Conveyancers (Trust Account and General) Regulations 2018 (Victoria)

These Regulations set detailed, mandatory procedures and recordkeeping standards for conveyancing licensees who hold or handle trust money in Victoria. They are made under s 188 of the Conveyancers Act 2006 (reg 2) and commence 26 May 2018 (reg 3). Mechanically the instrument prescribes:

how trust, controlled money and transit money must be received, recorded, banked and disbursed (Part 2, Divisions 2-6, especially regs 11-31);
minimum functionality and controls for computerised accounting systems used for trust records (regs 7-10);
naming, location and operation requirements for general trust accounts and controlled money accounts, including that a general trust account be established and maintained in Victoria and must include the licensee name and "conveyancing business trust account" in the account name (reg 11);
documentary requirements for receipts, deposit records, cheque and electronic funds transfers including the specific data items that must be recorded (regs 12-15, 17-18, 19);
rules for journal transfers between ledger accounts, and the form and authorisation for trust account transfer journals (reg 20);
reconciliation and timing obligations (monthly reconciliation prepared within 15 business days, reg 21) and record retention periods for trust records (7 years, reg 32);
separate regimes for controlled money (regs 23-27), including a threshold/duration rule that gives rise to controlled money directions (reg 23), and the obligation to maintain a register of controlled money and monthly statements (reg 27(8));
obligations to provide trust account statements to clients and exceptions, plus the capacity for institutional clients to direct alternate arrangements (regs 29-30);

Version No. 001

Conveyancers (Trust Account and General) Regulations 2018

S.R. No. 62/2018

Version as at
26 May 2018

TABLE OF PROVISIONS

Regulation Page

Part 1—Preliminary 1

1 Objectives 1

2 Authorising provision 1

3 Commencement 1

4 Revocations 1

5 Definitions 2

Part 2—Trust accounts and trust money 3

Division 1—Authorised employees 3

6 Licensee may authorise employee 3

Division 2—Computerised accounting system 3

7 Application of Division 3

8 Licensee must keep chronological record of creation, amendment and deletion of information 3

9 Requirements regarding computerised accounting system 4

10 Back-ups 5

Division 3—General trust accounts 5

11 Establishment and maintenance of general trust account 5

12 Receipting of trust money 6

13 Deposit records for trust money 7

14 Payment by cheque 8

15 Payment by electronic funds transfer 10

16 Recording transactions in trust account cash books 11

17 Trust account receipts cash book 11

18 Trust account payments cash book 12

19 Recording transactions in trust ledger accounts 13

20 Journal transfers 16

21 Reconciliation of trust records 17

22 Trust ledger account in name of conveyancing business or licensee 18

Division 4—Controlled money 18

23 Requirements for controlled money accounts 18

24 Maintenance of controlled money accounts 18

25 Receipt of controlled money 19

26 Withdrawal of controlled money must be authorised 21

27 Register of controlled money 22

Division 5—Transit money 24

28 Information to be recorded about transit money 24

Division 6—Trust money generally 24

29 Trust account statements 24

30 Trust account statements for institutional clients 26

31 Withdrawing trust money for costs 26

32 Duration for keeping of trust records 28

Division 7—Miscellaneous 29

33 Exemption 29

Part 3—General 30

34 Statutory declaration on ceasing to hold trust money 30

35 Claims against the Fund 30

36 Disallowance of a claim against the Fund 30

37 Embargo notice 30

38 Infringement offences and infringement penalties 31

Schedule 1—Forms 32

Schedule 2—Infringement offences and infringement penalties 35

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Endnotes 36

1 General information 36

2 Table of Amendments 38

3 Amendments Not in Operation 39

4 Explanatory details 40

Version No. 001

Conveyancers (Trust Account and General) Regulations 2018

S.R. No. 62/2018

Version as at
26 May 2018

Part 1—Preliminary

1 Objectives

The objectives of these Regulations are to prescribe—

(a) procedures for the keeping of general trust accounts and trust ledger accounts, controlled money accounts, transit money and other trust records; and

(b) general matters.

2 Authorising provision

These Regulations are made under section 188 of the Conveyancers Act 2006.

3 Commencement

These Regulations come into operation on
26 May 2018.

4 Revocations

The following Regulations are revoked—

(a) Conveyancers (Professional Conduct and Trust Account and General) Regulations 2008[1];

(b) Conveyancers (Professional Conduct and Trust Account and General) Amendment Regulations 2010[2];

(d) Conveyancers (Professional Conduct and Trust Account and General) Amendment Regulations 2015[4].

5 Definitions

In these Regulations—

authorised employee of a licensee means an employee authorised by the licensee under regulation 6;

BSB number (Bank State Branch number) means the number assigned to identify a particular branch of a particular ADI;

direct deposit means a deposit made by transferring money directly from one account into another without the use of a cheque or cash;

matter description means a brief phrase or expression assigned by a conveyancing business to describe a matter;

matter reference means a number or other reference assigned by a conveyancing business to identify a matter;

the Act means the Conveyancers Act 2006.

Part 2—Trust accounts and trust money

Division 1—Authorised employees

6 Licensee may authorise employee

(1) A licensee may authorise an employee of the licensee to be an authorised employee for the purposes of these Regulations.

(2) An authorisation under subregulation (1) must be given by instrument in writing and be signed by the licensee and the employee.

Division 2—Computerised accounting system

7 Application of Division

This Division applies if a licensee keeps trust records (including records relating to controlled money or transit money) by means of a computerised accounting system.

8 Licensee must keep chronological record of creation, amendment and deletion of information

(1) A licensee must keep a record, in accordance with subregulation (2), of the creation, amendment or deletion of specified information in a computerised accounting system.

(2) A record referred to in subregulation (1) must—

(a) be in a permanent form; and

(b) be compiled in chronological sequence; and

(3) In this regulation, specified information means all of the following—

(a) client names;

(b) client addresses;

(d) matter descriptions;

(e) ledger account numbers or other descriptions.

9 Requirements regarding computerised accounting system

(1) The licensee must ensure that the computerised accounting system is not capable of accepting the entry of a transaction resulting in a debit balance to a trust ledger account, unless the system records the transaction at the same time and in a manner that enables the production, in a permanent form, of a separate chronological report of all occurrences of that kind.

(2) The licensee must ensure that the computerised accounting system is not capable of deleting a trust ledger account unless—

(a) the balance of the account is zero and all outstanding cheques have been presented; and

(b) when the account is deleted, a copy of the account is kept in a permanent form.

(3) The licensee must ensure that any entry in a record produced in a permanent form appears in chronological sequence.

(4) The licensee must ensure that each page of a printable record is numbered sequentially or is printable in such a way that no page can be removed from the record.

(5) The licensee must ensure that the computerised accounting system is not capable of amending the particulars of a transaction already recorded, otherwise than by a transaction separately recorded that makes the amendment.

(6) The licensee must ensure that the computerised accounting system requires input in every field of a data entry screen intended to receive information required by this Part to be included in trust records.

10 Back-ups

The licensee must ensure that—

(a) a back-up copy of all records required by this Part is made at least once each month; and

(b) each back-up copy is kept by the licensee; and

(c) a complete set of back-up copies is kept in a separate location so that any incident that may adversely affect the records does not also affect the back-up copy.

Division 3—General trust accounts

11 Establishment and maintenance of general trust account

(1) For the purposes of section 66(2) of the Act, a licensee must ensure that—

(a) a general trust account is established in Victoria as soon as practicable after the licensee receives trust money to which Part 5 of the Act applies (other than controlled money or transit money); and

(b) the account is maintained in Victoria; and

(i) the name of the licensee; and

(ii) the expression "conveyancing business trust account" or "conveyancing business trust a/c".

(2) Subregulation (1)(c)(ii) does not require the repetition of the words "conveyancing business" if those words form part of the name of the licensee.

12 Receipting of trust money

(1) This regulation applies if a licensee receives trust money that is required to be paid into a general trust account.

(2) The licensee must make out a receipt as soon as practicable—

(a) after receiving the trust money; or

(b) in the case of trust money received by direct deposit, after receiving notice or confirmation (in written or electronic form) of the deposit from the relevant ADI.

(3) The licensee must ensure that the receipt—

(a) contains the required particulars; and

(b) is made out in duplicate, unless at the time the receipt is made out those particulars are recorded by a computerised accounting system in the trust account receipts cash book.

(4) For the purposes of subregulation (3), the required particulars are as follows—

(a) the date the receipt is made out and, if different, the date the money was received;

(b) the receipt number;

(d) the form in which the money was received;

(e) the name of the person from whom the money was received;

(f) the name of the client in respect of whom the money was received and the matter description and matter reference;

(g) the purpose for which the money was received;

(h) the name of the licensee's conveyancing business, or the business name under which the licensee performs conveyancing work, and the expression "trust account" or "trust a/c";

(i) the name of the person who made out the receipt.

