SOLICITORS
TRUST ACCOUNT RULES 1996
Made
pursuant to a resolution of the Council of the New Zealand Law Society on
8 November 1996 under section 17 of the Law Practitioners Act 1982.
1
Title and commencement
(1) These Rules may be cited as the Solicitors Trust Account Rules 1996.
(2) These Rules shall come into force on 1 April 1998.
2
Interpretation
In
these Rules, unless the context otherwise requires,
"Act" means the Law Practitioners Act 1982:
"Board" means the Board of the New Zealand Law Society:
"Client", in relation to a solicitor, includes any person on
whose behalf money is, or securities are, held by the solicitor:
"Client assets" means any assets, including money, of a client
of a solicitor that are under the management, whether temporary or permanent,
of the solicitor:
"Contributory security" means a security (including a mortgage
of land, debenture, and an instrument by way of security) granted in favour
of more than one person each of whom is named, and whose share is specified,
in the security (and, for the purposes of this definition, persons acting
jointly shall be regarded as one person):
"Executive Director" means the Executive Director of the New
Zealand Law Society:
"Firm" means a partnership of solicitors:
"Inspector" means a person who is appointed to the inspectorate
under section 88A(2) of the Act:
"Inspectorate" means the Law Society inspectorate established
under section 88A of the Act and -
(a) Includes an inspector; and
(b) Includes a person to whom a function, duty, right, or power has been
delegated under regulation 20 of the Regulations:
"Regulations"
means the Solicitors Trust Account Regulations 1998:
"Review", in relation to the trust accounts of a solicitor,
has the meaning set out in regulation 2(2) of the Regulations:
"Rules of Professional Conduct" means the Rules of Professional
Conduct for Barristers and Solicitors published by the New Zealand Law
Society, as amended from time to time:
"Secretary", in relation to a District Law Society, includes
any executive director of that Society:
"Solicitor" means a solicitor within the meaning of section
2 of the Act who is in practice on his or her own account, and includes
a firm of those solicitors and every partner of that firm; and, in Rules
3(1), 10, 19 and 20, also includes a solicitor within the meaning of the
Act:
"Spouse", in relation to a person, includes any person who,
although not legally married to the first mentioned person, lives as that
person's wife, husband, or partner on a domestic basis:
"Trust account", in relation to a solicitor, means any account
kept by the solicitor in relation to trust money received by the solicitor:
"Trust account partner" has the meaning set out in Rule 16:
"Trust account records", in relation to a solicitor, means:
(a) All records (including all books, papers, files, accounts, statements,
invoices or copies of invoices, documents, receipts and evidence of authority
for payments, cheques, securities, and trust receipt forms used and unused)
relating to the solicitor's trust accounts or to trust money received
by the solicitor, whether kept in writing or on computer or machine or
in any other manner; and
(b) If any of those records are kept on computer, includes the relevant
computer equipment and software:
"Trust bank account", in relation to a solicitor, means any
account at a bank in New Zealand either in the name of that solicitor
or in the name of a firm in which that solicitor is a partner or is held
out to be a partner and which is designated as a trust account or into
which trust money is deposited:
"Trust money" means all money that is, when received by a solicitor,
subject to the provisions of section 89 of the Act.
[This Rule 2 incorporates the amendments made by the NZLS Council
resolution of 1 October 1999 which came into effect on 15 December 1999]
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GENERAL DUTY
3 Client assets to be managed in accordance
with instructions
(1) Unless otherwise required by law, a solicitor must deal with client
assets only in accordance with the instructions of the client (and, in
particular, may not pay, transfer, or charge any client assets except
in accordance with such instructions).
(2) Evidence of instructions of a client must be retained by the solicitor
for at least 6 years.
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TRUST ACCOUNTS
4 Trust account records
(1) It shall be the duty of every solicitor to keep trust account records
in such a manner as to enable them to be conveniently and properly reviewed
by the inspectorate.
(2) Trust account records must include trust bank account statements,
client ledger accounts, journals and month end balance working papers.
