A new New Zealand Law Society Practice Briefing recommends good practices for law firms to follow when they are operating controlled bank accounts.
Looking after a client's bank account says an example of a controlled bank account is where a lawyer holds a power of attorney for an impaired client and makes payments on behalf of that client from the client's bank account. The bank account is under the control of the lawyer.
"Trust accounts and 'controlled accounts' share one thing in common. They are accounts where a lawyer has, in the course of his or her practice, control of money for or on behalf of a client.
The Practice Briefing contains recommended good practice which lawyers can adopt in relation to controlled bank accounts.