Interest policy

Interest policy
In accordance with the Solicitors Accounts Rules it is this firm’s policy to account to its clients for a sum in lieu of interest on a fair and reasonable basis, and in accordance with the provisions below, where the firm holds money in a general client account on behalf of a client to which it is providing legal services.

  • This firm only holds client money which is collateral to the purpose of the retainer for legal services for which we have been engaged and we do not act as a bank for client funds.
  • Client monies are usually held in a general client bank account or accounts in which amounts for different matters and for different clients are pooled.
  • The cost of resources required to undertake calculations for sums paid in lieu of interest are disproportionate in many cases to the amount of such sums and accordingly, we have certain policies to obviate the necessity to calculate and pay sums in lieu of interest in certain situations.
  • This firm may not pay a sum in lieu of interest at the full rate of interest which we earn on general clients funds to clients as this is an enhanced rate we receive by holding large levels of aggregated client funds.
  • The sum paid in lieu of interest may be more, but may be less, than the rate of interest obtainable by clients managing their own funds.
  • The calculation of any sum due in lieu of interest due to a client on any particular matter accrues once the funds received are treated as cleared funds by our bank and is then calculated on a daily basis and credited at the conclusion of the firm’s retainer when funds are paid away (‘the calculation period’).
  • Sums due in lieu of interest will not be paid if the total of funds held on behalf of a client are less than £25,000.
  • If the total amount calculated in lieu of interest amounts to less than £50 in any calculation period no sum in lieu of interest will be paid.
  • Clients have the right to make alternative arrangements for the holding of their funds during the course of a transaction except where the firm has professional obligations to hold the money in our client bank account(s).
  • Where the client makes alternative arrangements for the holding of their funds we reserve the right to charge at our usual fee earner rates for any work carried out or third party costs incurred in implementing the client’s requests.
  • The amount paid in lieu of interest fluctuates according to the rate of interest that the firm can secure from time to time from its nominated bankers.
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