SOLICITOR ACCOUNT

RULES Ardani Hilmi 

Client Any person on whose account a solicitor holds or receives client’s

money
Client account Current or deposit account at a bank in the name of the solicitor
Client’s money Money held/received by a solicitor, agent, bailee, stakeholder or in other
capacity.
Includes solicitor trust money but not money which solely belong to the
solicitor or the firm
Solicitor- Solicitor is the sole trustee/co-trustee with one partner, clerk, servant
trustee
solicitor trust Money held on account of the trustees of a trust where the solicitor is
money solicitor trustee
Trust money Money held by the solicitor, which is subject to a trust where the solicitor
is the trustee only and not the solicitor-trustee
Rule 3 Duty to pay money into client account without delay
Rule 4 Money that can be paid into client account
Trust money,
The solicitor’s money which is necessary to open or maintain the
account,
Money to replace any sum which have been mistaken or accidently
withdrawn from the client account,
Cheque or draft received by the solicitor
Rule 5 Client’s money in the form of cheque or draft
When the cheque or draft includes client’s money or trust money from
different trusts ;
a) the solicitor shall split the cheque/draft and deal with each part of
the money as if he had received it separately
b) if he doesn’t split the cheque/draft, he shall pay the cheque/draft
which consist of client’s money into the client account
Rule 6 No other moneys, other than those permitted by the rules, is to be paid
into client account
Rule 7 Money that can be withdrawn from client account
a) For client’s money
- money which is required to make payment to the client or on
his behalf
- money required for a payment in the execution of a particular
trust (solicitor trust money)
- money required for the payment of debt due to the solicitor
OR to reimburse the solicitor for the money expended by him
on behalf of the client
- money drawn on client’s authority
- money for the payment of BOC or other cost
b) For trust money
- Money required to execute the trust
- money to be transferred into client account for the execution
of a particular trust
- money to be transferred to a separate bank acc kept solely
for the money of the particular trust
c) Money which have been paid into the client account under Rule
4(a) or (b)
d) Money paid into client account by mistake/accident
Rule 7A Signatories to client account
- advocate/solicitor practising as sole proprietor
- a partner/partners in a legal firm
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- legal assistant who is expressly authorised by a proprietor,

partner/partners
Rule 8 Manner of drawing money from client account
(1) Money under Rule 7(a)(iii) and (v), OR 7(c) OR 7(d) shall be
withdrawn by;
- cheque drawn in favour of the solicitor
- transfer to bank acc in the solicitor’s name and not to client
acc
(2) Other than the money permitted under Rule 7, no other can be
withdrawn from client acc, except with a written authorisation
from the Bar Council
(3) Money from client acc cannot be withdrawn by cash cheque or
bearer cheque, except to pay for disbursement or any amount
advanced by the solicitor
(4) Money cannot be withdrawn by :
- ATM
- Telephone banking service
- online banking, except for electronic payment (ie online
adjudication, search fees, registration fees)
(5) Money in client acc must not be used for payment of another
client except with a written instruction from that client
Rule 9 Client’s money may not be paid into client account in certain cases
(1) Solicitor is not obliged to pay into client acc the following client’s
money;
a) where the money is received in cash and without delay, paid in
cash in the ordinary course of business to the client or 3 rd party
OR in the case of solicitor trust money, to a 3 rd party in execution
of the trust
b) where the money is received by the solicitor in the form of
cheque or draft which is endorsed to the client in or 3 rd party in
the ordinary course of business OR in the case of solicitor trust
money, to a 3rd party in execution of the trust and is not passed
by the solicitor through a bank acc
c) money which the solicitor pays into separate bank acc opened in
the client’s name or any persons named by the client

(2) Solicitor is not required to pay client’s money into client acc under the
following circumstances;
a) if the client, for his own convenience, requests that the solicitor
should withhold the money
b) money received to pay debt due to the solicitor or money to
reimburse the money expended by the solicitor on behalf of the
client
c) c) money for the payment of BOC or other cost

