Lawyers and Conveyancers Act 2006

Conduct of practice by practitioners - Trust accounts

112: Obligation to keep records in respect of trust accounts and valuable property

You could also call this:

"Keep Records of Money and Property Held in Trust"

Illustration for Lawyers and Conveyancers Act 2006

You must keep records if you receive or hold money or valuable property in trust for someone else. You need to keep trust account records that show the position of the money. You also need to keep records of other valuable property, including what it is, when you received it, and what happened to it. You must keep these records in a way that makes them easy to audit or inspect. This rule does not apply to you if you do not provide certain services or handle money or property in trust. If you break this rule on purpose, you can be fined up to $25,000. You can find more information by looking at the Lawyers and Conveyancers Act 2006 and other related laws.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM366142.

This page was last updated on 4 January 2026 — View changes

Topics:

Money and consumer rights > Consumer protectionBusiness > Industry rules

111: Obligation to account for trust money and valuable property, or

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

113: Protection of money received, or

"Keeping clients' money safe from other debts"

Part 6Conduct of practice by practitioners
Trust accounts

112Obligation to keep records in respect of trust accounts and valuable property

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 in trust on behalf of any person, the practitioner, related person or entity, or incorporated firm—
must, in relation to the money, keep trust account records that disclose clearly the position of the money in the trust accounts of the practitioner, related person or entity, or incorporated firm; and
must, in relation to other valuable property, keep records that—
1. describe the property received or held; and
2. show the date on which the property was received; and
3. if the property has been disposed of, give details of the disposition of the property, including the date on which, and the person to whom, the property was disposed of; and
must keep the records required by this section in such a manner as to enable those records to be conveniently and properly audited or inspected.

Subsection (1) does not apply to a person (being a practitioner, related person or entity, or incorporated firm)—
who does not provide regulated services; or
who, in the course of providing regulated services, does not, on that person's own behalf or in his or her capacity as a director or shareholder of an incorporated firm, do any of the following:
1. receive or hold money or other valuable property in trust for any other person:
2. invest money for any other person:
3. have a trust account:
4. receive fees or disbursements in advance of an invoice being issued.

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).

Compare

SR 1998/17 r 3(1)(b), (2)(a)

Notes

Section 112(3): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).