Trust Safety
The Law Society of Alberta's new Trust Safety program will be among the most advanced integrated strategies employed in the regulation of legal professions in the world. The Law Society is now implementing its new program as of January 1, 2011.
This new regulatory structure for trust property addresses concerns about rising threats to the security of trust funds. The Law Society’s new strategy around trust safety introduces new control techniques and new audit measures. These new measures are being applied to lawyers based on demonstrated success in complying with trust rules and maintaining adequate books and records.
The key premises and elements of the program are outlined in the Program Design.
Filing Requirements
For 2011 Year-End Filers
For law firms with a year-end in 2011, please download the Law Firm Self-Report (Transition year only) form, complete it and submit it to Trust Safety.
As a reminder, the Law Firm Self-Report is due within one month of the designated filing date/year end and the Accountants Report is due within four months of the designated filing date/year end. A law firm may opt to submit their automated accounting data within one month of their designated filing date/year end in lieu of the Accountant’s Report.
Refer to Part 5 of the Rules for more information regarding Financial Records, Accounts & Trust Money.
Forms
Guidelines for Completing the Self-Report
Law Firm Self-Report (Transition year only)
Start-Up Report
All forms are to be provided to Trust Safety by fax, mail or email.
Important Information
Changes to fiscal year end date
The Law Society of Alberta must be notified in writing if a law firm has changed their fiscal year end.
Closing trust accounts or a law firm
Please contact the Trust Safety department by email or phone at 403-930-7212.
Issues regarding undisbursable trust funds, as well as questions about accounting procedures or practices should be directed to Trust Safety.
Guidelines
Trust Safety Approvals Guideline
New Rules
The Benchers approved the new Rules to Part 5, Division 2 of the Law Society of Alberta Rules. These are in effect as of January 1, 2011.
The new filing requirements come into effect based on the law firm's designated filing date. This is the date that firms have used in past years to calculate the due date for the old Form S and T. Lawyers seeking to set up a new firm will do so under the new rules.
Rule amendments include the following requirements:
- Trust account approval for lawyers
- New electronic banking transaction requirements
- Express lawyer accountability for supervising staff and trust transactions
- Electronic reporting requirements
- Miscellaneous matters including the requirement that lawyers not sign blank cheques and the requirement to comply with Canada Deposit Insurance Corporation (CDIC) filing.
See the new Rules.
Frequently Asked Questions
All lawyers are encouraged to review the Frequently Asked Questions for details about how the program works.
Education Program
A key component of the Law Society of Alberta’s Trust Safety program is enhancing lawyers’ understanding of the importance of safeguarding trust property and the risks of failing to maintain adequate controls.
A new online education program is being offered through the Legal Education Society of Alberta. Module one will focus on trust accounting fundamentals. Module two will focus on the obligations of the responsible lawyer and cover the new Trust Safety program in detail. These modules will be available to all lawyers with the launch of the program in 2011. To register for the Trust Accounting modules please send us an email, or if you are having technical difficulties, please contact LESA at 780-420-1987.
Summary
The complementary education and risk assessment components will enable lawyers to continue to protect themselves and their clients from those threats. The Trust Safety program protects the public interest and will reinforce the confidence of the public about the safety of their trust money.
The Law Society will become an even stronger model regulator with this new regulatory structure and audit controls.
Contact the Law Society
Lawyers are encouraged to contact the Law Society’s Trust Safety department for further information.
Glen Arnston, CA, Manager, Trust Safety at 780-412-2304 or
Lisa Atkins, Audit Coordinator at 403-229-4740 or
Email the Law Society's Trust Safety department.