(3) Trust account records must be up-to-date, clearly show the amount
of the trust money held for each client, and as far as practicable be
secure against retrospective alteration or deletion.
(4) All entries in the client ledger accounts, and in other records that
are the source of such entries, must be dated and include references that
identify their source or destination and enable them to be traced backward
and forward.
(5) All entries in the journal must include sufficient detail to make
their purpose evident.
(6) Trust account records relating to a client must be retained for a
period of at least 6 years from the date of the last transaction recorded
in them; and -
(a) After
the first 3 years, retention may be in the form of microfilm, imaging,
or other similar
technology;
(b) In
respect of computer generated trust account records originated by the
solicitor, after the first 12 months retention may be in the form of
electronic storage, microfilm, imaging, or similar technology.
Nothing
in these Rules limits any other obligation of a solicitor to retain trust
account records.
[This Rule 4 incorporates the amendments made by the NZLS Council
resolution of 1 October 1999 which came into effect on 15 December 1999]
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5
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;
(b) No ledger account may contain money of more than one client, but
a client's account may be subdivided into various matters;
(c)
For the purposes of this rule, clients having a joint account are a
single client.
(2) Any trust
money received by a solicitor must be recorded promptly and accurately
in that solicitor’s trust account receipt records and the relevant
client ledger account. Each such entry of the receipt of trust money must
state the amount, date, purpose, and source of the receipt, and the client
for whom the trust money is to be held.
(3) Where trust money is paid in cash to a solicitor, 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
solicitor in electronic or paper form.
(4) Where a solicitor produces his or her trust receipts by computer -
(a) every
issue of a trust receipt must be recorded electronically; and
(b) the computer system must, as far as practicable, be such that that
electronic record cannot be altered or deleted.
(5) Where
a solicitor obtains trust receipt forms from an outside supplier, the
supplier must first be approved by the Board.
(6) All trust receipts must be numbered sequentially and must include:
(a) the
name of the solicitor's firm (or, if the solicitor is not in a firm,
of the solicitor);
(b) the person from whom the trust money is received;
(c) the person to be credited with the trust money;
(d) a brief description of the purpose for which the trust money is
received;
(e) the amount, in words and figures, of trust money received;
(f) the date of issue of the trust receipt;
(g) the signature of the solicitor, cashier or other person authorised
by the solicitor to sign trust receipts; and
(h) the words "official receipt form for trust moneys".
(7) A solicitor
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 solicitor 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.
(8) Each
solicitor shall 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 which are not completed within 12
months, at intervals of not more than 12 months; and
(c) In respect of all other transactions, promptly upon or prior to
the completion of the transaction.
[This
Rule 5 incorporates the amendments made by the NZLS Council resolution
of 1 October 1999 which came into effect on 15 December 1999]
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6 Trust bank accounts
Each solicitor must ensure that each trust bank account is reconciled with the trust ledger as at the end of every month. These reconciliations must be completed by the 10th working day of the following month (except in January, when they must be completed by the 15th working day)
[This Rule 6 incorporates the amendment made by the NZLS Council resolution of 22 October 2004, which came into effect on 1 January 2005.]
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7
Solicitor ceasing practice
(1) If a solicitor who is not in partnership ceases practice, the solicitor
must immediately -
(a) Deliver
all unused trust account receipt forms relating to the solicitor's practice
to the District Law Society; and
(b) Ensure that all trust bank accounts are closed and all money in
them paid to the persons entitled.
