The rules that keep client money separate, safe and properly accounted for — from the client account itself through to the sanctions for getting it wrong.
Everything in the Accounts Rules flows from one principle: money belonging to clients must never be confused with the firm's own. This chapter begins with the purpose and scope of the rules and the requirements a client account must satisfy, then sets out the central distinction between client money and office money and where each must be held. It moves on to the mechanics of handling funds — mixed payments, permitted withdrawals, transferring billed costs and returning surplus money promptly — and the records and regular reconciliations that prove the money is where it should be, including the duty to replace any shortfall. It closes with the COFA's role, reporting breaches to the SRA, when an accountant's report is needed, and the sanctions, up to striking off, that follow serious failures.
