A firm holds £800 of client money for a client who has since disappeared. The firm cannot trace him despite reasonable efforts. What may the firm do?
Answer and explanation
Correct answer: B. Hold the money and follow the SRA procedure
- Step 1: Residual balances must be dealt with properly.
- Step 2: The SRA provides a process for sums that cannot be returned, including payment to a registered charity.
Answer
Hold the money and follow the SRA procedure.
Why not the others: Taking it as profit is a breach; giving it to a partner is a breach; indefinite holding is not allowed.
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