The Regulation uses several key concepts that are central to its operation.

“Notional amount” appears in Division 6.8 (Statutory deposits) and means the lowest amount that stood to the credit of a law practice’s general trust account at any time during the 6 months immediately before a specified date (s 69(2)). This notional amount is used to calculate the deposit that must be made with the Law Society: two-thirds of that amount, if it is not less than $3,000.

“Trust accounting year” is defined in s 69(1) as a period of 12 months commencing on 1 April. This is the relevant period for calculating deposits and repayments under the statutory deposit scheme.

“Matter description” and “matter reference” are defined in s 30 for Part 6. “Matter description” means a brief phrase assigned by the practice to describe a matter; “matter reference” means a number or other reference assigned to identify a matter. These must appear in trust records - receipts, cash books, ledgers - to enable the traceability of each transaction.

“BSB number” (Bank State Branch number) is defined in s 30 as the number assigned to identify a particular branch of a particular ADI. This is required when recording electronic funds transfers and deposit records.

“Sophisticated client” is defined by cross-reference to s 261 of the Act and is relevant to s 58, which allows such a client to direct that trust account statements not be provided or to be provided on a different basis.

“In-house lawyer” is defined by cross-reference to s 33(3) of the Act. Government lawyers are similarly referenced. Section 9 exempts both from the requirement in s 50 of the Act that would otherwise restrict their practice to the manner of a solicitor, provided they are acting within their employment.

“General trust account” is not specifically defined in the Regulation but its requirements are set out in s 37: it must be kept with an approved ADI in the ACT, named with the practice name and the expression “law practice trust account” or similar, and of a kind approved by the Law Society council. “Controlled money” refers to money received in relation to which the practice has a written direction to deposit in an account, and the Regulation prescribes separate accounts, receipting, and registers for such money (Division 6.4). “Transit money” is money received by a practice subject to instructions to pay it to a third party, and s 56 requires only brief particulars to be recorded.

“Trust account receipts cash book” and “trust account payments cash book” are mandatory records under ss 43-45. The receipts cash book must record date, receipt number, amount, form of money, payer, client, matter, purpose, and ledger account. The payments cash book must record cheque date/number or EFT details, payee, client, matter, purpose, and ledger account.

“Reconciliation” under s 48 requires monthly statements reconciling the ADI balance with the cash book balance, and the trust ledger accounts balance with the cash book balance.

“External examiner” must be appointed by 8 April each year (s 66) unless only transit money is held (s 67). The examination must be carried out in accordance with s 68 and the report approved by the Law Society council.

“Home jurisdiction” for an associate under s 5 defaults to the jurisdiction of the associate’s place of residence in Australia, or if none, the last place of residence - filling a gap left by the Act.

Table 8 in s 8 is a critical tool for the reservation of legal titles. It maps each name/title/description to a class of person and the circumstances in which they may use it. For example, “barrister” may be used by a local legal practitioner who holds a practising certificate restricting them to practice as a barrister, by an interstate legal practitioner with an Australian practising certificate practising as a barrister, or by an Australian lawyer who does not hold a practising certificate but engages in legal practice as a barrister as an employee of a government agency in permitted circumstances. “Senior Counsel” or “SC” may be used by an Australian lawyer who holds that status as recognised by the High Court or a Supreme Court.

The Regulation imposes obligations and confers entitlements on a wide range of persons and entities involved in the provision of legal services in the ACT.

Law practices are the primary duty-bearers under Part 6 (trust money and trust accounts). A “law practice” under the Act includes a sole practitioner, a law firm, an incorporated legal practice, and a multidisciplinary partnership. Every law practice that receives trust money must comply with the detailed accounting, record-keeping, reconciliation, and notification requirements. This includes both local practices with ACT offices and practices that, for example, have an office in the ACT and receive trust money in another jurisdiction where they have no office (s 29). Practices that cease to hold trust money must notify the Law Society (s 79).

Australian legal practitioners - local, interstate, and in-house - are affected by the provisions on practising certificates (Part 4). Local practitioners must apply for renewal between 1 April and 31 May unless exceptional circumstances allow a later application (s 12). Those seeking an unrestricted practising certificate must meet the qualifications in Table 10, which include having held such a certificate previously, or having completed at least 2 years of legal practice in specified capacities within the preceding 5 years, or being a New Zealand barrister and solicitor with 6 months’ employment by a legal practitioner in the ACT (s 10). The period of supervised legal practice required for solicitors is 18 months for those who completed practical legal training principally under supervision (including articles) and 2 years for others (s 13). Grounds for suspension or cancellation of a local practising certificate are expanded beyond those in the Act (s 14) - they include failure to pay fines, failure to explain conduct, trust money deficiencies, and non-compliance with ACAT orders. Bankruptcy or imprisonment triggers cancellation.

