Remote access

With movement restrictions in place and with limited access to office premises, some solicitors may have difficulty accessing their books of account and other financial information. Solicitors are encouraged, where possible, to set up remote access to their books of account and have online banking access. All remote access should be set up in a safe and secure manner.

Accounting records

It is most important that solicitors continue to keep their accounting records up to date in accordance with the Solicitors Accounts Regulations. If books of account are not kept up to date overpayments to, or on behalf of, clients may occur.

Client account transactions

Payments from client accounts, including cheques and electronic transfers, should only be carried out where the solicitor has access to up-to-date accounting records and in particular client ledger accounts, and where the solicitor has knowledge that there are sufficient cleared funds available regarding the client in respect of whom the transaction is being carried out. Supporting documentation should be obtained to enable the transaction to be recorded in the accounting records and to be appropriately vouched.

Professional fees

Solicitors should continue to transfer professional fees in strict accordance with the Solicitors Accounts Regulations. It must be made clear to clients that moneys held by the solicitor are being applied in satisfaction of professional fees. Professional fees and outlay may be transferred to the office account only after a bill of costs is raised and furnished to the client. As with client transactions, the solicitor must have knowledge that there are cleared funds available regarding the specific client in respect of whom the bill has been raised.

Under no circumstances should the client account be used as a source of temporary funding. Solicitors should not make advance transfers from client to office account on the understanding that fees are due to be received to the practice. Neither should solicitors make advance transfers from client to office account, including round sum transfers, on the premise that such monies will be allocated as professional fees to one or more client ledger account(s) at a future date.

Balancing statements

Solicitors should continue to prepare balancing statements on a regular basis. The more frequently balancing statements are prepared the quicker errors in client account transactions can be found out.

Electronic transfers of funds

Over the last few weeks there has been an increased use of electronic transfers, particularly by solicitors who have not previously used electronic banking. Bank account details must always be exchanged in a safe and secure manner. It is very important to check and double check that the client’s (or any other party’s) bank account details are correct. One of the more secure methods of sending or receiving bank details is through hardcopy post. It may also be possible to exchange bank account details securely via telephone. When communicating by telephone, you should always be absolutely certain that you are speaking with the actual person with whom you wish to exchange bank details. If uncertain, you may wish to consider a video call with the client, or other party.

Further, if exchanging details orally, you must take sufficient steps to avoid error. The conversation should end with both parties absolutely certain that the details have been exchanged correctly. Never act on account details received by email without also verifying the account details by telephone. If forwarding money to third parties, check and double check that the details provided are from a reliable source. Be very suspicious of any unsolicited emails received containing bank details or seeking to change bank details. If it is your firm’s policy to never send bank account details by email, this should be confirmed to clients in writing. Otherwise, any email correspondence with clients that contains bank-account details should be encrypted and attachments should be pass-phrase protected. The pass-phrase should not be communicated by email.

Cybersecurity

Solicitors should ensure that their anti-malware packages and firewalls are on and up to date and they should continue to periodically conduct scans for malware and have their system backed up. If solicitors are working remotely they should not connect online via unsecured free Wi-Fi and all other staff should do the same. See our cybersecurity section.

Anti-money laundering

Anti-money laundering procedures should continue to be followed. In particular, solicitors should continue to carry out client due diligence procedures to verify the identity of clients. Client risk assessments should be documented. See our AML section.

Accountants’ reports

The Society is determined that protection for client moneys remain in place. We are continuing to diligently pursue reporting accountants’ reports, however allowances are being made. Where solicitors are in genuine difficulty filing reports within the required deadline, they are asked to contact the Law Society with their proposals for the filing of the report. Each extension request will be looked at on a case-by-case basis, with additional time afforded, where appropriate. The Law Society is also accepting unsigned reports (financialregulation@lawsociety.ie) provided they are accompanied by an undertaking from the reporting accountant that the signed report will be filed as soon as is practicable.

Law Society inspections

As on-site inspections cannot proceed in the current circumstances, the Law Society is seeking the cooperation of the solicitor to carry out an off-site Desktop Review. In such a case the Law Society requires certain information be sent directly to the authorised person, preferably in electronic format (password protected), for review. To date the profession has been receptive to this approach and the reviews have been taking place all over the country.

Solicitors in receipt of correspondence relating to ongoing inspections or Desktop Reviews should continue to correspond with the Society in relation to those matters by email (financialregulation@lawsociety.ie). 

Regulation of Practice Committee

The Law Society’s Regulation of Practice Committee is continuing to meet using various technological solutions.

Practice regulation support

We continue to provide help and assistance through our email helplines regarding practising certificates (pc@lawsociety.ie), professional indemnity insurance (piihelpline@lawsociety.ie) and firm commencement and cessation matters (firms@lawsociety.ie).

Certificates of good standing are still being provided in electronic format (contact pc@lawsociety.ie). Ordinarily, a fee of €100 applies to any certificate of good standing required within 2 weeks. 

Finally, there is normally a fee of €50 for a duplicate practising certificate. This charge has also been waived and duplicate practising certificates are (at present) issued in electronic form.

eNewsletters

This article originally appeared in the April 2020 Member eZine. For more information, and to subscribe, see eNewsletters.