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Change tracker - Code of Content

Part E – Monitoring and investigation by the SocietySRA

2008-07-14T00:00:00Z
 

The Solicitors' Accounts Rules 1998 have been replaced on the 6 October 2011 by the SRA Accounts Rules 2011 as part of the introduction of outcomes-focused regulation.

Go to SRA Handbook

Part E of the Solicitors' Accounts Rules was amended on 31 March 2009 as part of a general updating of the rules to introduce firm-based regulation and legal disciplinary practices as provided for in the Legal Services Act 2007.

 
 

Rule 34 - Production of records

  • (1)

    Any solicitor must at the time and place fixed by the SocietySRA produce to any person appointed by the SocietySRA any records, papers, client and controlled trust matter files, financial accounts and other documents, and any other information, necessary to enable preparation of a report on compliance with the rules.

  • (2)

    A requirement for production under paragraph (1) above must be in writing, and left at or sent by registered post or recorded delivery the "recorded signed for" or "special delivery next day" service to the most recent address held by the Society's Registration DepartmentSRA's Information Directorate, or delivered by the Society'sSRA's appointee. If sent through the post, receipt will be deemed 48 hours (excluding Saturdays, Sundays and Bank Holidays) after posting.

  • (3)

    Material kept electronically must be produced in the form required by the Society'sSRA's appointee.

  • (4)

    The Society'sSRA's appointee is entitled to seek verification from clients and staff, and from the banks, building societies and other financial institutions used by the solicitor. The solicitor must, if necessary, provide written permission for the information to be given.

  • (5)

    The Society'sSRA's appointee is not entitled to take original documents away but must be provided with photocopies on request.

  • (6)

    A solicitor must be prepared to explain and justify any departures from the guidelines for accounting procedures and systems published by the SocietySRA (see rule 29).

  • (7)

    Any report made by the Society'sSRA's appointee may, if appropriate, be sent to the Crown Prosecution Service or the Serious Fraud Office and/or used in proceedings before the Solicitors'Solicitors Disciplinary Tribunal. In the case of a registered European lawyer or registered foreign lawyer, the report may also be sent to the competent authority in that lawyer's home state or states. In the case of a solicitor of the Supreme Court who is established in another state under the Establishment of Lawyers Directive 98/5/EC, the report may also be sent to the competent authority in the host state. The report may also be sent to any of the accountancy bodies set out in rule 37(1)(a) and/or taken into account by the SocietySRA in relation to a possible disqualification of a reporting accountant under rule 37(3).

  • (8)

    Without prejudice to paragraph (1) above, any solicitor must produce documents relating to any account kept by the solicitor at a bank or with a building society:

    • (a)

      in connection with the solicitor's practice; or

    • (b)

      in connection with any trust of which the solicitor is or formerly was a trustee,

    for inspection by a person appointed by the SocietySRA for the purpose of preparing a report on compliance with the rules or on whether the account has been used for or in connection with a breach of any other rules, codes or mandatory guidance made or issued by the SocietySRA. Paragraphs (2)-(7) above apply in relation to this paragraph in the same way as to paragraph (1).

Notes

    • (i)

      "Solicitor" in rule 34 (as elsewhere in the rules) includes any person to whom the rules apply - see rule 2(2)(x), rule 4 and note (ii) to rule 4.

    • (ii)

      The Society'sSRA's powers override any confidence or privilege between solicitor and client.

    • (iii)

      The Society'sSRA's monitoring and investigation powers are exercised by Forensic Investigations (Compliance Directorate).

    • (iv)

      Reasons are never given for a visit by Forensic Investigations, so as:

      • (a)

        to safeguard the Society'sSRA's sources of information; and

      • (b)

        not to alert a defaulting principal manager or employee to conceal or compound his or her misappropriations.

       
    • (v)

      Rule 34(8) does not apply to registered foreign lawyers in the absence of an order by the Lord Chancellor under section 89(5) of the Courts and Legal Services Act 1990. The Society can nevertheless exercise the powers under rule 34(8) in the case of a multi-national partnership, because the rule applies to those partners who are solicitors or registered European lawyers even though it does not apply to the registered foreign lawyers.[deleted]

     
 
7/1/2007 12:00:00 AM

Part E – Monitoring and investigation by the SocietySRA

2008-07-14T00:00:00Z
 

The Solicitors' Accounts Rules 1998 have been replaced on the 6 October 2011 by the SRA Accounts Rules 2011 as part of the introduction of outcomes-focused regulation.

