Notice Of Approval Of Amendments To The Law On The Bond Of Lawyers With Respect To The Treatment Of Entrusted Funds

Original Language Title: Notice Of Approval Of Amendments To The Law On The Obligations Of Lawyers With Respect To The Treatment Of Entrusted Funds

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Read the untranslated law here: https://www.retsinformation.dk/Forms/R0710.aspx?id=116323

Overview (table of contents) Annex 1

Annex 2 the full text, the Executive order on approval of amendments to the regulations on lawyers ' duties with regard to the treatment of fiduciary

Pursuant to section 127 of the law on the Court of Justice, without prejudice. lovbekendtgørelse nr. 1261 by 23. October 2007, the Ministry of Justice on 2. April 2008 approved changes in the Statute of 27. May 1983 on lawyers ' duties with regard to the treatment of fiduciary regulation. Executive Order No. 720 of 26. August 2002 approving the amendment of staff regulations on lawyers ' duties with regard to the treatment of fiduciary. The changes, which come into force on 15. April 2008, and a merger of the entire Statute after the changes have been included as annexes 1 and 2 to this order.
The Ministry of Justice, the 2. April 2008 Lene Espersen/Rasmus B Annex 1

Amendment of staff regulations on lawyers ' duties with regard to the treatment of fiduciary

§ 1

In the regulations on lawyers ' duties with regard to the treatment of fiduciary regulation. The Ministry of Justice Decree No. 720 of 26. August 2002, shall be amended as follows:

1. section 10, paragraph 1, is replaced by the following:

' (1). The Bar Council shall determine with appropriate notice, a period within which all companies and persons covered by these staff regulations, pursuant to section 19, and have had since the beginning of the year, calendar appointment to the Bar Council must submit a declaration about the amount of Attorney's firm or lawyer's total equivalent of fiduciary money per 31/12 in the previous year. '

2. In section 10, paragraph 3, and article 11, paragraph 4, shall be inserted after 1. item:

» The Bar Council may determine that the Declaration must be made by electronic means. '

3. section 11 (a) is replaced by the following:

» section 11 (a). A lawyer who has lost the right to exercise the profession of lawyer, or which has deposited his appointment, may not be in possession of monies.

(2). The person referred to in paragraph 1 shall, within one month after the right to exercise the lawyer undertaking has ceased, in writing to the Council declare that the Lawyer in question per date no longer has corresponding of fiduciary. The Declaration must be certified by a registered or certified public accountant.

(3). The provisions of paragraphs 1 and 2 shall apply correspondingly, when a lawyer company dissolves or changes the purpose. '

4. section 19 is replaced by the following:

» § 19. This statute includes











1)





all lawyers, see. However, paragraph 2,







2)





all lawyer companies, see. Code of civil procedure § 124 (1)







3)





other co-owners of Attorney companies, see. Code of civil procedure § 124, paragraph 3, nr. 2., and







4)





all foreign lawyers who work in Denmark in accordance with the European Community decisions.











(2). The activities of a lawyer in the context of an employment relationship for an association or a company not engaged in law practice pursuant to section 124 of the code, is only covered by section C of the staff regulations on supervision.

(3). The rules laid down in this Statute for a period of 6 months shall continue to apply to a person who is excluded from exercising the profession of lawyer, see. Code of civil procedure §§ 141 and 147 c, paragraph 3, or if the right thereto has ceased pursuant to civil code § § 137-139, see. § 142. '

5. In section 21 shall be added after ' but also ': ' shareholders and '.

§ 2

The amendments shall enter into force on the 15. April 2008.









 



 





Approved





 





The Ministry of Justice, the 2. April 2008





 





Lene Espersen





 





/Rasmus B









Annex 2

Regulations on lawyers ' duties with regard to the treatment of fiduciary

A. Fiduciary money

§ 1

(1). Any lawyer, see. However, section 20, which receives money on behalf of third parties, in addition to the personal accounts, which include the individual balances, conduct a joint account, which shows the size of the lawyer's total equivalent of fiduciary money.

(2). If a lawyer from another Member State of the European Union operates in Denmark from a Danish lawyer's present Office, shall be deemed to be any amount included for the Office on behalf of third parties, which concluded for the Danish lawyer, unless it is clear from the circumstances that the amount is entered into to that lawyer from another EU Member country.

