S.I. No. 516/2014 - Solicitors Accounts Regulations 2014

• (a) to show separately in respect of each insolvency arrangement all his or her transactions with insolvency arrangement moneys received, held, controlled or paid by him or her on behalf of each such insolvency arrangement; and

• (b) to distinguish insolvency arrangement moneys from all other moneys received, held, controlled or paid by him or her on any other account.

PART IV ACCOUNTING RECORDS

Minimum Accounting Records

• (a) a cash book (or books), showing moneys received and paid, with separate principal money columns on each side, one for transactions on office account and another for transactions on client account and, where applicable, for transactions on controlled trust account or on non-controlled trust account or on insolvency arrangement account; or, alternatively, at the solicitors option, separate cash books, on the one hand, for transactions on office account and, on the other hand, for transactions on client account and, where applicable, transactions on controlled trust account or on non-controlled trust account or on insolvency arrangement account;

• (b) an office ledger (or ledgers) and a client ledger (or ledgers) and, where applicable, a controlled trust ledger (or ledgers) or a non-controlled trust ledger (or ledgers) or an insolvency arrangement ledger (or ledgers), so as to distinguish clearly between, on the one hand, transactions on office account and, on the other hand, transactions on client account or transactions on controlled trust account or on non-controlled trust account or on insolvency arrangement account; with a separate account in the office ledger and a separate account in the client ledger or controlled trust ledger or non-controlled trust ledger or insolvency arrangement ledger for each matter dealt with where clients moneys or controlled trust moneys or non-controlled trust moneys or insolvency arrangement moneys are handled;

• (c) a record of bank lodgements of moneys received by the solicitor in connection with and arising out of his or her practice, distinguishing between, on the one hand, lodgements made to office account and, on the other hand, lodgements made to client account or to controlled trust account or to non-controlled trust account or to insolvency arrangement account;

• (d) a journal of amounts transferred from one ledger account to another ledger account or to an office ledger account or from an office ledger account to another ledger account, each entry therein to include a narrative explaining the transaction;

• (e) a bank account register, detailing in respect of each office account and each client account and each controlled trust account, each non-controlled trust account and each insolvency arrangement account, the bank, the branch thereof, the title or name designation of the account, the account number, the opening date, the names of those mandated to withdraw from the account and, where applicable, the date of closure;

• (f) the original of each paid cheque drawn on each client account, controlled trust account, non-controlled trust account and insolvency arrangement account regularly procured by the solicitor from his or her bank or banks and maintained and kept by the solicitor in numerical sequence, together with the corresponding cheque stubs or requisition dockets;

• (g) a copy of each draft and each other negotiable or non-negotiable instrument (other than a cheque referred to in subclause (f) of this clause) obtained by the solicitor in connection with any matter;

• (h) each matter file, each containing all documents generated in the course of each such matter;

• (i) a copy of each bill of costs (distinguishing between professional fees and outlays) furnished by the solicitor in respect of all matters, which shall be retained by the solicitor in a bills delivered book or on a file dedicated for that purpose;

• (j) a copy of each balancing statement and each office balancing statement; and

• (k) a copy of each reporting accountants report (together with all appendices, schedules and other documents relevant thereto) furnished to the Society.

• (2) A solicitor shall retain for at least six years each of the accounting records maintained and kept pursuant to clause (1) of this Regulation.

PART V REPORTING ACCOUNTANTS REPORT

Duty to deliver reporting accountants report to Society

(2)(a) In the case of a solicitor to whom the Solicitors Accounts Regulations No. 421 of 2001 (SI 421 of 2001) applied, the accounting date selected by the solicitor and notified to the Society pursuant to those Regulations No 421 of 2001 shall continue to be the accounting date.

• (b) In the case of a solicitor to whom these Regulations apply, other than a solicitor to whom subclause (a) of this clause applies, the solicitor shall, within not later than three months after the date on which these Regulations commenced to apply to him or her, notify the Society of his or her accounting date.

• (c) The accounting date shall be stated in the annual declaration made to the Society by a solicitor for the purpose of obtaining a practising certificate.

• (d) Where a solicitor proposes to change his or her accounting date, the solicitor shall notify the Society in writing within not later than one month prior to such proposed change taking place; provided that, where such proposed change would extend any accounting period of the solicitor to longer than a period of one year from the immediately preceding accounting date, the prior written consent of the Society shall be required for such change.

(3)(a) In the case of a solicitor to whom the Solicitors Accounts Regulations No. 421 of 2001 (SI 421 of 2001) applied, the reporting accountant selected by the solicitor and notified to the Society pursuant to those Regulations No 421 of 2001 shall continue to be the reporting accountant.

• (b) In the case of a solicitor to whom these Regulations apply, other than a solicitor to whom subclause (a) of this clause applies, the solicitor shall, within not later than three months after the date on which these Regulations commenced to apply to him or her, notify the Society of the name and business address of his or her reporting accountant.

• (c) The name and business address of his or her reporting accountant shall also be stated in the annual declaration made to the Society by a solicitor for the purpose of obtaining a practising certificate.

• (d) Where a solicitor changes his or her reporting accountant, the solicitor shall notify the Society in writing within not later than fourteen days after such change has taken place.

