The revised accounts code that expressly allows regulated practices to deal more easily with aged balances up to £50 and to use third-party managed accounts (TPMAs) has now been approved by the Legal Services Board (LSB).
The Legal Services Board (LSB) has approved new account codes to deal with aged balances up to £50 and the use of third-party managed accounts.
Coming into force on the 30 September 2020, the new codes will expressly allow regulated practices to more easily deal with aged balances up to £50 by allowing more flexibility in their management if they are unable to identify the rightful recipient.
Practices will also be able to use third-party managed accounts (TPMAs) provided they are regulated by the Financial Conduct Authority and the firm is authorised by the CLC to enter arrangements with a client to use a TPMA.
Easier to understand by containing simpler more targeted requirements, the aim of the new code is to improve compliance as well as consumer protection.
Simon Blandy, Director of Regulatory Standards at the CLC, said:
“This is a positive step towards removing unnecessary detail in favour of an emphasis on the most important aspects of the proper management of client money and ensuring protection of the client’s interests.
“We will use the period before implementation on 30 September to communicate details of the changes and work with our regulated community to ensure they are ready to comply.”
The new accounts code will come into force on the 30 September 2020, and all practices must be fully compliant from this date. There will also be a period before implementation to communicate details of the changes and work with firms to ensure they are ready to comply.
The revised Code and Guidance can be found here. (https://www.clc-uk.org/lawyers/accounts-code-from-30-september-2020/)