(5) The licensee must ensure that the original receipt is given, on request, to the person from whom the trust money was received.

(6) The licensee must ensure that receipts are consecutively numbered and issued in consecutive sequence.

(7) The licensee must keep the original receipt if the receipt is cancelled or not delivered.

13 Deposit records for trust money

(1) This regulation applies if—

(a) a licensee receives trust money that is required to be paid into a general trust account; and

. (b) the money is paid into a general trust account by means other than a direct deposit.

(2) The licensee must—

produce a deposit record containing the required particulars to the approved ADI at the time the deposit is made; and
make out the deposit record in duplicate, unless at the time the deposit is paid the required particulars are recorded by a computerised accounting system in the trust account deposits book.

(3) The licensee must keep the duplicate deposit record for each deposit to the general trust account in a deposit book or otherwise securely filed in the order in which the deposits were made.

(4) For the purposes of subregulation (2)(a), the required particulars are as follows—

(a) the date of the deposit;

(b) the amount of the deposit;

(d) for each cheque—

(i) the name of the drawer of the cheque; and

(ii) the name and branch (or BSB number) of the ADI on which the cheque is drawn; and

(iii) the amount of the cheque.

14 Payment by cheque

(1) If a licensee withdraws trust money from a general trust account by cheque, the licensee must ensure that the cheque—

(a) is made payable to, or to the order of, a specified person or persons and not to bearer or cash; and

(b) is crossed "not negotiable"; and

(i) the name of the licensee's conveyancing business; and

(ii) the expression "conveyancing business" or "conveyancing business trust a/c"; and

(d) is signed by the licensee, or if the licensee is not available, by an authorised employee of the licensee.

(2) The licensee must keep a paper copy record of the required particulars, unless those particulars are recorded by a computerised accounting system in the trust account payments cash book at the time the cheque is issued.

(3) For the purposes of subregulation (2), the following are the required particulars—

(a) the date and number of the cheque;

(b) the amount ordered to be paid by the cheque;

(c) the name of the person to whom the payment is to be made or, if the cheque is made payable to an ADI, the name or BSB of the ADI and the name of the person receiving the benefit of the payment;

(d) the name of the person on whose behalf the payment was made and the matter reference;

(e) the ledger account to be debited;

(f) the purpose for which the payment was made.

(4) The licensee must keep records relating to payments by cheque (including cheque requisitions) in the order in which the cheques were issued.

(5) Subregulation (1)(c)(ii) does not require the repetition of the words "conveyancing business" if those words form part of the name or business name of the licensee's conveyancing business.

15 Payment by electronic funds transfer

(1) This regulation applies to the withdrawal of trust money from a general trust account by electronic funds transfer.

(2) An electronic funds transfer must be under the direction of, or with the authority of—

(a) a licensee; or

(b) if the licensee is not available, an authorised employee of the licensee.

(3) The licensee must keep a paper record of the required particulars of each payment, unless those particulars are recorded by a computerised accounting system in the trust account payments cash book at the time the transfer is effected.

(4) For the purposes of subregulation (3), the required particulars are as follows—

(a) the date and number of the transaction;

(b) the amount transferred;

(d) the name of the person to whom the payment was made or, if the payment is to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;

(e) the name of the person on whose behalf the payment was made and the matter reference;

(f) the ledger account to be debited;

(g) the purpose for which the payment was made.

(5) The licensee must keep records relating to payments by electronic funds transfer (including transfer requisitions) in the order in which the transfers were effected.

16 Recording transactions in trust account cash books

A licensee who maintains a general trust account must keep the following trust account cash books—

(a) a trust account receipts cash book in accordance with regulation 17; and

(b) a trust account payments cash book in accordance with regulation 18.

17 Trust account receipts cash book

(1) A licensee must record the following particulars in a licensee's trust account receipts cash book in respect of each receipt of trust money—

(a) the date the receipt is made out and, if different, the date the money was received;

(b) the receipt number;

(d) the form in which the money was received;

(e) the name of the person from whom the money was received;

(f) the name of the client in respect of whom the money was received and the matter description and matter reference;

(g) the purpose for which the money was received;

(h) the ledger account to be credited.

(2) The licensee must record the date and amount of each deposit in the general trust account in the trust account receipts cash book.

(3) The licensee must ensure that the particulars in respect of receipts are recorded—

(a) in the order in which the receipts are made out; and

(b) within 5 business days from the day the receipt was made out.

18 Trust account payments cash book

(1) A licensee must record the following particulars in the licensee's trust account payments cash book in respect of each payment of trust money by cheque—

(a) the date and number of the cheque;

(b) the amount ordered to be paid by the cheque;

(c) the name of the person to whom the payment is to be made or, if the cheque is made payable to an ADI, the name or BSB of the ADI and the name of the person receiving the benefit of the payment;

(d) the name of the person on whose behalf the payment was made and the matter reference;

(e) the ledger account to be debited;

(f) the purpose for which the payment was made.

(2) The licensee must record the following particulars in the licensee's trust account payments cash book in respect of each payment of trust money by electronic funds transfer—

(a) the date and number of the transaction;

(b) the amount transferred;

(d) the name of the person to whom the payment was made or, if the payment is to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;

(e) the name of the person on whose behalf the payment was made and the matter reference;

(f) the ledger account to be debited;

(g) the purpose for which the payment was made.

(3) The licensee must ensure that the particulars in respect of payments are recorded—

in the order in which the payments are made; and
within 5 business days from the day the payment was made.

19 Recording transactions in trust ledger accounts

(1) A licensee who keeps a general trust account must keep a separate trust ledger account in relation to each client in each matter for which trust money has been received by the licensee.

(2) The licensee must record the following particulars, and keep them up to date, in the title of a trust ledger account—

(a) the name of the person for or on behalf of whom the trust money was paid;

(b) the person's address;

(3) The licensee must record the following particulars in the trust ledger account in respect of each receipt of trust money for the matter—

(a) the date a receipt was made out for the money or, if different, the date the money was received;

(b) the amount of money received;

(d) the purpose for which the money was received.

(4) The licensee must record the following particulars in the trust ledger account in respect of each payment of trust money by cheque—

(a) the date of the cheque;

(b) the amount ordered to be paid by the cheque;

(c) the name of the person to whom the payment is to be made or, if the cheque is made payable to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;

(d) the purpose for which the payment was made.

(5) The licensee must record the following particulars in the trust ledger account in respect of each payment of trust money by electronic funds transfer—

(a) the date of the transaction;

(b) the amount transferred;

(d) the name of the person to whom the payment was made or, if the payment is to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;

(e) the purpose for which the payment was made.

(6) The licensee must ensure that the following particulars are recorded in the trust ledger account in respect of each transfer of trust money effected by a journal entry—

(a) the date of the transfer;

(b) the amount transferred;

(d) particulars sufficient to identify the purpose for which the payment was made.

(7) The licensee must ensure that the transactions relating to trust money are recorded in the trust ledger account in the order in which the transactions occur.

(8) The licensee must ensure that the particulars in respect of a receipt, payment or transfer of trust money are recorded within 5 business days from the day the receipt was made out, the payment was made or the transfer was effected, as the case requires.

(9) The licensee must ensure that the trust ledger account balance is recorded in the trust ledger account after each receipt, payment or transfer of trust money.

20 Journal transfers

(1) A licensee may transfer trust money held by the licensee by journal entry from one trust ledger account to another trust ledger account, if—

(a) the licensee is authorised or entitled to withdraw the money and pay it to the other trust ledger account; and

(b) the transfer has been authorised in writing—

(i) by the licensee; or

(ii) if the licensee is not available, by an authorised employee of the licensee.

(2) The licensee must keep a trust account transfer journal if the licensee transfers trust money by journal entry.

(3) The licensee must ensure that the following particulars are recorded in the trust account transfer journal in respect of each transfer of trust money by journal entry—

(a) the date of the transfer;

(b) the names of all ledger accounts to be debited or credited, including identifying references;

(d) the purpose for which the transfer is made, the matter reference and a short description of the matter.

(4) The licensee must ensure that journal pages and entries are consecutively numbered.

(5) The licensee must keep particulars of the authorisation for each transfer of trust money by journal entry, whether in the trust account transfer journal or in some other way.

21 Reconciliation of trust records

(1) A licensee who maintains a general trust account must reconcile the trust records relating to the general trust account.

