By OBA Practice Management Advisor, Julie Bays On October 10, 2022, the Oklahoma Supreme Court approved changes to Rule 1.15 of the Oklahoma Rules of Professional Conduct, which governs the safekeeping of client property. These changes went into effect in 2023. Under the revised rule, lawyers may only hold IOLTA (Interest on Lawyers’ Trust Accounts) deposits in financial institutions that have been certified as Approved Institutions by the Oklahoma Bar Foundation (OBF) and approved by the Oklahoma Bar Association’s Office of the General Counsel. These institutions meet the interest rate comparability and reporting standards of Rule 1.15. Lawyers can confirm whether their bank is an Approved Institution by visiting the OBF’s IOLTA page at www.okbarfoundation.org/iolta. This rule change is an administrative update designed to ensure consistent compliance and oversight. It does not modify the primary responsibilities of lawyers regarding client or third-party funds, but this is a good time to review your IOLTA Trust Account practices. For example:

• IOLTA trust accounts are for client or third-party funds that are nominal in amount or held for a short duration.
• These pooled accounts must be interest-bearing, with interest remitted to the OBF to support legal aid and justice initiatives statewide.
• Client funds that can earn substantial net interest for the client must be placed in a separate, interest-bearing trust account using the client’s tax identification number.
• Attorneys must complete an IOLTA Compliance Statement when opening or modifying a trust account, and to notify the OBA of any changes within thirty days.

If you need a refresher on the broader principles of trust accounting, my 2019 article, “Trust Accounting Basics,” is still a helpful resource. Just remember the update regarding Approved Institutions when reviewing your current practices.