Rule Amendments
Rule 5-1.1, subdivision (g)(1)(E) is amended to expand the definition of an interest or dividend-bearing trust account to include a business or consumer deposit account, and in subdivision (g)(5)(A), language is added that requires eligible institutions to maintain IOTA accounts that pay the highest interest rate or dividend generally available from the institution to its non-IOTA business or consumer account customers, or its non-maturing deposit account customers when IOTA accounts meet or exceed the same minimum balance qualifications. And, in subdivision (g)(5)(B), language is added requiring eligible institutions to tie interest rates for IOTA accounts to specific indexed rate points. The court declined to adopt “proposed technical amendment to rule 5-1.1(g)(3) and the proposed amendment to rule 5-1.1(g)(5)(B) requiring a minimum net interest rate of 25 basis points.”
The amendments became effective May 15, 2023, at 12:01 a.m.
The court acted in Case No. SC22-1292.
What Next?
Lawyers should document reasonable attempts to get the best interest rate including contacting the Florida Bar Foundation to get assistance in determining interest rates offered by banks who hold IOTA accounts.
If you have additional questions about the recent rule amendment, contact the Ethics Hotline at 800.235.8619.
Additional Resources
LegalFuel Trust Accounting Resources
Bar Defends Rule Aimed at Achieving a Fair Market Return on IOTA Accounts
Supreme Court Amends a Host of Rules Regulating The Florida Bar