SRA Accountants Reports Spot-Checks & Residual Balances - The Current Position

Introduction

Since 2018 the SRA has reported a drop in the number of accountant’s reports submitted to them.

Whilst this may indicate that more law firms are compliant with the SRA Accounts Rules, it may also suggest there is some cause for concern.

With the SRA consultation on the holding of client money being underway, the SRA recently decided to conduct a number of spot-checks on firms to ensure that they have received a recent accountant’s report, and their focus is firmly on residual balances in the client account.

Rule 2.5 of the SRA Accounts Rules stipulates that you must ensure that client money is returned promptly to the client, or the third party for whom the money is held, as soon as there is no longer any proper reason to hold those funds.

But what does ‘promptly’ look like in your firm?

How many residual balances do you have?

What does that look like in money?

Presented by compliance expert Jo Morris, this new virtual classroom seminar will discuss the SRA’s interest in accountant’s reports, residual balances, and holding client money and will offer guidance on best practice and compliance with the SRA Accounts Rules.

What You Will Learn

This live and interactive session will cover the following:

• Why we have the accountant’s report
• What does the accountant’s report cover?
• Why the SRA are undertaking these spot-checks
• What do residual balances have to do with the SRA client money consultation?
• SRA Accounts Rule 2.5 - the meaning of ‘promptly’
• What do residual balances have to do with interest on client monies?
• Good housekeeping - how to deal with residual balances

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.