Trust accounts

The Legal Profession Regulations 2005 (Vic) (“the regulations”) set out how to operate a trust account, including requirements in relation to the keeping of trust records. Every practice or clerk maintaining a trust account should be familiar with the trust account regulations, i.e. Part 3.3 of the regulations. See the regulations on the Victorian legislation website.

Where can trust accounts be opened?

The Board has made arrangements with the following approved deposit-taking institutions (ADIs) enabling solicitors’ trust accounts to be operated at any branch of:

  • ANZ Bank
  • Bank of Melbourne/St George Bank
  • Bank of Queensland
  • BankWest
  • Bendigo Bank (and related Community Banks)
  • Commonwealth Bank
  • Macquarie Bank
  • National Australia Bank
  • Westpac.

The regulations provide that if a trust account is opened after 12 December 2005, the trust account name must include:

  • the name of the law practice or the business name under which the law practice engages in legal practice; and
  • the expression “law practice trust account” or “law practice trust a/c”.

For an approved clerk, substitute ‘approved clerk’ for ‘law practice’. Banks must report daily to the Board on the total deposits, withdrawals and the balance of all trust accounts. The interest earned on solicitors’ trust accounts is paid into the Public Purpose Fund, administered by the Board. If you become aware that interest is being paid into your account, you must contact your bank immediately.

Opening a trust account

In order to facilitate the correct opening of trust accounts, please download the instructions for your chosen bank and take to the branch.

Bank Instructions for opening new trust accounts
ANZ Bank Information about opening a Statutory Trust Account with ANZ
Bank of Queensland Information about opening a VIC Solicitor Trust Account with BOQ
BankWest To open a General Trust Account, please contact your local branch or refer to the BankWest website
Bendigo Bank(and related Community Banks) Please contact your local branch or refer to the Bendigo Bank website
Commonwealth Bank Information about opening a VIC Solicitor Trust Account with Commonwealth Bank (44KB PDF) or call 1800 020 306. Download the Authority for Non Personal Accounts (Required) (305KB PDF). Download the Terms and Conditions for Business Cheque and Savings Accounts (310KB PDF)
Macquarie Bank Email depositservices@macquarie.com for details on how to open a trust account or visit the Macquarie Bank website
National Australia Bank Download the NAB Statutory Trust Account Opening Form
St George Bank / Bank of Melbourne Information about opening a Statutory Trust Account with Bank of Melbourne
Westpac Refer to the Westpac website for general procedures to open a Statutory Trust Account – Solicitors with Westpac. Practitioners are also required to take the “Intention to Open Statutory Trust Account(s)” form to the branch when opening a Trust Account. Download the Intention to Open Statutory Trust Account(s) form (PDF)

 Notifying the Board

A law practice or an approved clerk must notify the Board of the following:

  • Opening a trust account
 within 14 days of establishing a trust account in Victoria, a law practice or an approved clerk must notify the Board of the account number and name and address of the branch of the approved deposit taking institution ; download FORM TRUST 8 below.
  • Changing details of trust account
 any changes to trust account information must be notified to the Board within 14 days of becoming aware of the changes; download FORM TRUST 8 below; and
  • Closing a trust account
 within 14 days after closing a trust account in Victoria, a law practice or an approved clerk must notify the Board of the closure; download FORM TRUST 8 below.

Deficiency in a trust account

An Australian legal practitioner or an approved clerk is guilty of an offence if he or she without reasonable excuse, causes:

  1. a deficiency in any trust account or trust ledger account; or
  2. a failure to pay or deliver any trust money.