• (4) A “reporting accountant” (which shall where the context so admits or requires include a firm of accountants), for the purposes of these Regulations, shall mean a person who—

(a)(i) is a member in practice of any one or more of the following bodies, namely—

• (A) Chartered Accountants Ireland,

• (B) The Institute of Chartered Accountants in England and Wales,

• (C) The Institute of Chartered Accountants in Scotland,

• (D) The Association of Chartered Certified Accountants,

• (E) The Institute of Certified Public Accountants in Ireland,

• (F) The Institute of Incorporated Public Accountants; or

• (ii) not being a member of one of the bodies referred to at (a)(i) above, satisfies the Society that he or she has adequate professional experience and competence in the auditing of accounts; and

• (b) is not and never has been a partner, consultant, clerk or servant of the solicitor concerned; and

• (c) is maintaining such minimum level of professional indemnity insurance cover as the Society may appropriately and reasonably direct from time to time in order to provide for indemnity against losses arising from claims incurred (inter alia) in connection with his or her professional practice as a reporting accountant, and

• (d) is approved by the Society.

(5)(a) The Society may at any time in its absolute discretion wholly or partly withdraw approval of an accountant as a reporting accountant and may thereafter refuse to accept reporting accountants reports signed by such accountant either generally or in any particular case.

• (b) The Society shall, as soon as practicable, notify in writing any accountant in respect of whom his or her approval as a reporting accountant has been wholly or partly withdrawn by the Society and the Society shall, at the same time, notify any solicitor who, according to the Societys records, would be affected by such withdrawal of approval; provided that the Society shall be under no obligation to the accountant concerned or any solicitor affected to assign any reason for such withdrawal of approval.

Form of Acknowledgement

Examination by reporting accountant

• (2) The reporting accountant shall, as applicable, carry out his or her examination of a solicitors accounting records in the course of preparing the reporting accountants report in respect of the accounting period under review by means of the following steps (not necessarily in consecutive order):

Step 1: reviewing the accounting records in each place of business of the solicitor so as to enable the reporting accountant to test that such accounting records comply with these Regulations and, in particular, to test—

• (i) that there is maintained an appropriate account in the client ledger for each client matter,

• (ii) that each such client ledger account shows separately particulars of all clients moneys received, held, controlled and paid on behalf of each client, and

• (iii) that each transaction relating to both clients moneys and any other moneys dealt with through client account is recorded so as to distinguish such transaction from any other transaction or transactions relating to moneys received, held, controlled or paid by the solicitor;

Step 2: making test checks of postings to client ledger accounts from records of receipts and payments of clients moneys and making test checks of the totals of such accounts and records;

Step 3: comparing a sample of lodgments into and payments from each client account as shown in bank statements with records of receipts and payments of clients moneys;

Step 4: making test checks of the system of recording professional fees and outlays and of making withdrawals in respect of professional fees or outlays (or both) from each client account;

Step 5: carrying out a review of such documents as the reporting accountant shall request the solicitor to produce, with a view to ascertaining and confirming—

• (i) that the transactions relating to clients moneys (including those giving rise to transfers from one client ledger account to another client ledger account or to an office ledger account, or from an office ledger account to a client ledger account), evidenced by such documents, are in accordance with these Regulations, and

• (ii) that the entries in the client ledger accounts reflect those transactions in a manner that is in compliance with these Regulations;

Step 6: checking the extraction of balances on the client ledger accounts at the accounting date for the accounting period under review and, at such accounting date—

• (i) comparing the total, as shown in such client ledger accounts, of the gross liabilities to clients, including those for whom controlled trust moneys and non-controlled trust moneys are held in client account, with the cash book balance on client account,

• (ii) checking the reconciliation of the cash book balance with each client account balance as confirmed directly to the reporting accountant by the bank concerned, and

• (iii) checking the arithmetical accuracy of the books of account by ensuring that the closing balance of the client ledger control account for the accounting period under review is reconciled with the total of the individual client ledger balances;

Step 7: making test checks of the client ledger accounts in order to ascertain whether payments from client account have been made on any individual client ledger account in excess of moneys held on behalf of the client concerned;

Step 8: making test checks on office ledger accounts, cash book accounts and bank statements, with a view to ascertaining whether any clients moneys have not been paid into client account other than as provided for in these Regulations;

Step 9: making test checks of the balances referred to in the balancing statements and the office balancing statement (as provided for, respectively, in Regulation 13(8) and 13(9)(b)) which are referable to the accounting period under review; and confirming that each applicable balancing statement and office balancing statement has been completed after the balancing date or the accounting date to which each relates;

Step 10: making test checks of postings to the client ledger control account;

Step 11: making test checks of records of moneys transacted by the solicitor as referred to in Regulation 5(1);

Step 12: ascertaining the total of credit balances and (if any) the total of debit balances on client account and the total of credit balances on office account and such other information as appropriate, with a view to ascertaining that there has been compliance with Regulation 13 (3) (b) in relation to the evidencing of the payment of outlays withdrawn by the solicitor from client account; and showing these balances separately in the reporting accountants report; and

Step 13: requesting from the solicitor such information and explanations as the reporting accountant may require arising out of Steps 1 to 12.

• (3) The reporting accountant shall, where applicable, carry out his or her examination of a solicitors accounting records, in the course of preparing the solicitors reporting accountants report in respect of the accounting period under review, relating to transactions with trusts of which the solicitor is a controlling trustee or a non-controlling trustee and transactions where the solicitor is appointed as a personal insolvency practitioner, by means of the following steps:

Step ct1: obtaining a listing of each controlled trust, non-controlled trust and insolvency arrangement and each controlled trust account, non-controlled trust account and insolvency arrangement account as of the applicable accounting date; and

Step ct2: Checking the extraction of balances on controlled trust ledger accounts and insolvency arrangement ledger accounts at the accounting date for the accounting period under review and, at such accounting date—

• (i) comparing the total, as shown in such controlled trust ledger accounts and insolvency arrangement ledger accounts, of the liabilities in respect of controlled trusts and insolvency arrangements, with the cash book balance on the controlled trust accounts and insolvency arrangement accounts,

• (ii) checking the reconciliation of the cash book balance with each controlled trust account balance and insolvency arrangement account balance as confirmed directly to the reporting accountant by the bank concerned, and

• (iii) checking the arithmetical accuracy of the books of accounts by ensuring that the closing balance of the control accounts in respect of controlled trust ledger accounts and insolvency arrangement ledger accounts for the accounting period under review is reconciled with the total of the individual controlled trust ledger balances and insolvency arrangement ledger balances.

