• Introduction to Interpretations by the Council Relative to the Rules of Professional Conduct
• IC 104.1 Requirement to Co-operate
• IC 105.1 Hindrance, Inappropriate Influence and Intimidation
• IC 201.1 Maintenance of Reputation of Profession
• IC 201.4 Advocacy Services
• IC 202 Integrity and Objectivity
• IC 204.1 to 204.6 Independence
• IC 204.6 Firms to Ensure Compliance by Partners and Professional Employees
• IC 204.7 Members Acting as Trustee Under the Bankruptcy and Insolvency Act or as Liquidator Receiver or Receiver/Manager
• IC 204.8 Disclosure of Impairment of Independence - Professional Services Other than Assurance or Specified Auditing Procedures and Insolvency Engagements
• IC 204 Canada Elections Act
• IC 205 False or Misleading Documents and Oral Representations
• IC 206.1 to 206.3 Compliance with Professional Standards
• Glossary: IC 207 through 210
• IC 208 Confidentiality of Information
• IC 209 Borrowing from Clients
• IC 210 Conflict of Interest
• IC 211 Duty to Report Breach of Rules of Professional Conduct
• IC 212.1 Handling of Trust Funds and Other Property
• IC 214 Fee Quotations
• IC 215 Contingent Fees
• IC 216 Payment or Receipt of Commissions
• IC 217.1 Advertising and Promotion
• IC 217.2 Solicitation
• IC 217.3 Endorsements
• IC 218 Retention of Documentation and Working Papers
• IC 302 Communication with Predecessor
• IC 303 Cooperation with Successor
• IC 401 Practice Names
• IC 404.2 Operation of Members' Offices

Handling of Trust Funds and Other Property

212.1/1  In this interpretation the term "trust funds" includes all amounts received by a member to be held or disbursed by the member on the instructions of the person from whom or on whose behalf the amounts are received, such person being referred to as "client".

212.1/2  While members may want to obtain legal advice with respect to complying with the law relating to trusts, the following should assist members in understanding the rule:

(a) each trust relationship should be documented in writing;

(b) trust funds, unless subject to written instructions to the contrary, should be deposited without delay to a separate bank account, "a trust account", which may be an account in the name of a specific client, but should in all cases include in its title the word "trust";

(c) withdrawals or disbursements from a trust account should be limited to,

(i)  funds properly required for payment to or on behalf of the client; or

(ii) funds properly required for or toward payment of the member's fees for services rendered or disbursements for which a billing has been rendered and approved, preferably in writing, by the client;

(d) in the absence of express agreement to the contrary, any interest earned on trust funds should be accounted for to the client;

(e) members should maintain records to show clearly trust funds received, paid or held on behalf of clients, clearly distinguishing the funds of each client from those of other clients and from the member's own funds;

(f) members should establish appropriate controls over receipts and disbursements of trust accounts, such as, dual signing authority for disbursements;

(g) there may be occasions where a member receives other property in trust in lieu of funds. Appropriate controls should be established over these properties including, if applicable, the safekeeping of securities or other negotiable instruments; and

(h) a member may consider using a lawyer or trust company where amounts are large or the situation is unusual or contentious.

212.1/3  If the engagement is one governed by bankruptcy and insolvency legislation, members should refer to the provisions of such legislation and any regulations and directives enacted thereunder.

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