S.I. No. 118/2023 - Solicitors Accounts Regulations 2023

• (2) It shall be a breach of these Regulations -

• (a) for a controlling trustee, having received controlled trust moneys, to fail, without reasonable cause, to pay (or transfer via client account) such controlled trust moneys to the appropriate controlled trust account (or controlled trust accounts); and

• (b) for a controlling trustee, having received controlled trust moneys, to fail, without reasonable cause, to record such receipt in his or her accounting records.

• (3) The Society may, upon application by a controlling trustee, give directions in writing to the controlling trustee regarding the holding of controlled trust moneys in an account other than a controlled trust account.

Moneys to be paid into controlled trust account

17.

Withdrawals from controlled trust account

18.

• (a) controlled trust moneys properly required for a payment in the execution of the controlled trust concerned;

• (b) moneys, not being controlled trust moneys subject to the controlled trust concerned, which for any reason have been paid into the controlled trust account by mistake or otherwise in contravention of these Regulations.

• (2) The provisions of Regulation 9 (relating to the manner of withdrawal from client account) shall apply, mutatis mutandis, to the manner of withdrawal from controlled trust account.

• (3) The provisions of Regulation 12 shall apply mutatis mutandis to the furnishing of information to clients in respect of controlled trusts.

• (4) A controlling trustee shall not withdraw moneys from a controlled trust account, other than moneys permitted by and in accordance with Regulation 18(1), unless the Society, upon application by the solicitor, give directions in writing in respect of such other withdrawal.

• (5) It shall be a breach of these Regulations -

• (a) for a debit balance to arise on any controlled trust ledger account, other than a debit balance which is totally offset by a credit balance arising on another controlled trust ledger account in respect of the same controlled trust; and

• (b) for a solicitor to discharge personal or office expenditure from a controlled trust account.

Duty of controlling trustee to maintain accounting records

19.

• (a) to show separately in respect of each controlled trust of which he or she is a controlling trustee all his or her transactions with controlled trust moneys received, held, controlled or paid by him or her on behalf of each such controlled trust; and

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

PART III (B) —NON-CONTROLLED TRUSTS

General duty to pay non-controlled trust moneys into non-controlled trust account

20.

• (2) It shall be a breach of these Regulations for a solicitor to discharge personal or office expenditure from a non-controlled trust account.

PART III (C) — INSOLVENCY ARRANGEMENTS

General duty to pay insolvency arrangement moneys into insolvency arrangement account

21.

Moneys to be paid into insolvency arrangement account

22.

• (a) insolvency arrangement moneys received from or on behalf of the relevant debtor in respect of payments due under the insolvency arrangement; or

• (b) refunds from a creditor, the personal insolvency practitioner or, as applicable, the bank for the credit of the relevant debtor, in order to correct any error in making the payments referred to at Regulation 23(1)(a) to 23(1)(d) inclusive and in reversing the payments referred to at 23(1)(e); or

• (c) moneys which represent interest on insolvency arrangement moneys.

• (2) A personal insolvency practitioner shall not hold moneys to which the personal insolvency practitioner is beneficially entitled in an insolvency arrangement account for longer than three months from the date he or she becomes beneficially entitled.

• (3) No moneys, other than moneys which, as provided for in Regulation 21 or this Regulation 22, a personal insolvency practitioner is required or permitted to pay into an insolvency arrangement account, shall be paid into an insolvency arrangement account; and, where moneys are for any reason wrongly so paid, the personal insolvency practitioner shall, immediately on becoming aware of that fact, transfer the amount of such moneys to the account into which such moneys should have been paid in the first instance.

• (4) It shall be a breach of these Regulations:

• (a) for a personal insolvency practitioner, having received insolvency arrangement moneys, to fail, without reasonable cause, to pay such insolvency arrangement moneys to the appropriate insolvency arrangement account(s); and

• (b) for a personal insolvency practitioner, having received insolvency arrangement moneys, to fail, without reasonable cause, to record such receipt in his or her accounting records.

Withdrawals from insolvency arrangement account

23.

