Client account withdrawals

This subtopic sets out the requirements of the SRA Accounts Rules 2019, in force from 25 November 2019, regarding client account withdrawals. It also reflects supporting guidance issued by the SRA:

•
Helping you keep accurate client accounting records
•
Planning for and completing an accountant’s report

Terminology

The 2019 Rules are littered with subjective terms such as ‘promptly’, ‘fair’ and ‘appropriate’. The SRA acknowledges that this requires an exercise of judgment, which will be an adjustment for many firms compared to the detailed and prescriptive 2011 Rules. However, the SRA does not think this is sufficient justification for retaining highly-prescriptive rules.

The SRA acknowledges that what is appropriate may change over time. According to the SRA, this is precisely why it is important to allow this sort of flexibility in the rules—firms can fulfil their duties and meet clients’ individual circumstances, rather than take certain action simply because the rules say so.

Operating a client account and handling client money

Rules 3 to 9 set out requirements in relation to the client account and dealing with client money.

Withdrawals from client account

You may only withdraw

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