Staying within the lines and safeguarding trust: protecting clients and the profession
In Western Australia, the Legal Practice Board plays a vital role in making sure legal services are delivered by competent, ethical professionals.
The Board is the designated local regulatory authority for the regulation of legal services in Western Australia under the Legal Profession Uniform Law (WA). The Uniform Law has statutory objectives of:
- Enhancing the protection of clients of law practices and the protection of the public generally
- Promoting regulation of the legal profession that is efficient, effective, targeted and proportionate
With that in mind the Board has endorsed its Strategic Direction and its Regulatory Approach Statement which guides the Board’s approach to delivering its legislative responsibilities, as well as how regulatory priorities are set, resources are allocated, and the range of regulatory tools at its disposal are applied, to best manage risk.
One way the Board ensures that public trust and confidence in the legal profession is maintained is through its Risk Mitigation and Review team, which has developed a Compliance Program focusing on the areas that pose the greatest potential risk to clients. One of the greatest areas of risk and potential harm to consumers of legal services is poor controls and governance around the money held in solicitors trust accounts.
Please don’t have the password to the trust bank account on a post-it note stuck to your computer screen!
Why trust accounts matter
Every day, law practices handle millions of dollars in client funds. This is often done through a solicitor’s trust account or a controlled money account. Since 2020, the total amount held in these accounts across WA has grown dramatically — on average, over $1 billion is held in these accounts in WA on any given day.
With so much at stake, even a small lapse in governance or internal controls can cause serious harm to clients and damage the profession’s reputation. That’s why maintaining the integrity of trust accounts is a top priority for the Board.
A targeted and proportionate approach to compliance
The Risk Mitigation and Review Team’s compliance program combines prevention, education, and targeted reviews. It includes:
- Data analysis – Using accurate, reliable information to spot risks early and allocate resources effectively
- Education and training – Delivering workshops, seminars, and guidance for lawyers, support staff, bookkeepers, and external examiners — the professionals who conduct annual trust account audits
- Proactive reviews – in high-risk areas identified through our data analysis
Education as the first line of defence
The Board knows that the vast majority of compliance issues stem from a lack of awareness and understanding, rather than deliberate mishandling of trust monies. That’s why education is such a big part of the program. Helping practitioners understand their obligations is not only more cost-effective than heavy-handed enforcement — it also builds stronger, more cooperative relationships between the regulator, law practices, and external examiners.
Training efforts provided by the Board include:
- Practical Trust Accounting Workshops for lawyers, support staff, and bookkeepers
- Specialised training for external examiners to help them act as the “first line of defence” in spotting non-compliance
- Collaboration with education providers like the College of Law, ALPMA, and Universities
- Updating and improving online trust account resources on the Board’s website
Data-driven regulation
Reliable data is key to making sure the Board’s work stays targeted and effective. By monitoring information from banks, law practices, external examiners’ reports, and direct enquiries, the Risk Mitigation and Review team can identify trends, detect emerging risks, and refine its compliance strategy.
Protecting clients, strengthening the profession
Ultimately, the Board is committed to ensuring that legal services are provided to the public by competent and ethical legal professionals so that public trust and confidence in the legal profession is maintained. Through its mix of education, data analysis, and review, the Compliance Program aims to keep that trust strong.
