Trust Accounts Regulation 1999

This regulation may be cited as the Trust Accounts Regulation 1999.

s 1A ins 2004 SL No. 109 s 35

om 2024 SL No. 22 s 6

For section 4E(2) of the Act, the registrar of funeral benefit businesses under the Funeral Benefit Business Act 1982, section 6, is declared to be the supervising entity for a trustee.

Note—

See also the Funeral Benefit Business Act 1982, section 80.

s 2A ins 2003 SL No. 305 s 25

om 2024 SL No. 22 s 6

A trustee must keep the following books, accounts and records—

a register of trust account receipt forms;

a trust account receipt book of consecutively machine numbered receipt forms in duplicate;

a trust account deposit book of trust account deposit forms in duplicate;

a trust account cash book;

a trust account journal of consecutively machine numbered folios;

a trust account ledger;

a trust account investment ledger.

A register of trust account receipt forms must contain a record of the receipt number of each receipt form held by the trustee.

A receipt form must be headed ‘Trust Account Receipt’, and a completed receipt form must contain the following particulars—

the name of the trustee on whose behalf the receipt is given;

the date the receipt is given;

the name of the person to whom the receipt is given;

the name of the person on whose behalf the trust moneys are received;

a brief description of the matter for which the trust moneys are received;

the amount of trust moneys received, in words and figures;

how the trust moneys are received, for example, in cash, by cheque or by electronic funds transfer;

the signature of the person giving the receipt.

Each receipt form must include provision for the particulars mentioned in subsection (1).

A duplicate receipt form must also be headed ‘Office Copy’ or ‘Duplicate Copy’.

A trustee must ensure—

a trust account receipt form—

is used only for the receipt of trust moneys; and

includes the particulars mentioned in section 5(1); and

is given to the person from whom trust moneys are received; and

a legible copy of each trust account receipt form given by the trustee is kept securely in the trustee’s records; and

if the trustee cancels a receipt form, the form is kept securely in the trustee’s records.

Maximum penalty—10 penalty units.

This section applies if an auditor who audits a trustee’s records and trust accounts under the Act reasonably believes the trustee does not intend to use a receipt form.

The auditor may give the trustee a written direction to destroy the receipt form.

The trustee must not contravene the direction.

Maximum penalty—5 penalty units.

If the auditor gives a trustee a written direction to destroy a receipt form, the auditor must, as soon as practicable after giving the direction, give to the supervising entity a notice stating—

the trustee’s name and address; and

the trustee’s general trust account name and number; and

the number of the receipt form.

Maximum penalty—5 penalty units.

In this section—

reasonably believes means believes on grounds that are reasonable in the circumstances.

A trust account deposit form must contain the following particulars—

the name and account number of the trust account into which the trust moneys are deposited;

the amount and the date of the deposit;

the number of the trust account receipt form given by the trustee for the trust moneys;

the signature of the depositor.

If a trustee deposits trust moneys into a trust account, the trustee must ensure—

if the trust moneys are deposited other than by way of electronic funds transfer—a copy of the trust account deposit form is kept securely in the trustee’s records; and

if the trust moneys are deposited by way of electronic funds transfer—

the trustee receives a document, other than a financial institution statement balance, from the financial institution into which the trust moneys are paid acknowledging the receipt of the trust moneys into the trust account; and

the document is kept securely in the trustee’s records.

Maximum penalty—10 penalty units.

A trustee must not draw against or cause any payment to be made from a trust account kept by the trustee for a particular matter conducted by the trustee for a person unless—

the amount of the withdrawal or payment is not more than the amount of cleared funds in the account for the matter; and

if the trustee draws a cheque under section 12(1) of the Act, the cheque is signed by—

if the trustee is an individual—the trustee or a person appointed by the trustee; or

if the trustee is a partnership—a partner.

Maximum penalty—10 penalty units.

If the trustee draws a cheque under section 12(1) of the Act, the trustee must also ensure the following particulars are written on the trustee’s cheque butt or other document—

the date the cheque is drawn;

the name of the person to whom the cheque is made payable;

the name of the person on whose behalf the cheque is drawn;

a brief description of the matter for which the cheque is drawn;

the amount withdrawn.

Maximum penalty—10 penalty units.

Also, if a payment is made from a trust account by a cheque drawn on, or permitting or enabling payment to be made by, a financial institution, the trustee must ensure that the name of the person beneficially entitled to the trust moneys is written on—

the trustee’s cheque; and

the trustee’s cheque butt or other document.

Maximum penalty—10 penalty units.

A trustee must keep each cheque butt or other document containing the particulars mentioned in subsection (2) or (3) securely in the trustee’s records.

Example of ‘other document’—

a cheque requisition form