Connecticut’s New Advertising and Clients’
Funds Accounts Audit Rules
The Basics of What You Need to Know
Connecticut attorneys need to be
aware of major changes to practice rules effective July 1, 2007 regarding
two important areas of practice: advertising and clients’ funds accounts.
Certain advertisements and clients’ funds accounts will be subject to audit
and inspection on a random basis. The purpose of this Notice is to help
attorneys understand the basics of the new programs and to answer some
frequently asked questions about it.
The New Advertising Rules
Frequently Asked Questions About the New Advertising Rules
Instructions for Electronic Filing of Attorney Advertisements
The New Clients Funds Accounts
Rules
Frequently Asked Questions About the New Clients’ Funds Accounts Rules
The New Advertising Rules
The new advertising rules are
located in Practice Book §§2-28A and 2-28B. Section 2-28A, the mandatory
filing rule, provides that with limited exceptions, attorneys must file
legal advertisements and communications with the Statewide Grievance
Committee. Thereafter, the Statewide Bar Counsel’s office will randomly
select some or all of these filed advertisements to determine if they are in
compliance with the Rules of Professional Conduct.
Importantly, attorneys who have
advertisements that must be filed pursuant to Section 2-28A must file those
advertisements with the Statewide Grievance Committee electronically,
through Judicial Branch E-Services. The process is explained in more detail
in the FAQs and Instructions that appear below.
Section 2-28B will allow
attorneys to request a written advisory opinion from the Statewide Grievance
Committee regarding a proposed advertisement. There is a fee of $100 for
the opinion that must be paid at the time of the request. The request and
proposed advertisement will be submitted to the Statewide Grievance
Committee in hard copy format.
Frequently Asked Questions Regarding the New
Advertising Rules
Questions About
Filing Advertisements Electronically Through E-Services
Random Review of
Advertisements
Advisory Opinions
1.
What is
attorney advertising?
Attorney
advertising is any communication made by a lawyer or law firm about the
lawyer or law firm or about the legal services offered by the lawyer or law
firm.
2.
What must
attorneys do to comply with the mandatory filing rules regarding
attorney advertisements?
Practice
Book §2-28A and Rule 14 of the Statewide Grievance Committee Rules of
Procedure require attorneys, with limited exceptions, to file a copy of a
legal advertisement with the Statewide Grievance Committee prior to or
concurrently with the first dissemination of it. The filing must be done
electronically through Judicial Branch E-Services. In light of certain
technical restrictions, a portion of some filings (e.g. multi-media
advertisements) will be done by non-electronic means.
3.
Are some
types of advertisements exempt from filing?
Yes.
Practice Book §2-28A(b) provides that the mandatory filing requirements do
not extend to the following:
1. An advertisement in the public
media that contains only the information, in whole or in part, contained in
Rule 7.2 (i) of the Rules of Professional Conduct, provided the information
is not false or misleading;
2. An advertisement in a telephone
directory;
3. A listing or entry in a
regularly published law list;
4. An announcement card stating new
or changed associations, new offices, or similar changes relating to an
attorney or firm, or a tombstone professional card;
5. A communication sent only to:
(i) Existing or former clients;
(ii) Other attorneys or professionals;
business organizations including trade groups; not-for-profit organizations;
governmental bodies and/or
(iii) Members of a not-for-profit
organization that meets the following conditions: the primary purposes of
the organization do not include the rendition of legal services; the
recommending, furnishing, paying for or educating persons regarding legal
services is incidental and reasonably related to the primary purposes of the
organization; the organization does not derive a financial benefit from the
rendition of legal services by an attorney; and the person for whom the
legal services are rendered, and not the organization, is recognized as the
client of the attorney who is recommended, furnished, or paid for by the
organization.
6. Communication that is requested
by a prospective client.
7. The contents of an attorney's
website(s). Attorneys must provide the domain name(s) (URLs) of the
website(s) only and must do so
only on a quarterly basis
If you have a question
about whether your advertisement is exempt from mandatory filing, contact
the Statewide Grievance Committee at
Attorney.Advertising@jud.ct.gov or at (860) 568-5157.
4.
I have an
advertisement that appears in Connecticut but I am not admitted here.
Do I have to comply with the mandatory filing rules regarding
attorney advertising?
Yes.
Attorney advertising is considered the practice of law in Connecticut. Rule
8.5 of the Rules of Professional Conduct extends the State’s disciplinary
jurisdiction over any attorney who practices here, whether or not he or she
is admitted.
5.
I am
admitted in Connecticut but practice law in another jurisdiction for a
firm or practice that advertises. Do I have to comply with the mandatory
filing rules regarding attorney advertising?
