DIVISION I GENERAL PROVISIONS

Transcription

1 The French version of this Regulation is the only official version. This English translation is provided solely for convenience. Regulation respecting accounting and standards of professional practice of advocates Professional Code (R.S.Q. c. C-26, ss. 89 and 91) DIVISION I GENERAL PROVISIONS 1. In this regulation, unless the context indicates otherwise: (1) "money": means any cash, payment order, negotiable instrument, credit card slip, postal money order, express money order or bank money order; (2) "money in trust": means any sum of money received by an advocate for use in accordance with the instructions of the client or another person, including a sum of money advanced to an advocate in payment of fees for services not yet rendered or disbursements not yet incurred; (3) "other property in trust": means any property, other than a sum of money, received by an advocate for use in accordance with the instructions of the client or another person; (4) "advocate": means any person entered on the Roll of the Order of the Barreau du Québec, or a company or partnership for which such person is practising law and, for purposes of sections 13, 20 and 21, any person legally authorized to practise the advocate's profession in Canada; (5) "securities dealer": means any person or entity authorized under legislation of a province or under a statute or order of a territory to engage in the business of dealing in securities or any other financial instruments or to provide portfolio management or investment advising services; (6) "file": means all information, data, exhibits or documents relating to the same mandate or contract for services, recorded on paper and kept in a folder or recorded on a technological medium; (7) reporting issuer : means a company, partnership or organization which is a reporting issuer within the meaning of the securities legislation of any province or territory in Canada, or a legal person whose shares are traded on a stock

2 exchange designated pursuant to section 262 of the Income Tax Act (Canada) (R.S.C. 1985, c. 1 (5 th Supp.)) and which operates in a member country of the Financial Action Task Force (FATF). It also includes a subsidiary of such company, partnership, organization or legal person whose financial statements are consolidated with the financial statements of the company, partnership, organization or legal person; (8) "cash": means coins as provided in section 7 of the Currency Act (R.S.C. 1985, c. C-52) and notes issued by the Bank of Canada under the Bank of Canada Act (R.S.C. 1985, c. B-2) and intended for circulation in Canada, as well as coins and bank notes from countries other than Canada; (9) "funds": means money, securities or other financial instruments, in any form, that indicate a person's title or interest in them; (10) "financial institution" means: (a) a bank subject to the Bank Act (S.C. 1991, c. 46); (b) (c) (d) (e) a foreign bank authorized pursuant to section 2 of the Bank Act with respect to its activities in Canada; a savings and credit union; provincially regulated co-operative credit society or caisse populaire; an association regulated under the Cooperative Credit Associations Act (S.C. 1991,.c 48); (f) a company subject to the Trust and Loan Companies Act (S.C. 1991, c. 45); (g) (h) (i) a provincially regulated trust or loan company; a department or an agent of Her Majesty in right of Canada, of a territory or of a province which accepts monies on deposit when it provides financial services to the public; a subsidiary of a financial institution whose financial statements are consolidated with the financial statements of the financial institution; (11) "organization": means a body corporate, a fund, a trust, a co-operative or an unincorporated association; (12) "public body" means: Page 2 of 21

