Bar Council tightens rules on lawyers handling clients' money
KUALA LUMPUR: Stricter rules will be imposed on law firms next year when handling clients’ money following concerns over dishonest lawyers who have led to substantial insurance payouts.
The Bar Council in Malaysia has implemented stricter rules for law firms handling clients' money to combat misconduct and dishonesty. Effective next year, firms with more than one partner must obtain approval from two partners before making transactions involving clients' accounts, while firms using online banking must introduce additional security checks.
These changes aim to prevent the misuse of clients' funds and protect their interests, as a significant portion of insurance payouts under the Professional Indemnity Insurance scheme is due to misconduct and dishonesty related to clients' accounts. The council anticipates that these measures will reduce the number of claims, ultimately leading to lower insurance premiums for all law firms.
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