South Carolina Judicial Department

RULE 417
FINANCIAL RECORDKEEPING

(a) A lawyer who practices in this state shall maintain current financial records as provided in this rule, and shall retain the following records for a period of six (6) years after termination of the representation:

(1) receipt and disbursement journals containing a record of deposits to and withdrawals from bank accounts which concern or affect the lawyer's practice of law, specifically identifying the date, source, and description of each item deposited, as well as the date, payee and purpose of each disbursement;

(2) ledger records for all trust accounts required by Rule 1.15 of the Rules of Professional Conduct, showing, for each separate trust client or beneficiary, the source of all funds deposited, the names of all persons for whom the funds are or were held, the amount of such funds, the descriptions and amounts of charges or withdrawals, and the names of all persons to whom such funds were disbursed;

(3) copies of retainer and compensation agreements with clients as required by Rule 1.5 of the Rules of Professional Conduct;

(4) copies of accountings to clients or third persons showing the disbursement of funds to them or on their behalf;

(5) copies of bills for legal fees and expenses rendered to clients;

(6) copies of records showing disbursements on behalf of clients;

(7) checkbook registers or check stubs, bank statements, records of deposit, and prenumbered canceled checks or their equivalent;

(8) copies of monthly reconciliations of the lawyer's trust accounts with the statements received from the financial institutions; and

(9) copies of those portions of clients' files that are reasonably necessary for a complete understanding of the financial transactions pertaining to them.

(b) With respect to trust accounts required by Rule 1.15 of the Rules of Professional Conduct:

(1) receipts shall be deposited intact and records of deposit should be sufficiently detailed to identify each item; and

(2) withdrawals shall be made only by check payable to a named payee and not to cash, or by authorized bank transfer.

(c) Records required by this rule may be maintained by electronic, photographic, computer or other media provided that they otherwise comply with this rule and provided further that printed copies can be produced. These records shall be located at the lawyer's principal office in the state or in a readily accessible location.

(d) Upon dissolution of any partnership or limited liability company of lawyers or of any legal professional corporation, the partners, members or shareholders shall make appropriate arrangements for the maintenance of the records specified in paragraph (a) of this rule.

(e) Upon the transfer or discontinuance of a law practice, the lawyer shall make appropriate arrangements for the maintenance of the records specified in paragraph (a) of this rule.