Top 10 changes coming to SRA Accounts Rules in 201907/03/19
Why the need for change?
When do the new rules come into force?
What are the main changes?
- Its much-abridged format means each of the remaining 13 rules are considerably condensed.
- With no time deadlines, you’ve got the freedom to decide your own timeframes.
- Following on from #1 and #2, the new rules are principle-based rather than prescriptive and contain less definitions. Interpret how you wish and do what’s reasonable.
- A notable addition is the ability to use a third-party managed account as an alternative to the traditional client account.
- Guidance notes, if made available, will be separate, not attached to the rules, and released any time.
- There’s no definition of office money. This means it’s either client monies or not client monies.
- There’s no distinction between professional and non-professional disbursements. Plus, fees and disbursements can only be paid when a bill is raised.
- Monies incoming from the Legal Aid Agency are no longer covered in the rules. This money can be held in the office account in future.
- Bank accounts must still be reconciled every 5 weeks. This requirement has been extended to client’s own accounts or “passbooks”.
- Although the exemption limits for accountants’ reports are unchanged, definitions of statements or passbook balances has changed and include joint or client’s own accounts. As a result, firms currently exempt may not be exempt.
How can you prepare for change?
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