Investigation of Trust Accounts
Trust Account inspectors are appointed to conduct investigations of law practice trust accounts pursuant to section 3.3.29 of the Legal Profession Act 2004 (the Act).
The role of the inspectors is to examine the trust and other records relating to the affairs of the law practice in order to monitor compliance with or contraventions of the Act and Regulations. An investigation may also be conducted as a result of a complaint or as directed by the Legal Services Board.
The conduct of trust account investigations is set out in Division 3 of Part 3.3 of the Act
For example:
- All inspectors have an identity card issued by the Board to be produced when they attend at a law practice.
- An inspector may also, by written notice, require an associate of the law practice to provide written answers to questions or attend a meeting at a specified time and place to answer questions.
- Inspectors can require work papers and records to be produced by the auditor/external examiner.
- Additionally, an inspector may apply to a magistrate for a search warrant in appropriate circumstances.
- As soon as practicable, after completing an investigation, an inspector must give a written report on the investigation to the Legal Services Board.