Associates of law practices are relevant to the home-jurisdiction default rule (s 5). They may also be the subject of register entries (s 15) and must be authorised for trust account signatory purposes.

Foreign lawyers - both Australian-registered and locally-registered - are subject to Part 5. Australian-registered foreign lawyers may provide legal services in certain arbitration and dispute resolution proceedings (s 22). They are also treated as a law practice for trust money and trust account purposes (s 23). Locally-registered foreign lawyers who practise as associates of a law practice must contribute to the fidelity fund (s 25) and pay a levy (s 26). Those who practise otherwise than as an associate must give a disclosure statement to each client about their lack of fidelity fund cover (s 27). Both categories must provide professional indemnity insurance disclosure statements in accordance with s 24.

The Law Society and its council are affected as the regulator and administrator of trust accounts, statutory deposits, the fidelity fund, the register of practising certificates, and the register of foreign lawyers. The council may impose conditions on ADIs (s 31), exempt practices from trust accounting provisions (s 81), enter into protocols with corresponding authorities (s 86), and require statements about trust money (s 65). The Law Society must maintain statutory interest and deposit accounts (ss 70, 75) and have them audited annually (s 78).

Clients are affected indirectly - especially sophisticated clients who may waive or vary trust account statement requirements (s 58). Clients who are overseas-registered foreign lawyers, government-owned corporations, or legally assisted persons are exempt from costs disclosure (s 83). Clients receive trust account statements on completion or periodically.

ActewAGL-linked corporations are specifically identified in s 6 - only their employees can claim the supervised-employee exemption. Veterans’ organisations and defence force members are affected by s 7.

The ACAT (ACT Civil and Administrative Tribunal) is referenced as the body that may make orders, failure to comply with which can be a ground for suspension of a practising certificate (s 14).

The Regulation imposes a dense network of duties on law practices, accompanied by correlative rights for clients and regulatory bodies.

Trust accounting duties are the most extensive. A law practice must:

• Establish a general trust account meeting the requirements of s 37 before or as soon as possible after receiving trust money.
• Make out a receipt for trust money as soon as practicable after receipt (s 38). The receipt must include the date, amount, form, payer, client, matter, purpose, and practice name. Receipts must be consecutively numbered and issued in sequence. If cancelled, the original must be kept.
• Produce a deposit record for each deposit not made by direct deposit (s 39), with duplicate kept in order.
• When paying trust money by cheque, ensure the cheque is crossed “not negotiable”, payable to a named person, and includes the practice name and trust account designation (s 41). Signatures must be by an authorised principal or, if not available, by an authorised legal practitioner associate or Australian legal practitioner with an unrestricted certificate authorising receipt of trust money, or two or more authorised associates jointly. Written records of cheque particulars must be kept.
• For electronic funds transfers, similar authorisation and record-keeping duties apply (s 42).
• Keep a trust account receipts cash book and a trust account payments cash book (s 43), recording all prescribed particulars in order within 4 working days of the receipt or payment (ss 44-45).
• Keep a trust ledger account for each client and matter (ss 46-47). Transfers between ledger accounts by journal entry require written authorisation as specified in s 47 and must be recorded in a consecutively numbered trust account transfer journal.
• Reconcile trust records as at the end of each named month, preparing statements reconciling the ADI balance with the cash book and the ledger accounts with the cash book, within 15 working days (s 48).
• Not keep a trust ledger account in the name of the practice or an associate except for limited purposes: to aggregate legal costs due to the practice (money must be withdrawn within 1 month) or to hold money in which an associate has a personal beneficial interest (money withdrawn at conclusion of matter) (s 49).
• Notify the Law Society council of the establishment, authorised signatories, and closure of any general trust account within 14 days (s 50), and provide an annual list of authorised persons as at 1 July.
• For controlled money, operate a single receipt system (s 52), maintain a register of controlled money (s 55), and ensure withdrawals are authorised in writing by an approved person (s 54).
• Record transit money with brief particulars (s 56).
• Give a trust account statement to each person for whom trust money (other than transit money) is held or controlled, on completion of the matter, on reasonable request, or as at 30 June each year (subject to exceptions for recently opened accounts or accounts with zero balance and no recent activity) (s 57). For sophisticated clients, the duty may be varied or waived (s 58).
• Keep a register of investments of trust money (s 59) and a register of powers and estates (s 60-61).
• Withdraw trust money for legal costs only in accordance with the procedure in s 62: either under a costs agreement or instructions (with written confirmation within 5 working days if oral), with a request for payment or written notice of proposed withdrawal, or after giving a bill and waiting 7 days without objection (or after objection lapses or costs become legally payable).
• Keep trust records for 7 years after the last transaction or finalisation of the matter (ss 63-64).
• Appoint an external examiner by 8 April each year (s 66) and give written notice of the appointment within 1 month.
• Have trust records externally examined unless only transit money is held (s 67).
• Calculate notional amounts and deposit two-thirds of the notional amount (if at least $3,000) with the Law Society within prescribed periods (s 71), and adjust deposits as necessary in future years (ss 72-74).
• Give the Law Society council written notice at least 14 days before ceasing to exist as a law practice, ceasing to practise in the ACT, or ceasing to hold trust money (s 79).
• Disclose to the Law Society all accounts in which entrusted money is held (s 80).
• For incorporated legal practices, section 19 declares s 102(2) of the Act to be a Corporations legislation displacement provision, effectively prohibiting them from conducting managed investment schemes.