(2) If a solicitor who is not in partnership dies, the District Law Society
must, unless the solicitor's practice is being conducted pursuant to section
70 or section 71 of the Act, forthwith -
(a) Take
charge of all unused trust account receipt forms relating to the solicitor's
practice, and dispose of them as the District Council thinks fit; and
(b) Ensure
that all trust bank accounts are closed and all money in them paid to
the persons entitled
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8 Exemption where no trust money
or client assets handled
Rules 4 to 6, 16, 17 and 19(2) do not apply to a solicitor who -
(a) Does
not handle trust money or client assets, invest money for any client,
have a trust bank account, or receive fees or disbursements in advance
of an invoice being issued; and
(b) Has, during the preceding 12 months, certified in writing to the
Executive Director and the relevant District Law Society that he or
she -
(i) Has
not done any of the things specified in paragraph (a) of this rule
during the preceding 12 months; and
(ii) Does not intend to do any of those things during the following
12 months
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OTHER CLIENT ASSETS
9 Other assets
(1) Where a solicitor may withdraw money of a client from a bank account
(other than a trust bank account) without the client's signature or other
authorisation, the solicitor must, in regard to that bank account, observe
the same standards as to authorities, recording, and accounting to clients
as that required for trust bank accounts (except that the solicitor need
not comply with Rule 6 in regard to that bank account).
(2) Every solicitor must ensure that an up to date record is kept at all
times of all non-monetary assets.
(3) For the purposes of subclause (2), "non-monetary asset",
in relation to a solicitor, means any property or right or chose in action
-
(a) in
which a client of the solicitor has a legal or beneficial interest;
and
(b) with which the solicitor or any employee of the solicitor, or any
company controlled by the solicitor or employee, can jointly or severally
deal without the knowledge of the client,
but does not include -
(a)
any property or right or chose in action held in a trust account or
by a solicitors nominee company; or
(b) anything received by the solicitor for immediate collection and
conversion into money, provided that such money is recorded in the
solicitor's trust account.
[This
Rule 9 incorporates the amendments made by the NZLS Council resolution
of 1 October 1999 which came into effect on 15 December 1999]
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10 Investment of money
A solicitor instructed to invest money within the meaning of section 169A of the Law Practitioners Act 1982 must, at the time those instructions are given,
(a) Obtain
written authority from the client for the investment; and
(b) Obtain written acknowledgement from the client to the effect that the client recognises and accepts that any loss relating to money which a solicitor has been instructed to invest will not be reimbursed by the Solicitors Fidelity Guarantee Fund, except that this paragraph does not apply where the provisions of section 169A(4) of the Act apply.
[This Rule 10 incorporates the amendment made by the NZLS Council resolution of 22 October 2004, which came into effect on 1 January 2005.]
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11
Contributory securities
(1) Where money is received by a solicitor from a client for the purposes
of investment in a contributory security other than through a solicitor's
nominee company the solicitor shall ensure that the provisions of the
Solicitors Nominee Company Rules 1996 relating to the following matters
are complied with as if the investment were to be made through a solicitor's
nominee company:
(a) The
authorities to be given by investors;
(b) The information to be given to investors;
(c) Registration of mortgages;
(d) The prohibition against the taking or holding of a security from
an associated person and the disclosure required before an associated
person can be a guarantor or indemnifier;
(e) Default procedures;
(f) The restrictions relating to advancing moneys on the security of
development mortgages.
(2) Where
a solicitor is instructed to apply money under a loan agreement on behalf
of a lender under that agreement, and -
(a) The
lender has specified the borrower to whom the money is to be lent; and
(b) The lender has not been introduced to the borrower by the solicitor
for the purpose of making that loan (other than, where the lender is
a financial institution within the meaning of the Reserve Bank of New
Zealand Act 1989, by means of an application for the loan); and
(c) The solicitor has not made or participated in the decision to approve
the making of the loan, other than by advising in respect of the terms
and conditions of the loan agreement; and
(d) The lender has acknowledged in writing that all or some of the provisions
of subclause (1) of this rule shall not apply in respect of that loan
-
then the provisions of subclause (1) of this rule, or such of them as
have been specified under paragraph (d) of this subclause, shall not
apply in respect of that loan.
(3) Subclause
(1) of this rule shall not apply in respect of a security taken in the
name of a single lender to secure moneys advanced by that lender. For
the purposes of this subclause, moneys held on joint account shall be
regarded as moneys advanced by a single lender.
