Question of ethics

Q Our bank no longer keeps all paid client account cheques for the minimum two years required by rule 32(10)(a) of the Solicitors' Accounts Rules 1998.

It relies on 'images' of cheques and destroys original cheques worth less than 5,000 within short periods of time.

Does that cause any problems for us?A Rule 32(10)(a) requires you to obtain your paid client account cheques from the bank and retain them for at least two years, unless your bank agrees to provide this service.

Images are not sufficient, so you will have to ask the bank to return paid cheques to you.

The Law Society is in discussion with the banks which have suggested that 'images' of the cheques should be sufficient for regulatory purposes but that is not the current position

Q I have received a letter from an insurance company that I use telling me that I have to register with the General Insurance Standards Council (GISC) by the 1 September.

Is this correct?A Discussions are ongoing with GISC to determine to what extent solicitors will have to be registered.

There are a number of options for firms which could avoid registration.

A report of the current position was published recently (see [2001] Gazette, 28 June, 5) and further information will be published when the position becomes clearer.

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.