This practice note is the Law Society’s view of good practice in this area. It is not legal advice.
Practice notes are issued by the Law Society for the use and benefit of its members. They represent the Law Society’s view of good practice in a particular area. They are not intended to be the only standard of good practice that solicitors can follow. You are not required to follow them but doing so will make it easier to account to oversight bodies for your actions.
Practice notes are not legal advice, nor do they necessarily provide a defence to complaints of misconduct or of inadequate professional service. While care has been taken to ensure that they are accurate, up to date and useful, the Law Society will not accept any legal liability in relation to them.
For queries or comments on this practice note contact the Law Society’s Practice Advice Service.
There are seven mandatory principles which apply to all those the SRA regulates and to all aspects of practice. The principles can be found in the SRA Standards and Regulations.
The principles apply to all authorised individuals (solicitors, RELs and RFLs), authorised firms and their managers and employees. They also apply to individuals and the parts of a licensed body involved in delivering the regulated services.
In relation to residual client balances, you should consider the following principles:
- principle 2: act in a way that upholds public trust and confidence in the solicitors’ profession and in legal services provided by authorised persons
- principle 5: act with integrity
- principle 7: act in the best interests of each client