Yes, if the
advertisement will appear in Connecticut.
Questions About
Filing Advertisements Electronically Through E-Services
1.
What does
it mean to file an advertisement “electronically”?
Electronic
filing is accomplished through the State of Connecticut Judicial Branch’s
E-Services (https://eservices.jud.ct.gov/login.aspx).
You may not use other electronic formats to complete the process (e.g. fax
or direct email to the Statewide Grievance Committee).
2.
Where can
I find instructions on how to file an advertisement electronically?
Instructions appear below these FAQs.
3.
What if I
have questions about or technical problems with E-Services?
Email E-Services at
eservices@jud.ct.gov
4.
Can a
firm submit the advertisement under its firm juris number?
No. The
attorney disciplinary system in Connecticut is tied to individual juris
numbers – firms are not subject to discipline. If attorneys practicing in a
firm advertise, the individual juris number of each attorney must be listed
where appropriate on the attorney advertising electronic filing form.
5.
Does each
attorney in a firm have to submit the advertisement separately?
No. Each
attorney who is responsible for a particular advertisement will list his or
her juris number where appropriate on the electronic filing form.
6.
Can I
submit more than one advertisement with the electronic filing?
No. Each advertisement must be filed
separately. However, if one advertisement is comprised of multiple parts
(e.g. a letter and an envelope) the parts do not need to be filed
separately provided they can be filed in one format (e.g. PDF). Also, if
you are filing multiple URLs, all URLs can be submitted on one form.
7.
Is there
a fee associated with the mandatory filing rules?
No. There
is no fee for filing under Practice Book §2-28A. If you want an advance
advisory opinion under Practice Book §2-28B there is a fee of $100.
8.
What
should I do if I don’t know how to characterize the type of
advertisement that I need to file?
If you are
uncertain whether your advertisement should be submitted as a URL, a print
advertisement or as multi-media, refer to the common examples listed below
or contact the Statewide Grievance Committee at
Attorney.Advertising@jud.ct.gov and you will be instructed on the format
you should chose to file your advertisement.
| |
All websites: Select URL and
provide the domain name(s) only
|
| |
Internet Popup Ads and Ad
Rotators: Should be printed by the attorney, scanned
and submitted as a print advertisement.
|
| |
Envelopes containing
advertisements: Should be scanned and submitted as a print
advertisement.
|
| |
Photographic advertisements, including billboards and
banners: Should be color-scanned,
saved as a PDF, then submitted as a print
advertisement.
|
| |
Radio and other non-video recorded
advertisements: Must be copied to a CD in MP3 format and submitted as a
multi-media advertisement.
|
| |
Television and other video advertisements:
Must be copied to a video DVD and submitted as a multi-media advertisement. |
9.
What does
it mean to file a list of my Internet domain names “quarterly?”
Quarterly
is defined in the commentary to the rule as “the first business day of
January, April, July and October.” Therefore, if you set up or acquire a
domain name in September, you would first electronically file that URL with
the Statewide Grievance Committee in October. You would thereafter be
required to re-file that URL and any others in January, April, July,
October, etc.
10.
Why am I
having problems verifying a URL?
When you submit your URL, E-Services
automatically defaults to display the website address with HTTP (hyper text
transfer protocol) format. Your website may be formatted in HTTPS (hyper
text transfer protocol secure) format. If your website address begins with
HTTPS instead of HTTP, you need to edit the address to retype the address to
override the E-Services default.
11.
How do I
file the transcript that is required by Practice Book §2-28A(a)(2)?
Practice
Book §2-28A(a)(2) requires the attorney to file “a transcript if the
advertisement or communication is in video or audio format.” Multi-media
filings are done in part electronically (the Attorney Advertising Electronic
Submission Form) and in part in hard copy format (the CD or DVD). The
transcript should be submitted in hard copy format with the CD or DVD after
the Attorney Electronic Submission Form is filed through E-Services and you
receive confirmation of the filing with your file number.
12.
How do I
file a print advertisement?
Print advertisements are any
advertisement that are not clearly URLs or multi-media. They include
letters, envelopes, brochures, pamphlets, billboards, banners etc. To file
a print advertisement, create a PDF of the advertisement and save it to your
hard drive. Next, use the Browse button on the attorney advertising
electronic filing form to find the saved PDF on your hard drive. Double
click the advertisement, then select the Update button to attach the
advertisement to the electronic filing form. For more information on
creating a PDF, go to
http://www.jud.ct.gov/external/super/E-Services/efile/efileHowToPDF.htm
13.
My PDF is
larger than 20 MB. What do I do?
Complete
the electronic filing form so that you will have a receipt and file number.
