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Residual client balances: an issue which is here to stay

With the Solicitors Accounts Rules being culled to just thirteen in its new form, residual client balances still remain important enough to remain as one of them. So why it this such a prevalent issue and are there any differences in the new rules to those of the previous ones?

The new rule 2.5 states: “You ensure that client money is returned promptly to the client, or the third party for whom the money is held, as soon as there is no longer any proper reason to hold those funds”.

By holding client money after a matter has completed, a number of concerns exist.


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