(2) The licensee must reconcile the trust records referred to in subregulation (1) as at the end of each named month, from the first day of that named month to the last day of that named month, by preparing—

(a) a statement—

(i) reconciling the general trust account balance as shown in the ADI records with the balance of the trust account cash books; and

(ii) showing the date the statement was prepared; and

(b) a statement—

(i) reconciling the balance of the trust ledger accounts with the balance of the trust account cash books; and

(ii) containing a list of the trust ledger accounts showing the name, identifying the reference and balance of each and a short description of the matter to which each relates; and

(iii) showing the date the statement was prepared.

(3) The licensee must prepare the statements within 15 business days after the end of the relevant month.

(4) The licensee must keep the reconciliation statements.

22 Trust ledger account in name of conveyancing business or licensee

(1) A licensee must ensure that a trust ledger account maintained in the licensee's name or the conveyancing business's name is used only for the purpose of aggregating in the account, by transfer from other accounts in the trust ledger, money properly due to the licensee for costs.

(2) A licensee who maintains a trust ledger account referred to in subregulation (1) must ensure that the money in the trust ledger account is withdrawn from the general trust account not later than one month after the day on which the money was transferred to the trust ledger account.

Division 4—Controlled money

23 Requirements for controlled money accounts

(1) For the purposes of section 64(2) of the Act, a person may give a direction referred to in section 64(1) of the Act to a licensee if—

(a) the amount of money to be paid to the licensee exceeds $50 000; or

(b) the transaction in respect of which the money is to be paid is not to be settled within 60 days of the direction.

(2) This regulation does not apply to an account established in Victoria before 1 July 2008.

24 Maintenance of controlled money accounts

For the purposes of section 71 of the Act, the licensee must maintain a controlled money account under an account name that includes the following particulars—

(a) the name of the licensee;

(b) the expression "controlled money account" or "CMA/c";

(d) particulars that are sufficient to distinguish the account from any other account maintained by the licensee.

25 Receipt of controlled money

(1) This regulation applies if a licensee receives controlled money.

(2) The licensee must operate a separate controlled money receipt system for the receipt of controlled money for all the licensee's controlled money accounts.

(3) After receiving controlled money, the licensee must make out a receipt as soon as practicable—

(a) after the controlled money is received; or

(b) in the case of controlled money received by direct deposit, after the licensee receives notice or confirmation (in written or electronic form) of the deposit from the ADI concerned.

(4) The licensee must—

(a) ensure the receipt contains the required particulars; and

(b) make out the receipt in duplicate, unless at the time the receipt is made out those particulars are recorded by a computerised accounting system in the register of controlled money.

(5) For the purposes of subregulation (4), the required particulars are as follows—

(a) the date the receipt is made out and, if different, the date the money was received;

(b) the amount of money received;

(d) the name of the person from whom the money was received;

(e) the name of the person on whose behalf the money was received and the matter description and matter reference;

(f) the purpose for which the money was received;

(g) the name of, and other details clearly identifying, the controlled money account to be credited, unless the account has not been established by the time the receipt is made out;

(h) the name of the licensee's conveyancing business, or the business name under which the licensee performs conveyancing work, and the expression "controlled money receipt";

(i) the name of the person who made out the receipt;

(j) the receipt number.

(6) If the controlled money account to be credited has not been established before the receipt is made out, the licensee must ensure that the name of, and other details clearly identifying, the account when established are included on the duplicate receipt (if any).

(7) The licensee must give the original receipt, on request, to the person from whom the controlled money was received.

(8) The licensee must ensure that receipts are consecutively numbered and issued in consecutive sequence.

(9) The licensee must keep the original receipt if the receipt is cancelled or not delivered.

(10) A receipt is not required to be made out for any interest or other income received from the investment of controlled money and credited directly to a controlled money account.

26 Withdrawal of controlled money must be authorised

(1) A withdrawal of money from a controlled money account held by a licensee must be effected by, or under the direction or with the authority of—

(a) the licensee; or

(b) if the licensee is not available, an authorised employee of the licensee.

(2) The licensee must keep a written record of the required particulars of each withdrawal, unless at the time the withdrawal is made those particulars are recorded by a computerised accounting system.

(3) For the purposes of subregulation (2), the required particulars are as follows—

(a) the date and number of the transaction;

(b) the amount withdrawn;

(c) in the case of a transfer made by electronic funds transfer—the name and number of the account to which the amount was transferred and the relevant BSB number;

(d) the name of the person to whom payment is to be made or, if the payment is to an ADI, the name or BSB number of the ADI and the name of the person receiving the benefit of the payment;

(e) the name of the person on whose behalf the payment was made and the matter reference;

(f) the purpose for which the payment was made;

(g) the person or persons effecting, directing or authorising the withdrawal.

(4) The licensee must ensure that the particulars are—

recorded in the order in which the payments are made; and
recorded separately for each controlled money account.

27 Register of controlled money

(1) A licensee who receives controlled money must maintain a register of controlled money, consisting of the records of controlled money movements for the controlled money accounts of the licensee.

(2) The licensee must ensure that a separate record of controlled money movements is maintained for each controlled money account.

(3) The licensee must ensure that a record of controlled money movements for a controlled money account records the following information—

(a) the name of the person on whose behalf the controlled money is held;

(b) the person's address;

(d) any changes to the information referred to in paragraphs (a) to (c).

(4) The licensee must ensure that the following particulars are recorded in a record of controlled money movements for a controlled money account—

(a) the date the controlled money was received;

(b) the number of the receipt;

(d) the name of and other details clearly identifying the controlled money account;

(e) the amount of controlled money deposited;

(f) details of the deposit sufficient to identify the deposit;

(g) interest received;

(h) details of any payments from the controlled money account, including the particulars required to be recorded under regulation 26(2).

(5) With the exception of interest and other income received in respect of controlled money, the licensee must ensure that particulars of receipts and payments are entered in the register as soon as practicable after the controlled money is received by the licensee or any payment is made.

(6) The licensee must enter interest and other income received in respect of controlled money in the register as soon as practicable after the licensee is notified of its receipt.

(7) The licensee must retain as part of the
licensee's trust records all supporting information (including ADI statements and notifications of interest received) relating to controlled money.

(8) Within 15 business days after each month, the licensee must prepare and keep as a permanent record a statement as at the end of the named month, from the first day of that named month to the last day of that named month, containing a list of the licensee's controlled money accounts showing—

(a) the name, number and balance of each account in the register; and

(b) the name of the person on whose behalf the controlled money in each account was held; and

(d) the date the statement was prepared.

Division 5—Transit money

28 Information to be recorded about transit money

For the purposes of section 73 of the Act, a licensee must, in respect of transit money received by the licensee, record and keep particulars sufficient to identify the relevant transaction and the purpose for which the money is received.

Division 6—Trust money generally

29 Trust account statements

(1) A licensee must give a trust account statement to each person for whom or on whose behalf trust money (other than transit money) is held or controlled by the licensee—

(a) as soon as practicable after completion of the matter to which the ledger account or record relates; or

(b) as soon as practicable after the person for whom or on whose behalf the money is held or controlled makes a reasonable request for the statement during the course of the matter; or

(2) The licensee must give a separate statement for—

(a) each trust ledger account; and

(b) each controlled money account; and

(c) each record of dealings with the money that is subject to a power to which the licensee or an associate of the licensee is a party and that the licensee is required to keep a record of.

(3) A trust account statement is to contain particulars of—

(a) all the information required to be kept under this Part in relation to the trust money included in the relevant ledger account or record; and

(b) the remaining balances (if any) of the money.

(4) The licensee is not required to give a trust account statement under subregulation (1)(c) in respect of a ledger account or record if at 30 June—

(a) the ledger account or record has been open for less than 6 months; or

(b) the balance of the ledger account or record is zero and no transaction affecting the account has taken place within the previous 12 months; or

(c) a trust account statement has been provided within the previous 12 months and there has been no subsequent transaction affecting the ledger account or record.

(5) The licensee must keep a copy of a trust account statement given under this regulation.

30 Trust account statements for institutional clients

(1) In this regulation—

institutional client of a licensee means a client of a licensee who is—

a public company; or
a subsidiary of a public company; or
a foreign company; or
a subsidiary of a foreign company; or
a registered Australian body (within the meaning of the Corporations Act); or

(f) a financial services licensee (within the meaning of the Corporations Act).

(2) Regulation 29 does not apply to an institutional client to the extent to which the client directs the licensee not to provide trust account statements under that regulation.

(3) If the institutional client directs the licensee to provide trust account statements on a basis different from that prescribed by regulation 29, the licensee must supply those statements as directed, except to the extent to which the direction is unreasonably onerous.

(4) The licensee must keep a copy of a trust account statement given under this regulation.

