Notice to the profession in relation to office account bank cheques
It has recently come to the attention of the Law Society that one of the financial institutions has advised its customers that it would no longer be returning the original of paid office bank account cheques.
The Solicitors Accounts Regulations 2001 (as amended) sets out the minimum accounting records which a solicitor should maintain in Regulation 20. Regulation 20(1)(f) requires a solicitor to maintain 鈥渢he original of each paid cheque drawn on each client account, controlled trust account and non-controlled trust 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鈥.
There is no requirement under the regulations to obtain the return of original office bank account cheques.
The majority of practices did, as a matter of good practice, also obtain the return of the original office account cheques. In the absence of office account returned paid cheques, it is recommended that the solicitor retain a photocopy on file of all office account cheques issued in respect of outlays disbursed on behalf of clients.
In order to ensure continued compliance with the Regulations, each solicitor must ensure that their financial institution continues to return the original client bank account cheques.
Regulation Department