Transactions with Clients Policy

Purpose

We advise our clients, so a business dealing between us and a client can be unfair to the client without anyone intending it. The Paralegal Rules of Conduct set strict limits on these dealings. This policy explains how NEO follows them.

Who it applies to

NEO, and every licensee, employee and contractor of NEO, in any dealing with a client.

What counts as a transaction

A transaction with a client is any dealing in which NEO, or one of our people, and a client are both parties. For example: lending or borrowing money; buying or selling property or services of more than nominal value; taking a share or other financial interest in a business; recommending an investment; or going into business together. Our retainer for legal services isn't one: our Fees, Retainers and Billing Policy covers it.

Our policy

1. We don't borrow from clients. NEO doesn't borrow money from its clients. Nor does anyone who works at or with NEO, except from a bank or other regulated lender, or from a family member the rules name, such as a spouse, parent, child or sibling, and then only as item 2 requires.
2. Fair and reasonable, or not at all. Every transaction with a client, including a loan that item 1 allows, must be fair and reasonable to the client. Before going ahead, we tell the client the nature of any conflicting interest, or how one might develop later. We recommend that they get independent legal advice, and require it, or independent legal representation, where the rules or the circumstances call for it. We go ahead only with the client's consent, which we record in writing.
3. Loans to clients. NEO doesn't lend money to a client unless the Paralegal Rules of Conduct allow it and the terms are fair and reasonable. The client must also consent after getting independent legal representation, or, if they are a family member the rules name, independent legal advice. Money held in trust is never lent to anyone.
4. No guarantees for clients. We don't personally guarantee, or give security for, a debt where a client is the borrower or the lender, except in the narrow cases the rules allow.
5. No bail for clients. For a client charged with an offence, we don't act as a surety or in a supervisory role, or deposit our own money or other valuable security to get them released. The rules allow one exception: a family member who is represented by another licensee at NEO.
6. Paying with property or shares. If a client wants to pay our fees by transferring property, or a share or other interest in a business, we recommend that they get independent legal advice before we accept. The arrangement must still be fair and reasonable.
7. No investment advice. We don't give investment advice, and we don't recommend investments to clients.
8. Gifts. Gifts from clients are dealt with under our Gifts and Hospitality Policy. We never prepare or arrange a document under which we receive a benefit from a client.
9. Not indirectly either. We don't do through a relative, a company we control or anyone else what this policy doesn't allow us to do directly.

Investing in NEO

NEO doesn't borrow from its clients. If someone who asks about investing in NEO is a current client, we don't accept a loan or investment from them while they are a client. Any investment in NEO would be available only to people who qualify under a prospectus exemption, and only through written agreements, as our ESG Policy explains.

Friends and family

The Paralegal Rules of Conduct don't stop us acting for friends or family members, but a close relationship can create a conflict of interest. Our Outside Activities and Personal Interests Policy and Conflicts of Interest Policy explain how we handle it.

Concerns

If you are concerned about a dealing with anyone at NEO, tell the principal, or use our Client Complaints Policy.

Review

This policy is reviewed at least once a year, and whenever the Law Society's By-Laws or rules change. The principal approves every change.

Questions

Email info@neolegalservices.com, call 647-200-3526 or toll-free 888-519-2435, or write to us at Unit 236, 1099 Kingston Road, Pickering, Ontario L1V 1B5.