31 Withdrawing trust money for costs

(1) For the purposes of section 77(1)(b) of the Act, the relevant procedures are those set out in subregulation (2) or (3) (as applicable).

(2) The licensee may withdraw the trust money if—

(a) before effecting the withdrawal, the licensee gives the person—

(i) a request for payment, referring to the proposed withdrawal; or

(ii) a written notice of withdrawal; and

(b) the money—

(i) is withdrawn in accordance with a costs agreement that authorises the withdrawal; or

(ii) is withdrawn in accordance with instructions that have been received by the licensee authorising the withdrawal; or

(iii) is owed to the licensee by way of third party disbursements incurred on behalf of the person.

(3) The licensee may withdraw the trust money if the licensee has given the person a bill relating to the money and—

(a) the person—

(i) has not objected to withdrawal of the money within 7 days after being given the bill; or

(ii) has objected within 7 days after being given the bill but has not made a complaint to the Director under Part 6.2 of the Australian Consumer Law and Fair Trading Act 2012 or made an application to VCAT under Chapter 7 of the Australian Consumer Law and Fair Trading Act 2012 within 60 days after being given the bill; or

(b) the money otherwise becomes legally payable.

(4) Instructions referred to in subregulation (2)(b)(ii)—

(a) if given in writing, must be kept as a permanent record; or

(b) if not given in writing, must be reduced to writing not later than 5 business days after the licensee effects the withdrawal and a copy must be kept as a permanent record.

(5) For the purposes of subregulation (2)(b)(iii), money is taken to have been paid by the licensee on behalf of the person when the relevant account of the licensee has been debited.

32 Duration for keeping of trust records

(1) For the purposes of section 71(5) of the Act, the period for which trust records are to be kept is 7 years commencing immediately after—

(a) in the case of a trust record referred to in paragraphs (a) to (m) of the definition of trust records in section 62 of the Act—the only or the last transaction entry in the record; or

(b) in the case of any other trust record—finalisation of the matter to which the record relates.

(2) For the purposes of section 80 of the Act, the period for which trust records are to be kept is 7 years commencing immediately after—

(a) in the case of a trust record referred to in paragraphs (a) to (m) of the definition of trust records in section 62 of the Act—the only or the last transaction entry in the record; or

(b) in the case of any other trust record—finalisation of the matter to which the record relates.

Division 7—Miscellaneous

33 Exemption

The Director may—

(a) exempt a licensee from complying with any of the provisions of this Part subject to any conditions that may be imposed by the Director; and

(b) at any time impose a new condition on the exemption, amend or revoke a condition already imposed on the exemption, or revoke the exemption.

Part 3—General

34 Statutory declaration on ceasing to hold trust money

For the purposes of section 86(4) of the Act, a statutory declaration must be in the form set out in Form 1 in Schedule 1.

35 Claims against the Fund

For the purposes of section 145(1)(b) of the Act, the prescribed information is the following—

(a) the name and address of the claimant;

(b) the name and address of the licensee in respect of whom the claim is made;

(d) the amount of monetary loss suffered by the claimant;

(e) details of any action taken by the claimant to recover the loss from a source other than the Fund;

(f) details of any monetary or non-monetary amount recovered in relation to the loss by the claimant from a source other than the Fund.

36 Disallowance of a claim against the Fund

For the purposes of section 145(5) of the Act, the notice of the Secretary's disallowance of all or part of a claim must be in the form set out in Form 2 in Schedule 1.

37 Embargo notice

For the purposes of section 168 of the Act, an embargo notice issued by an inspector must be in the form set out in Form 3 in Schedule 1.

38 Infringement offences and infringement penalties

(1) For the purposes of section 175(1) of the Act, an offence against a provision of the Act set out in column 1 of Schedule 2 is a prescribed offence in respect of which an infringement notice may be issued.

(2) For the purposes of section 175(3) of the Act, the prescribed infringement penalty for an offence against a provision set out in column 1 of Schedule 2 is the relevant amount expressed in penalty units set out in column 2 of Schedule 2 in respect of that offence.

Schedule 1—Forms

Form 1

Regulation 34

Conveyancers Act 2006—Statutory declaration on ceasing to hold TRUST money

Section 86

I, [insert full name],

of [insert name of licensee's conveyancing business]

of [insert address of licensee's conveyancing business]

DECLARE THAT:

1 I am or was a licensee who on [insert date] ceased to be authorised to receive trust money.

2 I do not now hold any trust money, all such trust money having been applied in accordance with the Conveyancers Act 2006.

I acknowledge that this declaration is true and correct and I make it in the belief that a person making a false declaration is liable to the penalties of perjury.

Signed

Full Name [block letters]

DECLARED AT [place] in the State of Victoria on [date]
before:

[name and address in legible writing, type or stamp below signature]

A person authorised under section 107A(1) of the Evidence (Miscellaneous Provisions) Act 1958 to witness the signing of a statutory declaration.

Form 2

Regulation 36

Notice of disallowance of claim for compensation from the Victorian Property Fund

Conveyancers Act 2006

Section 145

To: [insert name of claimant]

of [insert address of claimant]

The Secretary *wholly disallows/*partly disallows your claim for compensation from the Fund.

**The Secretary disallows $ of your claim.

The reasons for the *disallowance/*partial disallowance are―

Signed Dated

(For and on behalf of the Secretary of the Department of

Justice and Regulation)

*Delete if not applicable.

**Delete if claim wholly disallowed.

Form 3

Regulation 37

Embargo notice

Conveyancers Act 2006

Section 168

1 The item described below has been embargoed under section 168 of the Conveyancers Act 2006.

2 Section 168(2) provides that a person who knows that an embargo notice relates to a thing and who without the written consent of the inspector who issued the embargo notice—

(a) sells; or

(b) leases; or

(d) moves; or

(e) disposes of; or

(f) otherwise deals with—

the thing or any part of the thing is guilty of an offence and liable to a penalty not exceeding 60 penalty units.

3 Section 168(3) provides that it is a defence to a prosecution for such an offence to prove that the thing or part of the thing was moved for the purpose of protecting and preserving it.

Description of embargoed item—

This notice has been—

🞏 served on [insert name]

🞏 affixed to the item described above

Signature of inspector

Name of inspector

Telephone number Date Time

Schedule 2—Infringement offences and infringement penalties

Regulation 38

Column 1<br>Infringement offence	Column 2<br>Infringement penalty
section 16(1)	6 penalty units
section 23(3)	2·5 penalty units
section 34(7)	6 penalty units
section 54(1)	6 penalty units
section 58(2)	6 penalty units
section 59(3)	6 penalty units
section 61	6 penalty units
section 66(2)	12 penalty units
section 67(3)	12 penalty units
section 69(3)	12 penalty units
section 71(4)	12 penalty units
section 73(2)	12 penalty units
section 80(1)	12 penalty units
section 84(1)	12 penalty units
section 85(1A)	12 penalty units
section 153(1)	6 penalty units
section 153(2)	6 penalty units
section 153(3)	6 penalty units

═════════════

Endnotes

1 General information

See www.legislation.vic.gov.au for Victorian Bills, Acts and current Versions of legislation and up-to-date legislative information.

The Conveyancers (Trust Account and General) Regulations 2018, S.R. No. 62/2018 were made on 22 May 2018 by the Lieutenant-Governor as the Governor's deputy, with the advice of the Executive Council, under section 188 of the Conveyancers Act 2006, No. 75/2006 and came into operation on 26 May 2018: regulation 3.

The Conveyancers (Trust Account and General) Regulations 2018 will sunset 10 years after the day of making on 22 May 2028 (see section 5 of the Subordinate Legislation Act 1994).

INTERPRETATION OF LEGISLATION ACT 1984 (ILA)

Style changes

Section 54A of the ILA authorises the making of the style changes set out in Schedule 1 to that Act.

References to ILA s. 39B

Sidenotes which cite ILA s. 39B refer to section 39B of the ILA which provides that where an undivided regulation, rule or clause of a Schedule is amended by the insertion of one or more subregulations, subrules or subclauses the original regulation, rule or clause becomes subregulation, subrule or subclause (1) and is amended by the insertion of the expression "(1)" at the beginning of the original regulation, rule or clause.

Interpretation

As from 1 January 2001, amendments to section 36 of the ILA have the following effects:

• Headings

All headings included in a Statutory Rule which is made on or after
1 January 2001 form part of that Statutory Rule. Any heading inserted in a Statutory Rule which was made before 1 January 2001, by a Statutory Rule made on or after 1 January 2001, forms part of that Statutory Rule.
This includes headings to Parts, Divisions or Subdivisions in a Schedule; Orders; Parts into which an Order is divided; clauses; regulations; rules; items; tables; columns; examples; diagrams; notes or forms.
See section 36(1A)(2A)(2B).

