Enforcement of the new trust account rule

June 30, 2004

On April 30, 2004, the Wisconsin Supreme Court issued an order repealing and re-creating its rule regarding lawyer trust and fiduciary accounts, SCR 20:1.15. While the rule takes effect on July 1, 2004, the Office of Lawyer Regulation (OLR) recognizes that the coming year will be a period of familiarizing the Bar with the requirements of the court's new rule.

The OLR strongly recommends that, if changes have not already been implemented to comply with the new trust account rule, lawyers should begin taking the necessary steps to modify any existing procedures and/or record keeping practices that do not comply with the new rule.

In the event that technical violations relating to new features of the trust account rule come to the OLR's attention during the next year, attorneys will be given a reasonable opportunity to correct such technical violations without facing a disciplinary sanction, provided that there has been no harm to a client.

The new rule was published in the June Wisconsin Lawyer. In addition, the State Bar and the OLR will present a CLE seminar via Webcast on Wednesday, July 28, 2004 from 2 to 4:15 p.m. to educate the Bar regarding the requirements of the new rule. The seminar also will be offered live in Madison during the Webcast presentation. The video seminar is scheduled for Aug. 11.

This year's Bar dues statement did not require lawyers to certify that they are maintaining trust account records required by the court's new trust account rules. The first such certifications will be required in next year's dues statements. However, lawyers should not confuse this to mean that they can defer compliance with the new rule until next year. In order to be in a position to make the required certification next year, steps to comply with the new rule must be taken now.

• Read SCR 20:1.15
• Frequently asked questions about the new trust account rule
  
  
• Register for Video Seminar