Foreign lawyers have duties to make disclosure statements (ss 24, 27) and to contribute to the fidelity fund if they are locally-registered associates (s 25) or interstate practitioners withdrawing from a local trust account (s 88). They also must notify the Law Society within 7 days of becoming authorised to withdraw from a local trust account (s 87).

Right to suppress register particulars is available to local legal practitioners (s 15) and locally-registered foreign lawyers (s 28) who can demonstrate special circumstances why certain particulars should not be made publicly available. The relevant council must suppress them unless the public interest in maintaining access outweighs any individual interest.

Right to repayment of statutory deposits is provided in s 72, but only when the deposit exceeds two-thirds of the combined deposit and notional amount, or when the combined total falls below $3,000. Deposits are repayable on demand if needed for necessary payments from the general trust account within 7 days (s 72(2)).

Exemptions from Part 6 may be granted by the Law Society council on any conditions it sees fit (s 81).

The Regulation itself does not create many direct penal offences; most offences and penalties for breaches of trust accounting obligations appear in the Legal Profession Act 2006. However, several provisions in the Regulation have teeth through their connection to the Act’s disciplinary and enforcement mechanisms.

Failure to comply with trust accounting duties under Part 6 may lead to disciplinary action under the Act, including suspension or cancellation of practising certificates. Section 14 of the Regulation expressly provides that a report under Act s 237 (investigator’s report) or s 247 (external examiner’s report) disclosing a deficiency in trust money for which the practitioner did not have a reasonable excuse is a ground for suspension of an unrestricted practising certificate. Similarly, failure to pay any fine, costs, fees or expenses payable under the Act is a ground for suspension (s 14(1)(a)). Non-compliance with a direction of the relevant council under Act s 413(2)(d) (summary conclusion of complaint procedure by fine etc.) is also a suspension ground (s 14(1)(d)). Failure to comply with an ACAT order under Act ss 425 or 429 can also lead to suspension (s 14(1)(e)-(f)).

Cancellation grounds include being sentenced to a term of imprisonment (s 14(2)(a)) and, for unrestricted certificate holders, becoming bankrupt or executing a personal insolvency agreement (s 14(2)(b)).

The Law Society council has power under s 65(5) to issue notices requiring law practices to provide statements about receipt or holding of trust money. A practice must comply within the stated time and must not include false or misleading information. A false statement could result in prosecution under the Act or under the Crimes Act 1900 (ACT) for providing false information.

Externally imposed penalties: The penalty unit value at the republication date (24 August 2022) was $160 for an individual and $810 for a corporation (referenced in the preliminary pages of the Regulation, derived from Legislation Act 2001, s 133). This is relevant to any offence provisions in the Act that apply via the Regulation.

The statutory deposit scheme (Division 6.8) has enforcement consequences: if a practice fails to make a required deposit, the period for deposit is extended only if the trust account on the last day of the period has insufficient funds; otherwise, the practice would be in breach and potentially subject to disciplinary action (s 73).