• Examples, diagrams or notes

All examples, diagrams or notes included in a Statutory Rule which is made on or after 1 January 2001 form part of that Statutory Rule. Any examples, diagrams or notes inserted in a Statutory Rule which was made before 1 January 2001, by a Statutory Rule made on or after 1 January 2001, form part of that Statutory Rule. See section 36(3A).

• Punctuation

All punctuation included in a Statutory Rule which is made on or after
1 January 2001 forms part of that Statutory Rule. Any punctuation inserted in a Statutory Rule which was made before 1 January 2001, by a Statutory Rule made on or after 1 January 2001, forms part of that Statutory Rule.
See section 36(3B).

• Provision numbers

All provision numbers included in a Statutory Rule form part of that Statutory Rule, whether inserted in the Statutory Rule before, on or after
1 January 2001. Provision numbers include regulation numbers, rule numbers, subregulation numbers, subrule numbers, paragraphs and subparagraphs. See section 36(3C).

• Location of "legislative items"

A "legislative item" is a penalty, an example or a note. As from 13 October 2004, a legislative item relating to a provision of a Statutory Rule is taken to be at the foot of that provision even if it is preceded or followed by another legislative item that relates to that provision. For example, if a penalty at the foot of a provision is followed by a note, both of these legislative items will be regarded as being at the foot of that provision. See section 36B.

• Other material

Any explanatory memorandum, table of provisions, endnotes, index and other material printed after the Endnotes does not form part of a Statutory Rule. See section 36(3)(3D)(3E).

2 Table of Amendments

There are no amendments made to the Conveyancers (Trust Account and General) Regulations 2018 by statutory rules, subordinate instruments and Acts.

3 Amendments Not in Operation

There are no amendments which were Not in Operation at the date of this publication.

4 Explanatory details

Reg. 4(a): S.R. No. 49/2008 as amended by S.R. Nos 46/2010, 107/2010 and 122/2015. ↑
Reg. 4(b): S.R. No. 46/2010. ↑
Reg. 4(c): S.R. No. 107/2010. ↑
Reg. 4(d): S.R. No. 122/2015.

——

Penalty Units

These Regulations provide for penalties by reference to penalty units within the meaning of section 110 of the Sentencing Act 1991. The amount of the penalty is to be calculated, in accordance with section 7 of the Monetary Units Act 2004, by multiplying the number of penalty units applicable by the value of a penalty unit.

The value of a penalty unit for the financial year commencing 1 July 2017 is $158.57.

The amount of the calculated penalty may be rounded to the nearest dollar.

The value of a penalty unit for future financial years is to be fixed by the Treasurer under section 5 of the Monetary Units Act 2004. The value of a penalty unit for a financial year must be published in the Government Gazette and a Victorian newspaper before 1 June in the preceding financial year. ↑

1 Conveyancers (Trust Account and General) Regulations 2018

Version No. 001

Conveyancers (Trust Account and General) Regulations 2018

S.R. No. 62/2018

Version as at
26 May 2018

TABLE OF PROVISIONS

Regulation Page

Part 1—Preliminary 1

1 Objectives 1

2 Authorising provision 1

3 Commencement 1

4 Revocations 1

5 Definitions 2

Part 2—Trust accounts and trust money 3

Division 1—Authorised employees 3

6 Licensee may authorise employee 3

Division 2—Computerised accounting system 3

7 Application of Division 3

8 Licensee must keep chronological record of creation, amendment and deletion of information 3

9 Requirements regarding computerised accounting system 4

10 Back-ups 5

Division 3—General trust accounts 5

11 Establishment and maintenance of general trust account 5

12 Receipting of trust money 6

13 Deposit records for trust money 7

14 Payment by cheque 8

15 Payment by electronic funds transfer 10

16 Recording transactions in trust account cash books 11

17 Trust account receipts cash book 11

18 Trust account payments cash book 12

19 Recording transactions in trust ledger accounts 13

20 Journal transfers 16

21 Reconciliation of trust records 17

22 Trust ledger account in name of conveyancing business or licensee 18

Division 4—Controlled money 18

23 Requirements for controlled money accounts 18

24 Maintenance of controlled money accounts 18

25 Receipt of controlled money 19

26 Withdrawal of controlled money must be authorised 21

27 Register of controlled money 22

Division 5—Transit money 24

28 Information to be recorded about transit money 24

Division 6—Trust money generally 24

29 Trust account statements 24

30 Trust account statements for institutional clients 26

31 Withdrawing trust money for costs 26

32 Duration for keeping of trust records 28

The Regulations operationalise core trust-account concepts from the Conveyancers Act 2006 by defining how trust money is to be processed and documented. Key concepts and how the Regulations treat them are:

Trust money vs controlled money vs transit money: The instrument distinguishes ordinary trust money required to be paid into a general trust account, controlled money (with its own receipt and account rules) and transit money (which requires sufficient particulars to identify the transaction) (Divs 3-5, regs 11, 23, 28). Controlled money carries a separate register and monthly reporting obligations (regs 25-27, 27(8)).
General trust account establishment and location: A licensee must establish a general trust account in Victoria as soon as practicable after receiving trust money (other than controlled or transit money) and maintain it in Victoria; the account name must include the licensee and the phrase "conveyancing business trust account" or "conveyancing business trust a/c" (reg 11(1)(a)-(c)).
Recordkeeping and audit trails for computerised systems: If trust records are kept electronically, the system must produce a permanent, chronological record of creation, amendment and deletion of specified information (client names, addresses, matter references/descriptions, ledger numbers) (regs 7-9). The system must prevent creation of transactions that produce a debit trust-ledger balance unless it simultaneously produces a separate permanent chronological report of those occurrences (reg 9(1)). Deletions of ledger accounts are constrained (reg 9(2)). The system must require input in every field and maintain printable records in a way that pages cannot be removed (reg 9(4), (6)).
Timing obligations: The Regulations use several explicit time limits. Examples include: recording receipts/payments/transfers in cashbooks and ledgers within 5 business days (regs 17(3), 18(3), 19(8)); monthly reconciliations to be prepared within 15 business days after month end (reg 21(3)); controlled money monthly statements similarly within 15 business days (reg 27(8)); monthly backups at least once each month and offsite storage (reg 10).
Client-facing statements and rights: Licensees must give trust account statements to persons for whom trust money is held after completion of the matter, on request, or annually after 30 June, subject to exceptions for small/short-lived accounts; institutional clients may direct different arrangements (regs 29, 30).
Authorisation architecture: The licensee controls delegation. A licensee may authorise employees in writing to act as authorised employees (reg 6). Most withdrawals, transfers and certain authorisations must be by the licensee or, if unavailable, an authorised employee (regs 14(1)(d), 15(2), 20(1), 26(1)).
Director discretion and administrative relief: The Director may exempt licensees from any Part 2 provision and impose, vary or revoke conditions on the exemption (reg 33). This is a key source of regulatory discretion.
Enforcement by infringement notices and forms: The Regulations identify specific offences under the Act that are prescribed infringement offences and assign penalty units (reg 38; Schedule 2). They also prescribe forms for embargo notices, statutory declarations and disallowance notices (Schedule 1).

These concepts convert statutory duties in the Conveyancers Act into prescriptive, operational controls. The Regulations therefore shift much regulatory detail from primary to subordinate law, fixing formats, timeframes and functional requirements that carriers of trust money must follow.

The immediate legal subjects are conveyancing licensees authorised under the Conveyancers Act 2006; the Regulations refer repeatedly to "a licensee" and the licensee's "conveyancing business" (for example regs 6, 11, 12, 24). Within a licensee's organisation the instrument imposes obligations on persons authorised by the licensee as authorised employees; such authorisation must be in writing and signed by both licensee and employee (reg 6). That creates a formal delegation relationship that the licensee controls.

Clients of a conveyancing business are affected in at least three concrete ways. First, clients will receive trust account statements under reg 29: after matter completion, on request, or annually. Second, a client’s funds must be recorded and banked in prescribed forms, which affects timeliness and visibility of funds. Third, clients for whom controlled money is held are affected by separate controls on receiving, registering and withdrawing controlled money, including the requirement for separate controlled money accounts and monthly statements (regs 24-27).

Institutional clients are treated differently. The Regulations define "institutional client" by reference to corporate forms, including public companies, subsidiaries, registered Australian bodies and financial services licensees (reg 30(1)). Such clients may direct the licensee not to provide statements under reg 29, and may direct alternate statement regimes, provided the direction is not unreasonably onerous (reg 30(2)-(3). This shifts choice about statement frequency to larger clients.

