CORRESPONDENCE

Problem

Regulations 4 and 5 require that third party documentation must be kept on file in relation to monies paid into Client Bank accounts. Regulation 8 requires that third party documentation be kept on file in relation to monies paid out of Client Bank Accounts.

Recommendation

The Law Society has indicated that returned paid cheques (see C below) is sufficient documentation for monies paid out of Client Bank Accounts. In relation to monies received, the Law Society has admitted that no such documentation exists but as a rule of thumb, Solicitors should photocopy each cheque before lodging it to the bank.