Trust Accounts: Legal Practitioners

Trust Accounts: Legal Practitioners

• 14 July 2022
• Accounting
• South African Accounting Academy

Registered auditors are advised to take note of the following Legal Practitioners Fidelity Fund (LPFF) publications that are available on its website:

1. Payment of trust interest accrued on trust accounts held in terms of Section 86 of the Legal Practice Act No. 28 of 2014 (LPA) to the LPFF.
2. Payment of Unclaimed and Unknown Trust Monies in terms of Section 87(4) of the LPA.
3. Legal Practitioners Paying Section 86(2) And (3) Trust Interest Due to the LPFF to the Incorrect Bank Accounts.
4. List of banks that have entered into banking arrangements with the LPFF in terms of Section 63(1)(g) of the LPA.
5. Revised Application for Refund of Bank Charges and Audit Fees Form.

Should you have any queries, please contact the LPFF directly.

Click here to download the Documents:

1. http://www.fidfund.co.za/wp-content/uploads/2022/05/Payment-of-trust-interest-accrued-on-trust-accounts-to-the-LPFF-in-terms-of-LPA-and-LPC-Rules_2022.pdf
2. http://www.fidfund.co.za/wp-content/uploads/2022/05/Payment-of-Unclaimed-and-Unknown-trust-monies-in-terms-of-Section-87_4-of-the-LPA_202pdf
3. http://www.fidfund.co.za/wp-content/uploads/2022/05/Section-862-and-3-Manual-Interest-Payments-Communication-July-2021_2022.pdf
4. http://www.fidfund.co.za/wp-content/uploads/2022/05/List-of-banks-that-have-entered-into-a-banking-arrangements-with-the-LPFF_2022.pdf
5. http://www.fidfund.co.za/wp-content/uploads/2022/06/Application-for-refund-of-bank-charges-and-audit-fees.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

• The Legal Practitioners Act is yet another piece 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 guidelines issued by the LPFF.

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 guidance documents issued by the LPFF.

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