Australian Deposit-taking Institutions (ADIs) and banks are implicated because deposit records, direct deposits and ADI statements are referenced repeatedly. The Regulations require deposit records to be produced to the approved ADI at deposit time (reg 13(2)(a)), and rely on ADI notifications for direct deposit receipting (regs 12(2)(b), 25(3)(b)) and for recording interest on controlled money (reg 27(7)). Banks therefore become part of the practical compliance chain.

Regulatory decision-makers are affected: the Director (who may grant or vary exemptions under reg 33), inspectors who can issue embargo notices with prescribed form content (reg 37; Schedule 1 Form 3), and the Secretary who may disallow claims against the Victorian Property Fund with a prescribed form (reg 36; Schedule 1 Form 2). The broader statutory environment also matters; the Regulations interact with the Conveyancers Act 2006 (enforcement and fund claims), the Australian Consumer Law and Fair Trading Act 2012 (for complaint/VCAT timelines referenced in reg 31(3)), the Corporations Act (defining institutional clients, reg 30(1)), and statutes governing penalty units and penalty values (Sentencing Act 1991, Monetary Units Act 2004, endnotes).

Finally, claimants against the Victorian Property Fund (claims prescribed information in reg 35) and persons who might face embargo notice consequences (reg 37 and Form 3) are directly implicated. Secondary actors,software vendors, auditors, bookkeepers and external accountants,are affected because the Regulations impose precise technical and documentary requirements on computerised accounting systems (regs 7-10), reconciliation processes (reg 21), and evidence-preserving printouts (reg 9).

This section summarises duties imposed on licensees and rights or procedural options given to other actors. Each duty is tied to the relevant regulation(s).

Duties of licensees (principal obligations):

Authorise employees in writing before delegating trust functions; the instrument must be signed by licensee and employee (reg 6). This creates a written delegation trace.
If using a computerised accounting system, keep an immutable chronological record of creation, amendment and deletion of specified information (client names, addresses, matter references/descriptions, ledger numbers) in permanent form (reg 8). Ensure the system prevents debit balances to trust ledger accounts unless such an entry generates a separate permanent chronological report (reg 9(1)). Prevent deletion of a trust ledger account unless balance is zero and all outstanding cheques have been presented; keep a permanent copy upon deletion (reg 9(2)).
Make at least monthly back-ups of all Part 2 records, retain back-ups, and store a complete set at a separate location (reg 10). Back-ups must be kept by the licensee.
Establish and maintain a general trust account in Victoria, as soon as practicable after receiving trust money to which Part 5 of the Act applies (reg 11(1)(a)-(b)). The account name must include the licensee name and "conveyancing business trust account" or the abbreviated form (reg 11(1)(c)).
Issue receipts for trust money promptly, with prescribed data items and consecutively numbered receipts; provide originals on request and retain originals if cancelled (reg 12(2)-(7)).
Produce deposit records to the ADI when depositing money other than by direct deposit, preserve duplicate deposit records and record specified cheque details (reg 13).
Control payments: cheques must be payable to a specified person, crossed "not negotiable", include the licensee/conveyancing business name and be signed by the licensee or, if not available, an authorised employee (reg 14). Electronic funds transfers must be directed or authorised by the licensee or an authorised employee; keep paper records of transaction particulars unless recorded by the computerised system (reg 15).
Maintain trust account cash books: separate receipts and payments cash books with prescribed entries, recorded in order and within 5 business days (regs 16-18).
Maintain a trust ledger account for each client and each matter, include specified title particulars and record receipts, payments and transfers with detail and within 5 business days (reg 19).
Keep a trust account transfer journal for journal transfers and record authorisations for each transfer (reg 20). Journal entries require written authorisation by the licensee or an authorised employee (reg 20(1)(b)).
Reconcile trust records monthly as at the end of each named month and prepare reconciliation statements within 15 business days; retain those reconciliation statements (reg 21).
Use any trust ledger account in the licensee’s name only for aggregating money properly due to the licensee for costs, and withdraw such money from the general trust account no later than one month after transfer into the ledger account (reg 22).
For controlled money, operate separate controlled money receipt systems, issue receipts, maintain a register of controlled money movements, enter particulars promptly, retain supporting ADI statements/notifications and prepare monthly statements within 15 business days (regs 24-27).
Provide trust account statements to persons for whom trust money is held on completion of the matter, on request, or annually after 30 June, with specified exceptions (reg 29). Provide separate statements for each ledger and controlled money account (reg 29(2)). Give copies and retain them (reg 29(5)).
Follow the procedures prescribed for withdrawing trust money for costs, which include giving a request for payment or written notice, complying with costs agreements or authorising instructions, or providing a bill and observing objection/complaint timelines (reg 31).
Retain trust records for 7 years after the last transaction or finalisation of the matter, depending on the record type (reg 32).
Keep all supporting information for controlled money as part of trust records (reg 27(7)).

Rights and procedural options available to licensees and others:

The licensee may authorise employees in writing to act as authorised employees (reg 6). That is a formal right to delegate, subject to the written instrument requirement.
The licensee may transfer trust money by journal entry if authorised and entitled, and must keep a transfer journal (reg 20).
The Director may grant exemptions from compliance with any of the Part 2 provisions, and may impose, amend, or revoke conditions or revoke the exemption (reg 33). This creates an administrative avenue to vary obligations.
Institutional clients may direct alternate timing or non-provision of trust account statements to the extent permitted by reg 30; licensees must comply unless the direction is unreasonably onerous (reg 30(2)-(3)).
Where a licensee ceases to hold trust money, the statutory declaration form and procedure are prescribed (reg 34 and Schedule 1 Form 1), giving a uniform process.
Claimants against the Victorian Property Fund must provide prescribed information when lodging claims (reg 35), and the Secretary’s disallowance notice is prescribed in form (reg 36 and Schedule 1 Form 2).

These specific duties and rights set out operational boundaries on how licensees must manage trust funds and the circumstances in which alternative arrangements or exemptions can be applied.

The Regulations specify infringement offences and the associated infringement penalties, and they prescribe forms for enforcement procedures such as embargo notices and disallowance of claims.

Infringement regime and penalty units:

Regulation 38(1) declares that specified offences against provisions of the Conveyancers Act 2006 are prescribed offences in respect of which an infringement notice may be issued. Regulation 38(2) fixes the prescribed infringement penalty for each offence in terms of penalty units as set out in Schedule 2.
Schedule 2 lists specific sections of the Conveyancers Act and assigns penalty units, commonly 6 or 12 penalty units for many listed provisions (for example, s 66(2) is 12 penalty units; s 16(1) is 6 penalty units). The endnotes explain that penalty units are those under the Sentencing Act 1991 and their monetary value is fixed under the Monetary Units Act 2004, with an example value for the 2017-18 year of $158.57 per unit. The Regulations therefore impose monetary penalties by reference; the precise dollar figure depends on the applicable penalty unit value for the financial year.

Embargo notices:

An inspector may issue an embargo notice under s 168 of the Conveyancers Act and reg 37 prescribes the form (Schedule 1 Form 3). Form 3 recites that s 168(2) makes it an offence to deal with an embargoed thing without the inspector’s written consent, and that a contravention is liable to a penalty not exceeding 60 penalty units (Form 3 text). The Form also refers to a statutory defence under s 168(3) where movement was to protect or preserve the thing.

Administrative enforcement and forms:

Regulation 36 prescribes the form of a notice disallowing a claim against the Victorian Property Fund (Schedule 1 Form 2). Regulation 35 prescribes the required information for a claim against the Fund. These provisions govern the administrative pathway for claimants and the Secretary’s response.

Inspection and discretion:

Inspectors and the Director are the practical enforcement actors. Inspectors can serve embargo notices (reg 37). The Director can grant, vary or revoke exemptions from Part 2 (reg 33), which affects whether a licensee is subject to specified offences in practice.

Timing exposure and recordkeeping as a compliance lever:

Many offences that attract infringement penalties are recordkeeping or procedural breaches, such as failing to keep required records or reconcile accounts. That means failure to observe prescribed timeframes (for example, the 5-business-day rule for ledger entries, reg 19(8), or the 15-business-day reconciling requirement, reg 21(3)) may lead to an enforceable infringement offence where the underlying Conveyancers Act provision is prescribed in Schedule 2.

Practical monetary exposure:

The Regulations give the penalty units but the dollar value varies with the financial year. The endnotes provide the 2017-18 value; multiply the listed penalty units by that value to obtain a year-specific dollar figure. For example, using the 2017-18 value in the endnotes, a 12 penalty-unit infringement would equal 12 × $158.57 = $1,902.84, subject to rounding rules in the endnotes.