3 (a) (b) a department or agent of Her Majesty in right of Canada, of a territory or of a province; a body constituted as a legal person for public purposes in the areas of territorial consolidation, education or health and social services, including public bodies subject to An Act respecting Access to documents held by public bodies and the Protection of personal information (R.S.Q., c. A-2.1) as well as government agencies or government enterprises subject to the Financial Administration Act (R.S.Q., c A-6.001). Mandataries and subsidiaries whose financial statements are consolidated with the financial statements of the body are also public bodies; (13) "proceeding": means any application commenced before any court, administrative tribunal, arbitration panel or arbitrator established or appointed pursuant to any Canadian or foreign legislation; (14) "company or partnership": means a company or partnership within the meaning of the Civil Code, or a company or partnership governed by federal or provincial legislation, by a statute or order of a territory of Canada, or by foreign legislation; (15) "electronic funds transfer": means an electronic transmission of funds conducted by and received at a financial institution or a financial entity headquartered and operating in a country that is a member of the Financial Action Task Force (FATF), where neither the sending nor the receiving account holders handle or transfer the funds and where the transmission record contains a reference number, the date, transfer amount, currency and the names of the sending and receiving account holders and of the conducting and receiving institutions or entities. 2. An advocate practising law for a company or partnership which is in compliance with the provisions of this Regulation is deemed also to be in compliance with the said provisions. DIVISION II PROFESSIONAL DOMICILE AND STANDARDS OF PRACTICE 3. The advocate's professional domicile shall include a civic address and be clearly visible by means of a sign or other indicator. It shall be equipped with a telephone whose number is listed in the name of the advocate, his employer or the business name of his firm, in the telephone directory of his region, and shall be accessible by fax machine. The advocate must have access to a computer at his professional domicile and have a professional address in his name. Page 3 of 21

4 4. The advocate must have access at his professional domicile or in the vicinity thereof to the up-to-date legal documentation required for his areas of practice, whether such documentation is on paper or a technological medium. 5. The advocate shall use a consulting room or other room for meeting clients or holding conversations that are subject to professional secrecy. This consulting or other room must be closed and designed in a way that prevents the conversations of persons therein from being heard from outside the room. No other person shall have access to this room for the duration of such meetings or conversations, unless authorized by the advocate. 6. Where the advocate will be absent from his professional domicile during normal business hours, he must take appropriate measures, depending on the duration of his absence, to ensure that all proceedings can be served on him, and provide for a mechanism to process his calls, messages, mail, and any emergencies. 7. The advocate must, where applicable, maintain an up-to-date system for reminding him of the prescription dates of recourses and any other time limits that may affect his clients' legal recourses. 8. The advocate must use an agenda, ledger or any other means for keeping track of his appointments, court attendances and reminder dates for his files. 9. The advocate must keep an up-to-date list of his active files and of files he has closed during the past seven years. 10. Whether the advocate uses paper or a technological medium for his correspondence, such correspondence must at least contain his name, employer's name or business name of his firm, the address of his professional domicile, his telephone and fax numbers and his professional address. DIVISION III RECORD KEEPING 1. Record keeping 11. The advocate must open a file for every mandate or contract for services obtained by him. In the event of a simple consultation, the advocate may keep his notes in a general file. Page 4 of 21

5 12. For purposes of this Regulation, any files kept by an advocate's employer are considered to be files of the advocate if such files can be used by him to hold legal documents or information concerning his professional practice. 13. In every file, the advocate must identify the client and keep all information therein on the nature of the mandate or contract for services obtained by him. This responsibility may be fulfilled by any other advocate who is a partner, shareholder or employee of the firm for which the advocate is practising law, regardless of the location of the firm. However, such identification is not required where: (1) the advocate is acting on behalf of his employer; (2) the advocate is acting at the request of another advocate or is replacing another advocate in the file, and the other advocate has already completed the identification; (3) the advocate is acting as part of a duty counsel program sponsored by a nonprofit organization, unless he engages in or gives instructions in respect of the receiving, paying or transferring of funds. 14. When identifying the client, the following information shall be obtained: (1) in the case of an individual: (a) (b) (c) (d) his name; personal or business address, where applicable; personal or business telephone number, where applicable; and occupation; (2) in the case of a company, partnership or organization: (a) its name; (b) address; (c) telephone number; (d) certificate of incorporation number or identification number and the place where it was issued, where applicable, and the general nature of its activities, unless it is a financial institution, public body or reporting issuer; and (e) the name, position, address and telephone number of the authorized persons giving instructions with respect to the mandate or contract for services. Page 5 of 21

