Legal Focus, part five: Residual balances rules have changed

Print This Post

11 December 2014


Part five of the Legal Focus guide

Hazlewoods are pleased to announce a six-part series on current topics of financial business interest, entitled Legal Focus. This week, we will be releasing a daily guide produced specifically for the legal sector.

As expected, version 12 of the handbook includes confirmation of the increase in the limit for donating residual client balances without prior SRA authorisation. The changes are effective from 31 October 2014, and apply retrospectively, i.e. to existing and new balances.

For those of you who are unaware, prior to these changes the limit for donating residual balances to charity without first having to obtain written permission from the SRA was £50. The new rules have increased this to £500.

The limit applies to individual balances, not aggregate amounts, and any balances above £500 will still need to be approved by the SRA.

Other than the increase in the threshold, there are no changes to the underlying rules around what practices should do to try and return the balances to the clients, and the records that need to be kept when balances are donated.

This release has been prepared as a guide to topics of current financial business interests. Hazlewoods strongly recommend you take professional advice before making decisions on matters discussed here. No responsibility for any loss to any person acting as a result of the material can be accepted by Hazlewoods.

 



Associate News is provided by Legal Futures Associates.
Find out about becoming an Associate



Legal Futures Blog

Woebots and robots

Nadia chatbot

The chances are that you may not be entirely sure what a bot or a chatbot is. So, the news that, “starting today, DoNotPay is opening up so that anyone can create legal bots for free (with no technical knowledge)” may be a bit opaque. But bots have their devotees. The picture is of Nadia, an Australian bot being developed to give information on disability benefits with the voice of Cate Blanchett. The editor of Chatbots Magazine (OK, no neutral source) is pretty clear about their future. He writes articles with titles like ‘How bots will completely kill websites and mobile apps’. Joshua Browder, the creator of the DoNotPay parking ticket challenger, is behind what he hopes will be this major expansion of legal bots.

July 21st, 2017