Resources
Regulation of Practice Committee
At a glance
Most common recurring issues with investigating accountants reports that result in referrals to the ROPC:
The Law Society acknowledges that it is difficult to get a good bookkeeper. However, relying on yourself or other unqualified staff to perform this function often leads to disaster. It should be your absolute priority to obtain a qualified and experienced bookkeeper. A bookkeeper will spot debit balances on the client account, credit balances on the office account, incomplete bank reconciliations and balancing statements, which is all in contravention of the regulations. Cumulatively these can cause serious problems for your practice and if not addressed can result in a referral to the LSRA.
The 2023 SARs now require that you carry out balancing statements every three rather than every six months. Good practice suggests you should carry out monthly client account reconciliations to identify any deficit, rather than waiting until balancing statements are completed. Deficits that appear in your reporting accountants year-end report will trigger an investigation by the Law Society, so regularly monitoring your client account for any deficits is the best approach to
Inactive balances arise when there has been no movement on the client account for over six months. There is often a reasonable explanation for this, such as fees held as a retainer, or pending another action on the file, but when a reporting accountant report lists many inactive balances, some going back years, it suggests that the solicitor does not have full oversight of the client account. If little attention has been paid to these balances over a number of years, the process of clearing them can take months to complete, so stay on top of them by regularly reviewing them.
The Law Society website contains helpful precedents to assist with s150 compliance. Always remember to include a narrative, setting out a summary of the legal service provided and include the dispute resolution procedure. Finally, send a copy of the bill to the client, and the barrister’s bill of costs, at the end of the case. Taking the time to ensure that your s150 precedents are compliant will avoid later problems.
When it comes to AML regulated services, solicitors must obtain identification documents for each client and satisfy themselves as to the source of the funds, documenting their thought process on the Client Risk Assessment Form.
Although there are services which are not AML regulated services, it is simpler to have all staff in the office look for the required ID documentation on every file as standard. Unlike compliance with the SARs, lack of AML compliance is a criminal offence so keep it clear and simple; every client - every file. There are two helpful, free, lectures on the Law Society website relating to AML. Consider having all of your staff watch this and then document this training as part of your business risk assessment.
Finally, consider reporting any suspicious activity to the Go AML website and ROS. If you are unsure of certain activity, it is best to report it.
Overview
The Law Society’s objective is to protect clients’ monies in the interest of the public generally and to protect the profession, who must make up deficits through the Law Society’s Compensation Fund. The Regulation of Practice Committee administers the Compensation Fund, maintained in order to compensate clients for losses due to dishonesty by solicitors or their employees.
The Committee also regulates the profession’s compliance with the Solicitors Acts 1954-2015 and regulations made thereunder including the Solicitors Accounts Regulations 2023, Solicitors (Money Laundering & Terrorist Financing) Regulations 2020 and provisions of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (as amended). The committee also deals with a number of ancillary regulatory requirements under the Solicitors Acts 1954-2015 not assigned to other regulatory committees.
In order to maintain compliance with the financial regulatory regime, every solicitors’ practice which handles clients’ funds must file an accountant’s report with the Law Society within six months after their accounting date. In addition, the Law Society conducts investigations of each solicitors’ practice to monitor compliance with the Solicitors Accounts Regulations and anti-money laundering obligations.
Frequency of investigations
It is the Law Society’s policy to investigate a solicitors’ practice within three years of its commencement date and thereafter on a routine basis approximately once every five years. However, the Law Society can and does carry out investigations on a more frequent basis. If a complaint of a financial nature, or a serious qualification recorded in the annual accountant’s report, is received, it may render it necessary to conduct a more immediate investigation.
Where a firm has in the past been subject to an investigation which has disclosed breaches of the Solicitors Accounts Regulations or other misconduct disclosed by the accounting records, that firm may be subject to an early re-investigation. Similarly, an increase in the frequency of complaints about a practice can also result in frequent inspections. The Law Society reserves the right to carry out investigations at any time.
Regulation of Practice Committee meetings
Committee composition
Generally, each of the ROPC divisional committees are made up of 7 solicitors and 1 lay member.
The ROPC is not a disciplinary committee, so its powers are to review or refer. The ROPC does not make findings but rather directs the solicitor to take remedial action and return to practice or, where problems persist without prospect of resolution, the ROPC can levy a solicitor the costs of inspection and can refer the matter to either the LSRA or The High Court.
