Client Interest Policy
It is the policy of this firm to pay client interest on funds held in accordance with the Solicitors Accounts Rules 2019, on a fair and reasonable basis for both the client and the firm.
When monies are received on behalf of the client, it will be paid into a general client account which holds pooled money belonging to different clients and matters. These monies are held on an instant access basis. The rates of interest are unlikely to be as high as those obtainable by the client.
Interest will be calculated using the HSBC Client Deposit account interest rate for the relevant amount.
We will not account for any interest in the following situations:
- If the amount of interest is £50 or less we consider that the administrative costs of dealing with the funds would exceed the interest due.
- On money held for a professional disbursement
- On an advance from us into our general client account to fund a payment on your behalf in excess of funds already held for you in that account.
- If we have an agreement to contract out of the provisions of this policy.
Where money is held in relation to separate matters for the same client, we will treat the matters separately unless otherwise agreed.
Interest will be calculated from the date we received cleared funds into our account and the date the funds are sent out of the account.
We will usually account for interest at the conclusion of a matter unless interim payments are appropriate (for instance a long running private client matter).
All interest under this policy will be paid without deduction of tax. It is the responsibility of the client to notify HMRC of any gross interest received.
If you do not wish to receive interest, then you may opt-out by informing this firm’s Compliance Officer for Finance and Administration (COFA) in writing and noting your matter reference number.
This interest policy, including the £50 deminimis limit will be reviewed periodically by the COFA and COLP, particularly if changes are made to the Bank of England’s Base Rate.
If the banks in which the Firm holds funds should fail we reserve the right to disclose to the Financial Services Compensation Scheme (FSCS) the names and other details of Clients whose money is held there in order for those Clients to claim compensation up to the applicable limit, currently £85,000. The Firm will not be liable for any excess over the current FSCS limit.