Step ct3: making test checks of transactions through client account and through controlled trust account, non-controlled trust account and insolvency arrangement account with the related records and file.

• (4) Nothing in clause (1), (2) or (3) of this Regulation shall require the reporting accountant, in the course of his or her preparation of a solicitors reporting accountants report in respect of an accounting period under review, to extend his or her examination—

• (a) wider than what should be ascertainable from the solicitors accounting records (duly maintained by the solicitor in accordance with these Regulations) relating to any matter produced to the reporting accountant, supplemented by such information and explanations as the reporting accountant may obtain from the solicitor or from the solicitors bank or banks; or

• (b) to enquiries concerning documents of title or stock exchange or other securities held by the solicitor on behalf of his or her clients or controlled trusts or non-controlled trusts or insolvency arrangements; or

• (c) to enquiries concerning the solicitor’s compliance with the provisions of the Act of 2012, and the Personal Insolvency Act 2012 (Accounts and Related Matters) Regulations 2013 ( S.I. No. 247 of 2013 ), irrespective of whether there is a conflict with any other requirements of these Regulations, as provided for in regulation 2(5) of these Regulations.

• (5) Where, after carrying out an examination, as appropriate, in accordance with clauses (1), (2) and (3) of this Regulation, it appears to the reporting accountant that there is evidence that these Regulations have not been complied with by the solicitor concerned, the reporting accountant shall carry out such further examination as he or she considers necessary in order to complete the reporting accountants report with or without qualification.

Solicitors duty to furnish documents to reporting accountant

• (2) A solicitor, who is the subject of a request by his or her reporting accountant under clause (1) of this Regulation, shall not, in complying with such request, be required to produce to the reporting accountant an entire file for a matter where the solicitor considers (and so informs the reporting accountant) that for him or her to do so would be a breach of his or her duty of confidentiality owed to the client or a breach of his or her duty of confidentiality arising in matters relating to controlled trusts, non-controlled trusts and insolvency arrangements; provided that any document or documents relating to the receipts or payments in question shall be made available to the reporting accountant such as will be sufficient to reasonably enable the reporting accountant to appropriately vouch such receipts or payments (or both).

• (3) Where a solicitor declines in whole or in part to make available such document or documents as is or are requested by his or her reporting accountant pursuant to clause (1) of this Regulation, the reporting accountant shall-

• (a) qualify his or her reporting accountants report to that effect;

• (b) set out the extent (if any) of the compliance by the solicitor with such request;

• (c) specify the extent to which the solicitor has declined to produce a document or documents on grounds of confidentiality in express reliance on the provisions of clause (2) of this Regulation; and

• (d) specify the extent to which the reporting accountant considers that the document or documents (if any) produced by the solicitor falls or fall short of what the reporting accountant considers necessary and reasonable to enable him or her to appropriately vouch the one or more receipts or payments (or both) that is or are in question.

Compliance Partner

• (2) A solicitor to whom clause 1 of this Regulation applies shall ensure that the Society is notified in writing by the solicitors practice concerned within fourteen days of any change in the compliance partner in the course of a practice year.

• (3) A solicitor who becomes a partner in a solicitors practice which is a partnership and which partnership is formed in the course of a practice year shall ensure that the Society is notified in writing by the solicitors practice concerned, within fourteen days of the formation of the partnership, of the name of the partner who has been nominated by the members of the partnership as the compliance partner.

• (4) In the event of there being a change in the compliance partner in the course of the accounting period for the solicitors practice concerned, the Form of Acknowledgement in respect of that accounting period shall, unless the circumstances in the opinion of the Society otherwise require, be signed by both the outgoing compliance partner and the incoming compliance partner; and in so signing each shall specify the period during that accounting period that each was the compliance partner.

Where two or more places of business or associated firms

• (2) Where a solicitor is a partner in two or more associated firms, each firm shall have the same accounting date and the reporting accountants report for each accounting period under review that is furnished by him or her to the Society shall be prepared by the same reporting accountant as if each associated firm together comprised one firm.

When reporting accountants report not required

• (a) having held a practising certificate, has caused to be furnished to the Society a reporting accountants report covering a period that is less than the accounting period in question, but which ended on a date that is the date upon which the solicitor ceased to practise as a solicitor and to receive, hold, control or pay clients, controlled trust, non-controlled trust and insolvency arrangement moneys; or

• (b) is in the full-time service of the State during the entire of the accounting period in question; or

• (c) is in the part-time service of the State in respect of moneys received, held, controlled or paid by him or her in the course of such service; or

• (d) has satisfied the Society that he or she has at no time during the accounting period in question received, held, controlled or paid clients moneys or controlled trust moneys or non-controlled trust moneys or insolvency arrangement moneys.

