Legal Profession (Solicitors’ Accounts) Rules

These Rules may be cited as the Legal Profession (Solicitors’ Accounts) Rules.

In these Rules, unless the context otherwise requires —

“accounting corporation”, “accounting firm” and “accounting LLP” have the same meaning respectively, as in the Accountants Act (Cap. 2);

“anticipatory conveyancing money” has the same meaning as in rule 4(4) of the Conveyancing Rules;

“approved finance company” means any finance company registered under the Finance Companies Act (Cap. 108) which is approved by the Minister to accept either or both of the following:

deposits of client’s money for the purposes of these Rules;

deposits of conveyancing money for the purposes of these Rules and the Conveyancing Rules;

In these Rules, the references to accounts, books, ledgers, journals and records shall include loose-leaf books and such cards or other permanent documents or records as are necessary for the operation of any system of book-keeping, computerised, mechanical or otherwise.

Subject to rule 9, every solicitor who holds or receives client’s money, or money which under rule 4 he is permitted and elects to pay into a client account, shall without delay pay such money into a client account.

A solicitor shall not hold or receive conveyancing money except in accordance with the applicable provisions of these Rules and the Conveyancing Rules.

Subject to rule 17, a solicitor shall not hold or receive any anticipatory conveyancing money belonging to another person.

Any solicitor may keep one client account or as many such accounts as he thinks fit.

Any solicitor may keep one conveyancing account or as many such accounts as he thinks fit.

Any solicitor appointed to act for the Central Provident Fund Board in a conveyancing transaction may keep one conveyancing (CPF) account or as many such accounts as he thinks fit.

Every conveyancing account or conveyancing (CPF) account kept by a solicitor under paragraph (3) or (4) shall be maintained by the solicitor in accordance with the Conveyancing Rules.

No money shall be withdrawn from a conveyancing account or conveyancing (CPF) account except in accordance with the Conveyancing Rules.

Subject to rule 9, every solicitor who holds or receives client’s money, or money which under rule 4 he is permitted and elects to pay into a client account, shall without delay pay such money into a client account.

A solicitor shall not hold or receive conveyancing money except in accordance with the applicable provisions of these Rules and the Conveyancing Rules.

Subject to rule 17, a solicitor shall not hold or receive any anticipatory conveyancing money belonging to another person.

Any solicitor may keep one client account or as many such accounts as he thinks fit.

Any solicitor may keep one conveyancing account or as many such accounts as he thinks fit.

Any solicitor appointed to act for the Central Provident Fund Board in a conveyancing transaction may keep one conveyancing (CPF) account or as many such accounts as he thinks fit.

Every conveyancing account or conveyancing (CPF) account kept by a solicitor under paragraph (3) or (4) shall be maintained by the solicitor in accordance with the Conveyancing Rules.

No money shall be withdrawn from a conveyancing account or conveyancing (CPF) account except in accordance with the Conveyancing Rules.

There may be paid into a client account —

trust money;

such money belonging to the solicitor as may be necessary for the purpose of opening or maintaining the account;

money to replace any sum which for any reason may have been drawn from the account in contravention of rule 8(2); (d)money received by the solicitor, which under rule 5(3) he is entitled to split but which he does not split;

any money provided to the solicitor under rule 5(3) of the Conveyancing Rules, if the solicitor satisfies the condition referred to in that provision; and

any money received by the solicitor under rule 5(4) of the Conveyancing Rules, if the solicitor satisfies the condition referred to in that provision.

Subject to paragraph (2), a solicitor shall not hold or receive any sum of money which consists of a mixture of conveyancing money and any other money.

Where any sum of money held or received by a solicitor subsequently becomes a mixture of conveyancing money and any other money, the solicitor shall —

split the conveyancing money from the other money; and

deal with the conveyancing money as if he had received the conveyancing money as a separate sum of money.

Subject to paragraphs (1) and (2), where a solicitor holds or receives any sum of money which consists of a mixture of client’s money, or trust money of one or more trusts, or both, and any other money —

he may where practicable split the money and, if he does so, he shall deal with each part thereof as if he had received a separate sum of money in respect of that part; or

if he does not split the money, he shall, if any part thereof consists of client’s money, and may, in any other case, pay the money into a client account.

Subject to paragraph (2), a solicitor shall not hold or receive any sum of money which consists of a mixture of conveyancing money and any other money.

Where any sum of money held or received by a solicitor subsequently becomes a mixture of conveyancing money and any other money, the solicitor shall —

split the conveyancing money from the other money; and

deal with the conveyancing money as if he had received the conveyancing money as a separate sum of money.

Subject to paragraphs (1) and (2), where a solicitor holds or receives any sum of money which consists of a mixture of client’s money, or trust money of one or more trusts, or both, and any other money —

he may where practicable split the money and, if he does so, he shall deal with each part thereof as if he had received a separate sum of money in respect of that part; or

if he does not split the money, he shall, if any part thereof consists of client’s money, and may, in any other case, pay the money into a client account.