(3). From the common client tilsvars account can individual balances secreted when their extent or other special circumstances make it desirable. Such a between the interests of account in the lawyer's bookkeeping is also a client tilsvars account, and this account must explicitly be referred to as client tilsvars account.

(4). Tilsvars client account in accordance with paragraph 1 shall include all the amounts received by a lawyer as part of law firm receives on behalf of third parties. Amount for the fulfilment of agreements for the purchase and sale of real estate, business, planes, ships, etc. or amounts in connection with asset management, including administration of real property, must not, however, be assimilated to the lawyer's client account, provided that such amount be inserted tilsvars on special accounts in a financial institution. Such accounts are created for and in the client's name and the scope of the rules concerning the exact registration of the basic regulation. § 8.

(5). The lawyer's accounting must be placed on each working day.

§ 2

(1). What a lawyer after client tilsvars account balance must be able to tilsvare a third party, to be held in a special account designated as a client account in the bank, savings bank or postal giro.

(2). A client account with a financial institution created in the lawyer's name and is available subject to the Attorney General.

(3). A lawyer's total client deposits at multiple client accounts may be similar in one or more financial institutions, including on accounts created for use by the liabilities to a single client. Such accounts is also created in the lawyer's name, but may have vedtegning on the client's name.

(4). There must be consistency between the same day skontoen and held in client accounts in a financial institution, except for those in today's races occurring entries and exits, which the lawyer has been able to regulate over client accounts of that financial institution the following working day. It must be documented that the rule in the first sentence are met.

(5). The Bar Council can inform law offices with modest daily movements on a derogation from the rules in tilsvars client account (4) and in article 1, paragraph 5, provided that the following circumstances are unobjectionable. It must be documented that the derogation are met.

§ 3

(1). Client accounts can only be created at financial institutions, which by one of the Bar Council approved statement has committed itself to comply with the following provisions:











(a))





Regardless of possible different between being with the lawyer or any of his clients to the Bank not by set-off or otherwise dispose of something on a client account deposit amounts, as is necessary in order to cover lawyer's equivalent to third man for fiduciary.







(b))





On a client account must except for internal transfers between the lawyer's client accounts only:





 



1)





by cheques, or





 



2)





by computer transmission, where the payment afsenderens account appears, who has ordered the transfer, and to which account the amount is transferred.







(c))





Decisions taken by the Bar Council under section 17.











(2). Client accounts can be created in such a way that they cannot be disposed of them by checks, but by transfer to one of the lawyer created client account to which the client account cheques are issued.

(3). Client account may only be created in the money Department, where, under the law on the deposit guarantee is granted full coverage for account deposits in case of Bank bankruptcy.

§ 4
(1). On the client account in a financial institution shall without undue delay be inserted all contracted trusted money, including amounts paid to the lawyer for the organisation of attachment for clients or as an advance on the fees.

(2). Lessor a sum, as immediately after receipt is used for payment for the provision to a Bill.

(3). Money, as a lawyer receives for a partnership in which he is himself a stakeholder, is to be treated as trusted money, see. (1).

(4). On the client account in a financial institution must only be inserted amount, which the lawyer has received as part of the profession of lawyer.

§ 5

(1). On the client account in a financial institution should only be raised:











(a))





Amounts paid to a client or a client's Bill.







(b))





Amount owed to the lawyer with a client in accordance with posted between being, eligible for set-off.







(c))





Amount after real statement and vote exceeds the lawyer's total equivalent, and which therefore belongs to the lawyer.











(2). Amount to be raised in accordance with subparagraph (a) or (b), may not exceed what any representations on the client account as a client concerned to come.

(3). Amount to be raised under (b) or (c) will be inserted on the lawyer's account in the financial institution.

(4). Fees may, although they are earned, not enforced on the client account, without at the same time, the fee is posted.

(5). On the client account should only be raised on the in section 3 (1) (b), in the manner described.

§ 6

A lawyer must have at least 1 time each month make a vote of whether the sum of liabilities on the individual clients ' accounts voting with client tilsvars account according to the lawyer's bookkeeping. Any discrepancies shall be promptly adjusted when posting on client tilsvars account and corresponding insertion or withdrawal at client's account in a financial institution. Annex concerning the vote of the lawyer must be kept for at least 2 years.

