Is your California law firm in compliance with the new Client Trust Account Protection Program (CTAPP)?
From The State Bar of California:
"To strengthen public protection and better support attorneys fulfilling their client trust accounting duties, the State Bar is implementing a Client Trust Account Protection Program.
With very few exceptions, all California lawyers must comply with new requirements to:
- Register their client trust accounts (including IOLTA) annually with the State Bar, either individually or through their law form or organization.
- Complete an annual self-assessment of client trust account management practices.
- Certify with the State Bar that they understand and comply with requirements and prohibitions applicable to the safekeeping of funds and property of clients and other persons in rule 1.15 of the Rules of Professional Conduct."
The new rules are intended to help the state bar prevent attorney theft. Failure to be in compliance and report to The State Bar of California by February 1 (April 3 in the initial year) results in a fine and potential administrative suspension. In its first year, more than 1,700 California law firms failed to comply with the new trust account rules.
If you and your law firm are following all of the State Bar’s client trust regulations, the CTAPP submission is fast and easy. Reg
ulations include: creation and maintenance of a client ledger report, account journals, bank statements, and a record of cancelled checks. If you would like to know more about how Abedian + Totlian can help manage your client trust accounts and make your CTAPP submission a breeze, contact us today!