As per the Solicitors Accounts Rules 2011 this policy is in place to inform you of our arrangements with regard to interest and banking arrangements in relation to monies held on behalf of clients.
The objective of the policy is to achieve what we believe is a fair outcome for both the client and the Firm.
General Client Account
When money is received from or on behalf of a client, it will be paid into a general client account with Nat West who is the Firm’s primary banker. This general client account will hold pooled amounts for different matters and clients. These will usually be based on client money being held in an instant access account to facilitate a transaction. Clients are unlikely to receive as much interest as might have been obtained had they held and invested the money themselves.
The rate of interest paid to clients on money held in general client account is in line with Nat West published rates on Designated Client Accounts.
No interest will be paid to clients on monies in general client account if :-
- The amount of that interest, as calculated following the procedure set out below amounts to £35.00 or less.
- If the sum of money held does not exceed the amount shown in the left hand column below for a time not exceeding the period indicated in the right hand column below:
If the sum of money held exceeds £20,000 but is held for one week or less, no interest shall be paid to the client unless a request is made by the client and it is deemed fair and reasonable to account for a sum in lieu of interest having regard to all the circumstances. Such determination shall be made on a case by case basis by the Managing Partner / Compliance Officer for Finance and Administration (COFA).
The rate of interest payable shall be calculated by reference to the current rate of interest paid to the firm by Nat West on the general client account.
Designated deposit facilities are maintained with Nat West and may vary from time to time.
Client money may be moved from general client account to designated deposit accounts by the firm (subject to a £1,000.00 Minimum) or on client request in order to achieve a better rate of interest.
The rates of interest on designated deposit accounts will be a rate negotiated by the firm with that particular bank.
All the interest on designated deposit accounts is for the benefit of the client and can be paid either monthly, quarterly or on closure.
This policy will be reviewed together with the interest rate applicable for any interest payments due to clients on monies held on an annual basis.