LPFF: New 2025 Application form for Refund of bank charges and audit fees

LPFF: New 2025 Application form for Refund of bank charges and audit fees

• 23 May 2025
• Regulatory Compliance and Legislation
• South African Accounting Academy

Summary:

The Legal Practitioners Fidelity Fund (LPFF) has issued the brand-new 2025 Application for a Refund of Bank Charges and Audit Fees Form.

Article:

It is a PDF form, and it's updated to reflect the requirement for auditors to conduct agreed-upon procedures (AUP) on the application, as per the Legal Practitioners' Fidelity Fund (LPFF) directive.

Registered auditors are required to use the AUP report issued by SAICA, which is effective for engagements beginning on or after 1 November 2023. The completed application form, along with the AUP report, must be submitted to the relevant Provincial Legal Practice Council.

Previously, the Application for Refund of Bank Charges and Audit Fees Form contained a “CERTIFICATE BY AUDITOR” section, and auditors were advised to cross out the “CERTIFICATE BY AUDITOR” section on the Application Form and to refer to the agreed-upon procedures report which should be attached to the Application for Refund of Bank Charges and Audit Fees Form.

The new 2025 application form now contains a section in the middle of the 2nd page, just above the Legal Practice Council (LPC) approval & LPFF signatures.

This form must be used for claims in respect of financial periods ending after 1 March 2024.

The Board of the Legal Practitioners’ Fidelity Fund (LPFF) has resolved that practitioners may deduct recoverable bank charges (as determined by the Fund) incurred on Section 86(2) and (3) trust accounts from interest earned on Section 86 trust accounts as provided for in Section 86(5) of the Legal Practice Act No. 28 of 2014 (that is, trust interest earned on Section 86(2) and (3), as well as 5% of trust interest earned on Section 86(4) trust investments). This is subject to practitioners’ compliances with the requirements of Section 86 of the Act and the LPC Rules.

The application for a refund must be made by not later than the end of the calendar year after that in which the financial year in question ends, failing which such application will not be considered, except in exceptional cases (these exceptional cases must be motivated/approved by the Legal Practice Council).

Click here to download the document:

https://www.fidfund.co.za/wp-content/uploads/2025/04/Application-for-Refund-of-Bank-Charges-and-Audit-Fees-Form-2025.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

• The Legal Practitioners Act and Legal Practice Council Rules are more pieces of legislation that your clients must comply with, and which you must assess compliance with.  If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
• As an auditor and independent reviewer, you need to consider and assess compliance with the LPA and Guidance documents issued by the LPFF.
• As an accountant, you may need to advise your clients who are legal practitioners on compliance with the LPA and adherence to the latest publications issued by the LPFF.
• As an auditor/assurance practitioner, you should ensure that your client uses the new application form for refund of bank charges and audit fees.

Relevance to Your Clients:

• A legal practitioner has a duty to comply with the Legal Practitioners Act.
• Your clients who are legal practitioners, must not only comply with the LPA, but they also have to adhere to the latest publications issued (including this new application form for refund of bank charges and audit fees) by the LPFF.

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