(4) Bar Council may authorise in writing, for the solicitor to withhold the
money
Rule 10 Money from the ledger account of one client cannot be transferred into
the ledger account of another client, except where it is permissible under
these Rules to withdraw the sum transferred from the first client’s client
account and pay that money into the second client’s client account

Rule 11 Account books to be kept

(1) Every solicitor is to keep such books and accounts, written up in
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the Bahasa or English –

a) to show all his dealings with the client’s money and other
money he dealt with through client account
b) to distinguish the money held, received or paid by him for
every client + to distinguish such money from other money
the solicitor held, received or paid to another account

(2) Dealings in Rule 11(1)(a) must be recorded in –

a) a client’s cash book or a client’s column on the credit side or
debit side of a cash book
b) a separate client’s ledger or a client’s column on the credit
side or debit side of a ledger for each client

No other dealings is to be recorded in the client’s cash book or

ledger

(2A) Every entries in the client’s ledger must be dated and

references must be included

(3) Every solicitor must keep a record of all written intimations under
Rule 7(a)(v) – This record shall be included in a bills delivered
book or a file of copies of intimations

(4) Within 6 months of the commencement of these Rules OR of his

commencing practice on his own account, the solicitor shall
reconcile the balance of the clients’ cash book and the client
bank statements (Must be done once every 6 months at least)

(5) Solicitor shall preserve all the books, accounts and records for at
least 6 years from the date when the file is closed or no further
pending business

(6) No money is to be withdrawn from a bank account which forms

part of a client account without the signature of a solicitor AND
without the written authorisation from the Bar Council
Rule 12 Mechanical or computerised book keeping
(1) ‘books’, ‘accounts’, ‘ledger’, and ‘records’ include loose-leaf
books and such cards or other permanent documents
(2) Where accounts are maintained by computerised system, such
system must be such that –
(a) an immediate print out can be obtained notwithstanding that
immediate visual access is available
(b) any accounts which are to be removed must first be copied
onto a storage medium which will enable a visual record of
the detailed entries to be produced and filed in alphabetical
order or other suitable order. It must also be indexed and
retained for the period of 6 years (as stated in Rule 11)
(c) the audit trail or other record of input to and output from the
computer is retained for 18 months from the date of the last
entry on it
Rule 13 Solicitors to notify Bar Council particulars of client accounts and
changes
The Bar Council must be notified in writing, of the particulars of the
accounts maintained by the solicitor on the commencement of these
Rules within 3 months of such commencement. For client account
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opened by the solicitor after the commencement within 1 month from the
opening of the account, the acc number, name and address of the bank,
must be notified to the Bar Council. Bar Council should also be notified
of any changes with the client account
Rule 14 Bar Council may require production of books of account
(1) When there is question as to the compliance with these Rules,
Bar Council may require any solicitor to produce his books of
account, bank pass books, loose-lead bank statements,
statements of account, vouchers and any other necessary
documents for the inspection of any qualified accountant
appointed by the Bar Council. The accountant will then prepare a
report for the Bar Council
(2) Solicitor shall produce such books of account, bank pass book,
loose-leaf bank statements, statements of account, vouchers and
documents at the time and place fixed by the Bar Council
(3) Objection is to be considered by the Bar Council
(4) Before proceeding with inspection based on a written complaint
by 3rd party, Bar Council must satisfy themselves that there is a
ground of complaint. Cost of inspection is to be borne by the
complainant
Rule 15 Manner of delivery of intimation(statement of the amount of a solicitor’s
costs and notification relating to application of moneys
Written intimation of the costs incurred by the solicitor and a notification
that money is held for him will be delivered to the client, in the same
manner as BOC (Section 124)
Rule 16 Requirements under these Rules shall be made in writing under the
hand of the Secretary or a member of the Bar Council.
Acknowledgement of Receipt registered post to the solicitor’s last known
address must be sent and it will be deemed as have been received by
the solicitor within 7 days from the date of posting
Rule 17 Solicitor still retain his right or recourse against moneys standing to the
credit of a client account, by way of lien, set-off, counter claim, charge
Rule 18 Rule 10 of the old SAR continues to apply to money which is received by
a solicitor for or on account of a client before the coming into force of
SADIR 1990