Risk-based regulation– a new strategy for trust account assessments
June 16, 2017
The way lawyers’ trust accounts are regulated has changed.
The Victorian Legal Services Board has established a new framework for a risk-based approach to the regulation of trust accounts, including how and when trust accounts are selected for an investigation.
Why undertake investigations?
Consumers of legal services are entitled to rely on the absolute safety of the money they entrust to their lawyer, therefore it is vital to maintain the integrity of law practice trust accounts. The Board has the responsibility to ensure these trust accounts are managed in accordance with strict legislative requirements.
The Board’s new risk-based approach to assessing lawyers’ trust accounts will proactively focus on lawyers who are most at risk of poor or fraudulent trust accounting practices, while reducing the regulatory burden for lawyers and law firms who are compliant with their obligations.
The risk-based model has been developed with the full support of the Law Institute of Victoria.
The Board has released a policy to explain how risk-based regulation of trust accounts will work. For further information, please see the Board’s Policy on Risk-Based Regulation – Trust Accounts.
Other polices can be found on the Polices and Guidelines page.