Joint accounts, the clients bank account and TP accounts Flashcards
What is a joint account?
A joint account is a bank account held in the name of the solicitor/firm and the client or a third party.
Is a joint account a client account?
No. A joint account is not a client account because it is not solely in the name of the solicitor or firm.
What are some of the solicitor’s obligations when operating a joint account?
The solicitor must:
● obtain bank statements at least every five weeks2
● keep a readily accessible central record of bills and other notifications of costs
● take additional steps to minimize risk, such as ensuring the account operates on joint signatures only.
What is a client’s own account?
It is the client’s personal bank account. The solicitor may operate this account as a signatory if they have power of attorney or have been appointed as a deputy.
What are some of the solicitor’s obligations when operating a client’s own account?
The solicitor must:
● obtain bank statements at least every five weeks.
● complete account reconciliations at least every five weeks.
● keep a readily accessible central record of bills and other notifications of costs.
What is a Third Party Managed Account (TPMA)?
A TPMA is an account that can be used to hold client money.
The account is held by the TPMA provider, not by the solicitor or firm.
What are some of the benefits of using a TPMA?
Answer:
● Reduced firm overheads
● Potentially more secure in relation to cybercrime
● May help address money laundering risk
What are some of the requirements when using a TPMA?
The client must be informed about the arrangement and understand how it works.
● The solicitor must ensure that the TPMA provider is regulated by the Financial Conduct Authority.
● The solicitor must obtain regular statements from the provider and ensure they accurately reflect all transactions on the account.
●The firm must notify the SRA that they are using a TPMA provider.
