Notifying us
The law practice or approved clerk must notify us of the closure of a trust account by completing the Closing a trust account online form.
This form must be filled in by a principal of the law practice or approved clerk. We will confirm with the bank that the account has been closed, and request that the Commonwealth Bank of Australia close the SDA.
Transfer of existing funds
When closing a trust account, law practices and approved barrister’s clerks must ensure that any funds held in the statutory deposit account (SDA) are transferred into their trust account. The transfer can be made through our online portal, LSB Online. All funds held in the trust account should be disbursed.
The law practice or approved clerk must then contact the bank branch where their trust account is held and arrange to have the trust account closed.
Other requirements
If this was the only trust account held by the law practice or approved clerk and, the law practice or approved clerk is now ceasing to handle trust money (including transit money), other requirements also apply. The principal(s) of the law practice can vary their practising certificate to a ‘Principal without trust authorisation’ through LSB Online. However, if you are the sole practitioner of a law practice and intend to close your practice, there are a number of further steps you should take in addition to notifying your clients. Please see our Closing a law practice page.
The External Examiner (EE) for the law practice or barristers’ clerk must complete a final examination of the trust account within 60 days of the account being closed. The following form must be completed by the EE and sent to the Board:
Once the final examination has been completed the EE must complete:
- Part B of External Examiners Form.
This form will notify the Board of the termination of the EE’s appointment to the law practice or approved clerk. This form is to be signed by the principal of the law practice or approved clerk and/or EE.
Further information Contact the Early Detection and Prevention team:
When closing a trust account, law practices and approved barrister’s clerks must ensure that any funds held in the statutory deposit account (SDA) are transferred into their trust account. The transfer can be made through our online portal, LSB Online. All funds held in the trust account should be disbursed.
The law practice or approved clerk must then contact the bank branch where their trust account is held and arrange to have the trust account closed.