• (a) moneys properly required for the payment on behalf of the debtor to a creditor according to his or her entitlement under the insolvency arrangement;

• (b) moneys properly required for or towards payment of an amount due to the personal insolvency practitioner under the Act of 2012 and Regulations made pursuant to the Act of 2012 and in accordance with the insolvency arrangement in respect of outlays actually disbursed by the personal insolvency practitioner on behalf of that debtor in the course of the provision of legal services to the debtor for which the personal insolvency practitioner has adequate documentary proof that the moneys are properly due at the time of withdrawal; and

• (c) moneys properly available to be applied by the personal insolvency practitioner in satisfaction (in whole or in part) of professional fees payable under the Act of 2012 and Regulations made pursuant to the Act of 2012 and in accordance with the insolvency arrangement where it has been made clear to such debtor that such moneys held by the personal insolvency practitioner are being or will be applied by the personal insolvency practitioner in satisfaction (in whole or in part) of such professional fees; provided that such moneys shall be transferred from the insolvency arrangement account to office account within three months from when the personal insolvency practitioner becomes entitled to the moneys in question; and

• (d) bank charges, where appropriate; and

• (e) moneys that have been transferred into the insolvency arrangement account in error for which the personal insolvency practitioner has adequate documentary proof demonstrating such error.

• (2) The provisions of Regulation 9 (relating to the manner of withdrawal from client account) shall apply, mutatis mutandis, to the manner of withdrawal from an insolvency arrangement account.

• (3) A personal insolvency practitioner shall not withdraw moneys from an insolvency arrangement account, other than moneys permitted by and in accordance with Regulation 23(1) of this Regulation.

• (4) It shall be a breach of these Regulations: -

• (a) for a debit balance to arise on any insolvency arrangement ledger account, other than a debit balance which is totally offset by a credit balance arising on another insolvency arrangement ledger account in respect of the same insolvency arrangement; and

• (b) for a solicitor to discharge personal or office expenditure from an insolvency arrangement account.

Duty of personal insolvency practitioner to maintain accounting records

24.

• (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

25.

• (a) a record of receipts and payments, which separately records transactions on office account, on client account and, where applicable, for transactions on controlled trust account or on non-controlled trust account or on insolvency arrangement account (herein after referred to as “each account”) including details of the identity of the party providing the moneys received and the identity of the recipient of the moneys paid;

• (b) a separate ledger (or ledgers) for each account, which distinguishes clearly between transactions on each account; with a separate account in each ledger maintained for each type of account 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 and electronic funds transfers of moneys received by the solicitor, distinguishing between lodgements made to each account;

• (d) where a solicitor receives client moneys into the client account, the solicitor shall maintain a record of the identity of the client in respect of which the moneys were received;

• (e) a record demonstrating 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;

• (f) a bank account register, detailing in respect of each account, the bank, the branch thereof, the title or name designation of the account, the account number, the opening date, the authorised signatories, the names of those mandated to withdraw from the account and, where applicable, the date of closure;

• (g) the original of each paid cheque (or where permitted by the Law Society, digital images of the front and back of all original paid cheques) drawn on each account other than the office 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;

• (h) for all client account transactions, a copy of each document of record issued by the bank in respect of electronic transfers of funds on a file dedicated for that purpose. Where moneys are withdrawn from a client account by means of an electronic funds transfer from the client account, the solicitor shall retain on the client’s file, and a copy on a separate file dedicated to recording such transactions, the document of record issued by the solicitor and such other documentation issued by the bank to confirm that the transaction has been completed in accordance with the instructions of the solicitor. Where moneys are received by electronic funds transfer into the client account, the solicitor shall also retain on the client file a copy of the document of record issued by the bank to confirm that such transaction has taken place.

• (i) a copy of each draft and each other negotiable or non-negotiable instrument (other than a cheque referred to in Regulation 25(1)(g)) obtained by the solicitor in connection with any matter;

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

• (k) 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;

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

• (m) a register of moneys placed on joint deposit;

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

• (2) Where a solicitor maintains the accounting records on a computerised system, the solicitor shall ensure that appropriate back ups of computerised information are performed promptly and are securely stored other than on the practice’s office premises, same to be approved and verified by the compliance partner.

• (3) The solicitor shall retain securely at the firm’s office premises the minimum accounting records for at least the current financial year and the previous financial year.

• (4) A solicitor shall retain for at least six years each of the accounting records maintained and kept pursuant to this Regulation 25.

PART V — REPORTING ACCOUNTANT’S REPORT

Duty to deliver reporting accountant’s report to Society

26.(1)(a) A solicitor shall ensure that there is furnished to the Society, in such manner as the Society may specify, not later than five months after his or her accounting date in each practice year, or within such further period as the Society may in writing permit in accordance with the provisions of Regulation 26(1)(b), a report signed by the solicitor’s reporting accountant in the form set out in the Schedule to these Regulations or in such other form as may be expressly approved in writing by the Society in particular circumstances (in these Regulations referred to as a “reporting accountant’s report”).

