• Section 86(6) – A legal practitioner referred to in section 84(1) may not deposit money in terms of subsection (2), nor invest money in terms of subsections (3) and (4) in accounts held at a bank which is not a party to an arrangement as provided for in section 63(1)(g), unless prior written consent of the Fund has been obtained.
• Section 86(7) – A legal practitioner referred to in section 84(1) must comply with the terms of an arrangement concluded between a bank and the Fund as provided for in section 63(1)(g.
• Click here to view the list of banks that have entered into a banking arrangement with the Fund.

1. Section 86(1): Every legal practitioner referred to in Section 84(1) of the Legal Practice Act must operate a trust account.
2. Section 86(2): Every trust account practice must keep a trust account at a bank with which the Fund has made an arrangement as provided for in Section 63(1)(g) of the Legal Practice Act and must deposit therein, as soon as possible after receipt thereof, money held by such practice on behalf of any person.
3. In terms of Rule 54.14.16.1 it is mandatory for trust account practices to pay over 100% of any trust interest accrued in terms of Section 86(5), earned on Section 86(2) trust bank accounts, less approved recoverable bank charges, monthly to the Fund within five (5) working days of the calendar month following the calendar month in which the trust interest vested in the Fund, using the Automated Monthly Transfer System.
4. Payment of interest earned from Section 86(2), via automated monthly transfer system, was effective from 1 September 2025.

1. A trust account practice may, of its own accord, invest in a separate trust savings account or other interest-bearing account any money which is not immediately required for any particular purpose. – Interest accrued must, in the case of money deposited in terms of this subsection, be paid over to the Fund and vests in the Fund.
2. In terms of Rule 54.14.16.2 it is mandatory for trust account practices to pay over 100% of trust interest accrued in terms of Section 86(5), earned on Section 86(3) trust bank accounts, less approved recoverable bank charges, monthly to the Fund within five (5) working days of the calendar month following the calendar month in which the trust interest vested in the Fund, using the Automated Monthly Transfer System.
3. Payment of interest earned from Section 86(3), via automated monthly transfer system, was effective from 1 September 2025.

1. A trust account practice may, on the instructions of any person, open a separate trust savings account or other interest-bearing account for the purpose of investing therein any money deposited in the trust account of that practice, on behalf of such person over which the practice exercises exclusive control as trustee, agent or stakeholder or in any other fiduciary capacity. – Interest accrued on money deposited in terms of this section must, in the case of money deposited in terms of this subsection, be paid over to the person referred to in that subsection: Provided that 5% of the interest accrued on money in terms Section 86(5)(b) must be paid over to the Fund and vests in the Fund.
2. In terms of Rule 54.14.16.3 it is mandatory that 5% of the interest accrued in terms of Section 86(5), on money deposited during the course of a calendar month or on maturity shall be paid over to the Fund or its nominee within five (5) working days of the calendar month following the calendar month in which the trust interest vested in the Fund, using the Automated Monthly Transfer System.
3. Payment of interest earned from Section 86(4), via automated monthly transfer system, was effective from 1 March 2019.

• The purpose of this communication is to remind the Legal Practitioners, Registered Auditors, and all relevant stakeholders about the requirements of section 86 of the Legal Practice Act, No. 28 of 2014 (LPA) and The South African Legal Practice Council Rules made under the authority of sections 95(1), 95(3) and 109(2) of the LPA (LPC Rules), pertaining to payment of trust interest accrued on section 86 trust accounts.

Click here to view the full article on Compulsory Automation of All Trust Interest receipts

1. The remaining Chapters of the Legal Practice Act, No. 28 of 2014 (LPA) came into effect on 1 November 2018, and the Legal Practitioners and all relevant stakeholders are reminded about the requirements of section 87(4)(a), which make it mandatory for Legal Practitioners to pay any unclaimed and unknown monies held in a trust account to the Legal Practitioners’ Fidelity Fund (LPFF).
2. Section 87(4)(a) and (b) of the LPA states that:
   1. Any money held in the trust account of a trust account practice in respect of which the identity of the owner is unknown, or which is unclaimed after one year, must, after the second annual closing of the accounting records of the trust account practice following the date upon which those funds were deposited in the trust account of the trust account practice, be paid over to the Fund by the trust account practice.
   2. Nothing in this subsection deprives the owner of the money contemplated in paragraph (a) of the right to claim from the Fund any portion as he or she may prove an entitlement to.

Please download Payment of Unclaimed and Unknown trust monies in terms of Section 87_4 of the LPA.