TAMOR Practice Matters

Critical information to assist in the management of processes and reporting requirements when dealing with trust money, from getting properly set up with a trust bank account to closing down a legal entity, and everything in-between. Click through the sections below to access the information on the area which is relevant to your concerns.

The Law Society advises accessing these resources directly on our website instead of printing or downloading them. As soon as content is printed, it is deemed out of date. This ensures you always have the latest updates from the Ethics and Practice Law Practice Compliance Investigators, who frequently revise sections to reflect changes in practice, approach, and legislation.

Practice Lifecycle

Setting up or closing down a law practice and trust bank account requires careful planning and consideration to ensure compliance.

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Trust Accounting Courses

The Society offers three online Trust Accounting courses for Members and Non-members, eligible for CPD points in Practice Management/Business Skills.

For more information on these courses, please click here.

Trust Accounting Software

Computerised trust accounting saves time but requires strict adherence to regulatory requirements, including operation and backup of system data.

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Irregularity Reporting

Legal practitioners have a statutory duty to report any irregularities promptly. Serious trust account irregularities like fraud or misappropriation must be reported to the Society immediately.

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Changing Trust Bank Accounts (Intra-Firm Transfers)

A law practice may change ADI's and can attend to the record keeping of the transfer of funds via a process known as Intra-Firm Transfer.

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Office Reconciliations

Regular reconciliation of the office account is crucial to ensure proper fund allocation and to avoid undetected trust funds. Monthly reconciliations are recommended to prevent regulatory contraventions.

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Current Regulation 56 Exemptions

The Society has adopted recommendations to ease regulatory burden on practitioners, exempting law practices from specific reporting requirements.

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Migration of Trust Data

Migration of trust balances in any format to a new record keeping system requires careful planning and supervision to ensure continued compliance and guard against errors or omissions.

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External Examinations and Examiners

Law practice end of financial year requirements include completion of the Statement Regarding the Receipt or Holding of Trust Money and may include an external examination of the accounts and records by a Designated Person.

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Investigations and Contravention Notices

Law Society investigators conduct routine and special investigations to ensure compliance and prevent fraud. Contravention Notices are issued to notify, educate, correct, and refer more serious matters.

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End of Day/Month/Year Practices

Daily and monthly routines for trust account management are essential for compliance and to quickly identify errors or omissions.

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Outsourcing by Legal Practitioners

Legal practitioners must consider statutory and professional obligations when contracting third parties for client services. This advice introduced on 7 February 2023, outlines key considerations.

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Need advice on a specific practice scenario?

Seek assistance early from Ethics and Practice: Trust Accounting Regulation and Support on (08) 8229 0229 or via [email protected].

Contact us