Page 255 - IOM Law Society Rules Book

ADVOCATES ACCOUNTS RULES 2008

(viii) For payment of interest, see rule 24, note (iii).

Rule 12 – Advocate’s rights not affected

Nothing in the rules deprives an advocate of any recourse or right, whether by way of lien, set
off, counterclaim, charge or otherwise, against money standing to the credit of a client
account.

Rule 13 – Categories of money

All money held or received in the course of practice falls into one of the following categories:

(a) “client money” – money of any currency held or received for a client, and all
other money which is not controlled trust money or office money.

(b) “controlled trust money” – money of any currency held or received for a
controlled trust; or

(c) “office money” – money of any currency which belongs to the advocate or the
practice.

Notes
(i) “Client money” includes money held or received:
(a) as agent, bailee, stakeholder, or as donee of a power of attorney, or as liquidator,
trustee in bankruptcy or receiver appointed under the Mental Health Act, 1998;
(b) for payment of unpaid professional disbursements (for definition of “professional
disbursements” see rule 2(2)(t);
(c) for payment of Land Registry registration fees, telegraphic transfer fees and court
fees; this is not office money because the advocate has not incurred an
obligation to the Land Registry, the bank or the court to pay the fee (contrast
with note (xi)(c)(C) below); (on the other hand, if the advocate has already paid
the fee out of his or her own resources, or has received the service on credit,
payment subsequently received from the client will be office money – see note
(xi)(c)(B) below);
(d) as a payment on account of costs generally;
(e) as commission paid in respect of an advocate’s client for which he or she is
required to account to his client in accordance with practice rule 11.
(ii) An advocate to whom a cheque or draft is made out, and who in the course of practice
endorses it over to a client or employer, has received client money. Even if no other
client money is held or received, the advocate will be subject to some provisions of the
rules, e.g.:
• rule 7 (duty to remedy breaches);
• rule 32 (accounting records for client monies);
• rule 34 (production of records);
• rule 35 (delivery of accountants’ report).

Rule 13 – Categories of money page 12