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AGENCIES,
SOLICITOR-TRUSTEES AND SOLICITOR-ATTORNEYS
12 Agencies
(1) Before a solicitor, acting as agent, receives moneys on behalf of
an insurance company, building society, or any other person the solicitor
must obtain a written acknowledgement from that company, society or person
that the solicitor is acting as agent only and not as solicitor, and that
no claim will lie against the Solicitors'Fidelity Guarantee Fund.
(2) Every such acknowledgement must be produced to the Executive Director
for noting.
3.Except
in the case of an agency for a fire and general insurance company or building
society, no agency of a kind to which subclause (1) of this rule applies
shall be undertaken without the prior consent of the relevant District
Law Society.
4.Nothing
in this Rule limits or affects the obligations of a solicitor in relation
to commissions under the Secret Commissions Act 1910 or any other enactment
or rule of law or under the Rules of Professional Conduct.
[This Rule 12 incorporates the amendments made by the NZLS Council
resolution of 1 October 1999 which came into effect on 15 December 1999]
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13
Solicitor-trustees
(1) For the purposes of Rule 13 and Rule 14, an "associate",
in respect of a solicitor, means a person who is -
(a) a partner
of that solicitor in the same firm; or
(b) an employee of that solicitor; or
(c) an employee of a firm, or of any partner of a firm, of which that
solicitor is a partner.
(2) If,
in respect of a trust or estate, -
(a) a solicitor
is sole trustee, or a solicitor and one or more of his or her associates
are the only trustees; and
(b) a separate bank account is kept -
then that bank account is deemed to be a separate trust account for
the purposes of section 89 of the Act, the Regulations, and these Rules
and, together with any separate books or records of account, may be
reviewed by the inspectorate.
[This
Rule 13 incorporates the amendments made by the NZLS Council resolution
of 1 October 1999 which came into effect on 15 December 1999]
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14
Solicitor acting jointly in respect of trust or estate
If, in respect of a trust or estate -
(a) a solicitor
is trustee jointly with another person or persons, at least one of whom
is not an associate of the solicitor; and
(b) the solicitor has authority by himself or herself or jointly with
any associate to operate any bank account kept in respect of the trust
or estate,
the inspectorate may, at its option, either review the accounts of the
trust or estate or satisfy itself by the certificate of an accountant
that the accounts of the trust or estate are in order.
[This
Rule 14 incorporates the amendments made by the NZLS Council resolution
of 1 October 1999 which came into effect on 15 December 1999]
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15 Duty to keep register of
trustees, executors and attorneys
(1) Every solicitor must keep a register, in a form approved by the inspectorate,
to be known as the register of trustees, executors and attorneys, in which
shall be entered a clear record of the following particulars:
(a) A description
(sufficient to identify the trust) of each trust to which the solicitor
has been appointed as a trustee;
(b) A description of each estate in respect of which the solicitor has
been appointed as executor or administrator;
(c) A description of each power of attorney in favour of the solicitor
or in favour of an employee of the solicitor by a client of the solicitor;
and
(d) Except to the extent that these particulars are already on a file
of the solicitor, a description of each transaction or group of related
transactions for which the power of attorney is used, including details
of securities, and bank accounts in connection with the transaction.
A description
may consist of a photocopy of the relevant pages of the instrument concerned,
if that photocopy contains the required information.
(2) Subject to subclause (3) of this rule, the particulars referred to
in paragraphs (a) to (c) of subclause (1) of this rule must be entered
in the register of trustees, executors and attorneys forthwith upon a
solicitor or employee learning of his or her appointment as such, and
the particulars referred to in paragraph (d) of that subclause must be
entered in the register of trustees, executors and attorneys forthwith
upon the entry into any such transaction.
(3) In the case of a trust, estate or power of attorney existing at the
date of these Rules, the particulars referred to in paragraphs (a) to
(d) of subclause (1) of this rule shall be entered in the register of
trustees, executors and attorneys forthwith upon the first occasion on
which the solicitor exercises any powers as trustee, executor or attorney
pursuant to such trust, estate or power of attorney.