• (2) A reporting accountants report in respect of an accounting period shall not be required to be furnished to the Society in respect of a solicitor who holds a current practising certificate-

• (a) for the first time; or

• (b) for the first time, after having, for twelve months or more, voluntarily ceased so to do; provided that at the date of such voluntary cessor, where applicable, was in due compliance with Regulation 26 (1); or

• (c) has satisfied the Society that he or she was, during the entire of the accounting period in question, an employed solicitor and was not, at any time during the accounting period in question, a sole practitioner or a partner in a firm of solicitors (or was not held out as such a partner) and did not handle or in any way deal with clients or controlled trust or non-controlled trust or insolvency arrangement moneys other than for and on behalf of his or her employer.

• (3) Where the Society deem it appropriate in any particular circumstances, the Society may require a solicitor, who represents to the Society that he or she is a solicitor to whom the requirement to furnish a reporting accountants report does not or should not apply in respect of him or her either at all or in respect of part of a particular accounting period, to verify such representation by means of a statutory declaration or in such other formal manner as the Society may direct; provided that the Society may, in addition, conduct their own investigation in order to confirm the veracity of any such representation.

Where a solicitor ceases practice

• (2) Where a solicitor is retiring from practice or is otherwise ceasing to be a sole practitioner or a partner in a firm of solicitors and is ceasing to receive, hold, control or pay clients, controlled trust or insolvency arrangement moneys, and where there has already been furnished to the Society in respect of the solicitor a reporting accountants report for an accounting period which ended on an accounting date less than twelve months prior to such retirement or cessor, the solicitor shall be required to ensure that there is furnished to the Society his or her final reporting accountants report in respect of an accounting period ending on an accounting date which shall be the date upon which he or she so ceases to receive, hold, control or pay such moneys.

Service of notices on reporting accountant

PART VIINVESTIGATION OF SOLICITORS PRACTICES

Investigation by authorised person

• (2) An authorised person who attends pursuant to clause (1) of this Regulation at the place or places of business of a solicitor shall inform the solicitor or any partner, employee or agent of the solicitor of the purpose of the attendance and may, in pursuance of that purpose, require the solicitor or any partner, employee or agent of the solicitor to do any one or more of the following things:

• (a) to make available to the authorised person for inspection all or any part of the solicitors accounting records;

• (b) to furnish to the authorised person such copies of the solicitors accounting records as the authorised person deems necessary to fulfil the purpose specified in clause (1) of this Regulation (whether or not such accounting records or any of them relate also to other matters);

• (c) to give to the authorised person such written authority addressed to such bank or banks as the authorised person requires to enable the authorised person to inspect any account or accounts opened, or caused to be opened, by the solicitor at such bank or banks (or any documents relating thereto) and to obtain from such bank or banks copies of such documents relating to such account or accounts for such period or periods as the authorised person deems necessary to fulfil the purpose specified in clause (1) of this Regulation.

• (3) If a solicitor or the partner, employee or agent of the solicitor, who is required to make available accounting records to an authorised person for inspection under clause (2) of this Regulation, refuses, neglects or otherwise fails without reasonable cause to duly comply with such requirement, the Society may, on notice to the solicitor, apply to the High Court for an order requiring the solicitor to make available for inspection at his or her place or places of business such accounting records as the Society (including the authorised officer) deem necessary for the purpose specified in clause (1) of this Regulation or as the Court thinks fit.

• (4) An authorised person who attends pursuant to clause (1) of this Regulation at the place or places of business of a solicitor shall be afforded by the solicitor (at the solicitors expense) such facilities at such place or places of business to conduct his or her investigation as are reasonable and appropriate in the circumstances, including accommodation with desk or table and chair or chairs (whether or not in a room separate from other persons) and photocopying facilities.

• (5) The Society’s functions under these Regulations as referred to in clause (1) of this Regulation shall include the investigating by an authorised person whether there has been due compliance by a solicitor with the provisions of section 68 of the Act of 1994.

• (6) Where, arising from an investigation by an authorised person pursuant to the foregoing provisions of this Regulation, it is considered by the Society:

• (a) that a report prepared by the authorised person discloses evidence of a material breach of these Regulations by the solicitor concerned or other misconduct by the solicitor as disclosed by his or her accounting records, the Society may conduct such further investigations or make such further enquiries as the Society deem necessary in the circumstances;

• (b) that the solicitor should be required to attend at the Societys premises (or elsewhere within the State) for interview by the Society, the Society may so require the solicitor to attend; provided that, where the solicitor is to be interviewed in relation to matters contained in a report or reports of an authorised person, the solicitor shall be furnished with a copy of such report or reports in advance of such attendance, and the solicitor may attend such interview accompanied by another solicitor, by counsel or by his or her reporting accountant (or two or more of them), as the solicitor may deem fit;

• (c) that there has been a material breach of these Regulations by the solicitor concerned or that there has been other misconduct by the solicitor disclosed by his or her accounting records (or both), the Society may make application to the Disciplinary Tribunal for an inquiry into the conduct of the solicitor on the ground of alleged misconduct pursuant to section 7 (as substituted by section 17 of the Act of 1994) of the Act of 1960;

(whether or not the Society decide to make application to the Disciplinary Tribunal in the particular case) that there has been such a material breach of these Regulations by the solicitor concerned or such other misconduct by the solicitor as disclosed by his or her accounting records (or both), the Society may require the solicitor to pay to the Society an amount, which, in the opinion of the Society, represents the cost thereby incurred by the Society, taking into account the nature and extent of the investigation, the preparation of a report or reports thereon, the further enquiries arising therefrom and any interview or interviews conducted by the Society consequential thereon.

• (7) The Society may at any time terminate the authority of an authorised person and appoint another authorised person to carry out or complete an investigation pursuant to this Regulation.

