SRA Handbook

Rule 50A: Client money

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Rule 50A: Client money

50A.1

You must comply with this Part if you have held or received client money.

50A.2

In all dealings with client money, you must:

(a)

keep client money separate from money which is not client money;

(b)

on receipt, pay client money into a client account without undue delay and keep it there, unless the client has agreed otherwise, or it is paid directly to a third party in the execution of a trust under which it is held;

(c)

ensure by use of proper accounting systems and processes that client money is used for client's matters only and for the purposes for which it has been paid;

(d)

use money held as trustee of a trust for the purposes of that trust only;

(e)

establish and maintain proper accounting systems and proper internal controls over those systems to ensure compliance with these rules;

(f)

return client money to the person on whose behalf the money is held promptly, as soon as there is no longer any proper reason to retain those funds;

(g)

keep accounting records to show accurately the position with regard to the money held for each client and trust for a minimum period of six years;

(h)

Account for interest on client money in accordance with rule 22.