Client account interest policy for client monies

In accordance with the Solicitors Accounts Rules, it is the firm’s policy to account to its clients for a sum in lieu of interest on a fair and reasonable basis. In particular:

• client monies will normally be held in general client bank accounts, in which amounts for different matters and clients are pooled.
• where we are engaged in dual representation matters acting for the Borrower and Lender all funds provided by the Lender will be deemed the Lender’s funds until the said funds hit the Borrower’s / Borrower’s agent’s account.
• a sum in lieu of interest will not be payable on amounts held in general client bank accounts on the following basis:
  • We have agreed this verbally with you.
  • Our risk portfolio increases the more client funds we hold.
  • The premiums and fees we pay to our insurers and regulator increase the more client money we hold.
  • For the majority of transactions we participate in, we hold money for a short period of time and calculating the interest per transaction per day would always be less than £30.00.
  • if the total amount of interest calculated over the course of a transaction is less than £30.00, no interest will be paid as our administrative costs would exceed this amount.

• if interest is payable, then it will be calculated daily on the balance held for each individual matter and compounded on a six monthly basis.
• the level of interest you can expect to receive will be based on the advertised interest rate(s) payable by our primary bank on the relevant amount, as if it had been held separately in a designated client account in your name.
• client monies will normally be held in an instant access bank account to facilitate transactions, if a client requests monies are held in a separate designated deposit account (i.e. a specific bank account, for a specific matter) all interest earned on that account will be credited to that bank account and paid to the client in full (subject to any applicable withholding tax).