The Law Society council’s exemption power under s 81 allows it to impose conditions on an exemption and to revoke the exemption at any time. Breach of a condition would mean the practice no longer has the benefit of the exemption and could be non-compliant.

Notifications: failure to give required notices (e.g., under ss 50, 66, 79, 87) does not carry an express penalty in the Regulation, but non-compliance with a statutory requirement may be treated as professional misconduct under the Act.

Defamation protection: persons acting honestly in publicising orders under Act ss 122, 123 or 148 are protected from civil liability, including defamation (s 21(7)-(8)). This covers the Law Society, its council and staff, the regulator of another jurisdiction, and internet service providers.

The Regulation is made under the Legal Profession Act 2006 and must be read together with that Act. It fills gaps left by the Act - for example, the Act gives the Regulation-making power to prescribe grounds for suspension (s 55(2)) and the Regulation supplies those grounds in s 14. Similarly, the Act empowers the Regulation to prescribe particulars for registers, and ss 15 and 28 provide those particulars.

The Regulation explicitly interacts with Commonwealth legislation in several places. Section 19 declares that s 102(2) of the Act is a Corporations legislation displacement provision for the purposes of s 5G of the Corporations Act 2001 (Cwlth). This means that the prohibition on incorporated legal practices conducting managed investment schemes displaces the operation of any inconsistent provision of the Corporations legislation. The Dictionary cross-references the definition of “Corporations legislation” in s 9 of the Corporations Act.

Veterans’ entitlement legislation is referenced in s 7, which exempts certain legal activities by members of veterans’ organisations. The definition of “veterans’ entitlement legislation” in s 7(3) lists the Defence Act 1903 (Cwlth), the Military Rehabilitation and Compensation Act 2004 (Cwlth), the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (Cwlth) (part 11 only), the Veterans’ Entitlements Act 1986 (Cwlth), and related Acts. The exemption requires that the person be a member of an “organisation representing veterans” as defined in the Veterans’ Entitlements Act 1986 (Cwlth), s 5Q(1), and that the legal services relate to a claim for a benefit under that legislation.

The Legal Aid Act 1977 (ACT) is referenced in s 83(1)(c) and (2) to define “legally assisted person”. Such persons are exempt from the costs disclosure requirements of the Act.

The ACT Civil and Administrative Tribunal Act 2008 is relevant through the reference to ACAT orders in s 14 - failure to comply with orders under ss 425 or 429 of the Act can lead to suspension of a practising certificate. The Regulation was amended by the ACT Civil and Administrative Tribunal Legislation Amendment Act 2008 (No 2) to substitute references from the former Administrative Appeals Tribunal to the ACAT.

The Judiciary Act 1903 (Cwlth) is relevant to s 16, which prescribes the Australian Government Solicitor as a government agency for the purposes of the Act’s definition.

The Legislation Act 2001 (ACT) governs the interpretation of the Regulation. Section 4 of the Regulation notes that notes are explanatory and not part of the Regulation. Sections 155 and 156 of the Legislation Act apply to definitions in the dictionary. Section 151 of the Legislation Act applies to working out periods of time - referenced in the 4-working-day rules for recording trust transactions. Section 75 of the Legislation Act governs commencement.

Part 6 trust accounting provisions interact with the Banking Act 1959 (Cwlth) and the Corporations Act insofar as ADIs are approved and BSB numbers used. Conditions on approval of ADIs (s 31) require arrangements between the ADI and the Law Society council.

The Fidelity Fund provisions in Part 9 interact with corresponding laws of other jurisdictions through the protocol power in s 86 and the forwarding of claims under Act s 355.

Costs disclosure exceptions in s 83 interact with the Act’s ss 269 and 270. The definition of “substantial connection with the ACT” in s 82 is critical for determining when ACT disclosure obligations apply, especially when the client lives elsewhere or the legal services relate to property in the ACT or court proceedings in the ACT.

The Regulation was first notified on 28 September 2007 and commenced on 1 October 2007 (with s 91 commencing on the same day). It has been amended nine times up to the republication of 24 August 2022.

The amendment history recorded in the endnotes shows the following amending laws:

SL2008-13 (Legal Profession Amendment Regulation 2008 (No 1)) commenced 1 April 2008. It inserted a new Part 11 (Miscellaneous) and Schedule 1, which dealt with modifications of the Act. Those provisions expired on 26 August 2008.