6 Where the client is acting for a third party, the advocate must obtain the information referred to in paragraphs (1) or (2), as the case may be, with respect to such third party. 15. The advocate must use a system that allows for the orderly classification of his files and the contents thereof, whether they are recorded on paper or a technological medium. Where he uses a coded identification, the advocate shall keep a register of the codes corresponding to the files. 16. Unless the advocate has adopted another effective system, the proceedings, correspondence and other documents must be kept separately in the files. 17. The advocate must maintain the confidentiality of his files and all professional information provided to him by his client and third parties. 18. The advocate shall keep all his active files at his professional domicile or in an appropriate archiving facility. For purposes of the application of this section, "active file" means a file in which the advocate is either: (1) attempting to recover the payment of his fees; or (2) has a mandate to continue acting for his client. Where a client's file has ceased being active, the advocate must retain the file in his records for at least seven years from the date it was closed. He may use any archiving system or process that gives him access to the information contained in the file on the date it was closed. 19. The advocate may not destroy an original document belonging to the client without obtaining the client's authorization to do so or giving him an opportunity to reclaim the document. 2. Verification of client identity 20. The advocate must verify the identity of his client, any person referred to in section 14(2)(e) and any third party for whom the client is acting, where, on behalf of his client, and except by means of an electronic funds transfer, he engages in or gives instructions in respect of the receiving, paying or transferring of funds. This responsibility may be fulfilled by any other advocate who is a partner, shareholder or employee of the firm for which the advocate is practising law, regardless of the location of the firm. 21. The advocate is not required to verify the identity: Page 6 of 21

7 (1) where his client is a financial institution, public body or reporting issuer; (2) where he is acting on his employer's behalf; (3) where he is acting at the request of another advocate or is replacing another advocate in the file, and the other advocate has already completed the verification of the identity; (4) where the advocate is acting as part of a duty counsel program sponsored by a non-profit organization, unless he engages in or gives instructions in respect of the receiving, paying or transferring of funds; (5) where funds are received or paid: (a) as a settlement of any proceedings; (b) pursuant to a court order or to pay a fine or penalty; (c) for deposit in court to obtain the release of a person in custody; (d) for professional fees, disbursements, or an advance thereof; (6) where funds are received from or paid to a financial institution, a public body or a reporting issuer; (7) where funds are received: (a) from the trust account of another advocate or notary; (b) from a peace officer, law enforcement agency or other public official acting in their official capacity. 22. The advocate shall take all reasonable measures to verify the identity referred to in section 20 using what he reasonably considers to be reliable, independent source documents, data or information, copies of which shall be kept in the file. The information referred to in the first paragraph shall be recorded or preserved on paper or any technological medium, provided that copies can easily be made thereof at any time. 23. When verifying the identity of an individual, the reliable, independent source documents, data or information must contain proof of his or her identity. When verifying the identity of a company, partnership or organization, such reliable, independent source documents, data or information must be obtained from a competent authority and confirm the existence, name and address of the company, partnership or organization as well as: (1) the name and occupation of the directors, except in the case of a securities dealer; Page 7 of 21

8 (2) the name, address and occupation of all persons holding 25 percent or more of the organization or partnership, or of the shares of the company. 24. When an individual referred to in section 20 who is not physically present before him but is present elsewhere in Canada, the advocate shall: (1) entrust an agent, with whom he shall conclude a written agreement for this purpose, with the responsibility for obtaining the documents, data or information referred to in the first paragraph of section 23, who shall provide this information to the advocate; or (2) obtain an attestation from a guarantor in Canada indicating that he has seen this individual and a reliable and independent source document evidencing his identity. The attestation must be in written form and provided to the advocate. It must contain the name, profession and address of the guarantor, his signature and the type and reference number of the identifying document provided by the person in question. The guarantor may be any of the following: (1) a judge; (2) a commissioner for taking oaths or any other person authorized to take oaths within the meaning of the Courts of Justice Act (R.S.Q., c. T-16); (3) a person legally authorized to take oaths elsewhere in Canada; (4) a professional within the meaning of the Professional Code (R.S.Q., c. C-26); (5) a person legally authorized in Canada to practise a profession practised in Québec by a professional within the meaning of the Professional Code. 25. When an individual referred to in section 20 who is not physically present before him and is outside of Canada, the advocate shall entrust an agent, with whom he shall conclude a written agreement for this purpose, with the responsibility for obtaining the documents, data or information referred to in the first paragraph of section 23, who shall provide this information to the advocate. 26. Where the advocate is required to verify the identity, he shall do so: (1) in the case of an individual, by no later than the time at which he receives funds or gives instructions in respect of the receiving, paying or transferring of funds; Page 8 of 21

