Prescribed deposit accounts abolished
30 November 2016
On 11 November 2016, the Bill for the Limitations of Actions (Child Sexual Abuse) and Other Legislation Amendment Act received Royal Assent. This Act amends provisions of the Legal Profession Act 2007 pertaining to the Legal Practitioner Interest on Trust Accounts Fund, which will be replaced by new funding arrangements through the Consolidated Fund.
The amendments take effect from 1 January 2017. The amendments also include the abolition of the requirement for law practices to maintain a prescribed deposit account. Law practices therefore will be required to return all funds held in a prescribed deposit account to the law practice trust account, in accordance with section 74(1) of the Legal Profession Regulation 2007 (the regulation).
It is recommended that law practices commence withdrawing funds from the prescribed deposit account between 2 December and 31 December 2016, given the ongoing requirements under section 74(3) of the regulation pending 1 January 2017. Further deposits to the prescribed deposit account will not be required after 2 December 2016. Please ensure you become familiar with the new legislative requirements and contact the Society’s Trust Account Investigation Team if you have any questions.
Trust account calendar update
In light of the amendments of the Legal Profession Act 2007 as detailed above, which abolish the requirement for law practices to maintain a prescribed deposit account from 1 January 2017, the QLS trust account calendar widget has been updated. Please download version 2 of the calendar widget below. There will be prompts to replace the existing version if downloading the calendar again.