No money, other than money under rules 3(1), 4 and 5(3) which a solicitor is required or permitted to pay into a client account, shall be paid into a client account.

It shall be the duty of a solicitor into whose client account any money has been paid in contravention of this rule to withdraw the money without the delay on discovery.

No money, other than money under rules 3(1), 4 and 5(3) which a solicitor is required or permitted to pay into a client account, shall be paid into a client account.

It shall be the duty of a solicitor into whose client account any money has been paid in contravention of this rule to withdraw the money without the delay on discovery.

There may be drawn from a client account —

in the case of client’s money, any money paid into the client account under rule 4(e) or (f), or any conveyancing money or anticipatory conveyancing money deposited into the client account before 1st August 2011 which continues to be held in the client account under rule 17(1)(a) —

money properly required for a payment to or on behalf of the client;

money properly required in full or partial reimbursement of money expended by the solicitor on behalf of the client;

money drawn on the client’s authority;

money properly required for or towards payment of the solicitor’s costs where a bill of costs or other written intimation of the amount of the costs incurred has been delivered to the client and the client has been notified that money held for him will be applied towards or in satisfaction of such costs; and

money to be transferred to another client account;

in the case of trust money —

money properly required for a payment in the execution of the particular trust; and

money to be transferred to a separate bank account kept solely for the money of the particular trust;

such money, not being money to which sub-paragraph (a) or (b) applies, as may have been paid into the account under rule 4(b) or 5(3)(b); and

money which for any reason may have been paid into the account in contravention of rule 6.

In the case of client’s money and trust money referred to in paragraph (1)(a) and (b), the money so drawn shall not exceed the total of the money held for the time being in the client account on account of the client or trust.

There may be drawn from a client account —

in the case of client’s money, any money paid into the client account under rule 4(e) or (f), or any conveyancing money or anticipatory conveyancing money deposited into the client account before 1st August 2011 which continues to be held in the client account under rule 17(1)(a) —

money properly required for a payment to or on behalf of the client;

money properly required in full or partial reimbursement of money expended by the solicitor on behalf of the client;

money drawn on the client’s authority;

money properly required for or towards payment of the solicitor’s costs where a bill of costs or other written intimation of the amount of the costs incurred has been delivered to the client and the client has been notified that money held for him will be applied towards or in satisfaction of such costs; and

money to be transferred to another client account;

in the case of trust money —

money properly required for a payment in the execution of the particular trust; and

money to be transferred to a separate bank account kept solely for the money of the particular trust;

such money, not being money to which sub-paragraph (a) or (b) applies, as may have been paid into the account under rule 4(b) or 5(3)(b); and

money which for any reason may have been paid into the account in contravention of rule 6.

In the case of client’s money and trust money referred to in paragraph (1)(a) and (b), the money so drawn shall not exceed the total of the money held for the time being in the client account on account of the client or trust.

Except as provided under rule 7, no money shall be drawn from a client account unless the Council upon an application made to it by the solicitor specifically authorises in writing such withdrawal.

No money shall be drawn from a client account under rule 7(1)(a)(ii) or (iv), (c) or (d) except by —

a cheque drawn in favour of the solicitor; or

a transfer to a bank account in the name of the solicitor not being a client account.

No money shall be drawn from a client account under rule 7(1)(c) or (d) by a cash cheque or a bearer cheque.

No money shall be drawn from a client account by a cash cheque or a bearer cheque except with the permission of the General Division of the High Court.

No money shall be drawn from a client account by means of any —

automated teller machine; or (b)telephone banking service.

[Deleted by S 312/2022 wef 12/04/2022]

No sum exceeding $5,000 is to be drawn from a client account except —

upon a cheque (or other instruction effecting the withdrawal) signed by 2 solicitors; or

by means of an online digital payment authorised by 2 solicitors in accordance with any practice directions issued by the Council.

Paragraph (5) shall not apply if —

the solicitor has engaged a book-keeper for the purposes of rule 11(8); and

the sum to be drawn does not exceed $30,000.

A solicitor shall not sign a cheque or other instruction effecting a withdrawal from a client account, or authorise an online digital payment effecting such withdrawal, if —

the solicitor has been —

in practice as a solicitor in Singapore for less than 3 years in aggregate; or

employed as a Judicial Service Officer, a Legal Service Officer or a PD Officer for less than 3 years in aggregate;

the solicitor is not holding a current practising certificate; or

the practising certificate of the solicitor is subject to any condition imposed under section 25A or 27A of the Act prohibiting the solicitor from signing such cheques or instructions.

For the avoidance of doubt, a solicitor shall comply with the requirements of these Rules in respect of the withdrawal of money from a client account notwithstanding that the permission of the General Division of the High Court has been obtained in respect of that withdrawal for the purposes of paragraph (4).