Documented compliance assists defence:

The Regulations mandate paper or permanent-form records for many activities and require retention. These documentary rules both create duties and provide the principal means to demonstrate compliance in any enforcement process involving infringement notices, embargoes or disallowance of fund claims.

In short, enforcement combines statutory infringement notices tied to particular Conveyancers Act provisions (Schedule 2), inspectors' powers (embargo notices under s 168 and reg 37), and administrative actions relating to the Victorian Property Fund (regs 35-36). The Regulations weaponise recordkeeping and timing obligations as the primary compliance levers.

The Regulations operate within and reference multiple statutes and legal regimes. The most direct interactions in the text are:

Conveyancers Act 2006: The Regulations are made under s 188 of that Act (reg 2) and repeatedly give procedural effect to obligations and powers in the Act (for example requirements linked to Part 5 of the Act at reg 11, the Director’s exemption power under the Act reflected in reg 33, embargo notices under s 168 given form in reg 37, and infringement notices under s 175 referenced in reg 38). The Regulations therefore implement and operationalise core Conveyancers Act duties.
Australian Consumer Law and Fair Trading Act 2012: Regulation 31(3)(a)(ii) imports procedural time limits for client objections to bills: a licensee may withdraw trust money for costs if a client has objected within 7 days but has not made a complaint to the Director under Part 6.2 of that Act or applied to VCAT within 60 days after being given the bill. The Regulations therefore embed dispute-resolution timelines from consumer law into the trust-money withdrawal procedure.
Corporations Act 2001: Regulation 30(1) defines "institutional client" by reference to public companies and subsidiaries; the Corporations Act therefore supplies definitions and corporate forms that determine whether a client falls into the institutional-client carve-out for statement obligations.
Evidence (Miscellaneous Provisions) Act 1958: Schedule 1 Form 1 (the statutory declaration on ceasing to hold trust money) prescribes who may witness the statutory declaration by referencing s 107A(1) of that Act. That imports existing Victorian rules on statutory-declaration witnesses.
Sentencing Act 1991 and Monetary Units Act 2004: The Regulations set infringement penalties in penalty units (Schedule 2). The endnotes explain that penalty units are as defined in the Sentencing Act and their monetary value is fixed annually under the Monetary Units Act; the endnotes give the 2017-18 value. Thus the monetary consequence of an infringement arises from applying those Acts.
Subordinate Legislation Act 1994: The endnotes note the Statutory Rule will sunset 10 years after making under s 5 of that Act. This produces an expiry date unless renewed or remade.

Operational interface and third parties:

ADIs and banking rules: The Regulations require deposit records to be produced to the ADI at deposit time (reg 13(2)(a)), require reliance on ADI notifications for direct deposits (regs 12(2)(b), 25(3)(b)), and require retention of ADI statements for controlled money (reg 27(7)). Practical compliance therefore depends on ADI processes and statement formats.
VCAT/administrative dispute processes: The withdrawal-for-costs regime references complaint and VCAT application windows under the Australian Consumer Law and Fair Trading Act 2012 (reg 31(3)). That ties trust withdrawals to the consumer-dispute apparatus and creates a cross-check between trust accounting and consumer dispute timelines.
Records and evidence law: The Regulations’ demands on permanent-form records, printability and chronological numbering (reg 9) mean they interact with evidentiary requirements for authenticity and chain of custody in regulatory investigations and potential civil litigation.

Taken together, the Regulations do not stand alone. They embed procedural timelines from consumer law, use penalty units and monetary conversion statutes to determine monetary penalties, and presuppose ADI cooperation and statutory witness rules for declarations. Compliance therefore requires being aware not only of the Conveyancers Act and these Regulations, but also the Corporations Act, the Australian Consumer Law and Fair Trading Act 2012, ADI practices and the legislative framework for penalty units and statutory declarations.

The text itself supplies a compact amendment history and a revocation list. Key points from the Regulations and endnotes:

The Conveyancers (Trust Account and General) Regulations 2018 were made on 22 May 2018 and commenced 26 May 2018 (reg 3 and Endnote 1).
Regulation 4 revokes four predecessor instruments described as Conveyancers (Professional Conduct and Trust Account and General) Regulations 2008 and subsequent amendment regulations (S.R. No. 49/2008 as amended by S.R. Nos 46/2010, 107/2010 and 122/2015). The 2018 Regulations therefore replaced earlier trust-account Regulations.
The "Table of Amendments" in the endnotes states there are no amendments made to the Conveyancers (Trust Account and General) Regulations 2018 by statutory rules, subordinate instruments or Acts at the time of this publication (Endnote 2). The "Amendments Not in Operation" section states none are not in operation (Endnote 3).
The Explanatory details recite the revocations and give references to the earlier Statutory Rules that were revoked (Endnote 4). They also explain the penalty-unit mechanism and the 2017-18 value of a penalty unit ($158.57), and that the Treasurer will publish future values.
The endnotes additionally record that the Statutory Rule will sunset 10 years after making (22 May 2028) under the Subordinate Legislation Act 1994 (Endnote 1). That is part of the subordinate-legislation lifecycle in Victoria and indicates an automatic expiry unless remade or otherwise preserved.
No later amending instruments or modifications are recorded in the published text. The Regulations therefore, as published, are the authoritative current version dated 26 May 2018 with the indicated sunset.

Practically, this means that as of the version date there were no subsequent amending regulations included in the published material. A practitioner should check the Victorian legislation website or Gazette for any later amendments or replacement instruments because the endnotes and table reflect the state of publication at that time.

The Regulations as provided contain no case law citations and the Endnotes do not record any litigation relating to the Regulations themselves. The Schedule, forms and endnotes refer to enforcement mechanisms and statutory remedies, but they do not supply or summarise any judicial decisions applying or construing these Regulations.

Two operational consequences for researchers and practitioners:

There is no litigation precedent within this instrument to guide interpretation of discrete phrases (for example, "as soon as practicable" in reg 11(1)(a), or what constitutes an "institutional client" where corporate forms overlap). That means interpretation will rely on ordinary statutory construction principles and any relevant case law under the Conveyancers Act or related banking/accounting precedent, none of which is supplied here.
Enforcement practice will depend on administrative and prosecutorial choices taken by inspectors, the Director and regulators; absence of litigation in the instrument does not imply absence of enforcement activity, but it does mean there are no court decisions in the text to clarify borderline factual applications of the recordkeeping or authorisation rules.

If a reader requires reported decisions applying these Regulations, the appropriate research route is to search Victorian civil and administrative decisions databases, VCAT and court databases for cases involving trust-account non-compliance by conveyancers after May 2018. The Regulations themselves do not provide a litigation chronology.

Several provisions create practical traps for licence-holders. These are not interpretative complaints but mechanical friction points that commonly cause non-compliance in practice:

Timing rules are tight and discrete:
- Receipts, ledger entries and cash-book items must be recorded within 5 business days (regs 17(3), 18(3), 19(8)). These are business-day deadlines, not calendar days, and apply to both receipts and payments.
- Monthly reconciliation and monthly controlled-money statements must be prepared within 15 business days after month end (regs 21(3), 27(8)). If a licence-holder runs month-end reconciliations late, they may breach the reconciliation requirement and engage enforcement risk.
Computerised system requirements can be technically demanding:
- The system must record creation, amendment and deletion of specified information in permanent form and in chronological sequence (reg 8). The specified information list is concrete (client names and addresses, matter references/descriptions, ledger numbers). Off-the-shelf accounting packages may need configuration to meet the "before and after" amendment capture requirement.
- The system must not accept an entry that results in a debit balance to a trust ledger account unless the system also produces, at the same time, a separate permanent chronological report of such occurrences (reg 9(1)). Software that allows temporary oversights could therefore create an automatic compliance output requirement.
- Deleting a trust ledger account is only permitted if the balance is zero and all outstanding cheques have been presented, and a copy must be kept when the account is deleted (reg 9(2)). Some systems that auto-purge zero-balance accounts might conflict with this requirement.
- The system must require input in every field intended to receive Part 2-required information (reg 9(6)). That may require custom validation rules and tailored data-entry screens.
Naming and locality requirements:
- A general trust account must be established and maintained in Victoria and the account name must include the licensee and "conveyancing business trust account" (reg 11). Using an out-of-state ADI, multi-jurisdictional pooled accounts, or an account name that does not meet the strict phraseology risks non-compliance.
Controlled money thresholds and direction conditions:
- A person may give a direction that causes money to be treated as controlled money under s 64(1) only if the amount exceeds $50,000 or the transaction is not to be settled within 60 days (reg 23(1)). Transactions near these thresholds require careful front-end classification to ensure correct handling under regs 24-27.
Withdrawal for costs has layered procedural preconditions:
- Withdrawal may be effected under a costs agreement, written instructions, or if the licensee issues a bill and the client fails to object within 7 days or fails to commence prescribed complaint or VCAT steps within 60 days (reg 31). If the licensee misapplies the 7- and 60-day timelines, the trust withdrawal may be premature.
Aggregation account rule (trust ledger account in name of licensee):
- A trust ledger account in the licensee’s or conveyancing business’s name may only be used to aggregate money properly due to the licensee for costs and must be withdrawn from the general trust account no later than one month after transfer (reg 22). Using such an account for other purposes or allowing balances to remain longer than a month risks contravening reg 22.
Documentary form and permanency:
- Many entries must be kept in "permanent form" or as paper copies unless recorded in the computerised accounting system in the relevant cash book at the time (regs 8(2), 12(3), 13(2), 14(2), 15(3)). That creates potential friction between digital-first practices and the statutory requirement to ensure a permanent record.
Director’s exemption is discretionary and mutable:
- The Director may grant and later amend or revoke conditions on exemptions at any time (reg 33). A licence-holder relying on an exemption should document the exact terms and monitor for changes,reliance on an exemption is not a permanently stable compliance pathway.
Infringement list scope:
- Schedule 2 prescribes numerous Conveyancers Act sections as infringement offences. Practitioners must cross-check whether an operational breach implicates one of the listed statutory provisions to understand immediate penalty exposure (reg 38; Schedule 2).
Evidence/witness technicality for statutory declarations:
- The statutory declaration form references a prescribed class of witnesses under the Evidence (Miscellaneous Provisions) Act 1958 (Schedule 1 Form 1). Failure to use an authorised witness could affect the declaration’s legal standing (reg 34).

