The Solicitors Regulation Authority (SRA) released a new Code of Conduct which aimed to simplify the rule structure and outline the professional principles in a clear, concise manner. The code not only seeks to protect clients and raise service standards but also emphasises the risk approach solicitors should take.

The new code does not replace the Solicitors’ Accounts Rules, Solicitors’ Indemnity Rules or Financial Services Rules but is designed to work in conjunction with these.

There have been few changes over recent years to the Solicitors’ Accounts Rules 1998 however some of the key amendments are:

Rule 15 - Solicitors should not provide banking facilities through a client account.

Rule 21 - Regular receipts from the Legal Services Commission (LSC) are office money and must be paid into the office account. Outstanding professional disbursements must be paid or the sum of the unposted amounts must be transferred to the client account within 28 days of the matter being reported as completed to the LSC.

Rule 21 - Solicitors no longer have a professional obligation to pay fees of counsel, agents or experts however they are still obliged to pay foreign lawyers’ fees.

Rule 23 - Changes made to enable compliance with the rules when solicitors opt to pay land registry application fees for registration by direct debit.

Rule 32 - Paid cheques can be retained in digital format (both sides) and must be kept for a minimum of two years.

A copy of the Code of Conduct effective from 1st July 2007 and Solicitors’ Accounts Rules can be downloaded from: www.sra.org.uk

If you have any questions about any of the Solicitors' Accounts Rules, including the recent changes, please contact John Staniforth on +44 (0) 207 566 4000 or email jstaniforth@kingstonsmith.co.uk