Except as provided under rule 7, no money shall be drawn from a client account unless the Council upon an application made to it by the solicitor specifically authorises in writing such withdrawal.

No money shall be drawn from a client account under rule 7(1)(a)(ii) or (iv), (c) or (d) except by —

a cheque drawn in favour of the solicitor; or

a transfer to a bank account in the name of the solicitor not being a client account.

No money shall be drawn from a client account under rule 7(1)(c) or (d) by a cash cheque or a bearer cheque.

No money shall be drawn from a client account by a cash cheque or a bearer cheque except with the permission of the General Division of the High Court.

No money shall be drawn from a client account by means of any —

automated teller machine; or (b)telephone banking service.

[Deleted by S 312/2022 wef 12/04/2022]

No sum exceeding $5,000 is to be drawn from a client account except —

upon a cheque (or other instruction effecting the withdrawal) signed by 2 solicitors; or

by means of an online digital payment authorised by 2 solicitors in accordance with any practice directions issued by the Council.

Paragraph (5) shall not apply if —

the solicitor has engaged a book-keeper for the purposes of rule 11(8); and

the sum to be drawn does not exceed $30,000.

A solicitor shall not sign a cheque or other instruction effecting a withdrawal from a client account, or authorise an online digital payment effecting such withdrawal, if —

the solicitor has been —

in practice as a solicitor in Singapore for less than 3 years in aggregate; or

employed as a Judicial Service Officer, a Legal Service Officer or a PD Officer for less than 3 years in aggregate;

the solicitor is not holding a current practising certificate; or

the practising certificate of the solicitor is subject to any condition imposed under section 25A or 27A of the Act prohibiting the solicitor from signing such cheques or instructions.

For the avoidance of doubt, a solicitor shall comply with the requirements of these Rules in respect of the withdrawal of money from a client account notwithstanding that the permission of the General Division of the High Court has been obtained in respect of that withdrawal for the purposes of paragraph (4).

Notwithstanding the provisions of these Rules, a solicitor shall not be under obligation to pay into a client account client’s money held or received by him —

in the form of cash, and is without delay paid in cash in the ordinary course of business to the client or on his behalf to a third party;

in the form of a cheque or draft which is endorsed over in the ordinary course of business to the client or on his behalf to a third party and is not passed by the solicitor through a bank account or an account with an approved finance company account; or

which he pays into a separate bank account or into a separate account with an approved finance company opened or to be opened in the name of the client or of some person designated by the client in writing.

Notwithstanding the provisions of these Rules, a solicitor shall not pay into a client account, money held or received by him —

which the client for his own convenience requests the solicitor in writing to withhold from such account;

for or towards payment of a debt due to the solicitor from the client or in reimbursement of money expended by the solicitor on behalf of the client; or

which is expressly paid to him —

on account of costs incurred, in respect of which a bill of costs or other written intimation of the amount of the costs has been delivered for payment; or

as an agreed fee (or on account of an agreed fee) for business undertaken or to be undertaken.

Where money includes client’s money as well as money of the nature described in paragraph (2), that money shall be dealt with in accordance with rule 5(3).

Notwithstanding the provisions of these Rules, the Council may upon an application made to it by a solicitor specifically authorise him in writing to withhold any client’s money from a client account.

Notwithstanding the provisions of these Rules, a solicitor shall not be under obligation to pay into a client account client’s money held or received by him —

in the form of cash, and is without delay paid in cash in the ordinary course of business to the client or on his behalf to a third party;

in the form of a cheque or draft which is endorsed over in the ordinary course of business to the client or on his behalf to a third party and is not passed by the solicitor through a bank account or an account with an approved finance company account; or

which he pays into a separate bank account or into a separate account with an approved finance company opened or to be opened in the name of the client or of some person designated by the client in writing.

Notwithstanding the provisions of these Rules, a solicitor shall not pay into a client account, money held or received by him —

which the client for his own convenience requests the solicitor in writing to withhold from such account;

for or towards payment of a debt due to the solicitor from the client or in reimbursement of money expended by the solicitor on behalf of the client; or

which is expressly paid to him —

on account of costs incurred, in respect of which a bill of costs or other written intimation of the amount of the costs has been delivered for payment; or

as an agreed fee (or on account of an agreed fee) for business undertaken or to be undertaken.

Where money includes client’s money as well as money of the nature described in paragraph (2), that money shall be dealt with in accordance with rule 5(3).

Notwithstanding the provisions of these Rules, the Council may upon an application made to it by a solicitor specifically authorise him in writing to withhold any client’s money from a client account.

No sum shall be transferred from the ledger account of one client to that of another, except in circumstances in which —

it would have been permissible under these Rules to have withdrawn from a client account the sum transferred from the first client and to have paid into a client account the sum so transferred to the second client; or

it would have been permissible under the Conveyancing Rules to have withdrawn from a conveyancing account the sum transferred from the first client and to have paid into a conveyancing account the sum so transferred to the second client.