Rule 3 Applicability

Here's a plain English summary of this rule:

If you're a lawyer or work at a law firm, and you hold onto money that belongs to a client, these rules apply to you. This includes things like retainer fees, settlement money, or any other funds a client gives you that you're required to keep separate from your own business money.

The rule points back to Rule 11 of the Hawai'i Supreme Court rules, which spells out when lawyers must put client money into a special trust account instead of mixing it with their regular business funds. If your situation falls under Rule 11, then the trust accounting rules in this set kick in and you have to follow them.

In short, this rule tells lawyers and law firms when these accounting requirements start applying to them. It's the trigger point that says "these rules cover you" based on whether you're holding client money that legally needs its own separate account.