12.1 If you have, at any time during an accounting period, held or received client money, or operated a joint account or a client’s own account as signatory, you must:
(a) obtain an accountant’s report for that accounting period within six months of the end of the period; and
(b) deliver it to the SRA within six months of the end of the accounting period if the accountant’s report is qualified to show a failure to comply with these rules, such that money belonging to clients or third parties is, or has been, or is likely to be placed, at risk.
12.2 You are not required to obtain an accountant’s report if:
(a) all of the client money held or received during an accounting period is money received from the Legal Aid Agency; or
(b) in the accounting period, the statement or passbook balance of client money you have held or received does not exceed:
(i) an average of £10,000; and
(ii) a maximum of £250,000,
or the equivalent in foreign currency.
12.3 In rule 12.2 above a “statement or passbook balance” is the total balance of:
(a) all client accounts held or operated by you; and
(b) any joint accounts and clients‘ own accounts operated by you,
as shown by the statements obtained under rule 8.2.
12.4 The SRA may require you to obtain or deliver an accountant’s report to the SRAon reasonable notice if you cease to operate as an authorised body and to hold or operate a client account, or the SRA considers that it is otherwise in the public interest to do so.
12.5 You ensure that any report obtained under this rule is prepared and signed by an accountant who is a member of one of the chartered accountancy bodies and who is, or works for, a registered auditor.
12.6 The SRA may disqualify an accountant from preparing a report for the purposes of this rule if:
(a) the accountant has been found guilty by their professional body of professional misconduct or equivalent; or
(b) the SRA is satisfied that the accountant has failed to exercise due care and skill in the preparation of a report under these rules.
12.7 The SRA may specify from time to time matters that you must ensure are incorporated into the terms on which an accountant is engaged.
12.8 You must provide to an accountant preparing a report under these rules:
(a) details of all accounts held or operated by you in connection with your practice at any bank, building society or other financial institution at any time during the accounting period to which the report relates; and
(b) all other information and documentation that the accountant requires to enable completion of their report.
12.9 The accountant must complete and sign their report in the prescribed form.