Question of ethics

Q I deal with many insurance companies as a result of my clients' personal injury claims.

Sometimes I will receive a cheque from an insurance company with an offer of settlement.

I then have to take instructions on the offer, which can take several days.

Rule 15(1) of the accounts rules requires that cheques received by a firm of solicitors should be paid into client account without delay.

'Without delay' is defined in rule 2(2)(z) as in normal circumstances that day or the following day.

Do I have to pay the cheques in, as this will be seen to be accepting the settlement when this is not the case?A Rule 15(1) states that client money must be paid in without delay.

Where a cheque is sent subject to a condition, the solicitor will not be regarded as having received the money until the solicitor has instructions from the client to accept the money.

Once accepted, the cheque should be paid in on that day or the following day.

Pending instructions, the cheque should be kept on the file.Please noteLimited 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 Redditch;tel: 020 7242 1222.