S.I. No. 108/1995 - Solicitors (Interest on Clients' Moneys) Regulations, 1995.

S.I. No. 108 of 1995.

SOLICITORS (INTEREST ON CLIENTS' MONEYS) REGULATIONS, 1995.

The Law Society of Ireland, in exercise of the powers conferred on them by section 73 of the Solicitors (Amendment) Act, 1994 hereby make the following Regulations:—

1. ( a ) These Regulations may be cited as the Solicitors (Interest on Clients' Moneys) Regulations, 1995.

( b ) These Regulations shall come into operation on the third day of May 1995.

( c ) On the coming into operation of these Regulations, the Solicitors Professional Practice, Conduct and Discipline Regulations, 1986 ( S.I. No. 405 of 1986 ) shall stand rescinded.

2. ( a ) In these Regulations—

"deposit account" means a deposit account or a savings account or a deposit receipt account maintained in the name of a solicitor or his firm at a bank and designated as a client account of that solicitor or his firm;

"interest" means, in relation to money received by a solicitor or his firm for or on account of a client, the amount of interest that would be earned if such money had been held as an individual amount in a deposit account of the solicitor's choosing at the bank (or, if more than one bank, the principal bank) to the practice of the solicitor for a period commencing seven days after the receipt by the solicitor or his firm of such money and ending when the solicitor or his firm actually pays out such money to, or on behalf of, such client.

( b ) Other words and phrases in these Regulations shall have the meaning assigned to them by the Solicitors Acts, 1954 to 1994.

( c ) The Interpretation Act, 1937 shall apply for the purpose of the interpretation of these Regulations as it applies for the purpose of the interpretation of an act of the Oireachtas, except insofar as it may be inconsistent with the Solicitors Acts, 1954 to 1994.

3. From the date of the coming into operation of these Regulations, a solicitor to whom regulations made under section 66 (as substituted by section 76 of the Solicitors (Amendment) Act, 1994 ) of the Solicitors Act, 1954 applies, shall, in respect of money received by him or his firm for or on account of a client—

( a ) hold such money in a deposit account and shall account to the client for interest thereon while so held; or

( b ) shall account to the client for interest thereon.

4. Where money is received by a solicitor for or on account of a client, the client (without prejudice to any other legal remedy) may refer, or may require the solicitor to refer, any question relating to interest on such money to the Society, and the Society (after providing reasonable opportunity to the client and to the solicitor to make submissions to the Society on such question) shall determine such question and shall duly notify the client and the solicitor in writing of such determination.

5. A solicitor to whom Regulation 3 of these Regulations applies shall not be required to account to a client for interest on money received by the solicitor or his firm for or on account of the client, where the amount of interest would be less than £75 (seventy-five pounds).

6. Nothing in these Regulations shall—

( a ) affect any arrangement in writing, whenever made, between a solicitor and his client as to the application of the client's money or interest thereon; or

( b ) apply to money received by a solicitor, being money subject to a trust of which the solicitor is a trustee; or

( c ) deprive a solicitor of any legal recourse or right, whether by way of lien, charge or otherwise, that the solicitor or his firm may have against a client's money standing to the credit of a deposit account.

7. Nothing in these Regulations shall require an accountant, in complying with regulation 22 of the Solicitors Accounts Regulations No. 2 of 1984 ( S.I. No. 304 of 1984 ), to make an examination as to whether a solicitor has complied with these Regulations in relation to accounting to a client for interest on money received by the solicitor or his firm for or on account of the client.

DATED this 27th day of April, 1995.

Signed on behalf of the Law Society of Ireland pursuant to section 79 of the Solicitors Act, 1954 .

PATRICK A. GLYNN,

President of the Law Society of Ireland.

I consent to the making of the within Regulations pursuant to section 73 (1) of the Solicitors (Amendment) Act, 1994 .

DATED this 2nd day of May, 1995.

DECLAN COSTELLO,

President of the High Court.