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Lawyers and Conveyancers Act 2006

Conduct of practice by practitioners - Trust accounts

111: Obligation to account for trust money and valuable property

You could also call this:

"Lawyers must keep track of others' money and property"

Illustration for Lawyers and Conveyancers Act 2006

You must account for money or valuable property you hold for someone else. You do this by keeping proper records and reporting to the person who owns the money or property. If you deliberately fail to do this, you can be fined up to $25,000.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM366141.

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Part 6Conduct of practice by practitioners
Trust accounts

111Obligation to account for trust money and valuable property

  1. If, in the course of the practice of a practitioner or an incorporated firm, the practitioner, a related person or entity, or the incorporated firm receives or holds money or other valuable property on behalf of any person, the practitioner, related person or entity, or incorporated firm must account properly for the money or other valuable property to the person on whose behalf the money or other valuable property is held.

  2. A person commits an offence against this Act and is liable on conviction to a fine not exceeding $25,000 who knowingly acts in contravention of subsection (1).

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Notes
  • Section 111(2): amended, on , by section 413 of the Criminal Procedure Act 2011 (2011 No 81).