Question of ethicsQ My client follows the faith of Islam.
I understand that his religion prevents him from receiving interest on any money I hold for him in my client account.
How do I satisfy the requirements of the Solicitors' Accounts Rules in relation to payment of interest?A Rule 27(1) allows for the client and the solicitor to contract out of the provisions in the accounts rules as to the payment of interest.
There must be a written agreement.
The solicitor must act fairly towards the client and provide sufficient information such as the amount of interest foregone.
You might consider whether to offer the client a reduction in his fees as part of the written agreement.
Please noteChanges to practice rule 6(3)Law Society practice rule 6(3) has been amended to enable commercial conveyancers to continue to use the City of London Law Society's certificate of title and short form report on title.These documents were recognised under the amended rule on 2 May 2001 for use in commercial cases of separate representation where the borrower's solicitor provides a certificate of title to the lender.A guidance note with the text of the amended rule will be published shortly and appear on the Society's Web site at: www.lawsociety.org.uk (see 'commercial' under 'specialisms').Copies are also available from professional ethics on 0870 606 2577.
Limited liability partnerships (LLPs)The legislative changes which provide for LLPs came into force on 6 April 2001.
For practitioners to 'convert' to LLP status, the process will involve two successive steps - registration as an LLP at Companies House followed by recognition as a recognised body by the Law Society under the new Solicitors' Incorporated Practice Rules 2001.
These rules also came into force on 6 April 2001 and now regulate all incorporated practices, whether companies or LLPs.
An information pack including the new rules is available from professional ethics.
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 ; tel: 020 7242 1222.
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