In accordance with the Solicitors Accounts Rules 2011 it is the firm’s policy to account to its clients for interest on a fair and reasonable basis for both client and the firm.
When we receive monies on behalf of a client it will be paid into a general client account with Nat West bank who is the firm’s banker. This general client bank account will hold pooled amounts for different matters and clients. These will 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 investede the money themselves.
The rate of interest paid to clients on money held in the general client account is in line with the Nat West published rates on Client Deposit Manager Accounts – currently 0.1%
We calculate interest on client money that has been held for more than a week. Interest on general client money is calculated on cleared funds on a daily basis at the closure of the matter.
In the event that the calculated total interest accruing to a client for the duration of a matter is £20 or less then no interest will be paid to the client on the basis that it is a de minimis amount. It is reasonably retained by the firm to cover the administrative cost of dealing with client funds.
If you are to deposit money with us for anything other than short periods of time we can place the funds in a Designated Deposit Account for an administration fee of £20 + vat. If you wish to do this please contact us for the current rates. However we must stress that we are neither financial advisors nor investment specialists so we are happy to return the funds to you if you wish to achieve a maximum investment.
If the bank in which the firm holds funds should fail we reserve the right to disclose to the 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.
We will not be liable to you or any third party for any loss or damage suffered as a result of any act, omission, fraud, delay, negligence, insolvency or default of any bank, financial institution, clearing or payments system nor that of the directors, officers, employees, agents or representatives of any of the foregoing.
This policy will be reviewed from time to time to ensure the over-riding objectives are met.