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TRUST
ACCOUNT PARTNERS
16 Trust account partner
(1) In these
Rules, the term "trust account partner" means -
(a) A
partner appointed as a trust account partner under subclause (2) of
this rule; or
(b) In the case of a solicitor who is not in partnership, that solicitor.
(2) Every
firm of solicitors must at all times have a trust account partner for
each office of the firm having separate trust account records, and that
trust account partner must be a person appointed as such by the partners
of the firm.
(3) Every
trust account partner -
(a) Is
responsible for the administration of the trust accounting of the solicitor
or firm; and
(b) Is responsible for ensuring that the provisions of the Act relating
to trust accounts, the Regulations, these Rules, and the Solicitors
Nominee Company Rules 1996 are complied with by the solicitor or firm;
and
(c) Must take appropriate measures to verify the correctness of, and
sign, all reports required by these Rules (unless prevented by temporary
absence or incapacity in which case another partner, if any, may take
such measures and sign).
(4) Nothing in these Rules regarding a trust account partner diminishes
the responsibilities and liabilities of any partners of the trust account
partner for financial matters affecting the practice of the solicitor
or firm, as the case may be.
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REPORTING
17 Periodic reporting
(1) Every
trust account partner must certify to the Executive Director in writing,
by the 10th working day of each month (or in January, the 15th working
day), whether as at the end of the preceding month:
(a) The
trust ledger was correctly reconciled with the corresponding trust bank
accounts for both the general trust account and interest bearing deposit
accounts;
(b) The trust account records were a complete and accurate record of
transactions during the month and of each client's position; and whether
he or she is satisfied that during the month concerned;
(c) Trust account transactions during the month have been in accordance
with client instructions and where completed, properly accounted for
to clients ;
(d) The solicitor or firm, as the case may be, complied with the Regulations,
these Rules, and the Solicitors Nominee Company Rules 1996;
and, if not,
the reasons why.
(2)
Every trust account partner must certify to the Executive Director in
writing, by the 10th working day after the end of each of the quarters
of March, June and September and the 15th working day after the end of
the December quarter in each year, the following information in respect
of the quarter concerned:
(a) Whether
the collection of interest on any loans or other debt securities was
undertaken on behalf of lenders by the solicitor or the solicitor's
firm during the quarter;
(b)
The number and total dollar amount of those loans or securities, and
of each group of loans or securities specified by the Executive Director
from time to time;
(c) Whether any of the borrowers are in default for more than 30 days
in payment of any principal, interest, or other moneys payable under
any of those loans or securities; and, if so, the total amount of:
(i)
Interest in default;
(ii) Principal in default;
(iii) Other moneys in default.
(3)
For the purposes of this Rule:
(a) A certificate
is valid if submitted on the Internet in the manner prescribed by the
Society for the purpose;
(b) Where a certificate is submitted on the Internet, it is deemed to
have been submitted in writing and signed by the Trust Account Partner
where a password provided for this purpose to the Trust Account Partner
has been used;
(c) The Trust Account Partner is responsible for maintaining the secrecy
of the password.
(4)
If requested to do so by the Council of a District Law Society, the Executive
Director must send to that Council (forthwith after the reports have been
copied or otherwise reproduced for retention by him or her) all reports
received by him or her under this rule from members of that District Law
Society.
[This Rule 17 incorporates the amendments made by the NZLS Council resolutions of 1 October 1999, 1 November 2002 and 8 April 2004, which came into effect respectively on 15 December 1999, 1 March 2003 and 1 June 2004.]