9 (2) in the case of a company, partnership or organization, by no later than 60 days following the day on which he receives funds or gives instructions in respect of the receiving, paying or transferring of funds. 27. Where an advocate has verified the identity of an individual, he is not required to do so again if he recognizes this person. Nor is he required to do so in the case of a partnership, company or organization, if he has obtained the information required in section 23, paragraphs (1) and (2), and this information has not changed. DIVISION IV ADMINISTRATIVE AND TRUST ACCOUNTING 1. General provisions 28. Every advocate must keep up-to-date accounting books and records for the practice of his profession. 29. Such accounting books and records must be kept in a manner that: (1) maintains the confidentiality of the accounting data; (2) maintains the security of the accounting data; (3) enables the advocate, the syndic and his investigators, and the director of professional inspection and his inspectors and experts, to access the data contained therein at all times. 30. The books and records must be kept in a legible and permanent form on paper or any technological medium, provided that copies can be made thereof immediately at any time. Where kept by hand, they must be in ink. Transfers of money by electronic means are subject to the provisions of this Regulation. 31. Once a file is closed, the advocate must retain all the accounting journals and registers relating to his professional practice in his records for a period of no less than 7 years, except the register of monthly accounting reports. 32. The advocate must retain in his records for a period of no less than 7 years from the end of his fiscal period: (1) the monthly accounting reports; (2) a copy of any cheque or other payment order received in trust; Page 9 of 21

10 (3) all vouchers or control documents relating to the entries made in the accounting journals and registers referred to in section 31, including all duplicates of receipts that he has issued, passbooks and statements of the financial institutions with which he has done business, copies of cleared cheques and other payment orders, copies of detailed deposit slips, as well as all documents confirming transactions made by electronic means. 33. Upon the written request of the Executive Committee, the syndic or the director of professional inspection, the advocate shall reconstruct his accounting records in accordance with the provisions of this Regulation within the time period indicated in the request. Should the advocate fail to comply with the request within the specified time period, the Executive Committee, the syndic or the director of professional inspection, may retain a person of its/his choosing to reconstruct the advocate's accounting records at the advocate's expense. DIVISION V ADMINISTRATIVE ACCOUNTING 1. Administrative receipts and disbursements journal 34. Every advocate must keep an up-to-date book or other permanent accounting register for his administrative accounting in which the following shall be recorded, in chronological order: (1) for every receipt of money belonging to him and received in the course of his professional practice: (a) (b) (c) (d) (e) (f) (g) the date the amount was received; the amount received; name of the person from whom the amount was received; name of the client for whom the amount was received; associated file number or file name; purpose for which the amount was received; where the amount was received in cash, a note to this effect; (2) for every disbursement of money belonging to him and made in the course of his professional practice: (a) (b) (c) (d) the date of the disbursement; the amount of the disbursement; name of the beneficiary of the disbursement; where applicable, name of the client for whom the disbursement was made; Page 10 of 21