§ 7

(1). Each lawyer has a duty to, unless specific agreement exists to give an interest of his analogy of experience for a client in accordance with the paragraphs 2 to 8 listed rules and, moreover, where the failure to submit interest would lead to an unreasonable result for the client.

(2). In cases where a lawyer has an equivalent of over 10000 DKK over for a client, be interest-bearing liability to the client or other appropriate.

(3). Have a lawyer who does not lead summary accounts for clients, in a debt collection agency a corresponding, which exceeds 5000 DKK, remunerated liabilities towards the client. The rule in paragraph 2 shall only apply in summary proceedings for orders, when the lawyer out Assembly accounts for collection agency clients.

(4). There are not interest, where settlement occurs senet 14 calendar days after receiving the amount.

(5). In all cases where the lawyer must pay interest to the client, take the return on its beginnings 2 calendar days after the amount of the deposit or after that amount has exceeded the specified in paragraphs 2 and 3, and the obligation to return thresholds made up until the day the amount is paid or reduced under the front of the specified limits.

(6). Clients ' funds have been separated on separate account, the interest rate for the client on the separate account gained interest.

(7). A client's funds have not been separated on separate account, the interest rate to the client, the lawyer receives the interest of his client checkkonto.

(8). Amount of interest under 100 USD is not subject to the obligation to give interest to the client.

B. Fiduciary securities, etc.

§ 8

(1). Any lawyer who manages or except sagsekspedition is legitimized to dispose of any third party related securities, etc., must make accurate registration of these. The obligation to register includes securities of any kind, and thus include bonds, stocks, mortgages, promissory notes. If the lawyer manages the funds, which are shown on separate account in a bank, savings bank or postal giro, see. section 1, paragraph 4, such accounts will be subject to the obligation to register in accordance with the first sentence.

(2). If a lawyer from another Member State of the European Union operates in Denmark from a Danish lawyer's present Office, are considered securities, as the Office Manager on trediemands behalf, for trusted the Danish lawyer to manage, unless it is clear from the circumstances that the securities are entrusted to the lawyer in question from another EU Member country.

(3). The registration must contain a precise indication of what is recorded, and from whom the registered are received. Securities, which the lawyer possesses, must be stored in such a way that it can easily be found, whom those papers belong to.

(4). Securities registered or operated in open custody (including bonds registered in the central securities depository), by the lawyer's registration shall be entered with their description and total amount without specification of any numbers, but with the observation that they are enrolled respectively managed in an open depot, and stating the complete name of the enrolment certificate or depot.

§ 9

(1). Within the same time limit, as determined by the Bar Council under section 10, paragraph 1, shall ensure that any attorney client, for whom the lawyer has securities for management, receive a list of these papers.

(2). The list shall be signed by the lawyer and certified by a chartered or certified accountant.

(3). The of the lawyer and accountant signed listing sent by accountant direct to the client. A copy of the list shall be provided with the same certificate, which can be found on the original sent to the client, as well as with the auditor's statement as to when and in what way the sending is done. This copy shall be retained by the lawyer for 5 years.

(4). The provisions of paragraphs 1 to 3 shall not apply to foundations, associations, companies belonging to the depots, etc., for which financial statements are reviewed either by a public authority or of a chartered or certified accountant.

C. Supervision

§ 10

(1). The Bar Council shall determine with appropriate notice, a period within which all companies and persons covered by these staff regulations, pursuant to section 19, and have had since the beginning of the year, calendar appointment to the Bar Council must submit a declaration about the amount of Attorney's firm or lawyer's total equivalent of fiduciary money per 31/12 in the previous year.

(2). If the lawyer or the lawyer or the company in the past year have had equivalent of fiduciary money, should the statement be provided with information and certificate from a chartered or certified accountant. Company lawyer or the lawyer must to use for the preparation of the in 1. paragraph Declaration referred to announce its auditor the necessary information, without prejudice. § 15.

(3). For submission of the Declaration must be used in a form, if the additional content shall be determined by the Bar Council. The Bar Council may determine that the Declaration must be submitted electronically.

§ 11

(1). Any lawyer who begins independent legal firm for the construction of new law practice or takeover of thus far by another lawyer-driven law firm, shall, within 1 month after this in writing inform the Bar Council.