Requirement to furnish accounting statement or report

• (a) the up-to-date balances, together with appropriate reconciliations, of all clients moneys, controlled trust moneys, non-controlled trust moneys and insolvency arrangement moneys received, held, controlled and due in respect of all clients and controlled trusts and non-controlled trusts and insolvency arrangements, or, where so specified by the Society in such notice, in respect of a specified client or clients or a specified controlled trust or controlled trusts or a specified non-controlled trust or non-controlled trusts or a specified insolvency arrangement or insolvency arrangements, and

• (b) where and how at the date of such accounting statement the amounts of such balances are held.

• (2) Where an amount is due by a client or controlled trust or non-controlled trust or insolvency arrangement to a solicitor or to a controlling trustee or a non-controlling trustee or a personal insolvency practitioner in respect of professional fees or outlays (or both) and where such amount has not been agreed or the subject of a final certificate of taxation, the figure to be included in an accounting statement shall be the gross amount claimed by the solicitor or by the controlling trustee or non-controlling trustee or personal insolvency practitioner as due by such client or controlled trust or non-controlled trust or insolvency arrangement; provided that where part of such amount so claimed is recoverable by the solicitor or controlling trustee or non-controlling trustee or personal insolvency practitioner on behalf of the client or controlled trust or non-controlled trust or insolvency arrangement from any other party or parties or any insurers of such other party or parties (whether such part of such gross amount has been paid or agreed to be paid or can only at the time be estimated by the solicitor or controlling trustee or non-controlling trustee or personal insolvency practitioner, whether or not subject to final ascertainment by means of taxation), the part of such gross amount as paid or as agreed to be paid by such party or parties or insurers or as estimated by the solicitor shall be shown in such accounting statement as a credit or an estimated credit against such gross amount.

• (3) Where so required by the Society by notice in writing, a solicitor or controlling trustee or non-controlling trustee or personal insolvency practitioner shall furnish to the Society either in addition to or in lieu of an accounting statement, a report by the solicitors reporting accountant stating:

• (a) whether the reporting accountant is satisfied that the accounting records of the solicitor or the controlling trustee or the non-controlling trustee or personal insolvency practitioner towards each insolvency arrangement have been properly maintained and kept in accordance with these Regulations and whether the accounting records duly record the true financial position of the solicitor towards each client concerned or the controlling trustee or the non-controlling trustee towards each controlled trust or non-controlled trust concerned or personal insolvency practitioner towards each insolvency arrangement concerned as the case may be, as at the date of such report; and

(b)(wherethe reporting accountant cannot certify his or her satisfaction as provided for in subclause (a) of this clause) the matters (if any) in respect of which the reporting accountant is not so satisfied.

• (4) A report by a solicitors reporting accountant to be furnished to the Society pursuant to clause (3) of this Regulation may, where the Society so direct, be limited only to one or more specified clients or controlled trusts or non-controlled trusts or insolvency arrangements.

PART VIIGENERAL

Responsibility of partner

Service of notices on solicitor

Solicitors lien

Modification of Regulations

Dated this 18th day of November 2014.

Signed on behalf of the Law Society of Ireland pursuant to Section 79 of the Solicitors Act, 1954 .

KEVIN O’HIGGINS,

President of the Law Society of Ireland.

I consent to the making of the within Regulations pursuant to subsection (1) of Section 66 of the Solicitors Act, 1954 , (as substituted by Section 76 of the Solicitors (Amendment) Act, 1994 ), to the making of the within Regulations.

Dated this 18th day of November 2014.

MR. JUSTICE NICHOLAS KEARNS,

President of the High Court.

FIRST SCHEDULE

within referred to

Text of Section 66 of the Solicitors Act, 1954 (as substituted by Section 76 of the Solicitors (Amendment) Act, 1994 )

• (a) the category or categories of solicitor to whom such regulations apply;

• (b) the type or types of accounts at banks which may be opened and kept by a solicitor arising from his practice as a solicitor;

• (c) the opening and keeping of accounts at banks by a solicitor arising from his practice as a solicitor;

• (d) the rights, duties and responsibilities of a solicitor in relation to moneys received, held, controlled or paid by him arising from his practice as a solicitor, including the lodgment to and withdrawal from a client account of clients moneys;

• (e) the accounting records to be maintained by a solicitor arising from his practice as a solicitor, including the minimum period or periods for which accounting records shall be retained by a solicitor during the period of, and following the conclusion of, the provision of legal services;

• (f) the keeping by a solicitor of accounting records containing particulars of and information as to moneys received, held, controlled or paid by him arising from his practice as a solicitor, for or on account of a client or any other person or himself;

• (g) the enforcement by the Society of compliance with the regulations;

• (h) imposing fees on solicitors in cases of non-compliance where the Society has to conduct further enquiries (being fees not exceeding the cost of making such enquiries);

• (i) the appointment by the Society of persons or carry out, on behalf of the Society, functions relating to securing compliance with and enforcing such regulations;

• (j) the circumstances and manner in which a solicitor engaged in practice as a solicitor (or a duly qualified accountant on his behalf) verifies compliance with such regulations, including the frequency of doing so;

• (k) the examination, by or on behalf of the Society, of the financial circumstances of a solicitor engaged in practice as a solicitor insofar as such circumstances could affect his capacity to carry on such practice.

• (2) Regulations made pursuant to subsection (1) of this section shall not apply to—

• (a) a solicitor in the full-time service of the State within the meaning of section 54(3) (as substituted by the Solicitors (Amendment) Act, 1994 ) of the Principal Act, or

• (b) a solicitor who is in the part-time service of the State, in respect of moneys received, held or controlled or paid by him in the course of such service.

