Amendments to the ASCR 2023

The Australian Solicitors’ Conduct Rules 2023 (ASCR) have been updated under the Legal Profession (Australian Solicitors Conduct Rules) Notice 2026 effective from 25 September 2026.

Two of these changes attempt to articulate operational expectations for legal practitioners due to the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth)(AML/CTF).

One was a simple name change and the fourth change reintroduced rule 41 on prohibiting mortgage financing.

1. Rule 8: Client Instructions
Rule 8.1 has been amended by inserting the words “only accept and” and now states:

A solicitor must only accept and follow a client’s lawful, proper and competent instructions.

The amendment makes explicit what was previously implicit i.e. that a solicitor must be satisfied that a prospective client’s instructions – or new instructions from an existing client – are for a lawful and proper purpose before accepting them. This change was introduced to directly support statutory regimes like AML/CTF that now require legal practices who are reporting entities to conduct customer due diligence.

2. Rule 13: Completion or Termination of Engagement

Rule 13 has been updated by adding sub-rule 13.4, which establishes an explicit, non-exhaustive definition of “just cause” for the purposes of terminating a retainer under Rule 13.1.3.

Under Rule 13.4, just cause includes:

Instructions that require, or any circumstance where continuation of the engagement would cause, a solicitor to breach their ethical duties or professional responsibilities; any circumstance where a solicitor is no longer able to act in the client’s best interests; any circumstance where a client has not provided all information required of them that is required to fulfill the solicitor’s statutory obligations.

If a client refuses to provide mandatory identity or verification documents necessary for statutory compliance (e.g. AML/CTF customer due diligence), the practitioner has an explicit “just cause” to terminate the engagement under Rule 13.4.3. Where statutory disclosure prohibitions prevent a solicitor from revealing to a client why a report was filed or required, Rule 13.4.1 provides an ethical basis to cease acting without breaching statutory non-disclosure laws (e.g. not engaging in tipping-off when terminating a retainer due to the lodgment of a suspicious matter report under AML/CTF)

Although Rule 13.1.3 requires “reasonable notice,” where continuing representation would cause a breach of their ethical or professional responsibilities, notice of termination may need to be immediate.¹

3. Rule 29.13: Prosecutor’s duties

The reference to ‘Criminal Justice Commission’ in Rule 29.13 was updated to ‘Crime and Corruption Commission’.

4. Rule 41 Mortgage Financing

The reinstatement of part of the previous Rule 41 which prohibited a solicitor from engaging in mortgage financing as part of their law practice. The new Rule 41 states that:

A solicitor must not engage in mortgage financing as part of their law practice.

Section 228 of the Legal Profession Act 2007 (Qld) allows the Society to provide a legal professional rule which prohibits Australian legal practitioners and Australian-registered foreign lawyers from engaging in mortgage financing and activities and practices relating to mortgage financing.

Should practitioners have any queries, please phone the QLS Ethics and Practice Centre on (07) 3842 5843.

Footnotes
¹ Law Council of Australia, Commentary to the Australian Solicitors’ Conduct Rules (July 2026) 82.