Holding, disbursing and accounting for trust money
247 Holding, disbursing and accounting for trust money
A law practice must:
(a) hold trust money deposited in a general trust account of the practice exclusively for the person on whose behalf it is received; and
(b) disburse the trust money only in accordance with a direction given by the person.
(2) Subsection (1) applies subject to an order of a court of competent jurisdiction or as authorised by law.
(3) The law practice must account for the trust money as required by the regulations.
(4) If a law practice that is an Australian legal practitioner who is a sole practitioner, or an incorporated legal practice, contravenes subsection (1) or (3), the practitioner or practice is guilty of an offence.
Maximum penalty: 500 penalty units.
(5) If a law practice that is a law firm or multi-disciplinary partnership contravenes subsection (1) or (3), each principal of the practice is guilty of an offence.
Maximum penalty: 500 penalty units.
(6) An offence against subsection (4) or (5) is an offence of strict liability.
This provision refers to the regulations (the regulations
). Made under this Act:
This Act’s bill:Explanatory statementSecond reading speech
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