Page 252 - IOM Law Society Rules Book

ADVOCATES ACCOUNTS RULES 2008

(2) In respect of any records kept under the appropriate statutory rules, there must also be
compliance with:

(a) rule 32(8) – bills and notifications of costs;

(b) rule 32(9)(c) – retention of records;

(c) rule 32(12) – centrally kept records;
(d) rule 34 – production of records; and

(e) rule 42(1)(l) – reporting accountant to check compliance

(3) If a liquidator or trustee in bankruptcy uses any of the practice’s client accounts for
holding money pending transfer to the liquidator’s or trustee’s own account or payment into
court he or she must comply with the rules in all respects whilst the money is held in the
client account.
(4) If the appropriate statutory rules or regulations do not govern the holding or receipt of
client money in a particular situation (for example, money below a certain limit), the advocate
must comply with the rules in all respects in relation to that money.

Notes
(i) The Companies (Winding-Up) Rules, 1934, regulate liquidators. The Bankruptcy Code,
1892, regulates trustees in bankruptcy.
(ii) The Mental Health Rules 1998 regulate receivers appointed under the Mental Health Act
1998.
(iii) Money held or received by advocate liquidators, trustees in bankruptcy and receivers
appointed under the Mental Health Act, 1998, is client money but, because of the
statutory rules and rule 9(1), it will not normally be kept in a client account. If for any
reason it is held in a client account, the Advocates Accounts Rules apply to that money
for the time it is so held (see rule 9(3) and (4)).
(iv) Money held or received by advocate trustees of occupational pension schemes is either
client money or controlled trust money but, because of the statutory rules, and rule
9(1), it will not normally be kept in a client account. If for any reason it is held in a
client account, the Advocates Accounts Rules apply to that money for the time it is so
held (see Rule 9(4)).

Rule 10 – Joint accounts

(1) If an advocate acting in a client’s matter holds or receives money jointly with the client,
another advocates’ practice or another third party, the rules apply to the extent that the
advocate is responsible for the operation of the account. In particular the following must be
complied with:

(a) rule 32(8) – bills and notifications of costs;

(b) rule 32(9)(b)(ii) – retention of statements and passbooks;

(c) rule 32(13) – centrally kept records;

Rule 10 – Joint accounts page 9