A South African Trust Account Practice
Holding client funds is a position of trust and in South Africa it is a position regulated by statute. As a trust account practice admitted under the Legal Practice Act, every rand received on your behalf is ring-fenced, recorded, reconciled and protected by the Legal Practitioners' Fidelity Fund.
What this means for you
The Legal Practice Act 28 of 2014, together with the Rules of the South African Legal Practice Council, draws a clear line between a legal practitioner's business account and the trust account in which client money is held. The practice operates strictly on the trust side of that line.
In practical terms, this means we cannot and do not treat trust money as our own. Funds are received into the trust account, held in your name on the practice's books, and only paid out on your instruction or in terms of the mandate we have agreed in writing.
The practice is admitted as a trust account practice under the Legal Practice Act 28 of 2014 and holds a current Fidelity Fund Certificate issued by the Legal Practice Council (LPC). All trust account activity is conducted in accordance with the LPC Rules and the Code of Conduct for Legal Practitioners.
Money entrusted to the practice on your behalf is covered by the Legal Practitioners' Fidelity Fund in terms of section 55 of the Legal Practice Act. The Fund protects clients against the theft of trust money by a legal practitioner, subject to the statutory limits and exclusions.
A dedicated trust banking account is maintained at a South African bank, entirely separate from the practice's business account. Your funds are never commingled with the practice's own monies and are only paid out on your written instruction or in terms of an agreed mandate.
Where funds will be held for an extended period, the practice can open a section 86(4) interest-bearing investment account on your behalf, with the interest accruing to you (subject to the statutory contribution payable to the Fidelity Fund).
The trust account is reconciled monthly and audited annually by an independent auditor, whose report is lodged with the LPC. Detailed records are kept of every deposit, transfer and payment in line with rules 54.13 to 54.21.
The practice is an accountable institution under the Financial Intelligence Centre Act and processes personal information in line with the Protection of Personal Information Act. Client identification, source-of-funds verification and record-keeping are built into every engagement.
Common uses
Verify the practice
You are entitled and encouraged to confirm the status of any legal practitioner who holds money on your behalf. The Legal Practice Council maintains a public roll of admitted practitioners and a register of valid Fidelity Fund Certificates.
A current Fidelity Fund Certificate is available on request, along with the practice's banking particulars for trust deposits, the identity of the practice's auditors, and the engagement letter that sets out exactly how funds will be held and applied on your matter.
Open a trust matter