A2008-29 (Justice and Community Safety Legislation Amendment Act 2008 (No 3)) sch 1 pt 1.9, commenced 27 August 2008. It amended s 8 (presumptions about titles) and updated the heading of s 16.

A2008-37 (ACT Civil and Administrative Tribunal Legislation Amendment Act 2008 (No 2)) sch 1 pt 1.65, commenced 2 February 2009. It amended s 14 to substitute references to the ACAT for the former Administrative Appeals Tribunal references.

A2011-28 (Statute Law Amendment Act 2011 (No 2)) sch 3 pt 3.22, commenced 21 September 2011. It amended the dictionary to insert the definitions of “BSB number”, “matter description”, and “matter reference”.

A2014-17 (Justice and Community Safety Legislation Amendment Act 2014) sch 1 pt 1.8, commenced 12 June 2014. This was a significant amendment: it omitted s 11 (procedure for barrister practising certificate), s 17 (determination of service fee), s 84 (professional indemnity insurance), and Part 11 (miscellaneous). It amended ss 12, 15, 28, 37, 50, 65, 79, 80, 81, and the dictionary.

A2015-15 (Statute Law Amendment Act 2015) sch 3 pt 3.10, commenced 10 June 2015. It amended s 6 (declaration of exempt person - ActewAGL employees) to update references.

A2019-17 (Justice and Community Safety Legislation Amendment Act 2019) pt 10, commenced 21 June 2019. It amended Table 10 (s 10) to insert a qualification for New Zealand barristers and solicitors (item 6) and amended s 62 (withdrawing trust money for legal costs) to update certain wording.

A2019-42 (Statute Law Amendment Act 2019) sch 3 pt 3.17, commenced 14 November 2019. It amended s 7 (veterans’ organisation exemption) to update references to the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (Cwlth).

A2022-14 (Statute Law Amendment Act 2022) sch 3 pt 3.26, commenced 24 August 2022. It amended s 8 to introduce the use of “King’s Counsel” or “KC” alongside “Queen’s Counsel” or “QC”, and amended s 9 to update a cross-reference.

Several provisions have expired: s 10(3)-(5) (transitional provisions) expired on 1 October 2012. s 11 was omitted. s 50(6)-(8) expired on 1 October 2008. ss 90-110 (transitional provisions) expired on various dates in 2007-2008. The Dictionary was amended to remove definitions after several provisions were omitted.

The Regulation itself does not reference any specific decided cases. Its text does not mention any litigation history. The provision for ACAT orders (s 14) indicates that disciplinary proceedings may come before the ACT Civil and Administrative Tribunal, but no cases are cited in the Regulation.

The register of disciplinary action (s 89) requires that particulars of the date and jurisdiction of a practitioner’s first and any later admission to the legal profession must be included. This suggests that the register is a public record of disciplinary outcomes, but again no cases are named.

The Regulation’s provisions have been applied by the Law Society and the ACAT in disciplinary matters, but no such applications are noted in the instrument.

Practitioners and law practices should be aware that compliance failures under the Regulation are likely to form the basis of complaints and disciplinary proceedings under the Act. The absence of explicit case references does not mean the Regulation has not been litigated - it means the republication does not include that information.

Several provisions in the Regulation are easily overlooked or misunderstood, creating traps for the unwary.

Trust accounting deadlines are tight: receipts must be made out as soon as practicable after receipt (s 38(2)-(3)), and the particulars of receipts, payments, and transfers must be recorded in cash books and ledgers within 4 working days (ss 44(4), 45(4), 46(9)). The example in ss 44(4), 45(4), and 46(9) clarifies that the day of receipt is not counted - so a receipt made out on Monday must be recorded by Friday. Monthly reconciliation statements must be prepared within 15 working days after month end (s 48(3)). Practices that fall behind risk being non-compliant.

Statutory deposit calculation: the notional amount is not the balance on any given day but the lowest amount that stood to the credit of the general trust account at any time during the 6 months immediately before the specified date (s 69(2)). A practice that has a period of low balance - perhaps due to large disbursements - may have a much lower notional amount than expected. Conversely, a practice that consistently maintains a high balance must deposit two-thirds of that lowest amount. The trigger is $3,000; if the notional amount is less than $3,000, no deposit is required (s 71(1)-(2)). Failure to make a required deposit can lead to disciplinary action.