• (b) Where an extension of time to file the reporting accountant’s report is sought in writing at least 14 days prior to the expiry of the time period referred to in Regulation 26(1)(a), the Society may extend the time in which to file a reporting accountant’s report by a period not exceeding one month after the conclusion of the time period referred to in Regulation 26(1)(a) if the Society is satisfied that it is appropriate in all of the circumstances to do so.

• (2)
• (a) In the case of a solicitor to whom the Solicitors Accounts Regulations 2014 applied, the accounting date selected by the solicitor and notified to the Society pursuant to the Solicitors Accounts Regulations 2014 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 Regulation 26(2)(a) 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 2014 applied, the reporting accountant selected by the solicitor and notified to the Society pursuant to the Solicitors Accounts Regulations 2014 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 Regulation 26(3)(a) 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 or where a solicitor’s reporting accountant resigns or otherwise ceases to operate as the solicitor’s reporting accountant, the solicitor shall notify the Society in writing of such change, resignation or cessation of operation, together with the reasons for same, 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 or an officer, director, or employee of a limited company or other corporate entity authorised to act as a reporting accountant, or a member or employee of a partnership (whether such a partnership has been authorised as a limited liability partnership or not) authorised to act as a reporting accountant), for the purposes of these Regulations, shall mean a person -

• (a) who is a practising member of any one or more of the following bodies, namely -

• (i) Chartered Accountants Ireland,

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

(iii)The Institute of Chartered Accountants in Scotland,

(iv)The Association of Chartered Certified Accountants,

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

• (b) is not and never has been a spouse, co-habitee, parent, child, sibling, dependent, associate, partner, consultant, clerk or servant of the solicitor concerned or a person with whom the solicitor either directly or indirectly has a mutual business interest; 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 in compliance with the relevant guidance issued by the relevant professional accountancy body of which the Reporting Accountant is a member; and

• (e) is approved by the Society.

• (5)
• (a) The Society may wholly or partly withdraw approval of an accountant as a reporting accountant in accordance with this Regulation 26(5) and may thereafter refuse to accept reporting accountant’s reports signed by such accountant either generally or in any particular case, if the Society is satisfied that a reporting accountant has not properly discharged his or her responsibilities as set out in these Regulations.

• (b) The Society may adopt procedures outlining how a decision under Regulation 26(5)(a) is to be taken and any such decision shall be taken in accordance with those procedures.

• (c) Prior to any consideration being given to a decision under Regulation 26(5)(a), the Society shall notify the reporting accountant in writing of the matter under consideration by the Society and shall afford the reporting accountant an opportunity to make written submissions in respect of the issues arising.

• (d) 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 Society’s records, would be affected by such withdrawal of approval; and the Society shall provide reasons to the accountant concerned or any solicitor affected by such withdrawal of approval.

• (6) A reporting accountant shall notify the Law Society in writing of his/her resignation or his/her cessation of operation as a reporting accountant, such notification to take place within 21 days of such resignation or cessation of operation. A reporting accountant shall provide the Society with reasons for such resignation or cessation unless the reporting accountant does not consider it appropriate to do so, in which case, the reporting accountant shall notify the Society accordingly.

Form of Acknowledgement

• (2) The compliance partner shall confirm, inter alia, that: -

• (a) each balancing statement has been approved by the sole practitioner or compliance partner in accordance with Regulation 13(8)(b);

• (b) the office balancing statement has been approved by the sole practitioner or compliance partner in accordance with Regulations 13(9)(b);

• (c) the listing of client ledger balances and controlled trust balances has been reviewed for undue or unnecessary delays in dealing with client matters in particular in discharging undisbursed outlay, moneys due to clients or moneys due to be paid for or on behalf of clients and where the listing disclosed unnecessary or undue delay in dealing with client matters, immediate action has been taken to deal with those matters, where appropriate, in accordance with Regulations 13(8)(e);

• (d) the list of client ledger balances outstanding two years or more at the accounting date as set out in Appendix 6 has been approved in accordance with Regulation 13(8)(f);

• (e) that where accounting records are maintained on a computerised system that appropriate back-ups of computerised information are performed promptly and are securely stored other than on the practice’s office premises, in accordance with Regulation 25(2).

