Page 257 - IOM Law Society Rules Book

ADVOCATES ACCOUNTS RULES 2008

(xii) An advocate cannot be his or her own client for the purpose of the rules, so that if a
practice conducts a personal or office transaction – for instance, conveyancing – for a
principal (or for a number of principals) money held or received on behalf of the
principal(s) is office money. However other circumstances may mean that the money
is client money, for example:
(a) If the practice also acts for the lender, money held or received on behalf of the
lender is client money.
(b) If the practice acts for a principal and, for example, his or her spouse jointly
(assuming the spouse is not a partner in the practice), money received on their
joint behalf is client money.
(xiii) If the practice acts for an assistant advocate, consultant or non-advocate employee, or (if
it is a company) a director, he or she is regarded as a client of the practice, and money
received for him or her is client money – even if he or she conducts the matter
personally. Advocates should take care to ensure that all controlled trust monies are
identified and dealt with in accordance with the rules. Care should be taken to ensure
that compliance with the rules is not limited to those areas of practice where controlled
trust monies most frequently arise, or to formal settlements only.

PART B – CLIENT MONEY, CONTROLLED TRUST MONEY AND
OPERATION OF A CLIENT ACCOUNT

Rule 14 – Client accounts

(1) An advocate who holds or receives client money and/or controlled trust money must
keep one or more client accounts (unless all the client money and controlled trust money is
always dealt with outside any client account in accordance with rule 9, rule 10 or rules 16 to
18).

(2) A “client account” is an account of a practice kept at a bank or building society for
holding client money and/or controlled trust money, in accordance with the requirements of
this part of the rules.

(3) The client account(s) of:

(a) a sole practitioner must be either in the advocate’s own name or in the practice
name;

(b) a partnership must be in the firm name;

(c) a recognised body must be in the company name;

(d) in-house advocates must be in the name of the current principal advocate or
advocates;

(e) executors or trustees who are controlled trustees must be either in the name of
the firm or in the name of the controlled trustee(s).

and the name of the account must also include the word “client”.

Rule 14 – Client accounts page 14