11 (e) the associated file number or file name. DIVISION VI TRUST ACCOUNTING 35. The advocate is authorized to hold money and property in trust in the practice of his profession. 36. The advocate shall keep separate books, journals and registers for each general trust account that he holds. 37. As soon as the advocate receives or withdraws money in trust, he shall make the accounting entries required by this Regulation. 1. Trust receipts and disbursements journal 38. Every advocate must keep an up-to-date book or other permanent accounting register in which the following shall be recorded, in chronological order: (1) for every receipt of money in trust: (a) (b) (c) (d) (e) (f) (g) (h) the date the amount was received; the amount received; name of the person from whom the amount was received; name of the client for whom the amount was received; associated file number or file name; purpose for which the amount was received; where the amount was received in cash, a note to this effect; the balance of the account after each entry; (2) for every disbursement of money in trust: (a) (b) (c) (d) (e) (f) (g) (h) (i) the date of the disbursement; the amount of the disbursement; name of the beneficiary of the disbursement; name of the client for whom the disbursement was made; associated file number or file name; purpose for which the disbursement was made; method of withdrawal; cheque number, where applicable; the balance of the account after each entry. Page 11 of 21

12 2. Client-card register 39. Every advocate must keep an up-to-date book or other permanent client-card register. For purposes of this Regulation, a client card is a document kept by the advocate containing the information specified in this section. A client-card must indicate separately, for each client and, where applicable, for each file of the same client: (1) for every receipt of money in trust: (a) (b) (c) (d) (e) (f) the date the amount was received; the amount received; name of the person from whom the amount was received; purpose for which the amount was received; where the amount was received in cash, a note to this effect; the new balance of the account after each entry; (2) for every disbursement of money in trust: (a) (b) (c) (d) (e) (f) (g) the date of the disbursement; the amount of the disbursement; name of the beneficiary of the disbursement; purpose for which the disbursement was made; method of withdrawal; cheque number, where applicable; the new balance of the account after each entry. 3. Register of monthly accounting reports 40. Every advocate must keep an up-to-date permanent register containing the monthly accounting reports for each general trust account. 41. Each monthly accounting report shall be drawn up on the form prescribed by the Executive Committee and shall contain the following information concerning the month in question: (1) a list of the balances recorded in the client cards at the end of the month, indicating the client's name, file number or name, and date of the last entry; (2) a list of the cheques outstanding at the end of the month, indicating, for each, the amount, date of issue, cheque number, client's name, and file number or name; Page 12 of 21

13 (3) a list of the receipts outstanding at the end of the month, indicating, for each, the amount, date of receipt, client's name, and file number or name; (4) the total receipts and disbursements for the month; (5) a comparative statement between the balance in the receipts and disbursements journal at the end of the month and the balance at the end of the month appearing in the statement from the financial institution; (6) a list of the private trust accounts at the end of the month indicating, for each, the client's name, file number or name, name of the depositary financial institution, account number, account opening date and initial amount deposited; (7) for each general trust account, a copy of the statement from the financial institution for the month in question. 4. Annual accounting report 42. The advocate shall report to the Barreau on his trust accounting in accordance with the following terms and conditions. At least once per year and within 30 days following the receipt of a request from the director of professional inspection, the advocate, using the form prescribed by the Executive Committee, shall submit to the director of professional inspection an annual accounting report covering the 12-month period identified in the request and indicating, for each general trust account: (1) a list of the balances recorded in the client cards at the end of the period, indicating the client's name, file number or name, and date of the last entry; (2) a list of the cheques outstanding at the end of the period indicating, for each, the amount, date of issue, cheque number, client's name, and file number or name; (3) a list of the receipts outstanding at the end of the period, indicating, for each, the amount, date of receipt, client's name, and file number or name; (4) the total receipts and disbursements for each month of the period; (5) a comparative statement between the balance in the receipts and disbursements journal at the end of the period and the balance at the end of the period appearing in the statement from the financial institution. A copy of the statement from the financial institution for the last month of the period must be attached to the report; Page 13 of 21