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18
Solicitor required to give notice in certain cases
(1) Where -
(a) A
solicitor commences or recommences practice, or opens a branch office
(whether or not it has separate trust account records), in a district
whether alone or in partnership, and whether or not the solicitor has
previously been, or remains, in practice in any other place; or
(b) A solicitor's practice or branch office is amalgamated with the
practice or a branch office of any other solicitor; or
(c) There is a change in membership or a dissolution (whether on the
death or retirement of a partner, or the admission of a new partner,
or otherwise) of a firm of which a solicitor is a partner; or
(d) A solicitor ceases to practise, or ceases to carry on any branch
office (while continuing to carry on practice); or
(e) A trust account partner is appointed, or ceases to act as such,
for a firm of which a solicitor is a partner; or
(f) There is a change in location or postal address of any office from
which a solicitor carries on practice; or
(g) There is a change in the name under which a solicitor carries on
practice -
the solicitor must give notice of that event to the Secretary of the
District Law Society and to the Executive Director in accordance with
subclause (3) of this rule.
(2) Every
notice required by subclause (1) of this rule shall state the date of
the event and -
(a) In
any case to which subclause (1)(c) of this rule applies, the name of
the partner who has left or joined the firm;
(b) In any case to which subclause (1)(e) of this rule applies, the
name of the trust account partner concerned;
(c) In any case to which paragraph (f) or paragraph (g) of subclause
(1) of this rule applies, both the old and new location, postal address,
or name as the case may be.
(3) Every
notice required by subclause (1) of this rule shall be in writing signed
by the solicitor and be given -
(a) In
any case to which paragraph (a) or paragraph (b) of subclause (1) of
this rule applies, before the occurrence of the event of which notice
is required to be given; and
(b) In any other case, within 2 weeks after the occurrence of the event.
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TRAINING
IN TRUST ACCOUNTING
19 Training in trust accounting
Practice
as solicitor on own account
(1) Subject to rule 20(1), every solicitor, before commencing practice
on his or her own account, must complete a course of training, and pass
an examination in trust accounting, prescribed by and to a standard set
by the Board.
Trust
account partners
(2) Subject to subclauses (4), (5) and (6) of this rule and rule 20(2)
and (6), every solicitor who has not previously completed a course of
training in accordance with Appendix A or Appendix B to these Rules must
-
(a) during
the 3 years immediately before taking up the position of trust account
partner for the first time; or
(b) if acting as a trust account partner under an exemption under subclauses
(4) or (5) of this rule, and intending to act as such after the date
on which that exemption ends, before that date -
complete
a course of training, and pass examinations and assessments, in accordance
with Appendix A to these Rules and otherwise as prescribed.
(3)
Every solicitor who has previously completed a course of training in accordance
with Appendix A or Appendix B to these Rules must -
(a) if
more than 3 years have elapsed between completing that course and taking
up the position of trust account partner for the first time; or
(b) if more than 10 years have elapsed since that solicitor last acted
as a trust account partner,
complete
the course prescribed in Appendix B to these Rules.
(4)
Where -
(a) a trust
account partner of a firm dies, becomes permanently incapacitated or
leaves the firm on less than six months notice; and
(b) the firm has no partner who either has completed the course prescribed
in Appendix A or Appendix B to these Rules, or is exempt under Rule
20(6) -
the
partner appointed by the firm to act as its new trust account partner
is exempt from subclause (2) of this rule for a period of 12 months from
the date on which he or she is appointed.
(5)
Where -
(a) a trust
account partner of a firm unexpectedly ceases, or wishes to cease, to
act as such for any reason other than those specified in subclause (4)(a);
and
(b) the firm has no partner who either has completed the course prescribed
in Appendix A or Appendix B to these Rules or is exempt under Rule 20(6)
-
the
Board may, in its discretion and on such conditions as the Board thinks
fit, exempt a partner of the firm from subclause (2) of this rule for
a period not exceeding 12 months from the date on which the partner is
appointed as trust account partner.
(6)
Where there are exceptional circumstances, the Board may, in its discretion
and on such conditions as the Board thinks fit, grant -
(a) individual
exemptions to the requirements imposed under subclauses (2) and (3)
of this rule; and
(b) individual extensions to exemptions under subclause (4) of this
rule and rule 20(2) and (3).
