Page 251 - IOM Law Society Rules Book

ADVOCATES ACCOUNTS RULES 2008

Rule 7 – Duty to remedy breaches

(1) Any breach of the rules must be remedied promptly upon discovery. This includes the
replacement of any money improperly withheld or withdrawn from a client account.

(2) In a private practice, the duty to remedy breaches rests not only on the person causing
the breach, but also on all the principals in the practice. This duty extends to replacing
missing client money or controlled trust money from the principals’ own resources, even if
the money has been misappropriated by an employee or fellow principal, and whether or not a
claim is subsequently made on the advocate’s indemnity.

Note
For payment of interest when money should have been held in a client account but was not,
see rule 24(2).

Rule 8 – Controlled trustees

An advocate who in the course of practice acts as a controlled trustee must treat the
controlled trust money as if it were client money, except when the rules provide to the
contrary.

Rule 9 – Liquidators, trustees in bankruptcy, Mental Health Act receivers and
trustees of occupational pension schemes

(1) An advocate who in the course of practice acts as

(a) a liquidator,

(b) a trustee in bankruptcy,

(c) a receiver under the Mental Health Act 1998, or
(d) a trustee of an occupational pension scheme which is subject to section 47(1)(a)
of the Pensions Act 1995 (an Act of Parliament as applied to the Island)
(appointment of an auditor) and section 49(1) (separate bank account) and
regulations under section 49(2)(b) (books and records),

must comply with:

(i) the appropriate statutory rules or regulations;

(ii) the principles set out in rule 1; and

(iii) the requirements of paragraphs (2) to (4) below;
and will then be deemed to have satisfactorily complied with the rules.

Rule 9 – Liquidators, trustees in bankruptcy, Mental Health Act receivers and
trustees of occupational pension schemes page 8