14 (6) a list of the private trust accounts at the end of the period indicating, for each, the client's name, file number or name, name of the depositary financial institution, account number, account opening date and initial amount deposited; (7) a list of each of the general and private trust accounts that were closed during the period. DIVISION VII OTHER PROPERTY IN TRUST 1. Register of other property in trust 43. The advocate shall, upon receipt or delivery to him of any other property in trust, enter, in a permanent register, a description of the property including any identification number, the date on which the advocate took possession thereof, name of the client on whose behalf the property is being held, date on which the advocate delivered up the property, and name of the person to whom it was delivered up. 2. Receipt of other property in trust 44. The advocate shall inform the client, without delay, where any person other than the client delivers other property in trust to the advocate. 45. The advocate shall inform the client of the place where a movable property that was delivered to him in trust is being kept, and any subsequent change in the location thereof. 46. All other property in trust shall be used in accordance with its intended purpose. DIVISION VIII RECEIPT AND WITHDRAWAL OF MONEY IN TRUST 47. The sums of money held in trust by the advocate must be related to the performance of a lawful, clearly defined contract for services or mandate connected with the practice of his profession. The mere act of holding sums of money in a trust account does not constitute the practice of the profession. 48. The sums of money held in trust must be used in accordance with their intended purpose. Page 14 of 21

15 49. The advocate shall inform the client, without delay, where any person other than the client entrusts the advocate with money in trust. 1. General trust account 50. The advocate shall, without delay upon the receipt of money in trust, deposit it in a general trust account in a Québec branch of a financial institution in respect of which the deposits made in such financial institution are covered by deposit insurance under the Canada Deposit Insurance Corporation Act (R.S.C. (1985), c. C-3), or guaranteed under the Deposit Insurance Act (R.S.Q., c. A-26), and which has concluded an agreement with the Barreau pursuant to the Regulation respecting the fund for legal studies of the Barreau du Québec (R.R.Q., 1981, c. B-1, r.5). This general trust account shall be identified in the name of the advocate or the company or partnership for which the advocate practises law, followed by the words "in trust" or "en fidéicommis". 51. At the time a general trust account is opened, the advocate shall, without delay, submit a duly completed and signed copy of the form prescribed by the Executive Committee to the Barreau and the depositary financial institution. The advocate shall retain a copy of this form in his records. 52. The advocate may only deposit in a general trust account money received in trust and money required to cover the administrative charges of such account. 53. Where an advocate receives a sum of money in an indivisible form of which only a portion must be deposited in his general trust account, he shall deposit it in this account and withdraw, without delay, the portion which is not required to be deposited therein. 54. The advocate shall not deposit in a general trust account: (1) money received as an advance on account of fees or disbursements for which a bill has been sent; (2) money paid to him to ensure his availability when it is agreed in writing that he will be entitled to keep such money even if he is not subsequently required to render services or make disbursements. 55. The agreement referred to in section 54(2) may only be concluded where the client, for lawful purposes, wishes to guarantee the advocate's availability to act in connection with an apprehended situation without knowing the nature and scope of the services required. 56. The advocate may only withdraw from the general trust account: (1) money to be paid to a client or a third party on the client's behalf; Page 15 of 21

