Suspense ledger

Suspense ledger

This subtopic reflects the requirements of the SRA Accounts Rules 2019, in force from 25 November 2019, regarding use of suspense ledgers. It also reflects supporting guidance issued by the SRA on Planning for and completing an accountant’s report which provides valuable insight into the SRA’s views on unjustified use of a client suspense account.

What is a suspense ledger account?

A suspense ledger account is a miscellaneous ledger account that is not specifically allocated to a client or the firm. It should only be used as a temporary solution to post unallocated funds—ideally for no more than five working days and, if possible, no more than 30 working days.

It is unlikely that a suspense ledger account will be used to post an unknown debit payment, ie a payment out of client account (as opposed to a receipt). This is because sufficient funds and authority have to be in place prior to any payment being made from a client account. For this reason, this subtopic is limited to unidentified receipts.

Causes of unidentified

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Practice Compliance News

New Practice Compliance forecast as at 18 December 2024

Our new Practice Compliance forecast (as at 18 December 2024) is now live. This month we report on items including: (1) publication of Guidelines 02/2024 on Article 48 GDPR by the European Data Protection Board (EDPB) for consultation; (2) expectations for the Legal Ombudsman (LeO) to publish its final budget and business plan in Spring 2025; (3) expectations for the Data (Use and Access) Bill to be enacted in early spring 2025, and (4) a statement by the ICO that it would update its existing AI guidance in due course.

House of Lords conclude committee stage of Data (Use and Access) Bill

The House of Lords has completed the committee stage of the Data (Use and Access) Bill, the final day of scrutiny took place on 18 December 2024 and focused on amendments related to children and AI, national security and data privacy risks and AI compliance with UK copyright law. The bill, aimed at harnessing data for economic growth and improving digital governance, has undergone thorough examination over multiple sessions, addressing issues such as protection of children, misuse of AI rules, data mining and processing of personal data. The next stage, report stage, is scheduled for 21 January 2025.

Businesses should expect a role in tackling fraud next year

Law360, London: If one word sums up a key trend in financial crime enforcement in 2024, it would be fraud, specifically consumer fraud.

SRA issues warning on unsolicited approaches and cold calling in legal marketing

The Solicitors Regulation Authority (SRA) has issued a warning notice to law firms, particularly those engaged in high-volume claims work, regarding prohibited marketing practices such as cold calling and unsolicited approaches. The notice addresses concerns about firms' recruitment of clients through potentially unethical means, including the use of third-party introducers. The SRA emphasises the need for firms to ensure compliance with regulatory requirements when marketing to potential clients, especially in relation to 'no win, no fee' agreements. To support this, the SRA has published a consumer guide on 'no win, no fee' arrangements. The regulator warns that it will take action against firms found to be in breach of SRA principles.

View Practice Compliance by content type :

News