Then mail a copy of the receipt with a hard copy of the advertisement to the
Statewide Grievance Committee.
14.
How do I
file a multi-media advertisement?
Check the
appropriate box on the electronic filing form. Then complete and submit the
electronic filing form over the Internet so that you will have a receipt and
file number. Finally, mail a copy of the receipt with a hard copy of the CD
or DVD to the Statewide Grievance Committee. Make sure to label the CD or
DVD with the file number.
15.
Where on the form do I comply with §2-28A(a)(5), which requires a “statement
listing all media in which the advertisement or communication will appear, the anticipated frequency of use of the advertisement or
communication in each medium in which it will appear, and the
anticipated time period during which the advertisement or communication
will be used?”
Type this
information into the “Description of Advertisement” box on the filing form.
This information cannot exceed 500 characters. You do not need to provide
the information for URLs.
Random Review of
Advertisements
1.
What will
happen after the advertisement is filed electronically?
Periodically, advertisements that have been electronically filed will be
randomly selected for review to ensure compliance with ethical standards.
2.
Will I
know if the advertisement I have filed has been selected for random
review?
Yes. The
Statewide Grievance Committee will provide written notice to each attorney
whose juris number is listed as being responsible for the filed
advertisement.
3.
If a
filed advertisement is selected for review and the Statewide Grievance Committee concludes that there is a violation of ethical rules what
will happen?
You will be contacted in order to
negotiate a resolution to the claimed violation. If you agree to a
resolution this will not be considered a disciplinary finding. Claimed
violations that are not resolved to the Statewide Grievance Committee’s
satisfaction will be referred to the Chief Disciplinary Counsel’s office for
a presentment.
4.
How long
will a filed advertisement be subject to random review?
For 3
months after the advertisement is filed.
Advisory Opinions
1.
How do I
obtain an advisory opinion about a proposed advertisement?
File your detailed request in writing
with four copies of it and five copies of the proposed advertisement in hard
copy format with the Statewide Grievance Committee.
2.
Does a
request for an advisory opinion need to be done electronically?
No.
Requests for advisory opinions are submitted in hard copy format.
3.
Is there
a fee to obtain an advisory opinion?
Yes. The fee is $100 and must accompany the request for an advisory
opinion. A check or money order should be made payable to the State of
Connecticut Judicial Branch.
4.
When will
I receive the advisory opinion?
The time
deadlines for filing and issuing advisory opinions are set forth in Practice
Book §2-28B.
Instructions for
Electronic Filing of Attorney Advertisements
1. An attorney
or group of attorneys responsible for an advertisement that must be filed in
accordance with Practice Book §2-28A must do so, in full or in part,
electronically through E-Services unless granted an exemption by the
Statewide Bar Counsel’s Office.
2. To file an
advertisement electronically, the attorney should first log onto E-Services
at
https://eservices.jud.ct.gov/login.aspx with the attorney’s individual
juris number. If a group of attorneys are filing the advertisement, one of
them should log onto E-Services with his or her individual juris number.
3. After
logging onto E-Services, the attorney should select the “File an Attorney
Advertisement Feature” then select the “Attorney Advertisement Electronic
Submission Form.” The logged in attorney’s name and information will be
displayed at the top of the electronic form.
4. The attorney
should next enter the individual juris numbers of each attorney
responsible for the advertisement. As the juris numbers are entered they
will be displayed with information about that attorney.
5. The attorney
next should select the type of advertisement to be filed. The choices are
URL(s), Print Advertisements, or Multi-Media Advertisements.
6. For website
addresses only, select URL(s) and type in the domain name of each website
being registered.
7. For Print
Advertisements, create a PDF of the advertisement and save it to the
computer’s hard drive. Next, use the Browse button on the attorney
advertising electronic filing form to find the saved PDF on the hard drive.
Double click the advertisement, then select the Update button to attach the
advertisement to the electronic filing form. For more information on
creating a PDF, go to
http://www.jud.ct.gov/external/super/E-Services/efile/efileHowToPDF.htm
8. If the PDF
is greater than 20 MB in size, the attorney advertising electronic filing
form must still be completed and filed electronically through E-Services,
but a hard copy of the advertisement must be mailed to the Statewide
Grievance Committee. The hard copy of the advertisement must clearly
indicate the file number as found on the electronic filing receipt (see
instruction 11). For technical problems, email E-Services at
eservices@jud.ct.gov.
9. For
Multi-Media advertisements, the electronic filing form must be completed and
filed electronically through E-Services, but the advertisement itself will
be submitted in hard copy format on either a CD in MP3 format (radio and
other non-video advertisements) or a video DVD (television and other video
advertisements) The CD or DVD must clearly indicate on it the
file number as found on the electronic filing receipt (see instruction 11).