[This
Rule 19 incorporates the amendments made by the NZLS Council resolutions
of 1 October 1999, 6 April 2001 and 1 November 2002, which came into effect
respectively on 15 December 1999, 1 May 2001 and 1 March 2003.]
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20
Transitional arrangements
(1) Every
solicitor who was in practice on his or her own account on 1 April 1998
is exempt from rule 19(1).
(2) Subject
to subclauses (3) and (4) of this rule, every person who became a trust
account partner before 1 May 1998 is exempt from rule 19(2) until 31 December
2005.
(3) If the
trust account partner under subclause (2) of this rule completes the course
prescribed in Appendix B to these Rules prior to 31 December 2005 or such
later date as the Board may permit under rule 19(6), then the trust account
partner shall be deemed to be qualified as such.
(4) The Board
may (by written notice to the person) withdraw an exemption under subclause
(2) of this rule in the case of any person on the grounds that, after
considering a report from the Executive Director or the President or Secretary
of a District Law Society, the Board is satisfied that there is good reason
that the person should complete the course referred to in rule 19(2) or
(3) as a requirement for holding the appointment of trust account partner.
(5) If an
exemption is withdrawn under subclause (4) of this rule, the solicitor
or firm concerned must comply with all reasonable directions of the Board
regarding the management of its trust account.
(6) Every
solicitor who -
(a) was
in practice on his or her own account on 1 April 1998; and
(b) becomes a trust account partner on or after 1 May 1998 is exempt
from rule 19(2) for a period of 12 months from the date on which he
or she becomes a trust account partner.
[This
Rule 20 incorporates the amendments made by the NZLS Council resolution
of 1 November 2002, which came into effect on 1 March 2003.]
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MISCELLANEOUS
21 Notice or report on behalf of firm
A partner of a firm, or a person who is employed by a firm and who is
authorised for the purpose by one of the firm's partners, may, on behalf
of the firm, give a notice or report or provide any information, that
the firm is required to provide under these Rules.
22 Revocations and saving
(1) The Solicitors Trust Account Rules 1969 are hereby revoked.
The rules revoked by subclause (1) of this rule, despite their revocation,
continue to apply to any audit of any trust account for the year ending
on, or any year ending before, the close of 31 March 1998 and to all matters
arising out of that audit or any failure to make or complete that audit
as fully as if they had not been revoked.
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APPENDIX A
TRUST ACCOUNT PARTNER COURSE
Interpretation
1.In this Appendix -
assessment day, in relation to a candidate, means the day on which
the candidate is examined or assessed on all elements of the course other
than the observation report
course administrator means the administrator for the time being
of the course, being a person appointed by the Inspectorate manager
course
materials means the current course manual, course work book, examination
and assessment papers, and any other documents and information provided
by the Board in relation to the course
Inspectorate
manager means the manager for the time being of the Inspectorate
Eligibility
2.The course is open only to practitioners who have registered for the
course with the New Zealand Law Society and paid the registration fee
referred to in paragraph 14.
Elements of course
3 The course consists of training and examination or assessment in each
of the following elements:
(1)
Observation Report;
(2)
Trust accounting;
(3)
Financial management;
(4)
Ethics (workshop);
(5)
Fraud (workshop);
(6)
Any other elements prescribed by the Board.
4
To pass the course a candidate must reach the standard approved by the
Board in each of the elements specified in paragraph 3 and in each of
the competencies specified in the course materials as being part of those
elements.
Examinations and assessments
5
The method, procedures, and other requirements for examination or assessment
for each of the elements and competencies are as prescribed in the course
materials.
6
Where there are exceptional circumstances of disability or hardship, the
course administrator may permit an alternative method of examination or
assessment or alternative procedures or other requirements in respect
of any candidate. The candidate must give at least 30 days notice to the
course administrator for arrangements for any such alternative to be made.
7
No applications for aegrotat passes will be considered.
8
A candidate may request a recount or re-mark of a written examination
or assessment or reconsideration of an observation report. A request must
be made in writing to the course administrator within 15 days of notification
of the relevant result and must be accompanied by the fee referred to
in paragraph 14.