16 (2) the amount of fees and disbursements for which a bill has been sent, provided the withdrawal is made in accordance with the terms of section 58; (3) money which is transferred directly into another trust account. 57. Subject to section 72, the advocate shall not withdraw amounts in cash from a general trust account. Cheques or other payment orders shall indicate the name of the beneficiary and may not be payable to bearer, to "cash", or in the form of a blank cheque. 58. Withdrawals from the general trust account for payment of fees and disbursements must be made without delay and only by cheque drawn to the order of the advocate or by transfer to an account that is not a trust account, opened in the advocate's name or the name of the company or partnership for which he practises law. 59. The advocate may not withdraw a higher amount in respect of a file from the general trust account than the balance held in such account in respect of such file. 60. The advocate shall, without delay, make up any debit balance in respect of funds held in trust in any file, regardless of the reason for such debit balance. 61. All cheques or other payment orders drawn on a general trust account shall bear the name of the advocate or company or partnership for which he practises law, followed by the words "in trust" or "en fidéicommis", and shall be numbered consecutively. 2. Private trust account 62. Where a client requires the payment to him of the income from any sum of money that is deposited by him in trust with the advocate, once the said amount has been deposited in his general trust account, the advocate shall transfer it, without delay, into a private trust account. 63. The private trust account shall be opened in a Québec branch of a financial institution in respect of which the deposits made in such financial institution are covered by deposit insurance under the Canada Deposit Insurance Corporation Act, or guaranteed under the Deposit Insurance Act. Such private trust account shall be identified in the name of the advocate or the company or partnership for which he practises law followed by the words "in trust" or "en fidéicommis" and make reference to the name of the client for whom the account was opened. Page 16 of 21

17 64. When a private trust account is opened, the advocate and the client shall complete the form prescribed by the Executive Committee and submit it without delay to the Barreau and the depositary financial institution. The advocate shall keep a copy in his records and provide a copy to the client. 65. Private trust accounts shall only be used to hold sums of money, transfer money to the general trust account, acquire or renew investments, receive income generated by such investments and pay the charges associated with such accounts. 66. Where an advocate opens a private trust account, he shall keep an up-to-date clientcard book or other permanent client-card register indicating, separately, for each private trust account: (1) the amount of each transfer of money from the general trust account; income generated by the investments; date of each receipt of money in the private trust account; and balance after each entry; (2) the amount of each transfer of money to the general trust account; charges associated with the private trust account; date of each disbursement from the private trust account; and balance after each entry. 67. Where a private trust account is no longer required, the advocate shall, without delay, transfer the balance thereof into the general trust account. 68. For purposes of this subdivision, where an advocate, at a client's request, acquires an investment that is held with a financial institution or securities dealer, such investment is deemed to be a private trust account if it was acquired with a sum of money entrusted to the advocate in the circumstances referred to in section 62. In such case, the advocate shall comply with the requirements provided for in sections 62 to 67 of this Regulation. DIVISION IX CASH AMOUNTS 69. The advocate may not receive a cash amount of $7,500 or more in trust in respect of the same mandate or contract for services unless such amount is paid to him: (1) by a financial institution; (2) by a public body; (3) pursuant to an order of the court or to pay a fine or penalty; (4) by a peace officer, a law enforcement agency, or other agent of the Crown acting in their official capacity; Page 17 of 21

18 (5) for deposit in court in order to obtain the release of a person in custody; (6) as an advance on account of fees or disbursements. 70. The advocate shall provide any person from whom he receives a cash amount with a receipt, and retain a duplicate thereof, indicating: (1) the date the amount was received; (2) the name of the person from whom the amount was received; (3) the amount received; (4) the name of the client for whom the amount was received; (5) the associated file number or file name; (6) the purpose for which the amount was received. This receipt shall be signed by the advocate who received the said amount, or a person authorized by him to receive it, and by the person from whom the amount was received. 71. Where the advocate receives a cash amount of $7,500 or more, he shall, within 30 days of his receipt thereof, submit a copy of the receipt to the director of professional inspection accompanied by a signed statement indicating the amount that was received together with a notation, in each case, to the effect that such amount was received either on account of fees earned or disbursements incurred, or a reference to the exception in section 69 that authorizes him to accept such cash amount. 72. Notwithstanding section 57, where an advocate is required to reimburse, in whole or in part, an amount of $7,500 or more received by him in cash, he must make such reimbursement in cash. In such a case, the advocate shall obtain a receipt from the person to whom he returns the reimbursed amount, bearing the signature of that person together with the following information: (1) the name of the client; (2) the name of the person receiving the amount; (3) the amount reimbursed; (4) the date of the reimbursement; Page 18 of 21

