Practitioners are entitled to reclaim from the Fund (via their Law Society) their trust account bank charges and the cost of their trust audit fees.
The Fund has noted that the average cost of a trust audit has increased significantly, as a result of the introduction of the improved audit procedures by the auditing profession.
The audit fee refund formula was amended with effect from 1 March 2012, to reflect:
- An increase in the minimum contribution of R2500 per firm to a new level of R3000 per firm.
- The maximum contribution remains at 20% of net trust interest.
Practitioners are entitled to a 100% refund of their trust account bank charges subject to:
- Compliance with the preferential banking arrangements for trust banking accounts, as shown on the Fund’s website under banking options.
Sufficient trust interest being generated by a firm to defray such bank charges