Exemption for veterans’ representatives (s 7) only applies if the person is indemnified against any loss the member or former member suffers as a result of the provision of legal services. This is a strict condition. Many volunteers may not have indemnity insurance, and without it they cannot rely on the exemption.

Supervised employee exemption for ActewAGL-linked corporations (s 6) is limited to those three specific corporations: Icon Distribution Investments Limited, AGL ACT Retail Investments Pty Ltd, and Jemena Networks (ACT) Pty Ltd. It does not extend to other utilities or related entities beyond those named.

Use of legal titles: Table 8 in s 8 is heavily circumscribed. For example, item 5 allows “barrister and solicitor”, “solicitor and barrister”, “solicitor”, or “attorney” only by an Australian legal practitioner who holds an Australian practising certificate and engages in practice in the manner of a solicitor. Items 7-9 restrict “barrister” to local legal practitioners with a barrister-restricted certificate, interstate legal practitioners practising as barristers, or government lawyers in specific circumstances. Items 15-19 restrict “attorney” to various limited categories. A practitioner using “barrister” without the correct certificate risks committing an offence under Act s 18.

Trust ledger account in name of practice or associate: s 49 prohibits a practice from keeping a trust ledger account in its own name or that of an associate except for limited purposes. The practice may keep an account in its name only to aggregate costs due, and must withdraw that money within 1 month of transfer. An associate’s account in the trust ledger is only for money in which the associate has a personal beneficial interest (e.g., as vendor, purchaser, lessor). Failure to withdraw within the time limits could lead to a breach of trust obligations.

Withdrawing trust money for legal costs: s 62 requires either a costs agreement or client instructions (confirmed in writing if oral) plus a request for payment or written notice, or a bill with no objection within 7 days (or objection but no application for review within 60 days). The timing is critical: if the client objects within 7 days, the practice cannot withdraw until the objection is resolved or 60 days pass without a review application. Withdrawing prematurely could be a breach.

Notification deadlines: the 14-day notice for establishing or closing a general trust account (s 50) and for ceasing to hold trust money (s 79) is easy to miss. The 7-day notice for interstate legal practitioners becoming authorised to withdraw from a local trust account (s 87) is also tight. Late notification may be treated as non-compliance.

External examiner appointment: must be made by 8 April each year (s 66(2)(a)). Practices that miss this date have no grace period. The notice of appointment must be given within 1 month (s 66(3)).

Computerised accounting systems: s 35 requires that the system not be capable of accepting a transaction that results in a debit balance in a trust ledger account, unless a contemporaneous record is made in a way that enables a separate chronological report. If a system allows a debit entry, the practice must ensure a separate mechanism captures that event. Similarly, the system must not allow amendment of recorded transaction particulars except by a separately recorded amendment transaction. Practices using custom or older software should verify compliance.

Sophisticated client direction: s 58 allows a sophisticated client to direct the practice not to provide trust account statements, or to provide them on a different basis. However, if the direction is unreasonably onerous, the practice need not comply. The practice should document the client’s status as sophisticated and the direction.

Fidelity fund cap: s 85 caps payments at $200,000 per claim generally, and only $50,000 for claims by an associate of a law practice against the practice arising from another associate’s default. This distinction is important - a claim by an employed solicitor against their firm for a partner’s misappropriation is limited to $50,000.

Law practices can achieve compliance by establishing and following a systematic trust accounting framework that aligns with Part 6. The following steps are recommended.

1. Open or maintain a general trust account that meets s 37 requirements: an account with an approved ADI in the ACT, titled with the practice name and “law practice trust account” (or “law practice trust a/c”), and of a kind approved by the Law Society council. For accounts opened after commencement, the title must include those words. Notify the Law Society within 14 days of opening (s 50(1)).

2. Implement a receipting system that produces consecutively numbered receipts in duplicate (or records the particulars by computer program in the cash book) for every deposit of trust money. The receipt must include all required particulars (s 38(5)) and be issued as soon as practicable - within minutes or hours, not days. If money is received by direct deposit, run the receipt after accessing confirmation from the ADI.

3. For each deposit not made by direct deposit, produce a duplicate deposit record with prescribed particulars (s 39) and keep it securely filed in deposit order.