These are serious offences carrying a maximum penalty of 15 years imprisonment. With respect to a trust irregularity, a legal practitioner must:

  • as soon as practicable after a legal practitioner associate (includes partners, directors, employees and consultants) of a law practice becomes aware that there is an irregularity in the law practice’s trust accounts or trust ledger accounts, the associate must given written notice of the irregularity to the Board and a corresponding authority (if a corresponding authority is responsible for the regulation of the account concerned); and
  • if an Australian legal practitioner believes on reasonable grounds that there is an irregularity in connection with the receipt, recording or disbursement of any trust money received by a law practice of which the practitioner is not a legal practitioner associate, the practitioner must as soon as practicable after forming the belief give written notice of it to the Board and a corresponding authority (if a corresponding authority is responsible for the regulation of the account concerned).

An approved clerk must:

  • as soon as practicable after they become aware that there is an irregularity in any of his or her accounts or trust ledger accounts, give written notice of the irregularity to the Board;
  • if they believe on reasonable grounds that there is a deficiency in a trust account of another approved clerk, report it to the Board as soon as practicable after forming the belief; and
  • if they believe on reasonable grounds that there is an irregularity in a trust account or a trust ledger account of a law practice, report the irregularity to the Board as soon as practicable after forming the belief.

There are heavy penalties in the Legal Profession Act 2004 (Vic) (“the Act”) for failing to comply with these provisions. Please see s 3.3.22 of the Act for further information.

Fees charged on trust accounts

The following fee arrangements will apply for the approved Banks:

  1. All banks agree not to charge administrative or account keeping fees
  2. Banks’ approaches to charging other fees are outlined below:

 

Bank Fees for Regular Transactions(for example deposits, cheques written, cheques in deposit etc) Fees for ad hoc services (for example overseas transactions, dishonours, stop cheques, voucher retrieval/tracing etc)
ANZ Bank

Yes*

Yes*
Bank of Queensland

Yes*

Yes*
BankWest

Yes*

Yes*
Bendigo Bank (and related Community Banks)

Yes*

Yes*
Commonwealth Bank

Yes*

Yes*
Macquarie Bank

Yes*

Yes*
National Australia Bank

No

Yes*
Bank of Melbourne

Yes*

Yes*
Westpac

Yes*

Yes*
 

* May charge fees unless otherwise negotiated.

For further information on fees, please contact the bank (see below):

Bank Contact Details
ANZ Bank Please contact your ANZ Business Banking Manager or visit the ANZ website
Bank of Queensland For more information about fees and charges, please visit the BOQ website
BankWest Please contact your local Branch Manager or visit the BankWest website
Bank of Melbourne/St George Bank Visit the Bank of Melbourne website
Bendigo Bank (and related Community Banks) Please contact your local Branch Manager or visit the Bendigo Bank website
Commonwealth Bank Premium Service CentreInstitutional Banking Government and Financial Institutions Client ServicePhone: 1800 020 306Fax: 1300 135 663Email: ibgovt@cba.com.au
Macquarie Bank Visit the Macquarie Bank website for further information on how our services may benefit your law firm
National Australia Bank For more information about fees and charges, please visit the NAB website
Westpac For more information about fees and charges, please visit the Westpac website or call 132 142

Foreign currency trust accounts

Although the Act does not prohibit the opening of a trust account in a foreign currency, it is the Board’s experience that Banks are reluctant to operate foreign currency trust accounts.

Exemptions from trust regulations

The Board may exempt a law practice or an approved clerk from complying with any of the provisions of Part 3.3 of the regulations, relating to trust money and trust accounts. Download the Trust Account Regulations Exemptions Policy (40KB PDF) If, on behalf of a law practice, you wish to apply for an exemption from specific trust regulations, you should apply in writing to the Board. Please note that, in considering an application for exemption, the Board will take into account any adverse material known about the applicant practice and/or its principals after consultation with the relevant professional association and the Legal Services Commissioner. An application should include consent to disclosure to the Board of information held by the Legal Services Commissioner, the professional associations and any former or current supervisor, receiver or manager of the practice. Each principal of the practice should complete a consent form. Download the Consent form for disclosure of information to the Board (12KB PDF)

Trust account forms

Last modified October 22, 2012.