Annual Filings
These are the annual trust safety filings required by the Law Society:
Law firms operating a trust account must submit the Law Firm Self-Report and either the Accountant’s Report or the Electronic Data Upload. Law firms with an exemption from operating a trust account must complete applicable sections of the Law Firm Self-Report on an annual basis. The Law Firm Self-Report is available in the Lawyer Portal.
The Law Society has designated the year-end for all law firms to be Dec. 31 for the purposes of filing the Law Firm Self-Report and Accountant’s Report or Electronic Data Upload. These filings must be submitted to the Law Society by March 31 of the following year.
You are required to complete and submit the annual trust safety filings to the Trust Safety department until you terminate your law firm and file a final Law Firm Self-Report and the final Electronic Data Upload or Accountant’s Report.
You must keep a copy of your Law Firm Self-Report, as part of your prescribed accounting records (Rule 119.38(1)(b)). See the file retention module of the Law Practice Essentials course regarding the retention periods for these records.
Law Firm Self-Report
All Responsible Lawyers (RLs) must complete the Law Firm Self-Report on an annual basis (Rule 119.38(1)) via the Lawyer Portal.
The Law Firm Self-Report is an attestation of compliance with Part 5 of the Rules. In this report, law firms provide details regarding their practice, bank accounts, trust accounting and other related activities during the preceding year. The RL is accountable for all reporting and filing requirements of the law firm, pursuant to Rule 119.10(1)(e). One report is required to be completed per law firm and this satisfies the filing requirements of all the lawyers (associates and partners) of that firm.
The Law Firm Self-Report is divided into four sections outlined below:
- Firm Practice Profile
- Bank Account Information
- Trust Bank Account Reporting
- Law Firm Self-Report:
- Section A: General Information
- Section B: General Bank Account
- Section C: Trust Bank Account
The sections that need to be completed will depend on whether your law firm operates a trust bank account. If you have an exemption from operating a trust account, you will not need to provide the trust bank account reporting or complete section C of the Law Firm Self-Report. The following chart outlines your responsibilities, depending on the structure of your firm:
When you file your annual Law Firm Self-Report to the Law Society:
- be sure that the account type is accurately described as “trust” meaning pooled trust, “SIBA” meaning a separate interest-bearing account for a single client, or “general” meaning your general operating account;
- be sure to accurately input the bank, transit and account numbers; and
- confirm that you have provided a letter of direction for each pooled trust account.
The annual Law Firm Self-Report should be accurately completed, including the disclosure of any SIBA accounts maintained during the year and corresponding details.
Electronic Data Upload/Software Packages
All law firms approved to operate a trust account must provide the law firm’s trust account(s) data, as an Electronic Data Upload (Rule 119.38(2)) or an Accountant’s Report (Rule 119.38(3)), annually by March 31.
The Law Society has several approved software packages for the purposes of the Electronic Data Upload (Rule 119.38(2)). The prices and features of most approved software packages are noted in this comparison chart. Please note that the chart is based on the best available information current as of the date of publication and are subject to change by the vendors. For more information on how to generate the Electronic Data Upload, we have created user guides and tutorial videos for the most used vendors on the Law Society website.
These software packages take the idea of a general accounting and financial statement package and apply them to the specific needs of the legal market. As well as offering all the features of the general accounting systems, they can (and usually do) incorporate conflict checking, calendaring (bring forward systems), integrated time keeping and billing, and management reports specific to lawyers and law offices.
Before settling on a new accounting system, consider consulting with an accountant or skilled bookkeeper.
Accountant's Report
Law firms can apply for an exemption from providing an annual Electronic Data Upload and instead provide an annual Accountant’s Report, with approval (Rule 119.38(3)). Please contact Trust Safety for further information.
The Accountant’s Report must be completed by an accountant as defined in the Chartered Professional Accountants Act. The Accountant’s Report must be signed by a partner of the accounting firm of which the CPA is a member and must include monthly trust and general account reconciliation for the test month.
Please note that, if you are retaining an accounting firm to maintain your books and records monthly, the Accountant’s Report must be completed by a different, qualified accounting firm.
The Accountant’s Report has limited scope and coverage. It involves specified auditing procedures carried out on a test month by a CPA. The Electronic Data Upload is preferred as the Accountant’s Report cannot be relied upon to disclose irregularities.
Late Filing Fee
Law firms that do not file the Law Firm Self-Report and either an Electronic Data Upload or an Accountant’s Report by March 31 of each year will be subject to a late filing fee in accordance with Rule 119.38(5). The penalty schedule can be found on the Law Society’s website under Filing Requirements.
Administrative Suspension
If by June 30, a law firm fails to file the Law Firm Self-Report, an Accountant’s Report or Electronic Data Upload, and pay any applicable late fee, the RL for the firm will be automatically suspended (Rule 119.38(6)).
Before they can resume operating their trust accounts, lawyers who are administratively suspended must submit their Law Firm Self-Report and Accountant’s Report or Electronic Data Upload, pay any applicable late fees and pay the reinstatement fee (Rule 119.38(7)).