112 Obligation to keep records in respect of trust accounts and valuable property

(1)

If, in the course of the practice of a practitioner or an incorporated firm, the practitioner, a related person or entity, or the incorporated firm receives or holds money or other valuable property in trust on behalf of any person, the practitioner, related person or entity, or incorporated firm—

(a)

must, in relation to the money, keep trust account records that disclose clearly the position of the money in the trust accounts of the practitioner, related person or entity, or incorporated firm; and

(b)

must, in relation to other valuable property, keep records that—

(i)

describe the property received or held; and

(ii)

show the date on which the property was received; and

(iii)

if the property has been disposed of, give details of the disposition of the property, including the date on which, and the person to whom, the property was disposed of; and

(c)

must keep the records required by this section in such a manner as to enable those records to be conveniently and properly audited or inspected.

(2)

Subsection (1) does not apply to a person (being a practitioner, related person or entity, or incorporated firm)—

(a)

who does not provide regulated services; or

(b)

who, in the course of providing regulated services, does not, on that person’s own behalf or in his or her capacity as a director or shareholder of an incorporated firm, do any of the following:

(i)

receive or hold money or other valuable property in trust for any other person:

(ii)

invest money for any other person:

(iii)

have a trust account:

(iv)

receive fees or disbursements in advance of an invoice being issued.

(3)

A person commits an offence against this Act and is liable on conviction to a fine not exceeding $25,000 who knowingly acts in contravention of subsection (1).

Compare: SR 1998/17 r 3(1)(b), (2)(a)

Section 112(3): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).