• (3) A solicitor who knowingly lodges clients moneys (or who knowingly causes clients moneys to be lodged) to a client account at a bank other than a bank within the meaning of section 75 (1) of the Solicitors (Amendment) Act, 1994 , shall be guilty of an offence.

• (4) A solicitor who, having received any clients moneys, fails, without reasonable cause, to lodge (or to cause to be lodged) in the prescribed manner such clients moneys to the appropriate client account (or client accounts) shall be guilty of an offence.

• (5) A solicitor who fails, without reasonable cause, to maintain and keep (or to cause to be maintained and kept) accounting records in the prescribed manner shall be guilty of an offence.

• (6) A solicitor who, having received clients moneys, fails, without reasonable cause, to record (or to cause to be recorded) in the prescribed manner such receipt in accounting records shall be guilty of an offence.

• (7) A solicitor who, having received any clients moneys and having lodged (or caused to be lodged) in the prescribed manner such clients moneys to the appropriate client account (or client accounts) fails, without reasonable cause to record (or to cause to be recorded) in the prescribed manner such lodgment in accounting records, shall be guilty of an offence.

• (8) A solicitor who makes knowingly (or causes so to be made) a false or misleading entry or record in accounting records shall be guilty of an offence.

• (9) It shall not be a defence to a charge under subsection (6) or (7) of this section to show that an entry or record of a receipt or lodgment of clients moneys was recorded in accounting records, if it is established that such entry or record is false or misleading.

• (10) Where it appears to the Society that it is necessary for the purpose of exercising any of the Societys functions prescribed under subsection (1) of this section for an authorised person to attend, with or without prior notice, at a place of business of a solicitor, an authorised person may so attend at such place for that purpose.

• (11) Where an authorised person attends pursuant to subsection (10) of this section at a place of business of a solicitor, he shall inform the solicitor or any clerk or servant of the solicitor of the purpose of his attendance as specified in subsection (10) of this section and may thereupon or thereafter, in pursuance of that purpose, require the solicitor or any clerk or servant of the solicitor to do any one or more of the following things:

• (a) to make available to him for inspection all or any part of the solicitors accounting records;

• (b) to furnish to him such copies of the solicitors accounting records as the authorised person deems necessary to fulfil the purpose specified in subsection (10) of this section;

• (c) to give such written authority addressed to such bank or banks as the authorised person requires to enable the authorised person to inspect any account or accounts opened, or caused to be opened, by the solicitor at such bank or banks (or any documents relating thereto) and to obtain from such bank or banks copies of such documents relating to such account or accounts for such period or periods as the authorised person deems necessary to fulfil the purpose specified in subsection (10) of this section.

• (12) If a solicitor or clerk or servant of a solicitor who is required by an authorised person to do any one or more of the things specified in subsection (11) of this section, refuse, neglects or otherwise fails, without reasonable cause, to comply with such requirement or requirements, the Society may, on notice to the solicitor, apply to the High Court for an order (which said order the Court is hereby empowered to make) requiring the solicitor to comply with such requirement or requirements (or any one or more of them) as the Society deem necessary in pursuance of the purpose specified in subsection (10) of this section or as the Court thinks fit.

• (13) It shall be an offence for a solicitor—

• (a) to refuse, neglect or otherwise fail, without reasonable cause, to duly comply with any requirement of an authorised person under subsection (11) of this section;

• (b) to remove from his place or places of business, or to destroy, deface or mutilate, all or any part of his accounting records, with intent to prevent or interfere with an authorised person acting in pursuance of the purpose specified in subsection (10) of this section;

• (c) to provide knowingly false or misleading information to an authorised person acting in pursuance of the purpose specified in subsection (10) of this section.

• (14) A summary offence under any of the provisions of this section may be prosecuted by the Society.

• (15) Notwithstanding section 10(4) of the Petty Sessions (Ireland) Act, 1851 , summary proceedings for an offence under any of the provisions of this section may be instituted within twelve months from the date the offence came to the knowledge of the Society.

• (16) A person guilty of an offence under this section shall be liable—

• (a) on summary conviction thereof to a fine not exceeding £1,500.

• (b) on conviction thereof on indictment to a fine not exceeding £10,000.

• (17) Without prejudice to the generality of this section and any regulations made thereunder, a solicitor shall not, arising from his practice as a solicitor, lodge (or cause to be lodged) for collection through any bank account kept by him, or otherwise collect, an unendorsed cheque or other negotiable or non-negotiable instrument drawn in favour of a person other than himself, his firm, or a partner.

• (18) In this section—

‘accounting records’ means the books of account and all other documents required to be maintained and kept by a solicitor arising from his practice as a solicitor in accordance with regulations made pursuant to subsection (1) of this section.

SECOND SCHEDULE

SOLICITORS ACCOUNTS REGULATIONS 2014

REPORTING ACCOUNTANT’S REPORT

Page 1

To: Date:.................... 20

The Registrar of Solicitors

Law Society of Ireland

Blackhall Place

Dublin 7

PART 1*

Name of Solicitors’ Practice:
Name of Sole Practitioner: or Names of Partners:	..............
	..............
	..............
	..............
Address of Principal Place of Business:	..............
	..............
	..............
	..............
Address(es) of other Places(s) of Business (where applicable):	..............
	..............
	..............
	..............

[*See Appendix 6 for instructions relating to completion of Report]

REPORTING ACCOUNTANT’S REPORT

Page 2

Accounting Period covered by this Report:

Commencing on:............................................................................. 20...............