(2). Within 6 months after the commencement of the independent lawyer to lawyer to Lawyer Council submit a declaration about the amount of Attorney's total equivalent of fiduciary money per one of the Bar Council set date.

(3). The Declaration must be provided with information and certificate from a chartered or certified accountant and be accompanied by a short statement from the Auditor on the organisation and implementation of the lawyer's bookkeeping.

(4). For submission of the Declaration must be used in a form, if the additional content shall be determined by the Bar Council. The Bar Council may determine that the Declaration must be submitted electronically.

section 11 (a)

(1). A lawyer who has lost the right to exercise the profession of lawyer, or which has deposited his appointment, may not be in possession of monies.

(2). The person referred to in paragraph 1 shall, within one month after the right to exercise the lawyer undertaking has ceased, in writing to the Council declare that the Lawyer in question per date no longer has corresponding of fiduciary. The Declaration must be certified by a registered or certified public accountant.

(3). The provisions of paragraphs 1 and 2 shall apply correspondingly, when a lawyer company dissolves or changes the purpose.

§ 12

The Bar Council may at any time and without stating reason impose a lawyer within one of the Council set out short deadline to submit a client account statement as referred to in section 10.

section 13

Have a lawyer's client account bookkeeping been deficient, or lawyer, moreover, has violated the rules on the treatment of fiduciary, the Bar Council can impose the lawyer for a set period of time or until further notice by the Council to submit client account statements on a quarterly basis or with other of the Council provided space.

§ 14
In the cases referred to in section 13 and in cases where there was a complaint about a lawyer's activities, or where the Bar Council, incidentally, find special occasion thereto, the Council may decide, by an auditor appointed by the Council, to examine whether the lawyer is in compliance with the rules on the treatment of fiduciary.

§ 15

The lawyer, in whom the inquiry is decided, is obliged to give the Council or the person appointed to carry out the study, all of the information about his business practices and his personal economic conditions, which may be required, like the lawyer must produce books, accounting records, business records and other things, as by the person making the investigation, estimated to have an impact on the investigation.

§ 16

The cost of obtaining audit board test or the making of the study referred to in §§ 12 and 14 cases referred, shall be borne by the law society, if it turns out that the lawyer's relationship is and has been working. Otherwise, the lawyer must themselves meet the costs, however, the Bar Council when the circumstances justify it, may provide that the costs shall be borne in whole or in part by the law society.

§ 17

If it must be assumed that a legitimately lawyer grossly infringed the provisions of the staff regulations, client account can the Council provide that the Lawyer in question is not without the consent of a lawyer appointed by the Council, must draw on accounts, in which trusted money warrants.

§ 18

Overrides a lawyer any of the rules contained in this Statute, or fails a lawyer to comply with the order made on submission of client account statement or in the cases referred to in section 14 to give the specialized information, is this to consider as violation of Attorney duties for which the Bar Council can take the question of the Bar Committee, see. Code of civil procedure section 143, paragraph 2.

§ 19

(1). This statute includes











1)





all lawyers, see. However, paragraph 2,







2)





all lawyer companies, see. Code of civil procedure § 124 (1)







3)





other co-owners of Attorney companies, see. Code of civil procedure § 124, paragraph 3, nr. 2., and







4)





all foreign lawyers who work in Denmark in accordance with the European Community decisions.











(2). The activities of a lawyer in the context of an employment relationship for an association or a company not engaged in law practice pursuant to section 124 of the code, is only covered by section C of the staff regulations on supervision.

(3). The rules laid down in this Statute for a period of 6 months shall continue to apply to a person who is excluded from exercising the profession of lawyer, see. Code of civil procedure §§ 141 and 147 c, paragraph 3, or if the right thereto has ceased pursuant to civil code § § 137-139, see. section 142.

§ 20

The activities of a lawyer in the context of an employment relationship for an association or a company not engaged in law practice pursuant to section 124 of the code, shall not be subject to the rules laid down in this Statute.

§ 21

Obligations under these staff regulations shall be the responsibility, in the event the company operated in the legal form not only the company but also shareholders and attorneys, who works in the company. Client account statement must be signed by both the company's shareholders/shareholders as the company drawing legitimate.