Lawyers and Conveyancers Act (Trust Account) Regulations 2008

12 Receipt and payment of trust money
  • (1) Every receipt, payment, transfer, and balance of trust money must be recorded in a trust account ledger with a separate ledger account for each client and—

    • (a) the recording must as far as practicable be secure against retrospective alteration or deletion; and

    • (b) no ledger account may contain money of more than 1 client, but a client’s account may be subdivided into various matters.

    (2) For the purposes of subclause (1), a joint client must be treated as a single client.

    (3) Any trust money received by a practice must be recorded promptly and accurately in that practice’s trust account receipt records and the relevant client ledger account.

    (4) For the purposes of subclause (3), each such entry of the receipt of trust money must state—

    • (a) the amount, date, purpose, and source of the receipt; and

    • (b) the client for whom the trust money is to be held.

    (5) Where trust money is paid in cash to a practice, or the payer of the trust money so requests, a receipt must be given to the payer (trust receipt) and a copy of the trust receipt must be retained by the practice in electronic or paper form.

    (6) A practice may make transfers or payments from a client’s trust money only if—

    • (a) the client’s ledger account has sufficient funds and they are available for that purpose; and

    • (b) the practice obtains the client’s instruction or authority for the transfer or payment, and retains that instruction or authority (if in writing) or a written record of it; and

    • (c) payments to a third party are made in a form that permits the crediting of the money only to the account of the intended payee; and

    • (d) transfers to another client are by way of trust journal entry.

    (7) Each practice must provide to each client for whom trust money is held a complete and understandable statement of all trust money handled for the client, all transactions in the client’s account, and the balance of the client’s account,—

    • (a) in respect of ongoing investment transactions, at intervals of not more than 12 months; and

    • (b) in respect of all transactions that are not completed within 12 months, at intervals of not more than 12 months; and

    • (c) in respect of all other transactions, promptly after or prior to the completion of the transaction.