• (3) Where the compliance partner is unable to provide confirmation in respect of the obligations under Regulation 27(2) or otherwise under the Regulations to any extent, the compliance partner shall set out in detail the rationale for same in the form of acknowledgement.

Examination by reporting accountant

• (2) The reporting accountant shall, as applicable, carry out his or her examination of a solicitor’s accounting records in the course of preparing the reporting accountant’s 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 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 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 in particular to include checks immediately before and after the accounting date and at least one other balancing date and making test checks of the totals of such accounts and records;

Step 3: comparing a sample of lodgements 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 of professional fees or outlays (or both) from each client account; including verifying that any transfers of moneys from the client account in respect of professional fees and outlays are supported by appropriate bills of costs and the written agreement with or notification to the client to such transfer;

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 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)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 balance on client account per the accounting records,

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

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

Step 8: making test checks on office ledger accounts, records of office receipts and payments 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 office balancing statements (as provided for, respectively, in Regulation 13(8) and 13(9)(b)) which are referable to the accounting period under review, confirming that each applicable 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: ascertain 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

• (i) ascertaining whether there has been compliance with Regulation 13(3)(b) in relation to the evidencing of outlays withdrawn from the client account; and

(ii)showing these balances separately in the reporting accountant’s report (Appendix 5);

Step 13: review the list of client ledger balances outstanding two years or more as at the accounting date provided by the Compliance Partner, and report those balances to the Society (Appendix 6); and

Step 14: requesting from the solicitor such information and explanations as the reporting accountant may require arising out of Steps 1 to 13.

• (3) The reporting accountant shall, where applicable, carry out his or her examination of a solicitor’s accounting records, in the course of preparing the solicitor’s reporting accountant’s 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 balance on the controlled trust accounts and insolvency arrangement accounts per the accounting records,

(ii)checking the reconciliation of the record of payments and receipts 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 Regulation 28(1), (2) or (3) shall require the reporting accountant, in the course of his or her preparation of a solicitor’s reporting accountant’s report in respect of an accounting period under review, to extend his or her examination -

• (a) wider than what should be ascertainable from the solicitor’s 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 solicitor’s 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 ).

• (5) Where, after carrying out an examination, as appropriate, in accordance with Regulation 28(1), (2) and (3), 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 accountant’s report with or without qualification.

• (6) If, in the course of carrying out his or her examination of a solicitor’s accounting records, the reporting accountant forms an opinion, or has reasonable grounds to suspect: -

• (a) that there is a deficit of clients’ funds in the practice which cannot be rectified within seven days; or

• (b) that there are entries in the accounting records which have been made to conceal the existence of a deficit,

the reporting accountant may notify the Registrar of Solicitors directly of that opinion or those reasonable grounds.

• (7) Any disclosure of such information by the reporting accountant under Regulation 28(6) shall not require the reporting accountant to disclose any information that may amount to a breach of any enactment or rule of law and shall not affect any obligation of the reporting accountant under any other enactment or rule of law.

Solicitor’s duty to furnish documents to reporting accountant

• (2) A solicitor, who is the subject of a request by his or her reporting accountant under Regulation 29(1), 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 Regulation 29(1), the reporting accountant shall -

• (a) qualify his or her reporting accountant’s 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 Regulation 29(2); 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 Regulation 30(1) applies shall ensure that the Society is notified in writing by the firm 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 firm 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 firm 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 firm 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.

• (5) A sole practitioner shall be the compliance partner for the purposes of these Regulations.

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 accountant’s 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.

• (3) Where a solicitor is the holder of a practising certificate issued by the Society and a practising certificate issued by the Law Society of Northern Ireland, the solicitor is, in addition to any obligations under these Regulations, required to furnish the Society with a copy of the accountant’s report furnished to the Law Society of Northern Ireland. The accounting dates for the firms in respect of the reports furnished should be the same accounting date in both jurisdictions.

When reporting accountant’s report not required

• (a) having held a practising certificate, has caused to be furnished to the Society a reporting accountant’s 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; or

• (e) is operating in or is employed by an Independent Law Centre in respect of that Independent Law Centre.

• (2) A reporting accountant’s 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 cessation, 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.

• (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 accountant’s 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 to practise

• (2) Where a solicitor is retiring from practice or is otherwise ceasing to be a sole practitioner or a partner in a firm 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 accountant’s report for an accounting period which ended on an accounting date less than twelve months prior to such retirement or cessation of practice, the solicitor shall be required to ensure that there is furnished to the Society his or her final reporting accountant’s 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.

