Practice Direction of the Council on Responsibilities and Duties of a Second Signatory under the Legal Profession (Solicitors’ Accounts) Rules (‘Accounts Rules’) and Legal Profession (Solicitors’ Trust Accounts) 
Rules (‘Trust Accounts Rules’)

1.   This Practice Direction takes effect from 8 January 2007.

2.   This Practice Direction of the Council sets out the responsibility and duties of a practising lawyer (‘lawyer’) when he acts as a second signatory to any cheque or any authorisation for withdrawal of monies from any client or trust account under the Accounts Rules or the Trust Accounts Rules.

Basic Responsibility  

3.   A lawyer who acts as a second signatory must verify that every withdrawal from a client account complies with Rules 7 of the Accounts Rules and Trust Accounts Rules.

4.   This is verified by the second signatory by complying with the duties set out in this Practice Direction.

Duties of the Second Signatory

5.   The second signatory must take reasonable steps to check that moneys to be withdrawn were deposited into and are to be withdrawn from the client or trust account as the case 
may be.

6.   The second signatory must review supporting documents shown to him or her by the first signatory lawyer to support the withdrawal from the client or trust account as the case may be.

7.   If the first signatory does not disclose sufficient information and/or documents for the second signatory to carry out his/her duties under this Practice Direction, then the second signatory should not sign the cheque or other authorisation of withdrawal.

Relevant Supporting Documents to be Shown to Second Signatory

8.   The Practice Direction cannot prescribe the supporting documents that a second signatory must have sight of in every type of case to ensure that the withdrawal will be in compliance with Rule 7 of the Accounts Rules or Trust Accounts Rules.

9.   However, some examples of documents are as follows:

(a) For the withdrawal of costs and disbursements from the client to office account, sight of a copy of the bill of costs or other written intimation of costs sent to the client in compliance with the two day notice requirement as prescribed in the Council’s Practice Direction dated March 1991. That what is endorsed on the bill of costs or in a cover letter is a notice to the client that if he (the client) has no objection to the bill within two days of posting, the transfer of moneys from the client to office account will take place.

(b) For the withdrawal of monies from the client account to pay damages due to the client or in a matrimonial matter for payment of maintenance, the relevant settlement letter or agreement or order of court evidencing the sum as payable to the client or third party named in the cheque or authorisation.

(c)  If any payment is to be made to an agent of the client, a written letter of authority signed by the client to the law practice consenting to the payment of client money to the named agent.

10. The Council wishes to remind 
members that lawyers acting as a second signatory for client moneys who fail to exercise reasonable care may be liable in tort to the beneficiary.