Go to SRA Handbook

Part E of the Solicitors' Accounts Rules was amended on 31 March 2009 as part of a general updating of the rules to introduce firm-based regulation and legal disciplinary practices as provided for in the Legal Services Act 2007.

 
 

Rule 34 - Production of records

  • (1)

    Any solicitor must at the time and place fixed by the SocietySRA produce to any person appointed by the SocietySRA any records, papers, client and controlled trust matter files, financial accounts and other documents, and any other information, necessary to enable preparation of a report on compliance with the rules.

  • (2)

    A requirement for production under paragraph (1) above must be in writing, and left at or sent by registered post or recorded delivery the "recorded signed for" or "special delivery next day" service to the most recent address held by the Society's Registration DepartmentSRA's Information Directorate, or delivered by the Society'sSRA's appointee. If sent through the post, receipt will be deemed 48 hours (excluding Saturdays, Sundays and Bank Holidays) after posting.

  • (3)

    Material kept electronically must be produced in the form required by the Society'sSRA's appointee.

  • (4)

    The Society'sSRA's appointee is entitled to seek verification from clients and staff, and from the banks, building societies and other financial institutions used by the solicitor. The solicitor must, if necessary, provide written permission for the information to be given.

  • (5)

    The Society'sSRA's appointee is not entitled to take original documents away but must be provided with photocopies on request.

  • (6)

    A solicitor must be prepared to explain and justify any departures from the guidelines for accounting procedures and systems published by the SocietySRA (see rule 29).

  • (7)

    Any report made by the Society'sSRA's appointee may, if appropriate, be sent to the Crown Prosecution Service or the Serious Fraud Office and/or used in proceedings before the Solicitors'Solicitors Disciplinary Tribunal. In the case of a registered European lawyer or registered foreign lawyer, the report may also be sent to the competent authority in that lawyer's home state or states. In the case of a solicitor of the Supreme Court who is established in another state under the Establishment of Lawyers Directive 98/5/EC, the report may also be sent to the competent authority in the host state. The report may also be sent to any of the accountancy bodies set out in rule 37(1)(a) and/or taken into account by the SocietySRA in relation to a possible disqualification of a reporting accountant under rule 37(3).

  • (8)

    Without prejudice to paragraph (1) above, any solicitor must produce documents relating to any account kept by the solicitor at a bank or with a building society:

    • (a)

      in connection with the solicitor's practice; or

    • (b)

      in connection with any trust of which the solicitor is or formerly was a trustee,

    for inspection by a person appointed by the SocietySRA for the purpose of preparing a report on compliance with the rules or on whether the account has been used for or in connection with a breach of any other rules, codes or mandatory guidance made or issued by the SocietySRA. Paragraphs (2)-(7) above apply in relation to this paragraph in the same way as to paragraph (1).

Notes

    • (i)

      "Solicitor" in rule 34 (as elsewhere in the rules) includes any person to whom the rules apply - see rule 2(2)(x), rule 4 and note (ii) to rule 4.

    • (ii)

      The Society'sSRA's powers override any confidence or privilege between solicitor and client.

    • (iii)

      The Society'sSRA's monitoring and investigation powers are exercised by Forensic Investigations (Compliance Directorate).

    • (iv)

      Reasons are never given for a visit by Forensic Investigations, so as:

      • (a)

        to safeguard the Society'sSRA's sources of information; and

      • (b)

        not to alert a defaulting principal manager or employee to conceal or compound his or her misappropriations.

       
    • (v)

      Rule 34(8) does not apply to registered foreign lawyers in the absence of an order by the Lord Chancellor under section 89(5) of the Courts and Legal Services Act 1990. The Society can nevertheless exercise the powers under rule 34(8) in the case of a multi-national partnership, because the rule applies to those partners who are solicitors or registered European lawyers even though it does not apply to the registered foreign lawyers.[deleted]

     
 
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