• (3) Where a solicitor is required to file a final reporting accountant’s report under Regulation 33(2), such report should be furnished to the Society within 3 months of the date the solicitor ceased in practice, or other such other time as is agreed in writing with the Society.

Service of notices on reporting accountant

PART VI – PROFESSIONAL PRACTICE

Borrowing from clients

• (2) Moneys held in the client account on behalf of the client shall not be used for or as part of any loan arranged in accordance with Regulation 35(1).

Loans to clients

• (2) The discharging of outlays by a solicitor for or on behalf of a client in the course of providing legal services until the matter is completed shall not be considered to be a loan for the purposes of these Regulations.

• (3) A solicitor shall not use the client account or any moneys contained therein in respect of any loan arrangement to or between clients.

• (4) No sum in respect of a private loan from one client to another client should be paid out of client funds held in the client account for the client lender either by means of a client ledger transaction between the clients or to the client borrower directly.

• (5) Where a client of a solicitor agrees to provide a loan to another client of the solicitor, the solicitor must advise the lending client to take independent legal advice in respect of any such transaction.

Documentation for loan transactions

Maintenance of a register of undertakings

• (2) The register of undertakings shall include the date the undertaking was given, the identity of the client in respect of which the undertaking was given, the identity of the legal entity in receipt of the undertaking and the date the undertaking was complied with.

PART VII — INVESTIGATION OF FIRMS

Investigation by an authorised person

39.(1)(a) Where it appears to the Society, whether as a result of a complaint or otherwise, that it is necessary, for the purpose of investigating whether there has been due compliance by a solicitor with these Regulations and with the provisions of section 66 of the Principal Act (as amended) or otherwise for the purpose of exercising any of the Society’s functions under these Regulations, for an authorised person to attend, with or without prior notice, at the place or places of business of the solicitor, an authorised person may so attend at such place or places for that purpose.

• (b) Without prejudice to the generality of Regulation 39(1), the Society may agree to a request for or require the investigation to take place at a place or places other than the place or places of business of a solicitor, if the Society is satisfied that there are reasonable grounds for such a request or requirement.

• (2) An authorised person shall inform the solicitor or any partner, employee or agent of the solicitor of the purpose of the investigation.

• (3) An authorised person may in pursuance of the purpose specified in Regulation 39(1), require a 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 solicitor’s accounting records at such time or place fixed by the Society in such manner that the Society may reasonably determine;

• (b) to furnish to the authorised person such copies of the solicitor’s accounting records as the authorised person deems necessary to fulfil the purpose specified in Regulation 39(1) (whether or not such accounting records or any of them relate also to other matters) in such a manner as the Society may determine;

• (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 Regulation 39(1).

• (4) 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 Regulation 39(3), 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 under the Solicitors Acts for an order requiring the solicitor to make available for inspection at his or her place or places of business or such other place as the Society may require such accounting records as the Society (including the authorised officer) deem necessary for the purpose specified in Regulation 39(1) or as the Court thinks fit.

• (5) An authorised person who attends pursuant to Regulation 39(1) at the place or places of business of a solicitor shall be afforded by the solicitor (at the solicitor’s 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.

• (6) A solicitor or the partner, employee or agent of the solicitor, shall not delay, obstruct, impede, interfere with or resist an authorised person or persons in the exercise of their functions under these Regulations, or utter or send threats to, or in, in any way, intimidate or menace an authorised person or persons or cause the publication of the name and or address of an authorised person or persons.

• (7) The Society’s functions under these Regulations as referred to in Regulation 39(1) 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 and Chapter 3 of Part 10 of the Act of 2015.

• (8) 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 deems necessary in the circumstances, including communicating with such persons and seeking such further information and documentation that the Society deems necessary in the circumstances;

• (b) that the solicitor should be required to attend for interview by the Society at the Society’s premises (or elsewhere within the State or by such means as to be determined by the Society), the Society may so require the solicitor to attend and the Regulation of Practice Committee Regulations shall apply in respect of any such meeting, subject to the provisions of these Regulations.

