---
title: "Trust irregularity briefing note for the principal"
url: "https://ailawframework.com/precedents/trust-accounting-and-handling-client-money/trust-irregularity-briefing"
type: "precedent"
site: "AI Law Framework"
id: "a41-trust-irregularity-briefing"
area_id: "A41"
kind: "memo"
ai_level: "red"
version: 1
task_ids: ["A41-T1-R1", "A41-A20260923-2"]
law_stated_as_at: "2026-10-22"
---

# Trust irregularity briefing note for the principal

> Internal note that lines up the facts of a trust irregularity so the principal can give written notice to the regulator as soon as practicable. It is not the notice.

Canonical page: https://ailawframework.com/precedents/trust-accounting-and-handling-client-money/trust-irregularity-briefing  
Law stated as at: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

- Kind: Memo. An internal or advice memo.
- Practice area: [Trust accounting & handling client money](https://ailawframework.com/precedents/trust-accounting-and-handling-client-money.md)
- Jurisdictions: New South Wales, Western Australia
- AI level: Red. You write the text. The tool writes nothing into the document. Where permitted, it may check, clarify or collect data, and anything it checks or collects is verified.
- Law stated as at: 2026-10-22
- Status: Maintained. Checked on 2026-10-22 against the 4 authorities it cites, for New South Wales and Western Australia.

## When to use it

Use as soon as someone in the practice thinks there may be an irregularity in a trust account or trust ledger. The principal decides and gives the notice. Do not send this memo to the client or to the regulator.

## Used for these tasks

- [Reconcile the trust ledger to the bank and the matter files](https://ailawframework.com/obligations/trust-accounting-and-handling-client-money/reconcile-the-trust-ledger-to-the-bank-and-the-matter-files.md)
- [Check a trust-to-office transfer against the bill and the authority](https://ailawframework.com/obligations/trust-accounting-and-handling-client-money/check-a-trust-to-office-transfer-against-the-bill-and-the-authority.md)

## How AI may be used

AI may place dates and amounts from records the principal supplies into the facts table. The principal decides what the irregularity is and writes the notice.

**AI may:**

- Copy dates, amounts and ledger references from records the principal marks as the source
- List the fields the NSW online report and the WA email each ask for

**AI must not:**

- Must not decide whether there is an irregularity or draft the words that will be sent
- Must not lodge the form or send the email
- Must not describe the cause as fraud, staff error or a bank error

**The lawyer checks:**

- A principal has decided that notice is required and has signed it
- The notice uses the regulator's current method and goes out as soon as practicable, not after the internal review is finished
- WA notices follow the Board's email format and do not attach documents unless the Board asks

## Authorities

- [Legal Profession Uniform Law (NSW) s 154 (written notice as soon as practicable by a legal practitioner associate, an ADI, an external examiner, or a practitioner outside the practice)](https://classic.austlii.edu.au/au/legis/nsw/consol_act/lpul333/s154.html)
- [Legal Profession Uniform Law (NSW) s 148 (causing a deficiency)](https://classic.austlii.edu.au/au/legis/nsw/consol_act/lpul333/s148.html)
- [Law Society of NSW, Trust account irregularity reporting (report every irregularity, regardless of amount; online form)](https://www.lawsociety.com.au/practising-law-nsw/trust-money-and-fidelity-fund/trust-account-irregularity-reporting)
- [Legal Practice Board of Western Australia, Trust account management (email notice to TAI@lpbwa.com, no annexures unless asked)](https://www.lpbwa.org.au/trust-account-management)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/trust-accounting-and-handling-client-money/trust-irregularity-briefing and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*