14 July 2006

Moving Forward to Strengthen the Profession’s Holding of Client Money and Review of the Legal Profession (Solicitors’ Accounts) Rules (‘The Rules’)

Council reviewed a summary of the feedback given by members at the dialogue session held on 12 July 2006.

At the dialogue session members had welcomed the Society studying the feasibility of a fidelity insurance scheme to provide further protection to public for loss of client money or property through dishonesty or fraud. The other feedback from members was that Council look at expanding the Society’s mandatory Professional Indemnity (‘PI’) Scheme to provide civil liability cover for a second signatory to a client account. Council decided to refer both matters to its PI Committee for it to consider the costs and feasibility of such cover.

Council accepted the feedback given by members at the session for Council to issue a Practice Direction (‘PD’) on duties and responsibilities of a second signatory under the Solicitors’ Accounts Rules. Council decided to request the Solicitors’ Accounts Rules Committee to draw up a draft PD.

Council was advised that the President and Vice-President Mr Yap Teong Liang had met with several Trust companies as well as an insurance company to discuss if they would be willing to act as a ‘second key’ for client monies.

First Status Report on a Report on MCPD for the Profession

Mr Thio Shen Yi, Council member and chair of the CPD Committee, advised Council that the ad hoc Committee was considering a minimum number of voluntary continuing professional training hours be set, of which 50 per cent must be training conducted by an approved training provider.

The Committee would recommend that there be compulsory modules for MCPD to include subjects such as ethics. Council agreed that who should administer a MCPD programme for the profession was an important issue that would need to be carefully studied. An important aspect was ensuring a sufficiently broad range of accredited CPD. The meeting was advised that the CPD Committee would meet with the five largest law practices to obtain more information on their in-house CPD programmes as well as the profile of lawyers who attended such events.

Council noted that it would discuss this issue of MCPD with the profession after the report of the Committee was finalised.

Terms of Reference and Duties of the Audit Committee of the Society under the Corporate Governance Code

Council noted and approved the draft terms of reference, duties, membership and responsibilities of the Audit Committee. The Committee for 2007 would comprise Mr Michael Hwang, SC as Chairman, Mr Derrick Wong, Mr Wong Chap Weng (both non Council members) and Mr Thio Shen Yi.

The Audit Committee’s first task would be to advise Council on the strategic process for risk, control and governance of the financial activities of the Society.

Invitation to Members to be Nominees for Panel of Arbitrators of International Chamber of Commerce (‘ICC’) (Singapore)

Council noted and approved a draft circular to members to be nominees for the Panel of Arbitrators for ICC Singapore. Council noted that the purpose of the questionnaire to be sent to members together with the nomination form was to help the Society build a database of its members who were arbitrators.

4 August 2006

Strengthening the Profession’s Holding of Client Monies and Review of the Solicitors’ Accounts Rules

Vice-President, Mr Yap Teong Liang, reported on the progress of the work of the Committee of Council to review the Rules and study the feasibility of proposals made by Council announced to members.

The members of the Committee with the President had held meetings with various third parties to determine the viability of a third party managing clients’ accounts and/or acting as co-signatories. The Committee had also met with representatives of the Institute of Certified Public Accountants of Singapore to determine if certified public accountants would be agreeable to assume the role of a second signatory.

Mr Yap added that following these meetings, an interim report had been prepared and recommendations would be made to Council shortly. The interim report would explore the feasibility of the Society holding clients’ accounts for law practices.

The CEO, Ms Yasho Dhoraisingam, reported that the Professional Indemnity Committee was working on a structure and fee quote for fidelity insurance and the Society’s mandatory Professional Indemnity Broker was working on terms and costs of extending the Scheme to cover the civil liability of co-signatories to clients’ accounts. She advised the meeting that the Solicitors’ Accounts Rules Committee had met and was working on a draft Practice Direction on the duties and responsibilities of a second signatory to clients’ accounts.

Dinner and Dance 2006

Mr Lee Terk Yang, Council representative on the Social and Welfare Committee, reported that the theme for this year’s Dinner and Dance would be ‘Shanghai Nights’. Council agreed that the event would be open to spouses and non-lawyer guests and the Society would underwrite the costs of the dinner subject to the Society seeking sponsorship support to help defray the cost of this annual event.