The Law Society is taking an increasingly strict approach to solicitors who do not file their accountants' reports on time, the Solicitors' Disciplinary Tribunal was told yesterday.
Law Society solicitor Mary Fenelon said the filing of accountants' reports was an important way of policing the profession.
"The filing of these reports provides an early warning system for the society," she said. The non-filing of reports was an alert that something may be wrong and when reports were not filed within the six-month grace period, "there normally is something wrong", she added.
Ms Fenelon said solicitors worked in one of the few professions with the privilege of having control over clients' money. The Law Society needed the assurances that accountants' and auditors' reports offered. The Law Society had been getting stricter on this issue "for very good reason", Ms Fenelon said. "I'm here before you every week with late accountants' reports."
She was speaking as she objected to the adjournment of a decision on the penalty for solicitor Martin J Kearns, The Crescent, Galway. In October, 2006, he was found guilty of misconduct for not filing his accountant's report on time for the year ending November 2004.
However, the decision on the penalty was adjourned as another issue involving Mr Kearns was being dealt with. Ms Fenelon said she was coming under "a lot of pressure" from the Law Society committee to get a finding on this case. She pointed out that Mr Kearns had not filed his 2006 report yet. His 2004 report was eventually filed in September 2006, she said.
Mr Kearns said he was often late in filing accountants' reports but not for any untoward reasons.
Tribunal chairman Michael O'Mahony noted that there were no major difficulties with the reports that had been filed but said the filing of such reports was an important way of monitoring the profession in its management of clients' monies.
Mr Kearns was censured for failing to file the report in a timely manner and ordered to pay €2,500 to the compensation fund. He was also directed to pay the Law Society's costs, but not more than €500.
