Updated list of banks that have entered into banking arrangements with the LPFF

Updated list of banks that have entered into banking arrangements with the LPFF

• 13 September 2024
• Regulatory Compliance and Legislation
• South African Accounting Academy

Legal Practitioners and all relevant stakeholders are reminded that trust accounts that are kept in terms of section 86 (section 86(2) and (3) trust accounts) of the LPA must be held at a bank that has entered into a banking arrangement with the LPFF in terms of section 63(1)(g). This list is usually updated on an annual basis.

The following banks have entered into banking arrangements with the LPFF in terms of section 63(1)(g) of the LPA:

1. ABSA
2. Access Bank
3. African Bank Ltd (previously Grindrod bank)
4. Albaraka Bank
5. Bidvest Bank
6. Capitec Business (previously Mercantile bank)
7. First National Bank
8. GBS Mutual Bank
9. HBZ Bank
10. HSBC Bank plc
11. Investec Bank
12. Nedbank
13. Standard Bank

The authority to operate trust accounts that are kept at any of the above-mentioned banks is provided for by section 86(6) and section 86(7) of the LPA as well as LPC Rule 54.14.7.2 of The South African Legal Practice Council Rules made under the authority of sections 95(1), 95(3) and 109(2) of the Legal Practice Act, No. 28 of 2014 (as amended) (LPC Rules), which are set out in the notice.

Click here to download the Notice:

https://www.fidfund.co.za/wp-content/uploads/2024/09/Updated-list-of-banks-that-have-entered-into-a-banking-arrangements-with-the-LPF.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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