Designed for registered legal practitioners managing or holding funds in trust on behalf of clients
or third parties. It is regulated by section 86(2) of the Legal Practice Act No. 28 of 2014.
The funds contained in this account are not owned by the principal client (the Legal Practitioner) as they are only controlled by virtue of a fiduciary relationship for the third party/client of the Legal Practitioner. It is used by Legal Practitioners to hold funds on customers' behalf. In line with this requirement, no cards or overdrafts are available for these accounts to protect the integrity of audit trails and the funds held in trust.
To prevent the trust account from overdrawing, a linked business account must be opened in conjunction, as it allows customers to redirect the fees and VAT charges of the trust account, to the Legal Practitioners' main FNB Business Account (transactional account).
The Legal Practitioners S86(2) Trust Account should only reflect the trust monies and all fees and interest need to be settled against the transactional Business account and not from the funds held in trust.
Legal Practitioners can sign up for the Managed Option(AMTS) functionality which simplifies the mandatory payments to the Fidelity Fund (in terms of Rule 184.108.40.206 made under the authority of Section 95 (1) of the Legal Practice Act, 28 of 2014).
The system is automated to reconcile interest and approved recoverable charges monthly, enabling the automatic transfers of surplus credit interest earned on the trust account to automatically be paid to the Legal Practitioners Fidelity Fund. The VAT portion of the fees and any fees not offset against the interest will be redirected to the transactional Business Account.
An account that offers you features to suit your business.
Legal Practitioners can automate the offsetting of approved recoverable charges and interest and their payments to the Legal Practitioners Fidelity Fund.
There is a clear audit trail of all credit interest, transaction costs and VAT to assist clients when they are required to account for them.
The fee structure on the trust account is catered to the holding of trust money.
All transactions are reflected on the bank statements for ease of reconciliation.