Lawyers are licensed and regulated by the Law Society under the Law Society Act, 1999, SNL 1999, c. L-9.1 and must adhere to the Law Society’s Rules and Code of Professional Conduct. Failure to do so can lead to investigation and a discipline under the disciplinary process.
As part of the Law Society’s regulatory process, lawyers are required to cooperate with regular and/or random audits which involve having the Law Society’s auditor attend and review files, trust account records, and other information to determine compliance with the Rules and the Code. Lawyers may also be subject to a review to identify areas of improvement with respect to how they manage their practices.
In order to avoid the necessity of a custodianship, lawyers are encouraged to employ appropriate succession planning to ensure a seamless transfer, or closing up, of a practice.