4. Ensure all cheques drawn on the general trust account are crossed “not negotiable”, payable to a named person, and include the practice name and trust account designation. Only authorised persons may sign - per s 41(3), an authorised principal, or if unavailable an authorised legal practitioner associate or an Australian legal practitioner with an unrestricted certificate authorising receipt of trust money, or two or more authorised associates jointly. Maintain a written record of cheque particulars (s 41(4)-(6)). For electronic funds transfers, similar authorisation and record-keeping apply (s 42).

5. Maintain a trust account receipts cash book and a payments cash book (ss 43-45). Record all particulars in order within 4 working days of the receipt or payment. Keep them printed or in readable electronic form monthly (s 33).

6. Keep a separate trust ledger account for each client matter for which trust money is received (s 46). Record all receipts, payments, and transfers within 4 working days. Show the balance after each transaction. Never allow a debit balance; if a debit occurs inadvertently, record it in a separate chronological report (s 35(1)).

7. If transferring money between trust ledger accounts by journal entry, obtain written authorisation from an authorised principal (or other approved person) and maintain a consecutively numbered trust account transfer journal (s 47).

8. Reconcile each general trust account as at the end of every named month. Prepare two statements: one reconciling the ADI balance with the cash book balance, and another reconciling the trust ledger accounts with the cash book balance (with a list of all ledger accounts, their balances, and matter descriptions). Complete this within 15 working days after month end (s 48).

9. Ensure the trust ledger account never carries a balance in the practice’s own name except for aggregated costs, and withdraw that sum within 1 month of transfer (s 49). If an associate has a personal beneficial interest in money held, withdraw at conclusion of matter.

10. Notify the Law Society of any change in authorised signatories or persons authorised to withdraw money from the general trust account, within 14 days (before or after the change). Also provide an annual list during July of all persons authorised as at 1 July (s 50(2)(b)).

11. For controlled money, operate a single receipt system, issue consecutively numbered receipts with prescribed particulars, keep a register of controlled money movements by account, and ensure all withdrawals are authorised as per s 54.

12. For transit money, record brief particulars sufficient to identify the transaction and purpose (s 56).

13. Provide trust account statements to each person for whom trust money is held (other than transit money) on completion of the matter, on reasonable request, or annually as at 30 June, subject to the exceptions in s 57(7). For sophisticated clients, comply with their directions unless unreasonably onerous (s 58).

14. Keep all trust records, including the records listed in s 33, for 7 years after the last transaction or finalisation of the matter (ss 63-64).

15. Appoint an external examiner by 8 April each year (s 66) and notify the Law Society within 1 month. Have the trust records examined each year unless only transit money is held (s 67). The examiner must use the council-approved form for the report (s 68).

16. Compute the notional amount of the general trust account as the lowest balance over the preceding 6 months. If it is $3,000 or more, deposit two-thirds of that amount with the Law Society within 1 month of the date fixed by the Attorney-General (s 71(1)). In subsequent years, adjust the deposit to ensure it equals two-thirds of the combined deposit and notional amount at year end (s 71(3)). If the combined total falls below $3,000, claim repayment (s 72(4)).

17. If ceasing to hold trust money, cease practice in the ACT, or close an office, give the Law Society at least 14 days’ written notice (s 79). After ceasing, confirm in writing within 14 days.

18. Provide the Law Society with details of all accounts used to hold entrusted money at the times and in the way the council requires (s 80).

19. For foreign lawyers: ensure disclosure statements regarding professional indemnity insurance and fidelity fund cover are given to clients as prescribed (ss 24, 27). If practising as an associate, contribute to the fidelity fund and pay any levy required (ss 25, 26). Notify the Law Society within 7 days of becoming authorised to withdraw from a local trust account (s 87).

20. Ensure that the computerised accounting system used for trust records satisfies the requirements of ss 32-36: no ability to create debit balances without a contemporaneous report, no deletion of ledger accounts unless zero and all cheques cleared, sequential page numbers, and monthly off-site backups.

21. Monitor any exemptions granted under s 81 and comply with any conditions imposed by the Law Society council.

22. For Australian legal practitioners: ensure practising certificates are renewed by 31 May each year (s 12) and that any conditions on the certificate are met. For those required to complete supervised practice, ensure the required 18-month or 2-year period is completed as set out in s 13, including allowing for public holidays and normal leave.

By implementing these steps, a law practice can meet its obligations under the Regulation and avoid the disciplinary consequences of non-compliance.