Handling client money is a serious responsibility. For College licensees, this responsibility begins with depositing funds into a dedicated bank account known as a client account.
Client accounts must be kept separate from operating funds or personal funds and are reserved for money held on behalf of a client for future unbilled services and government processing fees. Without a client account, licensees are not allowed to collect or hold client funds.
Licensees who agree not to hold client funds can submit a declaration form to the College confirming this. If circumstances change, the College must be notified in advance, and a client account must be opened before a licensee receives money to be held on behalf of a client.
Licensees who hold client funds must comply with the Client Account Regulation.
Opening a Client Account
Client accounts must be opened in the name of the licensee, their business or firm.
Accounts must be held at a Canadian financial institution, or a foreign financial institution that has been approved by the Registrar, in areas where Canadian banking is not available.
Licensees must notify the College through the College Portal within 15 days of opening or closing any client account. The email must include the:
- Account number
- Date on which the account was opened or closed
- Name and address of the financial institution where the account is held
A licensee can maintain multiple client accounts in one or more currencies. A separate account for each client is not required unless a client specifically requests it.
Deposits
Client funds must be deposited within 14 days of receipt.
Any unearned funds must be deposited into the client account and may only be withdrawn once earned. Client accounts must always contain enough money to cover what is owed.
Licensees may not hold or deposit money that falls outside legitimate immigration, or citizenship-related purposes, except for a reasonable amount to cover administrative charges such as bank fees or credit card fees.
Licensees also may not hold money for third parties, except for payments toward their own service fees, including those of an agent, or application fees.
Withdrawals
Licensees can withdraw money from a client account only in certain cases.
These include:
- Making a payment the client has approved in writing
- Reimbursing payments the licensee has made and invoiced
- Collecting fees for services that have been billed
A licensee may also withdraw money if the client provides written instructions to transfer it to another licensee’s client account, or the trust account of a lawyer or a Québec notary.
Withdrawal is also allowed if the funds were deposited in error under the Client Account Regulation, the Code of Professional Conduct or any College By-Law, or for a refund.
Funds in the client account can only be used for the purpose they were intended such as government fees, disbursements, or services agreed upon. Unrelated costs or personal expenses are not appropriate uses.
Licensees must not withdraw more than the amount held for a client. All withdrawals must be made by cheque or electronic transfer.
Interest earned on shared client accounts may be kept by the licensee for business use. If a client requests a separate account in their own name, any interest earned goes to that client.
Maintaining a Client Account
Each month, licensees must reconcile all client account balances within 90 days of the month’s end. They must keep all supporting documents, including bank statements and a detailed list of money held on behalf of each client for at least 6 years. These records must be provided to the College upon request.