Re-examinations and re-assessments
9
If a candidate fails any element or competency, the candidate may apply
to be re-examined or re-assessed. An application must be made to the course
administrator.
10
Re-examinations and re-assessments must be undertaken in accordance with
procedures and other requirements, and within a period, prescribed in
the course materials.
Decision
of Inspectorate manager is final
11.
The decision of the Inspectorate manager on examination or assessment
results, or results of re-counts, re-marks, re-considerations, re-examinations
or reassessments is final.
Certificate
12. A New Zealand Law Society certificate will be awarded to every candidate
who successfully completes the course. The successful completion of th
the course by a candidate will satisfy the New Zealand Law Society that
the candidate has met the requirements of Rule 19(2) of these Rules.
Confidentiality
13. The New Zealand Law Society will make every effort to keep confidential
the names of who have registered for the course. However, once a candidate
has passed the course, the candidate's name will be provided to the relevant
district law society..
Fees and refunds
14. The following fees (which include GST) are payable in relation to
the course and must be paid to the New Zealand Law Society:
(1)
Registration fee - $500, or such lesser amount as the Board may determine
from time to time.
(2)
Re-examinations, re-assessments, late submission of an observation report,
resubmission or reconsideration of an observation report, recount or re-mark,
or transfer to a later assessment day with at least 5 working days notice
- $120, or such lesser amount as the Board may determine from time to
time in respect of any particular matter.
(3)
Transfer to a later assessment day with less than 5 working days notice
- $240, or such lesser amount as the Board may determine from time to
time.
15.
If a candidate cancels his or her registration for the course by notice
in writing received by the course administrator more than 5 working days
before the assessment day, a refund of $60 will be made to the candidate.
[This
Appendix A incorporates the amendments made by the NZLS Council resolution
of 1 October 1999 which came into effect on 15 December 1999 and the amendment
made by the NZLS Council resolution of 6 April 2001 which came into effect
on 1 May 2001.]
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APPENDIX
B
TRUST ACCOUNT PARTNER REFRESHER COURSE
Interpretation
1. In this Appendix -
course means the Trust Account Partner Refresher Course pursuant
to Rule 20(3).
course materials means the current course manual, course workbook,
and any other documents and information provided by the Board in relation
to the course.
Eligibility
2. The course is open only to practitioners who are eligible for the course
and who have registered for the course with the New Zealand Law Society
and paid the registration fee referred to in paragraph 6.
Elements
of course
3. The course consists of training in each of the following elements:
(1) Trust accounting;
(2) Financial management;
(3) Ethics;
(4) Fraud;
(5) Any other elements prescribed by the Board.
4.
To pass the course a candidate must attend the seminar on Ethics and Fraud
for which the candidate has registered, having first studied the course
materials. The NZLS may provide for candidates to attend the equivalent
elements of the Trust Account Partner Course assessment day where numbers
permit.
Confidentiality
5. The New Zealand Law Society will make every effort to keep confidential
the names of who have registered for the course. However, once a candidate
has passed the course, the candidate's name will be provided to the relevant
district law society.
Fees
and refunds
6. The following fees (which include GST) are payable in relation to the
course and must be paid to the New Zealand Law Society:
(1) Registration fee - $300, or such lesser amount as the Board may determine
from time to time.
(2) Transfer to a later seminar with at least 5 working days notice -
$120, or such lesser amount as the Board may determine from time to time
in respect of any particular matter.
(3) Transfer to a later seminar with less than 5 working days notice -
$150, or such lesser amount as the Board may determine from time to time.
(4) If a candidate cancels his or her registration for the course by notice
in writing received by the New Zealand Law Society more than 5 working
days before the assessment day, a refund of a minimum of $60 will be made
to the candidate.
[This
Appendix B incorporates the amendments made by the NZLS Council resolution
of 1 November 2002 which came into effect on 1 March 2003.]
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