association to report to Bar Counsel whenever any properly payable instrument is presented against a lawyer trust account containing insufficient funds, irrespective of whether the instrument is honored. No trust account shall be maintained in any financial institution that does not agree to so report. Any such agreement shall apply to all branches of the financial institution and shall not be cancelled except upon 30 days' notice in writing to the Bar Counsel.




(c)

Overdraft Reports.

Financial Institution Responsibility




The overdraft notification 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, and should include a copy of the dishonored instrument, if such a copy is normally provided to depositors;

Financial Institution Responsibility



-2

in the case of an instrument that is presented against insufficient funds but which instrument is honored, the report shall identify the financial institution, the lawyer or law firm, the account number, the date of presentation for payment, and the date paid, as well as the amount of overdraft created thereby.

Financial Institution Responsibility



(d)

Timing of Reports.

Financial Institution Responsibility




Reports under subsection (c) 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.




(e)

Consent By Lawyers.

User Responsible




Lawyers subject to Alaska Rule of Professional Conduct 1.15 shall be conclusively deemed to have consented to the reporting and production requirements mandated by this rule. A lawyer shall sign a waiver of confidentiality under AS 06.01.028.




(f)

Costs.

Financial Institution Responsibility




Nothing herein shall preclude a financial institution from charging a particular lawyer or law firm for the reasonable cost of producing the reports and records required by this rule.




(g)

Definitions.





For purposes of this rule:




-1

"Financial institution" includes a bank, savings and loan association, credit union, savings bank, and any other business or person that accepts for deposit funds held in trust by lawyers;

Term



-2

"Properly payable" refers to an instrument which, if presented in the normal course of business, is in a form requiring payment under the laws of this jurisdiction; and

Term



-3

"Notice of dishonor" refers to the notice that a financial institution is required to give, under the laws of this ALASKA BAR RULES 23 jurisdiction, upon presentation of an instrument that the institution dishonors.

Term