Final examination of trust records
271 Final examination of trust records
This section applies if a law practice:
ceases to be authorised to receive trust money; or
ceases to engage in legal practice in this jurisdiction.
(2) The law practice must appoint an external examiner to examine the practice's trust records:
(a) in relation to the period since an external examination was last conducted; and
(b) afterwards, in relation to each period comprising a completed period of 12 months or any remaining partly completed period, during which the practice continued to hold trust money.
The law practice must give the Law Society:
(a) a report of each examination under subsection (2) within 60 days after the end of the period to which the examination relates; and
(b) a statutory declaration in the approved form within 60 days after ceasing to hold trust money.
(4) The law practice must ensure that, within 12 months after the law practice ceases to be authorised to receive trust money or ceases to engage in legal practice in this jurisdiction:
(a) any general trust account maintained by the law practice in this jurisdiction is closed; and
(b) trust money held in any such account is dealt with as required by this Act (such as by being disbursed in accordance with a direction given by the person on whose behalf it was received).
(5) If a law practice that is an Australian legal practitioner who is a sole practitioner, or an incorporated legal practice, contravenes subsection (2) or (4), the practitioner or practice is guilty of an offence.
Maximum penalty: 500 penalty units.
(6) If a law practice that is a law firm or multi-disciplinary partnership contravenes subsection (2) or (4), each principal of the practice is guilty of an offence.
Maximum penalty: 500 penalty units.
(7) If a law practice that is an Australian legal practitioner who is a sole practitioner, or an incorporated legal practice, contravenes subsection (3), the practitioner or practice is guilty of an offence.
Maximum penalty: 20 penalty units.
(8) If a law practice that is a law firm or multi-disciplinary partnership contravenes subsection (3), each principal of the practice is guilty of an offence.
Maximum penalty: 20 penalty units.
(9) If an Australian legal practitioner dies, the practitioner's legal personal representative must comply with this section as if the representative were the practitioner.
(10) This section does not affect any other requirements under this Part.
This Act’s bill:Explanatory statementSecond reading speech
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