SQE1 (Solicitors Qualifying Examination) · Ethics, professional conduct and solicitors' accounts

Solicitors' accounts and client money

11 practice questions, each with the answer and an explanation.

Practise Solicitors' accounts and client money now

Random questions from this topic, one at a time. You see the answer and the explanation straight after each one.

All 11 questions

  1. Under the SRA Accounts Rules, where must client money be held?
  2. A client pays a firm £4,000 to be used towards the future costs and disbursements of her house purchase. How is the money treated?
  3. A firm delivers a bill for £1,200 for work completed. The client pays the £1,200 by transfer. How should the firm treat the payment?
  4. A conveyancer receives £10,000 from a buyer client to cover SDLT. The firm uses £3,000 of it to pay an unrelated disbursement for a different client. Which rule is breached?
  5. How often must a firm reconcile its client account records with the bank statements under the SRA Accounts Rules?
  6. Under the SRA Accounts Rules, what must a firm do with client money it holds once the matter ends and a balance remains?
  7. A client asks a firm to receive £50,000 into its client account and, a week later, pay it to a third party, with no legal work being done for the client. What is the issue under the SRA Accounts Rules…
  8. Where a firm holds a substantial sum of client money for a long period, what must it consider regarding interest?
  9. 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?
  10. A firm wishes to withdraw £5,000 from the client account for a client who has only £3,000 in the client account. Which rule applies?
  11. The SRA decides to investigate a firm following a report of suspected misappropriation of client money. Which body can hear allegations that a solicitor acted dishonestly and order striking off?

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