SOLICITORS AND TRUST FUNDS

Hokitika Guardian, 9 February 1929, Page 6

SOLICITORS AND TRUST FUNDS

COMPULSORY ADMITS OF accounts. SYDNEY. January 31. Tim Legal 'Practitioners Amendment j!i!i, will again be before the Male Parliament during the coming ’..ssion, will provide,, among other things, for the compulsory audit of solicitors' trust funds, in order to protect clients, and especially the poorer section of them, against the dishonest practitioners. There is a strong feeling, however, in the light of what is claimed to he New Zealand’s esperieuee of the compulsory audit of solicitors’ accounts that the Hill will neither prevent embezzlement nor protect the public. Whether the other States contemplate the tightening of the law with respect to dishonest solicitors, or have already taken action, is* not known, hut the views of an old linn of solicitors in the Dominion, in a letter to its Sydney agents, arc interesting. All that a comnnDory audit lias done to New Zealand. according to that firm, is to provide a very large annual revenue for accountants. • What is being urged as an alternative in New South AVales is legislation providing, not for a regular compulsory audit. Kut r 'r a surprise audit at any ti;i ami f r the estahlishment of a pun-anteo 1 .mb to consist of contribu- ; ion. to Uo :>•■-,! to make good dcialcat; i-s. Puts • r ’guarding both client.' am' *’ > ’•ro.'simi generally against losses im. iii red through misiippropriation. It is said that, if one-hall’ ol the fees (laid for statutory compulsory audits had been accumulated by way of a guarantee fund, they would have been sufficient to pay three times the losses which have been incurred in New Zealand since when the audit of trust funds was enforced in the Dominion. aan lMHtinMMMyiaßßawag