• (c) that the solicitor is to be interviewed in relation to matters contained in a report or reports of an authorised person in accordance with Regulation 39(8)(b), the solicitor shall be furnished with a copy of such report or reports in advance of such attendance;

• (d) that the solicitor is to be interviewed in relation to matters contained in a report or reports of an authorised person in accordance with Regulation 39(8)(b), the solicitor may, in addition to Regulation 14(c) of the Regulation of Practice Committee Regulations, also attend such interview accompanied by his or her reporting accountant;

• (e) 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 Legal Practitioners Disciplinary Tribunal for an inquiry into the conduct of the solicitor on the grounds of alleged misconduct pursuant to section 14A(6) or section 14A(7)(c) of the Act of 1994 or section 77 of the Act of 2015;

• (f) whether or not the Society decides to make an application to the Legal Practitioners 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;

• (g) that a written response or further documentation is required to be filed by the solicitor in accordance with Regulation 9 of the Regulation of Practice Committee Regulations and where that documentation is subsequently not filed within the time limit (as specified by the Society), the solicitor may inter alia be required to pay to the Society an amount as deemed appropriate by the Society as a contribution towards the costs incurred by the Society.

• (9) 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) a list of all client and office ledger balances, together with appropriate reconciliations up to a specified date, in respect of all clients, controlled trusts, non-controlled trusts and insolvency arrangements, or, where so specified by the Society in such notice, details of all transactions conducted through client and office accounts, 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) the balance on each client, office, controlled trust, non-controlled trust and insolvency arrangement account, as appearing on a specified date on statements from the bank at which such accounts are maintained, as adjusted for outstanding withdrawals and lodgements;

• (c) the balancing statement prepared by the firm on a specified date in accordance with Regulation 13(8)(a);

• (d) such further or other information from the accounting records of the firm that the Society may specify.

• (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 or a determination of an adjudication by a Legal Cost Adjudicator under Chapter 4 of Part 10 of the Act of 2015, 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 or adjudication under Chapter 4 of Part 10 of the Act of 2015), 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 solicitor’s reporting accountant stating:

• (a) whether, in the opinion of the reporting accountant, 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 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) (where the reporting accountant cannot provide such opinion as provided for in Regulation 40(3) (a)) the matters (if any) in respect of which the reporting accountant is prevented from providing such opinion.

• (4) A report by a solicitor’s reporting accountant to be furnished to the Society pursuant to Regulation 40(3) 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 VIII — GENERAL

Responsibility of partner

Accounts

Service of notices on solicitor

Solicitor’s lien

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

10 March 2023

MAURA DERIVAN,

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 amended) to the making of the within Regulations.

15 March 2023

Dr Brian Doherty,

Chief Executive Officer

Legal Services Regulatory Authority

On behalf of the Legal Services Regulatory Authority

The Legal Services Regulatory Authority concur, pursuant to subsection (1) of Section 66 of the Solicitors Act 1954 (as amended), to the making of the within Regulations.

SCHEDULE SOLICITORS ACCOUNTS REGULATIONS 2023

REPORTING ACCOUNTANT’S REPORT

Page 1

Date:......20

To:

The Registrar of Solicitors

Law Society of Ireland

Blackhall Place

Dublin 7

PART 1*

Name of Firm:

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

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 2023. 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 2023 as to the solicitor(s) compliance with Part II, Part III (A), Part III (B), Part III(C), and Part IV of the Solicitors Accounts Regulations 2023 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 2023 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), of the firm of...............

and in compliance with the Solicitors Accounts Regulations 2023 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 2023 the accounting records (as more particularly described in the Solicitors Accounts Regulations 2023 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), and Part IV of the Solicitors Accounts Regulations 2023 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 2023 have not been complied with;

[** Delete if inapplicable]

REPORTING ACCOUNTANT’S REPORT

Page 3

• (2) the quarterly balancing statements, as provided for in Regulations 13(8) of the Solicitors Accounts Regulations 2023 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 the balancing statement for the accounting date and the balancing statement for the date six months before the accounting date; 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 2023 as at ___20____ were as follows:

(i) gross liabilities as shown by ledger account balances in respect of clients, controlled trusts and insolvency arrangements (i.e. the total of the gross credit balances in respect of clients and controlled trusts and insolvency arrangements, without deduction of any non-offsettable debit balances):	€__
(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, 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 2023 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 2023 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 2023 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 2023 and

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

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 firm HEREBY CONFIRM:

• (a) that I recognise my/our obligations under the Solicitors Accounts Regulations 2023 to secure compliance by my/our firm with the said Regulations and I confirm that I have complied with my/our obligations under the said Regulations, including; -