• Inspections may take place at a location other than the solicitor’s place of business: Under Regulation 39(1)(b), the Law Society may agree to a request for or require the investigation to take place at a place or places other than the place or places of business of a solicitor, if the Law Society is satisfied that there are reasonable grounds for such a request or requirement.

• Protection for Authorised officers when carrying out an inspection (e.g. the Law Society’s investigating accountants): Under Regulation 39(6), a solicitor or the partner, employee or agent of the solicitor, shall not delay, obstruct, impede, interfere with or resist an authorised person or persons in the exercise of their functions under these Regulations, or utter or send threats to, or in any way, intimidate or menace an authorised person or persons or cause the publication of the name and or address of an authorised person or persons

• Wider enquiry by the Law Society, following an initial investigation: Under Regulation 39(8)(a), where, arising from an investigation by an authorised person…it is considered by the Law Society that a report prepared by the authorised person discloses evidence of a material breach of these Regulations…the Law Society may conduct such further investigations or make such further enquiries as the Law Society deems necessary

• The Law Society may seek recovery of costs for its investigation of breaches of the Regulations: Under Regulation 39(8)(f), if the Law Society decides to make an application to the Legal Practitioners Disciplinary Tribunal following an identified breach of these Regulations, or such other misconduct by the solicitor, as disclosed by their accounting records (or both), the Law Society may require the solicitor to pay the costs of the investigation. Under Regulation 39(8)(g), when a solicitor, during the course of an investigation, does not provide a written response as required by regulation 9 of the Regulation of Practice Committee Regulations, and where that documentation is subsequently not filed within the time limit (as specified by the Law Society), the solicitor may inter alia be required to pay a contribution towards the Law Society’s costs, as deemed appropriate.

• Requirement to furnish an Accounting Statement or report: Under Regulation 40, when requested by the Law Society by notice in writing, a solicitor (or other) shall provide the Law Society within such time as requested (not being less than seven days) an accounting statement relating to the six month period prior to the notice, showing, in summary form:

  (a) a list of all client and office ledger balances, together with appropriate reconciliations up to a specified date, in respect of all clients, controlled trusts, non-controlled trusts and insolvency arrangements, or, where so specified by the Law Society in such notice, details of all transactions conducted through client and office accounts, in respect of a specified client or clients or a specified controlled trust or controlled trusts or a specified non-controlled trust or non-controlled trusts or a specified insolvency arrangement or insolvency arrangements, and

  (b) the balance on each client, office, controlled trust, non-controlled trust and insolvency arrangement account, as appearing on a specified date on statements from the bank at which such accounts are maintained, as adjusted for outstanding withdrawals and lodgements;

  (c) the balancing statement prepared by the firm on a specified date in accordance with Regulation 13(8)(a);

  (d) such further or other information from the accounting records of the firm that the Law Society may specify.

  (3) In addition to or in lieu of an accounting statement, the Law Society may also request a report by the solicitor’s reporting accountant stating:

  (a) whether, in the opinion of the reporting accountant, the accounting records of the solicitor…have been properly maintained and kept in accordance with these Regulations and whether the accounting records duly record the financial position of the solicitor towards each client concerned…

  (b) where the reporting accountant cannot provide such opinion as provided for in Regulation 40(3)(a) the reporting accountant is prevented from providing such opinion.

  (4) A report from a reporting accountant may, where the Law Society directs, be limited only to one or more specified clients or controlled trusts or non-controlled trusts or insolvency arrangements.

   

Regulatory requirements concerning inspections change from time to time and a more comprehensive list of documentation required by the Law Society’s authorised investigating accountant and guidance materials will be provided to you in advance of an inspection. For further information on inspections, see Preparing for a Law Society Inspection.