Defusing trust account time bombs

It’s a high level review of your law practice’s trust accounting processes through review of a selection of trust records, a questionnaire and in some cases by reviewing a few client files. It is not a detailed examination or a substitute for your annual external examination.

Not all external examiners are equal! Some are great, but some don’t keep up to date with what the Board expects. You would be surprised how many of our clients, on discovering their systemic non-compliance, say ‘But our EE gives us a clean bill of health every year’! Think of it as an additional layer of assurance, from someone who regularly sees trust record investigation reports.

Processes that don't comply with Rule 42 - either the waiting period is wrong or proper consent for earlier transfer is not obtained; the wrong person may be authorising transactions routinely; money might be going into the wrong accounts; billing for fixed fees in advance of doing the work ... I could go on!

Some law practices still follow processes that were compliant before the Uniform Law (2015!) where this is no longer the case. Some principals trust but don't verify the work of key people like bookkeepers and external examiners. Sometimes it's simply that principals don't see or understand the law in the same way as the Board.

Jurisdictions can vary markedly in their interpretation of trust accounting law, even between the Uniform Law jurisdictions. While we can give general guidance and referrals for jurisdictions other than Victoria, we don't currently have sufficient local knowledge to offer the same service. Victoria is very strict and particular - we can help best here.

It’s a high level review of your law practice’s trust accounting processes through review of a selection of trust records, a questionnaire and in some cases by reviewing a few client files. It is not a detailed examination or a substitute for your annual external examination.

Not all external examiners are equal! Some are great, but some don’t keep up to date with what the Board expects. You would be surprised how many of our clients, on discovering their systemic non-compliance, say ‘But our EE gives us a clean bill of health every year’! Think of it as an additional layer of assurance, from someone who regularly sees trust record investigation reports.

Processes that don't comply with Rule 42 - either the waiting period is wrong or proper consent for earlier transfer is not obtained; the wrong person may be authorising transactions routinely; money might be going into the wrong accounts; billing for fixed fees in advance of doing the work ... I could go on!

Some law practices still follow processes that were compliant before the Uniform Law (2015!) where this is no longer the case. Some principals trust but don't verify the work of key people like bookkeepers and external examiners. Sometimes it's simply that principals don't see or understand the law in the same way as the Board.

Jurisdictions can vary markedly in their interpretation of trust accounting law, even between the Uniform Law jurisdictions. While we can give general guidance and referrals for jurisdictions other than Victoria, we don't currently have sufficient local knowledge to offer the same service. Victoria is very strict and particular - we can help best here.