Safeguarding your clients' money

Whether you're holding money on account of your costs, a deposit for a conveyancing transaction or handling the administration of an estate, the money you're holding isn't yours and therefore must be safeguarded.

The Solicitors Regulation Authority's (SRA) Accounts Rules have been designed to protect client money. However, it is the responsibility of law firms themselves to design and implement the appropriate processes, procedures and controls to ensure compliance with the rules.

There are two basic categories of internal controls – preventative and detective. An effective internal control system will have both types as each serves a different purpose. Ultimately, controls are in place to protect client money by preventing fraud (either internal or external), human error or any other inappropriate action.