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Attorneys Act, 1979 (Act No. 53 of 1979)

Rules for the Attorneys' Profession

Part V : Accounting Rules

Investment Practice Rules

Accounting records for investment practices

 

36.6 Every firm carrying on an investment practice shall, in addition to its normal accounting records, also keep a separate trust account record and supporting documents in respect of each client, which record shall reflect:
36.6.1 payments of all monies entrusted to it from time to time by the client for investment pursuant to the mandate granted by the client in terms of rule 36.4;
36.6.2 payments of all monies invested by it on the client's behalf;
36.6.3 payments of all amounts, both capital and income, derived from investments and received for the client's account;
36.6.4 all payments made by it to the client in respect of the client's investments, and
36.6.5 all charges paid to the firm in respect of services rendered by it to the client pursuant to the client's mandate in terms of rule 36.4.

 

36.7 The accounting records and other supporting documents referred to in rule 36.6 shall be retained by the firm in such manner as to enable it to furnish each client upon request with all current details of the client's investments as recorded in rule 36.6. Such accounting records, other supporting documents and systems shall be maintained in sufficient detail and be cross-referenced to the trust account records retained in respect of each client, in such a way as to provide an adequate and appropriate audit trail which will enable a particular transaction to be identified at any time and traced through the accounting records to the client. The system shall collect the information in an orderly manner and the accounting records and other supporting documents shall be properly arranged, filed and indexed so that any particular record can be promptly accessed. Where accounting records are maintained by means other than on paper, adequate facilities shall exist for such records to be reproduced in printed form.

 

36.8 All accounting records required to be retained in terms of this rule 36.6 and copies of all reports dispatched in terms of rule 36.7 shall be retained for at least five years, unless there is statutory provision to the contrary, from the date of the last entry recorded in each particular book or other document of record and shall be held at the same office as the firm's other accounting records.