Page 277 - IOM Law Society Rules Book

ADVOCATES ACCOUNTS RULES 2008

(2) All dealings with client money (whether for a client or other person), and with any
controlled trust money, must be appropriately recorded;

(a) in a client cash account or in a record of sums transferred from one client ledger
account to another; and

(b) on the client side of a separate client ledger account for each client (or other
person, or controlled trust).

No other entries may be made in these records.

(3) If separate designated client accounts are used:

(a) a combined cash account must be kept in order to show the total amount held in
separate designated client accounts; and

(b) a record of the amount held for each client (or other person, or controlled trust)
must be made either in a deposit column of a client ledger account, or on the
client side of a client ledger account kept specifically for a separate designated
client account, for each client (or other person, or controlled trust).

(4) All dealings with office money relating to any client matter, or to any controlled trust
matter, must be appropriately recorded in an office cash account and on the office side of the
appropriate client ledger account.

Current balance

(5) The current balance on each client ledger account must always be shown, or be readily
ascertainable, from the records kept in accordance with paragraphs (2) and (3) above.

Acting for both lender and borrower

(6) When acting for both lender and borrower on a mortgage advance, separate client ledger
accounts for both clients need not be opened, provided that:

(a) the funds belonging to each client are clearly identifiable; and

(b) the lender is an institutional lender which provides mortgages on standard terms
in the normal course of its activities.

Reconciliations

(7) An advocate must, at least once every fourteen weeks for controlled trust money held in
passbook-operated separate designated client accounts, and at least once every five weeks in
all other cases:

(a) compare the balance on the client cash account(s) with the balances shown on
the statements and passbooks (after allowing for all unpresented items) of all
general client accounts and separate designated client accounts, and of any
account which is not a client account but in which an advocate holds client

Rule 32 – Accounting records for client accounts, etc. page 34