Disciplinary Board Seeks Comments on Property Handling Revisions
The Disciplinary Board has published proposed revisions to Rule 1.15 of the Pennsylvania Rules of Professional Conduct and Rule 221 of the Pennsylvania Rules of Disciplinary Enforcement, regarding handling of the property of others. The proposed changes are published at 37 Pa.B. 394 [Saturday, January 27, 2007].
The Disciplinary Board had previously proposed a set of amendments to Rule 1.15 in June 2006, which were published at 36 Pa.B. 2801 [June 10, 2006]. That set of amendments sought to clarify the special requirements for handling funds faced by lawyers working in fiduciary matters.
The current proposal would make a few changes to the substantive requirements of the property handling rule, again primarily concerning the handling of fiduciary funds. The narrative states:
The changes to Rule of Professional Conduct 1.15 permit attorneys acting as fiduciaries to exercise appropriate fiduciary judgment, make prudent investments, and administer fiduciary assets in accordance with law and accepted practice. The definition of ''Financial Institution'' is broadened to permit deposit of IOLTA funds in various instrumentalities in addition to traditional banks and savings and loan associations to the extent that such instrumentalities chose to qualify as ''Eligible Institutions'' under Rule of Disciplinary Enforcement 221(h), as well as to permit investment of entrusted funds in or through such entities, consistent with the Prudent Investor Rule or other applicable law.
The current rulemaking is also devoted to restructuring the language of Rules to achieve greater clarity.
Comments will be accepted until March 1, 2007, and should be directed to Office of the Secretary, The Disciplinary Board of the Supreme Court of Pennsylvania, First Floor, Two Lemoyne Drive, Lemoyne, PA 17043.