Published: 14 November 2022
Pages: 112

Welcome to the Trust Account Supervisor Training Programme.

Since 1 April 1998, trust accounting has been regulated by the New Zealand Law Society’s financial assurance scheme. The provisions of the scheme require each practice to appoint a trust account supervisor where it receives money for, or on behalf of, any person (refer to reg 16 of the Lawyers and Conveyancers Act (Trust Account) Regulations 2008).
This programme has been designed for lawyers who wish to become a trust account supervisor (refer to reg 19) in compliance with the requirements of the financial assurance scheme. This manual is the set text, and details of the assessment requirements are set out in the folder (workbook).

Broadly speaking there are two distinctly different roles for trust account supervisors; those who complete the administration of the trust account themselves, and those who supervise administrators. This course aims to address the education of both.
To begin the programme, please read the introduction in the workbook, which covers distance learning, competency-based assessment, completing the observation report, the assessment day and assessment procedures. You should then read this manual, completing the practice exercises in the workbook as you go. The exams reward the well prepared and practiced candidate rather than the complacent. A high level of numeracy is not a prerequisite.

We trust that you will find the course helpful in your practice. You are encouraged to contact the Inspectorate on any of the issues that arise from time to time in relation to the maintenance or supervision of a trust account.

Melanie Ashall
Inspectorate Manager
New Zealand Law Society | Te Kāhui Ture o Aotearoa
January 2022

Content outline

• Introduction to Trust Accounting
• Introduction – Obligations of law practices under the requirements of the New Zealand Law Society financial assurance scheme
• Unit 1 – Receipting and banking Trust Account transactions
• Unit 2 – Payments and fees
• Unit 3 – Processing Trust Account transactions
• Unit 4 – Trust Account reconciliation
• Unit 5 – Key internal controls of the Trust Account
• Unit 6 – Month end review and reporting to the New Zealand Law Society
• Unit 7 – Risk management
• Unit 8 – Professional obligations when irregularities are suspected