§ 91.180. Reporting of Fiduciary and Operating Accounts on Annual Registration Form.
(a) Terminology. Enforcement Rule 221(r) provides that for purposes of paragraph (b) of this section, the phrase:
(1) ‘‘funds of a client or a third person subject to Pa.R.P.C. 1.15’’ means funds that belong to a client or third person and that an attorney receives:
(i) in connection with a client-attorney relationship;
(ii) as an escrow agent, settlement agent, representative payee, personal representative, guardian, conservator, receiver, trustee, agent under a durable power of attorney, or other similar fiduciary position;
(iii) as an agent, having been designated as such by a client or having been so selected as a result of a client-attorney relationship or the attorney’s status as such;
(iv) in connection with nonlegal services that are not distinct from legal services;
(v) in connection with nonlegal services that are distinct from legal services, and the attorney knows or reasonably should know that the recipient of the service might believe that the recipient is receiving the protection of a client-attorney relationship; or
(vi) as an owner, controlling party, employee, agent, or as one who is otherwise affiliated with an entity providing nonlegal services and the attorney knows or reasonably should know that the recipient of the service might believe that the recipient is receiving the protection of a client-attorney relationship;
(2) ‘‘funds of a third person’’ shall not include funds held in:
(i) an attorney’s personal account held jointly; or
(ii) a custodial account for a minor or dependent relative unless the source of any account funds is other than the attorney and his or her spouse or spousal equivalent.
(b) Accounts to be identified. Enforcement Rule 221(q) provides that an attorney who is required to file the registration form under Enforcement Rule 219(a) (relating to attorneys required to register), with the exception of a person holding a Limited In-House Corporate Counsel License under Pennsylvania Bar Admission Rule 302 or a Foreign Legal Consultant License under Pennsylvania Bar Admission Rule 341, shall identify the financial accounts enumerated in subparagraphs (1)—(3) of this paragraph (b) during the period from May 1 of the previous year to the date of the filing of the registration form. For each account, the attorney shall provide the name of the Financial Institution, as defined in Pa.R.P.C. 1.15(a)(4) or other bank or investment fund as allowed by Pa.R.P.C. 1.15(k) and (l), its location within or outside the Commonwealth, account number, type of account, and whether the account held funds subject to Pa.R.P.C. 1.15. The attorney shall identify:
(1) all accounts in which the attorney held funds of a client or a third person subject to Pa.R.P.C. 1.15;
Note
If an attorney employed by a law firm receives fiduciary funds from or on behalf of a client and deposits or causes the funds to be deposited into a law firm account, the attorney must report the account of deposit pursuant to this subparagraph (1).
(2) every account not reported under subparagraph (1) that held funds of a client or a third person (whether or not subject to Pa.R.P.C. 1.15) over which the attorney had sole or shared signature authority or authorization to transfer funds to or from the account; and
(3) every business operating account maintained or utilized by the attorney in the practice of law.
Note
The type of account shall be identified as an IOLTA Trust Account, see Pa.R.P.C. 1.15(a)(5); Non-IOLTA Trust Account (Interest for Clients), see Pa.R.P.C. 1.15(a)(7), (k), (l); IOLTA-exempt Trust Account (non-interest bearing), see Pa.R.P.C. 1.15(n); other authorized investments or accounts, see Pa.R.P.C. 1.15(k) and (l); or Business/Operating Account, see Pa.R.P.C. 1.15(j).
Source The provisions of this § 91.180 added December 15, 2023, effective 30 days after publication, 53 Pa.B. 7704.
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