Solicitors’ accounts

  • The rules bear only a distant resemblance to other areas of accounting, beyond the use of double-entry book keeping.
  • The focus is on the separation between client money in client accounts and the firm’s own money in business accounts, as well as keeping proper records of the transactions.
  • Problem areas include:
    • mixed receipt (client sends a cheque with both kinds of moneys)
    • VAT (does solicitors need to pay it for Counsel fees?)
    • interests in client moneys (does she get any and how much?)
  • It is also of interest to note that solicitors used to draw and spend money on behalf of their clients for general, non-legal, purposes: but that is no longer permitted.

Solicitors’ ethics

  • Complaints against solicitors’ work and bills go first to a body called Legal Ombudsman, which has summary disciplinary powers. Where appropriate the Ombudsman can refer the case to the Solicitors Regulation Authority.
  • The Court has a supervisory jurisdiction (of medieval origin) to direct enforce a solicitor’s undertaking made by a solicitor (because she is an officer of the Court). But this does not apply to LLPs: see Harcus Sinclair v Your Lawyers LLP [2021] UKSC 32.