Ending on:...................................................................................... 20...............

PART II

[IMPORTANT NOTE: Respective Responsibilities of Solicitor(s) and Reporting Accountant Concerned

The solicitor(s) concerned is (are) responsible for complying with the Solicitors Accounts Regulations, 2014. It is the responsibility of the Reporting Accountant concerned to form an independent opinion, based on his/her examination conducted in accordance with Regulation 28 of the Solicitors Accounts Regulations, 2014 as to the solicitor(s) compliance with Part II and Part III (A) and Part III (B) and Part III (C) of the Solicitors Accounts Regulations, 2014 and to report his/her opinion to the Registrar of Solicitors.

In order to form that opinion, the Reporting Accountant shall carry out such tests, on a sample basis, as he/she considers necessary in accordance with Regulation 28 of the Solicitors Accounts Regulations, 2014 and (where applicable) in accordance with the relevant guidance issued by the relevant professional accountancy body of which the Reporting Accountant is a member, based upon accounting records, information and explanations supplied to the Reporting Accountant by the solicitor(s) concerned].

I, .............. (reporting accountant),

acting as principal/partner of the firm of ..............

and in compliance with the Solicitors Accounts Regulations, 2014 HEREBY CONFIRM to the Law Society of Ireland (“the Society”), in respect of the above-named Solicitor(s), that I have examined, to the extent and in the manner required by Regulation 28 of the Solicitors Accounts Regulations, 2014 the accounting records (as more particularly described in the Solicitors Accounts Regulations, 2014 and, in particular, in Regulation 25 thereof) produced to me in respect of the above-named Solicitor(s) AND, insofar as an opinion can be based on this examination, I am of the OPINION that:

• (1) during the above-mentioned Accounting Period, the provisions of Part II and Part III(A) and Part III(B) and Part III(C) of the Solicitors Accounts Regulations, 2014 have been complied with by the above-named Solicitor(s), other than in respect of:

(i)certain trivial breaches due to minor clerical errors or mistakes in accounts — keeping, each of which was rectified by the above-named Solicitor(s) on being discovered and none of which, in my opinion, resulted in any loss to any client;

(ii)**the matters set out in Appendix 1 hereto, in respect of which I have not been able to satisfy myself for the reasons stated therein;

(iii)**the matters set out in Appendix 2 hereto, in respect of which it appears to me that the provisions of the Solicitors Accounts Regulations, 2014 have not been complied with;

[** Delete if inapplicable]

REPORTING ACCOUNTANT’S REPORT

Page 3

• (2) the half yearly balancing statements, as provided for in Regulations 13(8) of the Solicitors Accounts Regulations, 2014 have been carried out by the above-named Solicitor(s) in respect of the above-mentioned Accounting Period AND I have set out in Appendix 3 hereto particulars of such half yearly balancing statements; and

• (3) the results of the comparisons under Regulation 28(2), Step 6 and Regulation 28(3), Step ct 2 of the Solicitors Accounts Regulations, 2014 as at 20 were as follows:

			€
	(i)	gross liabilities as shown by ledger account balances in respect of clients, controlled trusts and insolvency arrangements:	€
	(ii)	balance on control accounts in respect of clients, controlled trusts and insolvency arrangements:	€
	(iii)	total moneys held in client accounts, controlled trust accounts, insolvency arrangement accounts, as verified by the relevant bank statements, after adjustment for outstanding cheques/withdrawals and lodgements:	€

[**Note: Where the figures set out in paragraph (3)(i), (ii) or (iii), above, do not reconcile]

I have set out in Appendix 4 hereto an explanation of the difference(s) arising, insofar as could be established from the examination carried out by me, as provided for in Regulations 28 and 29 of the Solicitors Accounts Regulations, 2014 and I confirm that an amount of € has been paid into/withdrawn from client account or controlled trust bank account or insolvency arrangement bank account by the above-named Solicitor(s) following discovery of the said difference(s).

• (4) the office balancing statement as at the accounting date in respect of the above-mentioned Accounting Period, as provided for in Regulation 13(9)(b) of the Solicitors Accounts Regulations, 2014 have been prepared by the above-named Solicitor(s) AND I have set out in Appendix 5 hereto particulars of this office balancing statement.

I SO CONFIRM AS SET OUT IN THIS PART II

AND IN PART III OF THIS REPORT:

.

Signature of Reporting Accountant

Date: 20..

[** — Delete if inapplicable]

REPORTING ACCOUNTANT’S REPORT

Page 4

PART III

I............................................................, (reporting accountant) HEREBY

CONFIRM:

• (a) that I am qualified, as provided for in Regulation 26(4) of the Solicitors Accounts Regulations, 2014 to give the foregoing Report AND that I hold professional indemnity insurance cover at least to the minimum level directed from time to time by the Society, as provided for in Regulation 26(4)(c) of the Solicitors Accounts Regulations, 2014 and

• (b) that I will furnish a copy of this Report to the above-named Solicitors’ Practice.

Name of Reporting Accountant:	............................
Qualification(s):	............................
Firm Name:	............................
Address:	............................

REPORTING ACCOUNTANT’S REPORT

Page 5

PART IV

Form of Acknowledgement

I, .............. solicitor, as sole practitioner/compliance partner for and on

behalf of my/our Solicitors Practice HEREBY CONFIRM:

• (a) that I recognise my/our obligations under the Solicitors Accounts Regulations, 2014 to secure compliance by my/our Solicitors Practice with the said Regulations; and

• (b) that I am aware of the format and contents of the within Reporting Accountant’s Report which I have discussed with the Reporting Accountant to the extent necessary to understand its effect upon my/our discharge of my/our obligations under the said Regulations.