Panel to Assist Solicitors in Regulatory Difficulty
If a solicitor is required to attend before the ROPC to answer queries relating to issues identified in an investigation report, or any other issue under the Solicitors Acts 1954-2015, or ant-money laundering legislation, they are entitled to be legally represented. Details of the panel to assist solicitors in difficulty with the Law Society will be sent by the Law Society with the letter requesting the solicitor to attend the meeting of the Society, but a copy of the panel may be accessed online.
Meeting format and prohibition on recording devices
The committee conducts its business under regulations – the Solicitors Acts 1954-2015 (Regulation of Practice Committee) Regulations 2020 (S.I. 239 of 2020).
If a solicitor is required to attend before the ROPC, they will be advised of the date and time of their attendance, together with confirmation of the meeting format.
The use of recording devices must be by the express permission of the committee only and any breach of this prohibition may result in a referral to the Legal Practitioners Disciplinary Tribunal on the grounds of misconduct.
Written response to particulars required in advance of the meeting
The solicitor is required to provide a written response to any request for particulars in advance of the ROPC meeting.
Request for an adjournment
Where a solicitor requests an adjournment, the following must be provided to the Law Society:
- Reasonable notice in writing, showing good and sufficient reason;
- Where medical grounds are the basis of the request, medical evidence (e.g. doctor’s certificate)
An adjournment request will only be approved in exceptional circumstances and is normally issued by the Regulation of Practice Committee.
Failure to attend meeting
If a solicitor fails to attend before the ROPC as per the written notification, does not provide a written response to any conduct matter within the time specified and does not request an adjournment in advance, the ROPC may deal with the matter on the basis of the correspondence and documentation before it.
Failure to attend a meeting may also amount to a conduct issue in itself and may result in a referral to the Legal Practitioners Disciplinary Tribunal or the High Court.
Legal opinion requested by committee
If the ROPC considers a legal opinion necessary when determining a matter, this opinion will be made available to the solicitor and their response invited. Once the solicitor has made submissions in response to the opinion, the committee will proceed towards making a decision.
Independent expert report
If the ROPC considers an independent expert report necessary, this will be made available to the solicitor, who will be given the opportunity to make submissions by reply and, if they feel necessary, provide their own independent expert report in response.
At the committee meeting
- Where possible, and in accordance with fair procedures, the ROPC will act in an informal and expeditious manner.
- A solicitor who is required to attend before the ROPC may bring legal representation and make oral and/or written submissions.
- The meeting shall take place in private with no audio or visual recordings permitted. A stenographer may be permitted, with the consent of the ROPC and subject to a copy transcript submitted to the committee free of charge.
- A minute of the meeting will be taken by a Law Society executive.
- An authorised person, or another person so appointed, may attend the meeting to assist the ROPC and the solicitor with any aspects of the report requiring clarification. The authorised person may also answer questions from the committee or solicitor and may only attend the meeting in the presence of the solicitor.
- The solicitor or authorised person may be requested to return to the meeting to assist the ROPC with further clarification.
- Before making a decision, the ROPC must be satisfied that:
- the solicitor was warned in advance of any allegation of misconduct;
- the solicitor had an opportunity to consider all documentation before the ROPC;
- the solicitor had the opportunity to comment on the appropriateness of the ROPC:
Possible actions that the ROPC may take
- issuing a direction pursuant to Section 14A(3)(a) of the Act of 1994;
- issuing a notice pursuant to Section 14A(7)(a) of the Act of 1994;
- making an application for the holding of an inquiry to the Legal Practitioners Disciplinary Tribunal pursuant to Section 14A(6) of the Act of 1994;
- taking such other steps or actions as may be available to it pursuant to the Act, the Solicitors Accounts Regulations or otherwise; and / or
- taking no further action.
The ROPC must give reasons for its decision
A copy of the meeting minute
A copy of the minute taken at any meeting at which the solicitor attends will be furnished to the solicitor or his legal representative on request.
Review Procedure
Any party who is dissatisfied with any aspect of an investigation may ask for the matter to be examined in the first instance by the Registrar of Solicitors with a right of further review, to be requested within 21 days of the notification of the Registrar’s decision, to the ROPC.
Supports and contact
The Law Society and other bodies provide a range of supports for solicitors dealing with regulatory issues.
Useful documents
- Regulation of Practice Committee Booklet 2024
- View the Privacy Statement for Inspections
- View the Law Society’s Statement of Practice
Contact
If you have a query in relation to the Regulation of Practice Committee, please email: financialregulation@lawsociety.ie.
