INTEREST RECEIVED

Problem

Regulation 5 introduces the 3-month rule that prohibits a solicitor from holding moneys to which he/she is beneficially entitled in client account for more than 3 months. This 3-month rule applies to interest received on client monies that is not payable to specific clients.

Recommendation

Any interest held to date should be transferred to the office account without delay. Any further interest received should then be scrutinised for any owing to specific clients and the remainder transferred without delay.