19 (5) the associated file number or file name. 73. For the purposes of this division, an amount in foreign currency is deemed to have been received at its value in Canadian dollars at the official conversion rate published in the Daily Digest of exchange rates of the Bank of Canada. The rate applied shall be the rate in force at noon on the day on which the amount is received or, in the case of a legal holiday, that of the preceding business day. DIVISION X CESSATION OF PRACTICE 74. This division applies to the files, books, records and registers kept by an advocate who is ceasing the practice of law. However, it does not apply to an advocate who ceases to practise law where he is the employee of an individual, a legal person, a partnership or a public body. 75. Where an advocate voluntarily ceases to practise law or accepts a new position that prevents him from practising law, he must transfer his files, books, records and registers to an advocate who is practising law. 76. The advocate shall, prior to the date on which he is scheduled to cease practising or to commence the new position, give written notice to the syndic and his clients of such date and of the name of the advocate who has agreed to be the transferee of his files. 77. In the event of the revocation of the license, disbarment, suspension of the right to practice, disqualification, or inability to act of an advocate, the syndic shall take possession of the advocate's files, books, records and registers. In the event that a practice restriction is imposed on an advocate, the syndic shall, where appropriate, take possession of the files, books, records and registers of the advocate affected by such restriction. 78. The advocate shall make arrangements for his files, books, records and registers to be transferred, upon his death or in the event of his incapacity, to an advocate practising law, designated by him. Upon the death or declaration of incapacity, the transferee shall notify the syndic and clients in writing of the date of death or declaration of incapacity of the advocate, the transfer of their files, and their right to retain a new lawyer or repossess their files by the date indicated by him. Page 19 of 21

20 If the transfer contemplated in the event of such death or incapacity cannot be completed, the syndic shall take possession of the files, books, records and registers of the deceased or incapable advocate. 79. Where the syndic takes possession of the files, books, records and registers of an advocate, he shall immediately notify each client whose file is active, in writing: (1) that he has taken possession of his file and the reason for doing so; (2) of the identity and contact information of the advocate to whom he has transferred the file, where applicable; (3) of the date by which the client may repossess his file or, if it was transferred, by which the client may agree to such transfer or repossess his file. 80. Where necessary to protect the clients' interests, the syndic may transfer the files that he has taken possession of to an advocate practising law even before he gives the notice referred to in section The syndic may publish a notice that he has taken possession of the files, books, records and registers of an advocate in a newspaper of the region where the advocate formerly practised law. This notice shall indicate the name of the advocate concerned and the relevant information provided for in section Where the syndic takes possession of the files, books, records and registers of an advocate, the syndic as well as the transferee of the said files shall retain in their records any such files that are not repossessed by the clients for a period of no less than seven years. Where the file was already closed at the time of the taking of possession or transfer thereof, the said period of retention of seven years shall start running from the date the file was closed. DIVISION XI TRANSITIONAL AND FINAL PROVISIONS 83. Advocates shall have a time period of two years from the date this Regulation comes into force to comply with the requirements of having access to a computer at their professional domicile and having a professional address, provided for in section The requirement to keep a list of closed files provided for in section 9 only applies to files closed on or after the date of the coming into force of this Regulation. Page 20 of 21

21 85. Section 14 and sections 20 to 27 do not apply to files that existed before the coming into force of this Regulation, but do apply to any new file, whether the client is a new or old client. 86. This Regulation replaces the By-law respecting accounting and trust accounts of advocates (R.R.Q., 1981, c. B-1, r.3), the Règlement sur les normes de tenue des dossiers et de domicile professionnel des avocats approved by the Office des professions du Québec pursuant to a notice published in the Gazette officielle du Québec on December 27, 2000, and the Regulation respecting the cessation of practice of members of the Barreau du Québec (D , ). 87. This Regulation comes into force on the 120th day following the date of its publication in the Gazette officielle du Québec. Page 21 of 21