Q I understand that the case of Wood & Burdett, which came before the Solicitors Disciplinary Tribunal in January 2004, restricts how I use my client account. Is this correct?


A The tribunal said that it is not a proper part of a solicitor's everyday business or practice to operate a banking facility for third parties, whether they are clients of the firm or not.


Therefore, solicitors should not provide banking facilities through a client account. Furthermore, solicitors are likely to lose the exemption under the Financial Services and Markets Act 2000, if a deposit is taken in circumstances that do not form part of a solicitor's practice. It should also be borne in mind that criminal sanctions could be imposed if solicitors are found guilty of assisting money launderers. Note (ix) to rule 15 of the Solicitors Accounts Rules 1998 previously cautioned against providing banking facilities through a client account. It has been updated to refer to the tribunal case. The amendment rule can be found on the Law Society's Web site. Visit: www.lawsociety.org.uk. Click on news and events, news from the Law Society, regulatory news, recently issued guidance - go to second page of results, Amendments to the Solicitors Accounts Rules 1998 - March 2004. Copies are also available from the Law Society's professional ethics division.



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The professional ethics telephone lines are open for general enquiries between 11am and 1pm, and 2pm and 4pm. The lines are less busy in the afternoon. It takes emergency calls outside these hours, tel: 0870 606 257; fax: 020 7320 5897.



Question of ethics is compiled by the Law Society's professional ethics guidance team. Send questions for publication to Austin O'Malley, the Law Society, Ipsley Court, Berrington Close, Redditch B98 0TD; DX 19114 Redditch



LINKS: www.lawsociety.org.uk