Compliance that enables, not blocks you.
We're across the regulations for trust accounting and can help you to sort out your problem.
A Trust Account Issue
The law around trust accounting is surprisingly obscure, and non-compliant practices are all too prevalent. Common issues include not following correct procedures to transfer money from trust to office when paying your costs, incorrect processes for paying disbursements, intermixing, receiving trust money when not entitled and billing in advance of fixed fee services. Mistakes in trust account management can trigger serious regulatory scrutiny — putting your practising certificate, revenue, and reputation at risk.
The Steps:
Responding to a trust account issue
We'll discuss where you're at, common pitfalls when it comes to trust accounts and then work out how we can help resolve the issue as efficiently as possible.
We start by reviewing your costs agreements, trust account processes and internal controls to identify any compliance gaps or potential regulatory risks. This step establishes the facts and clarifies exposure so you can make informed decisions.
If errors or gaps are found, we guide you on immediate corrective actions — including the required notification to the regulator — to minimise regulatory impact.
If the matter has attracted regulatory attention, we advise on how to respond professionally and strategically, ensuring that all communication is accurate and compliant.
Where appropriate, we involve experienced bookkeepers and/or trust account auditors to help you improve your record keeping and processes. We do not do forensic or corrective accountancy but can make appropriate referrals.
Benefits from our advice:
A Trust Account Issue
- We help you minimise regulatory exposure and protect your right to practise.
- We quickly pinpoint misconceptions and incorrect processes — helping you act fast before problems escalate.
- If the matter attracts regulatory attention, we guide every step of your response, ensuring communication is accurate, professional, and strategically framed to manage the consequences of any non-compliance.
- Beyond the immediate issue, we provide practical guidance on improved internal controls, audit processes, and staff training — helping prevent future trust account problems.
FAQs
These are the common questions from lawyers in a similar situation to you, ask us:
Identify the error, correct it promptly, and document everything. Notify the regulator according to your local jurisdictional legislation. Common mistakes include incorrect processes for withdrawing costs, receiving trust money in the office account (and vice versa) and fixed fee billing errors. Early, expert advice ensures compliance and prevents escalation.
It depends on the issue. Minor errors are generally simply noted as long as corrective measures are put in place. However repeated mistakes can attract attention from regulators like the Legal Services Board. Acting quickly and strategically can manage the problem early and protect your practice.
Don’t respond informally. Accurate, structured, and strategic communication is critical. We will help you to give an accurate and strategic response.
Mixing trust and non-trust money, fixed fee billing errors - receiving payment before the work is done, improperly documented or timed trust to office transfers, delayed trust account reconciliations, incomplete or inaccurate transaction records and delegating management of the trust account to staff. Proactively addressing these areas reduces the likelihood of regulatory action
Yes. Serious or repeated breaches may lead to disciplinary action, conditions on your practising certificate, or in extreme cases, external intervention in your practice. Early action greatly reduces this risk.
Implement clear internal processes, regular reconciliations, accurate record-keeping, and staff training - with our help. Make sure everyone has the fundamentals and principles clear. Our team provide professional guidance to ensure your systems are robust, compliant, and aligned with regulatory expectations.
Yes, totally! Sometimes you might not realise you're even receiving trust money. If you get money into your office account before you pay a disbursement, or if you receive a fixed fee before you provide the services, you're likely receiving trust money. Don't risk it.
Identify the error, correct it promptly, and document everything. Notify the regulator according to your local jurisdictional legislation. Common mistakes include incorrect processes for withdrawing costs, receiving trust money in the office account (and vice versa) and fixed fee billing errors. Early, expert advice ensures compliance and prevents escalation.
It depends on the issue. Minor errors are generally simply noted as long as corrective measures are put in place. However repeated mistakes can attract attention from regulators like the Legal Services Board. Acting quickly and strategically can manage the problem early and protect your practice.
Don’t respond informally. Accurate, structured, and strategic communication is critical. We will help you to give an accurate and strategic response.
Mixing trust and non-trust money, fixed fee billing errors - receiving payment before the work is done, improperly documented or timed trust to office transfers, delayed trust account reconciliations, incomplete or inaccurate transaction records and delegating management of the trust account to staff. Proactively addressing these areas reduces the likelihood of regulatory action
Yes. Serious or repeated breaches may lead to disciplinary action, conditions on your practising certificate, or in extreme cases, external intervention in your practice. Early action greatly reduces this risk.
Implement clear internal processes, regular reconciliations, accurate record-keeping, and staff training - with our help. Make sure everyone has the fundamentals and principles clear. Our team provide professional guidance to ensure your systems are robust, compliant, and aligned with regulatory expectations.
Yes, totally! Sometimes you might not realise you're even receiving trust money. If you get money into your office account before you pay a disbursement, or if you receive a fixed fee before you provide the services, you're likely receiving trust money. Don't risk it.
Still have an unanswered question?
See how we can enable you to enhance your compliance and client communication.
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