Each year by June 30, you or your firm on your behalf, is required to file a completed Trust Account Report in Form 1 with the Executive Director (subsection 6(3) of the Rules). The report is completed for the previous calendar year, so if you opened a trust account on November 30, 2015, you will file your first Form 1 on June 30, 2016, and it will cover the period from November 30, 2015 to December 31, 2015. Your second Form 1 reporting will cover the period from January 1, 2016 to December 31, 2016, and must be filed by June 30, 2017.  

 

The form includes three distinct sections that are completed by you and by your accountant. You first must complete Part A which asks you questions about your trust accounts and how you have operated them over the year. Once you have completed Part A, you will make an appointment with your accountant so that they can visit your office. 

 

Your accountant will be asked to randomly choose some of your files to review. The number of files reviewed will depend on the size of your firm. If you are a sole practitioner, the accountant will randomly choose five of your files to review. The scope of the accountant’s review is outlined in the Instructions, and includes verifying that you have complied with sections 1–6 of the Rules. Once your accountant has completed the review, he or she will sign both the Instructions to Form 1 Accountants and Part B of the form and return the documents to you. Only a Chartered Professional Accountant may complete the form. In other words, your bookkeeper is not qualified to complete Part B of Form 1.

 

Once you have completed Part A and your accountant has completed Part B and signed the

Instructions, you can complete Part C. Before signing this part, review the information provided by your accountant (Part B). If your accountant has noted any exceptions in Part B, you should provide some explanation.

 

After the entire form is completed, send Parts A, B, and C, including the signed Instructions to Form 1 Accountant to the Executive Director by June 30. A staff member of the Law Society will get in touch with you if they have any questions or if they require more information (subsection 6(5) of the Rules).

Some lawyers are exempt from the Uniform Trust Account Rules and do not have to file a Form 1 report. However, these members must file a Form 2 – Declaration of Exemption from Filing Annual Trust Account Report, with the Executive Director by June 30 each year to confirm the exemption. See section 8 and subsection 6(6) of the Rules. Only the following members are exempt from the Uniform Trust Account Rules and must file a Form 2 annually. 

 

A lawyer who:

A lawyer who fails to file either a Form 1 or a Form 2 Declaration, whichever is applicable before June 30 of the year, or who fails to provide any additional information requested by the Executive Director is suspended from practice until he or she complies. See section 7 and subsection 6(5) for more information.