QUESTION OF ETHICS

Q I am a sole practitioner approaching the age when my friends in the employed sector start to think about retirement.

I had always anticipated continuing in practice for several more years, but I would like to be clear about the implications of the imminent switch from the Solicitors Indemnity Fund to the open market.

Is there any guidance that would help me?A Yes.

The Law Society's professional ethics has prepared a guidance note entitled The indemnity rules and the closure of practices.

A copy can be obtained from the Guidance Service, tel: 0870 606 2577.Q I am an accountant and I have noticed that my solicitor client is not complying with the deposit interest provisions.

Should I qualify my report?A Generally, no, because rule 44(d) of the Solicitors' Accounts Rules 1998 makes it clear that you are not required to check compliance with the provisions in rule 24(2) to (5) and 6(b) on payment of sums in lieu of interest.

These rules apply where funds are held in general client account.

However, you will be expected to check that the solicitor is accounting to the client for the interest accruing on separate designated accounts and any other account in the solicitor's name opened on the client's instructions, and to qualify your report if he is failing to do so.

Aide Memoirel The new Indemnity Insurance Rules will be effective from 1 September 2000.

Solicitors must have their new indemnity insurance in place by that date.

l Question of ethics is compiled by the Law Society's professional ethics guidance team.

Send questions for publication to Austin O'Malley, the Law Society, Ipsley Court, Berrington Close, Redditch B98 0TD; DX 19114 Redditch; tel: 020 7242 1222.