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  • Writer's pictureIrina Inayat

1-2-3 Guide to Solicitors Accounts Rules

Welcome to our 1-2-3 Guide series for simplified explanations of accountancy and bookkeeping topics. Get key ideas of complex concepts in quick, two-minute reads.


Solicitors Accounts Rules Explanation:


  1. Purpose and Structure of SAR: Solicitor Account Rules (SAR), mandated by the Solicitor Regulation Authority (SRA), are the legal account standards in the UK for handling client finances. They are structured into four parts: General provisions, handling client money and accounts, dealing with third-party money, and reports/storage of account records.

  2. Compliance Requirements: Solicitors must adhere to SAR to avoid SRA investigations or criminal charges. Compliance involves separating client money from company funds, correctly managing withdrawals, maintaining detailed records, and handling joint and third-party accounts appropriately.

  3. Consequences of Non-Compliance: Failure to comply with SAR can lead to SRA intervention (fines, suspension, deregistration), criminal charges (theft or fraud), and severe reputational damage, undermining client trust and professional relationships.


As a solicitor, understanding the Solicitor Accounts Rules is mandatory. Failing to abide by these rules can result in some catastrophic consequences that can ruin your reputation, cause you to lose your license, and, even worse, cause legal charges. Click HERE to read more on this topic.


Compliance is not just a legal requirement but a fundamental aspect of maintaining professional integrity and safeguarding client interests. Solicitors must thoroughly understand and diligently implement SAR provisions to mitigate risks, uphold ethical standards, and preserve their reputation in the legal community.


Please contact me, I would be delighted to help you navigate though SAR.

Irina Inayat



0207 183 6623 

 

The information provided in this article is not intended to constitute professional advice and you should take full and comprehensive legal, accountancy or financial advice as appropriate on your individual circumstances by a fully qualified Solicitor, Accountant or Financial Advisor/Mortgage Broker before you embark on any course of action. 

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