Page 285 - IOM Law Society Rules Book

ADVOCATES ACCOUNTS RULES 2008

represent, from the date of joining, the advocate’s first report for the purpose of rule
36(2). For an advocate who was a principal in the firm and, on leaving, stops holding
or receiving client money, etc., the report for the practice will represent up to the date
of leaving, the solicitor’s final report for the purpose of rule 36(5) above.
(ii) When a partnership splits up, it is usually appropriate for the books to be made up as at
the date of dissolution, and for an accountant’s report to be delivered within six months
of that date. If, however, the old partnership continues to hold or receive client money,
etc., in connection with outstanding matters, accountant’s reports will continue to be
required for those matters; the books should then be made up on completion of the last
of those matters and a report delivered within six months of that date. The same would
be true for a sole practitioner winding up matters on retirement.
(iii) When a practice is being wound up, the advocate may be left with money which is
unattributable, or belongs to a client who cannot be traced. It may be appropriate to
apply to the Society for authority to withdraw this money from the advocate’s client
account – see rule 22(1)(i), rule 22(2)(i), and note (x) to rule 22.

Rule 37 – Qualifications for making a report

(1) A report must be prepared and signed by an accountant who is a member of:

(a) the Institute of Chartered Accountants in England and Wales;

(b) the Institute of Chartered Accountants of Scotland;

(c) the Institute of Chartered Accountants in Ireland; or

(2) An accountant is not qualified to make a report if:

(a) at any time between the beginning of the accounting period to which the report
relates, and the completion of the report:

(i) he or she was a partner, employee, consultant or officer in the practice to
which the report relates; or

(ii) he or she was employed by the same non-advocate employer as the
advocate for whom the report is being made; or

(b) he or she has been disqualified under paragraph (3) below and notice of
disqualification has been given under paragraph (4) (and has not subsequently
been withdrawn).

(3) The Council may disqualify an accountant from making any accountant’s report if:

(a) the accountant has been found guilty by his or her professional body of
professional misconduct or discreditable conduct; or

(b) the Council is satisfied that an advocate has not complied with the rules in
respect of the matters which the accountant has negligently failed to specify in a
report.

Rule 37 – Qualifications for making a report page 42