In accordance with the Solicitor’s Regulation Authority’s Accounts Rules, 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 are unlikely to be as high as those obtainable by a client.
Interest will be paid where the amount calculated on the balance held exceeds £100.00. Where monies are held in relation to separate matters for the same client, we will treat the matter separately unless the matters are so closely related that they should be considered together.
Where client monies are held in our general client account, interest will be calculated on a daily basis, using the average rates of interest offered to business customers on instant access deposit accounts. Where appropriate, we will adjust these rates to take into account our overall banking arrangements so far as they affect the rates received. This interest will be paid without deducting tax at source. Our clients will be responsible for declaring any interest to HM Revenue and Customs.
Interest will be calculated on a daily basis on cleared client funds. In the case of cheques received, this will be 7 days after the cheque has been deposited with our bank, and for amounts received in cash or via credit or debit card, standing orders, BACS and CHAPS, interest will accrue from the day of receipt into our client account. Where we issue cheques from client account, interest will normally be paid for 5 working days from the date of issue.
We normally account to the clients for interest at the conclusion of the matter. In some cases where we consider it appropriate, we may calculate and credit interest on a monthly basis.
Clients may contract out of receiving interest by signing a written agreement with the relevant fee earner, who must ensure that the client has been provided with sufficient information at the outset of the matter to enable them to give informed consent.
This interest policy, including the de-minimis limit of £100.00 will be reviewed periodically, particularly if changes are made to the Bank of England’s Base Rate.
Queries regarding this interest policy and the amount of interest paid should be directed to Mark Fenton in the first instance. If this does not result in a satisfactory resolution, clients may refer the matter to our Client Care Manager, Angeli Dunkerley and, if still not resolved, thereafter to the Legal Ombudsman.