A client contingency plan is a working document that sets out what needs to happen if you are unexpectedly unable to practise — temporarily or permanently — due to illness, incapacity, death, or any other sudden absence. It ensures that a designated administrator can step in to notify clients, return files and property, and deal with trust funds. The requirement has been in force since January 1, 2025 for all Ontario lawyers and paralegals in private practice. Read more: What Does a Compliant Client Contingency Plan Actually Require? →

Every licensee who practises law or provides legal services in private practice in Ontario, unless they fall into one of the statutory exemptions. Exempt categories include in-house counsel, government lawyers (federal, provincial, territorial, municipal, or Indigenous), licensees at Legal Aid Ontario-funded clinics, and licensees in the non-practising category. If you practise through a sole proprietorship you don't own, or through an ordinary partnership or LLP, the firm is responsible for the plan — not you individually.

Every compliant plan must include all four of the following under s. 19.2(3): (1) the appointment of an administrator — a currently licensed LSO member who has consented to act; (2) the location of and means of obtaining all client property, including files, wills, and any fiduciary roles; (3) the location of and means of obtaining all trust and other accounts; and (4) the location of all accounting records and contact information for all bookkeepers and accountants. If any one of these is missing, the plan does not comply. Read more: What Does a Compliant Client Contingency Plan Actually Require? →

The administrator's role under By-Law 7.1 is a wind-up and notification role — not a practice continuation role. When activated, the administrator notifies the LSO and the licensee's professional liability insurer, advises clients that the licensee cannot complete their retainers, arranges for file transfer or return, and attempts to return or transfer trust funds. The administrator is not required to take over files, appear in court, or provide legal services to anyone.

Sole practitioners confirm three things: that they have a compliant plan, that it has been reviewed within the preceding 12 months, and that their administrator has consented to act. Firm-based licensees confirm that the firm has a plan in place, that it meets By-Law 7.1's minimum requirements, and that it addresses the scenario where no members of the firm are able to carry on the professional business. Read more: Your LSO Annual Report Asks About Your Client Contingency Plan →

Multi-partner firms must address the catastrophic absence scenario — the possibility that no members of the firm are able to carry on the professional business. This requires identifying an external administrator or escalation path beyond the firm's own partners. The plan must also be consistent with the partnership or shareholders' agreement, and each licensee's files, trust accounts, and fiduciary roles must be documented individually.

Because most plans document account numbers and institution names but never confirm that the bank will actually accept the administrator's authority to operate the account. Financial institutions are not obligated to accept a general power of attorney for a trust account, and many have their own forms and verification procedures. If the authority mechanism hasn't been tested with the bank before the plan is finalised, it may fail at the point of activation. Read more: Trust Account Access Is the Weakest Link in Most Client Contingency Plans →

Two-factor authentication protects your systems from unauthorised access — but it also prevents your administrator from getting in if you're incapacitated. If your 2FA is tied to your personal mobile phone (especially SMS-based codes), your administrator cannot receive the authentication code. Every system with 2FA needs a documented bypass mechanism in the plan: recovery codes, password manager emergency access, shared firm credentials, or vendor administrator access. A plan that lists credentials without a bypass mechanism is not operationally functional. Read more: Two-Factor Authentication Is Protecting Your Practice From Your Own Administrator →

By-Law 7.1 requires that the plan be current at all times (s. 19.2(4)) and reviewed at least once every year (s. 19.2(5)). The LSO Annual Report asks you to confirm the plan has been reviewed in the preceding 12 months. Beyond the annual review, the plan should be updated whenever the underlying information changes — a new bank, a new practice management system, a change in administrator, or a move to a new office.