SRA Accounts Rules 2025 - Virtual Conference

Introduction

Chaired by Trevor Hellawell, this annual conference offers essential insight into the latest developments, regulatory expectations, and practical challenges surrounding the SRA Accounts Rules. Designed for those responsible for compliance and financial management within law firms, the event provides a valuable opportunity to stay up to date with evolving guidance, reflect on common pitfalls, and explore best practice across key areas of financial conduct and reporting.

Conference Agenda

This live and interactive 5-hour conference will cover the following:

10am-11am: Client Accounts - Is There Any Interest?

Trevor Hellawell

The SRA’s recently stated view is that there is no justification for us being allowed to profit from the holding of other people’s money at all. Their consultation acknowledges that the alternatives to us being able to hold client monies need to develop before they can abolish our rights to do so, but how should we be allowed to deal with the interest that such sums may earn.

Do we maintain the status quo? Do we account for all the sums we receive by way of interest, and how do we calculate that on a client-by-client basis? What other alternatives are there?

The seminar will cover:

• The Rules as they currently stand - Rules 7.1 and 7.2
• The SRA’s proposals in outline
• How much do we earn on client account interest?
• How much of a contributor to a firm’s income and cashflow is client interest?
• How else should we deal with matters?
• Do I need to change anything?

Morning Break

11:10am-12:10pm: A View from a Reporting Accountant

Jenny Staight, Director, Hazlewoods

This session will cover the findings from the last year of SRA Accounts Rules audits, common breaches, recurring issues, as well as trends over the last few years.

12:10pm-1:10pm: A Compliance Update

Jenny Staight, Director, Hazlewoods

Stay on the right side of risk with this session that shines a spotlight on the latest developments in compliance, helping you stay informed and protected in your day-to-day practice.

Break for lunch

2-3pm: The SRA Accountants Report Spot Checks - Why is the Focus on Residual Balances Again?

Joanna Morris, Jo Morris Training and Consultancy

In light of the SRA consultation on the holding of client money, which closed in February, the SRA is now conducting spot-checks on firms to ensure they have received a recent accountant’s report. Firms involved were contacted in December, with the questionnaire window opening in January.

The first five questions focused on general aspects like whether a report had been obtained and whether it was qualified, while questions 6-13 delved into residual balances in client accounts. Rule 2.5 of the SRA Accounts Rules requires firms to return client money promptly once there is no longer a valid reason to hold it. The focus is now on understanding what promptly means for each firm, the number of residual balances, and the value of those balances.

In this 1-hour session we will look at the following:

• Why we have the accountant’s report
• What the accountant’s report covers
• Why the SRA are undertaking these spot-checks
• What do residual balances have to do with the SRA client money consultation?
• SRA Accounts Rules - 2.5 - the meaning of ‘promptly’
• What do residual balances have to do with interest on client monies?
• Good housekeeping - how to deal with residual balances

Afternoon break

3:15-4:15pm: SRA Resources - Checklists for Success

Trevor Hellawell

As the SRA increase their stranglehold on us regarding our non-compliance with the essence of their rules, the Resources have contained for some while some checklists on the things to which we need to pay attention, if we are to avoid a qualification on our accountant’s reports and a possible referral to the SRA.

The seminar will discuss

• The Accountant’s Report
• Relations with the reporting accountants
• Qualifications of the accountant’s report
• Checklist A - the gold standard
• Checklist B - you’re OK, for now
• The role of the COFA

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.