Parts 3 , 4 and 5 of the Principal Rules are rescinded and the following Part is substituted:

PART 3 - Solicitors

17.     Transfer of a solicitor’s practice

(1)  When a solicitor intends to transfer to another solicitor the whole or part of the solicitor’s practice, including clients’ work in progress, and to put the other solicitor in possession of documents held by the solicitor on behalf of clients, before the solicitor delivers possession of the practice to the solicitor who is acquiring it the solicitor must give to each client at least 14 days’ (or such other period as may be reasonable in the circumstances) notice in writing of –

(a) the intended transfer of documents to the solicitor who is acquiring the practice, unless a contrary direction is received from the client; and

(b) the client’s right to give to the solicitor a contrary direction in relation to the conduct of the client’s affairs and the delivery of the client’s documents.

(2)  Any notice sent to a client on whose behalf the solicitor holds money in trust or under the solicitor’s control must advise the client of –

(a) the balance of money held on the client’s behalf; and

(b) the solicitor’s intention to transfer the relevant account to the solicitor who is acquiring the practice, unless advised by the client to the contrary; and

(c) the client’s right to give to the solicitor a contrary direction as to the manner in which the solicitor should deal with the account on the client’s behalf.

(3)  Subrules (1) and (2) do not apply where a new partner is admitted to a partnership which continues to conduct the practice.

18.   Debt collection or mercantile agencies

(1)  A solicitor must not allow the solicitor’s business name or stationery to be used by a debt collection agent or mercantile agent in a manner that is likely to mislead the public.

(2)  A solicitor who receives, from a debt collection agent or mercantile agent, instructions to act for a client must ensure that –

(a) the solicitor’s relationship with the agent is fully disclosed in writing to the client; and

(b) the information required to be disclosed to the client by any relevant legislation and these rules is communicated to the client; and

(c) the solicitor maintains direct control and supervision of any proceedings or correspondence on behalf of the client; and

(d) any money recovered on behalf of the client is accounted for by the solicitor.

19.     Conducting another business

(1)  A solicitor who engages in the conduct of another business concurrently, but not directly in association, with the conduct of the solicitor’s legal practice must –

(a) ensure that the other business is not of such a nature that the solicitor’s involvement in it would be likely to impair, or conflict with, the solicitor’s duties to clients in the conduct of the legal practice; and

(b) maintain separate and independent files, records and accounts in respect of the legal practice and the other business; and

(c) disclose the solicitor’s financial or other interest in that business to any client of the solicitor who, in the course of dealing with the solicitor, deals with the other business; and

(d) cease to act for the client if the solicitor’s independent service of the client’s interest is reasonably likely to be affected by the solicitor’s interest in the other business.

(2)  For the purposes of this rule, a solicitor is taken to engage in the conduct of another business where the solicitor, or an associate –

(a) is entitled, at law or in equity, to an interest in the assets of the business which is significant or of relatively substantial value; or

(b) exercises any material control over the conduct and operation of the business; or

(c) has an entitlement to a share of the income of the business which is substantial, having regard to the total income which is derived from it.

20.     Litigation lending

(1)  A solicitor who has assisted a client to obtain a litigation lending account with a bank, or other financial institution, for the purpose of funding litigation, must not withdraw, or cause or permit the withdrawal of, money from the client’s account for any purpose other than –

(a) to reimburse the solicitor for disbursements (including Counsel’s fees) already paid; or

(b) to pay on behalf of the client any accounts due for payment to a third party, including the payment of costs due to a solicitor who has previously acted for the client where such a payment is required to obtain delivery of documents retained under a lien for unpaid costs claimed by that solicitor.

(2)  All withdrawals of money from the client’s account under subrule (1) must be made in accordance with the client’s instructions.