SRA Intervention Powers (Statutory Trust) Rules 2011 - Claims
Version 2 (Superseded)

Version 2 of the Handbook was published on 23 December 2011, and was superseded by Version 3 on 18 April 2012. For more information, click "History" above.

Part 2: Claims

Rule 5: Claimants to money

5.1

Every claimant must deliver to the SRA a completed and signed claim form. The claim form shall require such information as may be prescribed by the SRA from time to time.

5.2

A claimant must provide such documentation and other evidence as may be requested by the SRA in order to support the claim including a statement of truth and proof of identity. Failure to provide such documentation or evidence will be taken into account by the SRA when deciding whether to make a payment in respect of a claim.

5.3

The SRA may, in its discretion, waive the requirements of rules 5.1 and/or 5.2.

Rule 6: Verification of claims

6.1

Subject to rule 6.2, the SRA will verify the individual potential beneficial entitlements claimed under rule 5 by examining all available evidence.

6.2

The extent of verification work will be determined by the SRA by considering, but not limited to, the circumstances of the intervention, the reliability of the accounts of the intervened practitioner and the perceived integrity of the list of beneficial entitlements prepared.

Rule 7: Shortfall in statutory trust account

7.1

In cases where a shortfall is revealed between the statutory trust monies held and the beneficial entitlements shown in a reconciled list or best list, the SRA may rectify the position, in whole or in part, by the use of other monies taken into its possession following the intervention to which that account relates.

7.2

Where a shortfall still exists on a statutory trust account after the application of the additional funds set out in rule 7.1, the SRA will decide on the method for distribution of the deficient account.

Rule 8: Distribution of beneficial entitlements

8.1

Any interest which has accrued on the statutory trust account under rule 2.2 will be distributed to beneficiaries on a pro-rata basis in proportion to the payments made to them or on such other basis as the SRA may decide.

8.2

In a case where the accounting records of the intervened practitioner are reconciled accounts, payments to beneficiaries will be made on the basis of the reconciled list.

8.3

In a case where the accounting records of the intervened practitioner are not reconciled accounts, payments to beneficiaries will be made on the basis of the best list.

Rule 9: Residual balances

9.1

The SRA may use any funds which remain in a statutory trust account following the distribution to beneficiaries under rule 8 to offset any costs, charges or other expenses which it has incurred in establishing the beneficial entitlements to the statutory trust monies and in distributing the monies accordingly.

9.2

If funds remain in a statutory trust account after payment to beneficiaries and the deduction of costs, charges and expenses in accordance with rule 9.1, the SRA may transfer such remaining funds into the compensation fund held by the SRA in respect of the activities carried on by the intervened practitioner and thereupon any claim to such funds shall be extinguished.

Rule 10: Miscellaneous

10.1

The SRA may make an interim payment to a beneficiary before the full distribution on a statutory trust account takes place. This will be done only where the SRA is satisfied that the circumstances are such that the payment can be made without prejudicing other claims on the statutory trust account.

10.2

The SRA may issue guidance notes to claimants to assist in the making of a claim and to explain the steps and processes which the SRA takes in dealing with a statutory trust account.

Rule 11: Commencement and application

11.1

These rules shall apply to all statutory trust accounts, whether such accounts were created before or after the 6 October 2011.

Rule 12: Transitional provisions

12.1

These rules shall not apply to licensed bodies until such time as the Society is designated as a licensing authority under Part 1 of Schedule 10 to the LSA and all definitions shall be construed accordingly.

12.2

In these rules references in the preamble to the rules being made under paragraph 6 of Schedule 14 to the Legal Services Act 2007 shall have no effect until the Society is designated as a licensing authority under Part 1 of Schedule 10 to the LSA.