OPSI - UNENACTED working proposal v308 | 2026-10-28T08:17:18+00:00 | Corpus 85 DRAFT ORDER REGULATION REGULATION RESPECTING ADVANCE FEES AND TRUST ACCOUNTING I - AUTHORIZATION AND SEGREGATION OF FUNDS Section 1 | ART_TBQJH8KFLGJKMU6T | Version 4 This regulation is made by the board of directors under section 89 of the Professional Code, following communication to members under section 95.3, and approved by the Office under section 95.2. This Regulation proposes to govern only the holding of advances for lawful professional services, exclusively in general trust accounts, under section 40 of the Act and section 89 of the Professional Code. No special trust account or other category of funds is authorized. Actual activation and any first receipt of an advance are prohibited until both trust-accounting and compensation regulations have legally taken effect, banking and accounting controls are operational and the Order has demonstrated in an independent report the funding and real compensation capacity required by regulation. The Order publishes the effective authorization date and the list of lawfully authorized holders; an announcement or administrative resolution does not replace these prerequisites. Section 2 | ART_E7BVSH0ZF5X4NTPP | Version 2 A member or legally eligible organization uses only a general trust account at an eligible financial institution. No individual special trust account is permitted; each client’s balance is tracked in the general account ledger. Section 3 | ART_LF9DX4LC9ZE90T24 | Version 2 The account is clearly identified as a trust account and segregated from personal, business and operating funds of the professional, organization and Order. It may not be used for ordinary operating costs. Section 4 | ART_293GEQNRD7HB09YD | Version 2 Before receiving funds, the member gives the client a written agreement describing services, the advance, invoicing, refund, interest and fund-control rules. An advance is not earned merely because it was received. II - ACCOUNTING AND TRANSACTIONS Section 5 | ART_19PL4D64FDJ8T6DE | Version 2 A general ledger records each deposit and withdrawal, date, source, payee and bank reference. Separate client ledgers record opening balances, advances, settled invoices and refunds. Entries reconcile with bank evidence. Section 6 | ART_T3BWR6JLK91H507H | Version 2 Advances are deposited promptly in the general account. The member provides a receipt and avoids cash where applicable controls or bank rules prohibit it. Section 7 | ART_9JUX9C3KVBA0454F | Version 2 A withdrawal to the member or organization is permitted only after the corresponding services have actually been delivered and billed, and only up to the earned amount available in the client’s ledger. The invoice and service date are retained. Section 8 | ART_0PMUW5HUV5K3TXQT | Version 2 Unearned funds are refunded without avoidable delay on completion or cancellation, subject to lawful rights. Fee disputes follow the applicable regulation and do not permit unilateral appropriation of disputed client funds. Section 9 | ART_TTYM3ZJELNXXA5AZ | Version 2 No client subsidiary ledger may show a negative balance; one client’s money may not cover another’s shortfall. Discrepancies are documented and promptly corrected with appropriate notice. Section 10 | ART_LDJXZG7YEUV9JYM5 | Version 2 The member completes and signs a reconciliation of the general account, client ledgers and bank statements at least monthly. Reconciliation evidence is preserved and unexplained shortages, suspected misappropriation or material security incidents are promptly reported to the Order. Section 11 | ART_01NH8L203PJEHD5F | Version 2 Bank statements, receipts, invoices, agreements and ledgers are securely retained for at least ten years after the file closes, or longer when required by law or proceedings. They are available to legally authorized reviewers. III - INTEREST, CONTROLS AND CLOSURE Section 12 | ART_PRFG9C60D4QEE5HH | Version 5 Subject to mandatory client rights and banking and tax law, a bank agreement provides for direct payment of net general-account interest to the legally eligible Foundation under sections 35, 40 and 58 of the Act. Permitted deductions are transparent, documented and limited. Section 13 | ART_VSH84HCM7124VKWT | Version 2 If payment to the Foundation is not yet legally authorized or necessary consent is missing, the interest is identified and held under applicable law, never transferred by default to the Order’s operating fund. Independent banking, tax and professional-law review is required before operation. Section 14 | ART_Z16U11E0QV5D7C77 | Version 2 The Order may inspect accounts, reconciliations and controls through legally authorized persons. Professionals protect electronic access, keep transaction audit trails and produce legally required records without excessive disclosures. Section 15 | ART_NRR35CLRMKH44F42 | Version 2 Change of account holder, death, cessation of practice or closure of an organization triggers controls, inventory, reconciliation and secure transfer to clients or legally entitled custodians. Section 16 | ART_FREFB5H0W11PE3S0 | Version 2 A trust account closes only once client balances are refunded or lawfully transferred, outstanding items reconciled and a closure report retained. Unclaimed client funds do not revert to the professional by default. Section 17 | ART_F9D9Q5TXC3UX99YT | Version 2 Misappropriation claims are governed by the separate compensation-fund regulation, not by professional liability insurance. Before any activation, the Order formally establishes that compensation is operating under its regulation, general accounts can be audited and banking arrangements, including any lawfully designated interest for the Foundation, are valid. Otherwise new advances remain prohibited and services already delivered may be billed under ordinary non-trust rules.