These "gotchas" are concrete operational points: timing of entries, exact account naming and jurisdictional location, computer system behaviour and audit-trail features, controlled-money thresholds, and the layered withdrawal-for-costs procedure. Addressing them requires both policy controls and appropriate software and banking arrangements.

Below is a practical compliance checklist mapped to the Regulations with actions a conveyancing licensee or their compliance officer should take. Each item refers to the controlling regulation(s) and states discrete, implementable steps.

Governance and delegation
- Ensure every authorised employee is authorised by a written instrument signed by both licensee and employee (reg 6). Keep originals securely filed and available for inspection.
Bank accounts and account names
- Open and maintain a general trust account in Victoria promptly after receiving trust money (reg 11(1)(a)-(b)). Confirm the account name includes the licensee’s name and the phrase "conveyancing business trust account" or "conveyancing business trust a/c" (reg 11(1)(c)). For controlled money accounts, include the licensee’s name, "controlled money account" or "CMA/c", the purpose and distinguishing particulars (reg 24).
Computerised accounting systems
- Configure accounting software to:
  - keep immutable chronological records of creation, amendment and deletion of specified information (client names and addresses, matter references and descriptions, ledger IDs) in permanent form (reg 8);
  - prevent submission of transactions that produce debit balances in trust ledger accounts unless they simultaneously generate a separate permanent chronological report of such events (reg 9(1));
  - prevent deletion of a trust ledger account unless the balance is zero and all outstanding cheques have been presented, and create a permanent copy on deletion (reg 9(2));
  - require mandatory input in each data field relevant to Part 2 requirements (reg 9(6));
  - print records with sequential pagination or otherwise prevent page removal (reg 9(4));
  - record amendments only by separate transactions (reg 9(5)).
- Retain monthly back-ups, keep back-ups on-site and keep a complete set in a separate location (reg 10).
Receipts and deposits
- Issue receipts promptly on receipt or on confirmation of direct deposit with the ADI; ensure receipts include all prescribed particulars (date, receipt number, amount, form, payer, client and matter reference/description, purpose, business name and "trust account" label, name of issuer) and are consecutively numbered (reg 12(2)-(6)).
- When depositing by means other than direct deposit, prepare deposit records with specified particulars and present them to the ADI at deposit time. Retain duplicate deposit records in order (reg 13).
Payments by cheque and EFT
- For cheques: ensure payee is specified (not bearer or cash), cheque is crossed "not negotiable", it contains required business wording, and is signed by the licensee or, if unavailable, an authorised employee (reg 14(1)). Retain paper records or ensure the computerised system records the payment particulars contemporaneously (reg 14(2)-(3)).
- For electronic funds transfers: ensure the transfer is authorised by the licensee or an authorised employee and keep a paper record or ensure the system captures the transaction particulars at the time (reg 15).
Books and ledgers
- Maintain separate trust account receipts and payments cash books with the prescribed particulars, record entries in order and within 5 business days (regs 16-18).
- Maintain a separate trust ledger account for each client and each matter; include name, address, matter title in the account title; record receipts, payments and transfers with detail and update ledger balances after each transaction within 5 business days (reg 19).
Journal transfers and authorisations
- Obtain written authorisation from the licensee or an authorised employee before effecting journal transfers (reg 20(1)). Keep a transfer journal with date, ledger references, amounts, matter reference and description, and keep authorisation particulars (reg 20(2)-(5)).
Reconciliation and reporting
- Reconcile trust-account records for the named month as at month-end and prepare two reconciliation statements within 15 business days after month end: (a) reconcile ADI balance with trust account cash books; (b) reconcile ledger balances with cash books and prepare the list of ledger accounts with identifying references and balances (reg 21). Retain all reconciliation statements.
Controlled money processes
- If receiving controlled money, operate a dedicated controlled money receipt system and issue receipts with prescribed particulars in duplicate unless covered by the computerised system (reg 25).
- Maintain a separate register for each controlled money account recording names, addresses, matter particulars, receipt and deposit dates, receipt numbers, amounts, deposits, interest and payments. Enter receipts and payments as soon as practicable and prepare a monthly statement within 15 business days (reg 27).
Transit money
- For transit money, record particulars sufficient to identify the transaction and purpose (reg 28).
Trust account statements
- Provide trust account statements on completion of the matter, on reasonable request during the matter, or annually after 30 June, except where the ledger has been open less than 6 months, has zero balance with no transactions for 12 months, or a statement was provided in the prior 12 months and no transactions have followed (reg 29). Provide separate statements for each ledger and controlled money account and retain copies (regs 29(2)-(5)).
Withdrawal for costs
- Before withdrawing trust money for costs, give the person a request for payment or written notice referring to the proposed withdrawal and ensure the withdrawal is authorised by a costs agreement, written instructions, or falls within the bill/objection procedure (reg 31). If relying on the bill/objection route, observe the 7-day initial objection period and the 60-day complaint/VCAT window before withdrawing (reg 31(3)).
Retention and disposal
- Retain trust records for 7 years after the last transaction entry for the defined trust-record categories or 7 years after finalisation for other trust records (reg 32). Keep supporting ADI statements and notifications for controlled money as part of trust records (reg 27(7)).
Exemptions and Director liaison
- If seeking relief, apply to the Director for an exemption under reg 33 and track any conditions that may be imposed, amended or revoked.
Forms and statutory steps
- Use the prescribed statutory declaration when ceasing to hold trust money (reg 34 and Schedule 1 Form 1). For claims against the Victorian Property Fund, ensure claim information follows reg 35. Use the prescribed notice forms for disallowance and embargo requirements (regs 36-37; Schedule 1 Forms 2-3).
Training and audit
- Train staff on the 5-business-day and 15-business-day timing rules and on what data must be captured for receipts, deposits, EFTs, cheques and ledger entries. Schedule an internal compliance audit focused on: account naming, jurisdiction of accounts, ledger reconciliations, backup procedures and computerised system audit trails.
Software and ADI testing
- Before relying on an accounting package, document how it meets regs 7-10, run test scenarios (debiting a ledger, deleting accounts, amendment workflows), and obtain vendor confirmations in writing where needed. Confirm with ADIs that deposit slips and notification flows meet the deposit and direct-deposit receipt assumptions in regs 12 and 13.
Incident response and record of authorisations
- Keep contemporaneous evidence of authorisations for withdrawals and transfers (reg 20(5), 26(3)(g)) and record the names of persons authorising payments (reg 26(3)(g)). Maintain an incident log to show remedial steps taken in the event of a suspected breach.

Adopt these steps into formal written procedures, checklists and staff training materials, and maintain documentary evidence of compliance to rely on in any inspection, infringement process or fund-claim matter.

Conveyancers (Trust Account and General) Regulations 2018

Plain English Summary

Deep Dive

What it does

Current sections

Conveyancers (Trust Account and General) Regulations 2018

Source text: opening excerpt

1 Conveyancers (Trust Account and General) Regulations 2018

Main concepts

Who it affects

Key duties and rights

Penalties and enforcement

How it interacts with other laws

Amendment history

Litigation history

Gotchas

How to comply