Dated this ..day of..................... 20..

*Signature of sole practitioner/compliance partner: ..............

Name of Solicitors Practice: ..............

Address: ..............

[*required signature above is that of solicitor]

REPORT OF REPORTING ACCOUNTANT

Page 6

APPENDIX 1

Matters in respect of which I have not been able to satisfy myself, and the reasons therefor:

REPORTING ACCOUNTANT’S REPORT

Page 7

APPENDIX 2

Matters (other than trivial breaches due to minor clerical errors or mistakes in accounts-keeping) in respect of which, in my opinion, the provisions of the Solicitors Accounts Regulations, 2014 have not been complied with by the Solicitor(s) concerned:

REPORTING ACCOUNTANT’S REPORT

Page 8

APPENDIX 3

CLIENT ACCOUNT & CONTROLLED TRUST ACCOUNT & INSOLVENCY ARRANGEMENT ACCOUNT BALANCING STATEMENT

(information extracted from the solicitor(s) accounting records)

Name of Solicitors’ Practice:	Name of Solicitors’ Practice:	Name of Solicitors’ Practice:	Name of Solicitors’ Practice:
Accounting Period: From .................................. 20.......... To .................................. 20.........	Accounting Period: From .................................. 20.......... To .................................. 20.........	Accounting Period: From .................................. 20.......... To .................................. 20.........	Accounting Period: From .................................. 20.......... To .................................. 20.........
		1	2
Balancing statement date:	Balancing statement date:
		€	€
(a)	Liabilities as shown by the balances on:
	(i) client ledger accounts,
	(ii) controlled trust ledger accounts,
	(iii) insolvency arrangement ledger accounts.
	Total (i) + (ii) + (iii)
(b)	Debit balances include in (a), which are not offsettable by credit balances as shown by:
	(i) credit ledger accounts,
	(ii) controlled trust ledger accounts,
	(iii) insolvency arrangement ledger accounts.
	Total (i) + (ii) + (iii)
(c)	Gross liabilities (i.e. addition of (a) plus (b)) in respect of:
	(i) clients,
	(ii) controlled trusts,
	(iii) insolvency arrangements.
	Total (i) + (ii) + (iii)
(d)	Balance on control accounts in respect of
	(i) clients,
	(ii) controlled trusts,
	(iii) insolvency arrangements.
	Total (i) + (ii) + (iii)
(e)	Moneys held as per bank statements in
	(i) client accounts,
	(ii) controlled trust accounts,
	(iii) insolvency arrangement accounts.
	Total (i) + (ii) + (iii)

REPORTING ACCOUNTANT’S REPORT

Page 9

APPENDIX 3 continued

(f)	Outstanding bank lodgments cleared within three banking days in respect of:
	(i) client accounts,
	(ii) controlled trust accounts,
	(iii) insolvency arrangement accounts.
	Total (i) + (ii) + (iii)
	Outstanding bank lodgments cleared later than within three banking days in respect of:
	(i) client accounts,
	(ii) controlled trust accounts,
	(iii) insolvency arrangement accounts.
	Total (i) + (ii) + (iii)
(g)	Cheques / withdrawals outstanding less than six months in respect of:
	(i) client accounts,
	(ii) controlled trust accounts,
	(iii) insolvency arrangement accounts.
	Total (i) + (ii) + (iii)
	Cheques / withdrawals outstanding more than six months in respect of:
	(i) client accounts,
	(ii) controlled trust accounts,
	(iii) insolvency arrangement accounts.
	Total (i) + (ii) + (iii)
(h)	Adjusted moneys held (i.e. (e) plus (f) minus (g)) in:
	(i) client accounts,
	(ii) controlled trust accounts,
	(iii) insolvency arrangement accounts.
	Total (i) + (ii) + (iii)
(i)	Surplus / deficit (i.e. (h) minus (c)) in respect of:
	(i) client accounts,
	(ii) controlled trust accounts,
	(iii) insolvency arrangement accounts.
	Total (i) + (ii) + (iii)

REPORTING ACCOUNTANT’S REPORT

Page 10

APPENDIX 4

Explanation(s) of differences arising as between:

• (i) gross liabilities as shown by ledger accounts in respect of clients, controlled trusts and insolvency arrangements:

• (ii) balance on the control accounts in respect of clients, controlled trusts and insolvency arrangements:

• (iii) total moneys held in client accounts, controlled trust accounts and insolvency arrangement accounts, as verified by the relevant bank statements, after adjustment for outstanding cheques/withdrawals and lodgements:

REPORTING ACCOUNTANT’S REPORT

Page 11

APPENDIX 5

OFFICE BALANCING STATEMENT

(information extracted from the solicitor(s) accounting records)

Name of Solicitors’ Practice:	Name of Solicitors’ Practice:	Name of Solicitors’ Practice:
Accounting Period:From...............................20....... To.... 20......	Accounting Period:From...............................20....... To.... 20......	Accounting Period:From...............................20....... To.... 20......
		€
(a)	Balance on office ledger control account:
(b)	Net total of debit and credit balances on office ledger:
(c)	Credit balances included in the list of office ledger balances (relating to all matters) not offsettable by debit balances:
(d)	Reasons for the above credit balances:(i) Professional fees not debited:(ii) Outlays inappropriately lodged to office account:(iii) Other reason(s) as per details set out below:**

[** Delete if inapplicable]

REPORTING ACCOUNTANT’S REPORT

Page 12

APPENDIX 6

Instructions relating to completion of Reporting Accountant’s Report