South Carolina Code of Regulations
Chapter 1 - DEPARTMENT OF LABOR, LICENSING AND REGULATION - BOARD OF ACCOUNTANCY
1-12 - Safeguarding Client Records When a Licensee is Incapacitated, Disappears, or Dies.
1-12. Safeguarding Client Records When a Licensee is Incapacitated, Disappears, or Dies.
A. Each licensee or firm that has custody or ownership of client records shall designate a partner, personal representative, or other responsible party to assume responsibility for client records in the case of incapacity or death of the licensee or dissolution of the firm.
B. Where the licensee is incapacitated, disappears, or dies, and no responsible party is known to exist, the Administrator of the Board may petition the Board for an order appointing another licensee or licensees to inventory the records and to take actions as appropriate to protect the interests of the clients. The order of appointment shall be public.
C. The licensee appointed pursuant to Reg. 1-12(B) shall:
1. Take custody of the records and trust or escrow accounts of the licensee whose practice has been discontinued or interrupted.
2. Notify each client in a pending matter and, in the discretion of the appointed licensee, in any other matter, at the client's address shown in the records, by first class mail, of the client's right to obtain any papers, money or other property to which the client is entitled and the time and place at which the papers, money or other property may be obtained, calling attention to any urgency in obtaining the papers, money or other property;
3. Publish, on the appointed licensee's website for thirty (30) days and in a newspaper of general circulation in the county or counties in which the licensee whose practice has been discontinued or interrupted last resided or engaged in any substantial practice of accounting, once a week for three consecutive weeks, notice of the discontinuance or interruption of the accountant's practice. The notice shall include the name and address of the licensee whose practice has been discontinued or interrupted; the time, date and location where clients may pick up their records; and the name, address and telephone number of the appointed licensee. The notice shall also be mailed, by first class mail, to any errors and omissions insurer or other entity having reason to be informed of the discontinuance or interruption of the accounting practice;
4. Release to each client the papers, money or other property to which the client is entitled. Before releasing the property, the appointed licensee shall obtain a receipt from the client for the property;
5. With the consent of the client, file notices or petitions on behalf of the client in tax or probate matters where jurisdictional time limits are involved and other representation has not yet been obtained; and
6. Perform any other acts directed in the order of appointment.
HISTORY: Added by State Register Volume 31, Issue No. 5, eff May 25, 2007. Amended by SCSR 44-6 Doc. No. 4923, eff June 26, 2020.