10. If the
attorney needs to return to a previous screen when filling out the attorney
advertising electronic filing form, the “Back” button on the attorney’s
web browser should not be used because it is not supported by E-Services.
Instead, the attorney should use the option at the bottom of the screen
being viewed.
11. Once the
electronic filing form is submitted a screen confirming the filing and
assigning a file number will appear. This screen should be printed for the
attorney’s records.
The New Clients
Funds Accounts Rules
The new
clients’ funds accounts rule is found in Practice Book §2-27(e). The rule
provides for the random inspection and audit of clients’ funds accounts that
are required to be registered with the Statewide Grievance Committee
pursuant to Practice Book §2-27(d). The purpose of the inspection and audit
is to ensure that these accounts are
in compliance with ethical rules, including, but not limited to, Practice
Book §2-27 and the Rules of Professional Conduct. Attorneys will be
required to produce, at a minimum, the financial records that they are
required to keep for the selected account pursuant to Practice Book
§2-27(b).
Frequently Asked
Questions Regarding the New Clients’ Funds Accounts Rules
1.
What is
meant by “inspection and audit” of a clients’ funds account?
Pursuant to
Rule 13 of the Statewide Grievance Committee Rules of Procedure, an
inspection and audit is defined as “the
inspection of a randomly selected clients’ funds account to ensure
compliance with ethical rules, including, but not limited to, Practice Book
§2-27 and the Rules of Professional Conduct.”
2.
What
accounts are subject to inspection and audit?
Clients’
funds accounts that are required to be registered with the Statewide
Grievance Committee as part of an attorney’s annual registration. These are
accounts that hold the funds of more than one client and are often referred
to as “trust accounts” or “IOLTA accounts.”
3.
How will
the selection process work?
Practice Book §2-27(e) and Rule 13 of the Statewide Grievance Committee
Rules of Procedure provide that the Statewide Bar Counsel’s office will
randomly select clients funds accounts for inspection and audit.
4.
Is the
selection really random?
Yes. The
random selection is done by computer.
5.
How will
I know that an account I have registered has been selected for an
inspection and audit?
Each
attorney who has had an account selected will receive notice by certified
mail of the date and time of the inspection and audit.
6.
What
financial records will I need to produce?
At a
minimum, the financial records that attorneys are required to maintain in
accordance with Practice Book §2-27(b) for the previous 6 months.
7.
How do I
comply with the inspection and audit?
An
attorney who has an office in Connecticut may comply by producing the
financial records to the Statewide Bar Counsel’s Office by the date of the
audit or by having a representative of the Statewide Bar Counsel’s Office
perform an on site inspection and audit at the attorneys’ office. An
attorney who has an office outside of Connecticut will need to provide the
requested financial documents to the Statewide Bar Counsel’s Office by the
date of the audit.
8.
How far
back will the inspection and audit look?
Rule 13 of
the Statewide Grievance Committee Rules of Procedure provides, “the random
inspection and audit shall cover, at a minimum, the previous six months from
the date of the notice of the inspection and audit.”
9.
What
will happen if I do not cooperate with the inspection and audit?
Practice
Book §2-27(e) and Rule 13 of the Statewide Grievance Committee Rules of
Procedure requires an attorney to “fully cooperate” with the Statewide Bar
Counsel’s Office in the inspection and audit. Rule 13(E) specifically
provides:
“The attorney(s) whose
account is selected for inspection and audit shall fully cooperate with the
inspection and audit. “Fully cooperate” as that term is used in
Practice Book §2-27(e) means, among other things, providing the Statewide
Bar Counsel’s Office with all the documents referred to in this Rule and any
other records and information as may be necessary for the Statewide Bar
Counsel’s Office to complete its inspection and audit. If the attorney(s)
whose clients’ fund account is the subject of the inspection and audit fails
to fully cooperate, the Statewide Bar Counsel’s Office shall, in its
discretion, refer the matter to the
Disciplinary Counsel’s Office for an
interim suspension proceeding pursuant to Practice Book §2-42.”
10.
What can
I do now to get ready for the inspection and audit program?
You should
immediately review your financial records to make sure that your clients’
funds accounts are in compliance with Practice Book §2-27(b).
You should
also review the clients’ funds account information that you have registered
to make sure it is accurate and up-to-date. Log into E-Services and select
the Attorney Change of Information option from the E-Services menu. Your
last registered information, including your clients’ funds account(s)
information will be displayed. Verify that all accounts required to be
registered are included and that the account number, financial institution,
city and state of each registered account is correct and make any necessary
changes now.
