TRUST ACCOUNT STATEMENTS ON ZERO ACCOUNTS
Effective Friday, 26 February 2016, the Legal Services Council (LSC) amended Uniform General Rule 52. Law practices are not required to provide a trust account statement at 30 June, if the balance of the ledger account or record is zero, and:
- no transaction affecting the ledger account or records has taken place within the previous 12 months; or
- a trust account statement has been given within the previous 12 months and there has been no transaction since the previous statement was given.
Before 1 July 2015, trust account statements were not required when a trust account had been open for less than six months. The Uniform law removed the ‘six month’ exemption but provided a 12 month transition to the new system. The amended Uniform General Rule 52 reduces administration and costs for law practices and relieves consumers from receiving unnecessary paperwork.”
“The LSC saw no reason to delay this amendment,” Dale Boucher, CEO of the Legal Services Council said. “The amendment received the full support of the local regulatory authorities and the approval of the Standing Committee.”Trust Account Statements on Zero Accounts.