Changes to the Legal Profession Regulation
Our director James Kenward attended a training course held at the Institute of Public Accountants last month aimed at external examiners. There are some changes to LPR2017 which commenced in September 2017 and will be applicable to the upcoming March 2018 trust account year-end examinations.
These were the key points flagged by Bill Hourigan, Manager, Trust Account Investigations, within the Professional Leadership Department of the Queensland Law Society.
S.29(1) Keeping and printing trust records
Reconciliations and other documents can now be printed to pdf or be scanned and kept in a ‘printable’ format. A critical issue to consider here is that it must be clear when the document was produced to demonstrate that it was prepared within 15 working days of the month end.
S.44(3) Reconciliation of trust records
QLS had the view that principals were failing to follow up reconciliation differences, as a result, there is now a requirement for the principal to annotate the reconciliations to evidence their review.
S.50(2) Withdrawal of controlled money
The new regulation states withdrawals from controlled money can only be by cheque or electronic funds transfer (EFT guidelines would apply). Bill indicated this was a ‘touch up’. This means that payments from controlled money cannot be made via cash withdrawals, ATM withdrawals or transfers, telephone banking withdrawals, BPAY Payments or direct debit (OSR/PEXA excluded).
S.51(9) Register of controlled money
Monthly reconciliations of controlled money are to be reviewed by the principal & annotated as such.