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News – 19.12.24

Buzzacott advises Rose Street Partners on its investment in Kenwood Damp Proofing PLC

Discover how Buzzacott supported Rose Street Partners on its investment in Kenwood Damp Proofing PLC … Read more

Insight – 18.12.24

Start-up guide: Everything you need to know about Tronc schemes to set your new hospitality business up for success

One challenge for new hospitality businesses is the management of tips and service charges. … Read more

Upcoming event – 16.01.25

VAT on Private School fees training

This in-depth, interactive training seminar is designed to provide school administrators, bursars, finance officers, accountants, and trustees with tailored support and expert insights on the practical implementation of VAT. … Read more

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enquiries@buzzacott.co.uk T +44 (0)20 7556 1200

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Safeguarding your clients' money

Whether you're holding money on account of your costs, a deposit for a conveyancing transaction or handling the administration of an estate, the money you're holding isn't yours and therefore must be safeguarded.

The Solicitors Regulation Authority’s (SRA) Accounts Rules have been designed to protect client money. However, it is the responsibility of law firms themselves to design and implement the appropriate processes, procedures and controls to ensure compliance with the rules.

There are two basic categories of internal controls – preventative and detective. An effective internal control system will have both types as each serves a different purpose. Ultimately, controls are in place to protect client money by preventing fraud (either internal or external), human error or any other inappropriate action.

About the author

Catherine Edwards

+44 (0)207 556 1246
edwardsc@buzzacott.co.uk
LinkedIn

Here are our top tips for enhancing your internal control environment:

Account management systems are key – the automation of processes wherever possible minimises the risk of human error while also increasing efficiency.
Integrate cybersecurity into all your processes - the steps required to gain access to your systems should be regularly reviewed along with a review of who has access to client account records.
Segregation of duties – often difficult in a small organisation but essential wherever possible to avoid collusion and to help minimise errors and reduce the risk of fraud.
Prioritise training for all members of staff responsible for handling client money – this includes all fee earners and finance team members and not just those who have ultimate authority for client account payments.

If you think your firm would benefit from an independent review of the internal processes and controls in place let us know. We offer outsourced or co-sourced internal audit programmes or one-off reviews to assess the status of your client money controls and provide insightful recommendations to ensure continuous improvement.

Get in touch

If you would like to find out more about how you can enhance your internal control environment, get in touch via the form below.