Interest Policy
Client Account Interest Policy
Under the provisions of the Solicitors Regulation Authority’s Solicitors Accounts Rules 2019, we are required to account to our clients for interest on money held by us in our client account when it is fair and reasonable to do so.
The holding of client money is incidental to the carrying out of the client’s instructions. In addition, we are required to hold client money in an ‘Instant Access’ account to facilitate transactions. As a result, the rates of interest paid under this policy is low.
When monies are received on behalf of the client they will be paid into our general client account currently with Barclays, who are the firm’s bank.
Interest due to a client on a matter accrues once client funds have been received and cleared. Routinely the Bank takes around 5 working days to clear cheques that we receive including business account cheques. Interest is not at any time payable on uncleared funds.
We will not account to a client for any interest in the following situations: –
- If the amount of interest calculated is £50 or less. The firm takes the view that any amount below £50 is reasonably retained by the firm to cover the administrative costs of dealing with client funds.
- Monies are held for the payment of professional disbursement if the person to whom the money is owed has requested a delay in settlement.
- If there is a specific agreement to contract out the provisions of this policy.
The amount of interest payable will be calculated over the period during which the money has been held and will be calculated at a rate that reflects the current market rate of interest paid on an instant access Business account offered by a UK high street bank.
Interest will be paid gross, on completion of the matter, without any deduction of tax and clients are responsible for notifying HMRC of any interest received.
If the bank in which the firm holds funds should fail, the firm reserves the right to disclose to the FSCS the names and other details of clients whose money is held on the general client account in order for the client to claim compensation, the limit of which is currently £85,000.
