INTEREST POLICY ON CLIENT FUNDS

This policy sets out how we apply interest in relation to funds held in our general client bank account.

Background:

Gadsden Coupe Solicitors Limited (‘the Firm’) is authorised and regulated by the Solicitors Regulation Authority (SRA ID 660464).  In accordance with the Solicitors Accounts Rules 2019 (‘the SAR’), it is the Firm’s policy to account to its clients for interest on a fair and reasonable basis for both the client and the Firm.

As required under the SAR, the Firm must ensure that client money is:

  1. kept safe and available for the purpose of which it is provided; and
  2. separate from funds belonging to the Firm.

Upon receipt of money from a client, the money will be paid into a general client account (‘the Client Account’) with the Firm’s bank – currently Handelsbanken.  The Client Account is an account that pools all client money in an instant access account to ensure immediate access to funds and, as such, it is unlikely you will receive as much interest on monies held as you would do if you held the funds and invested them yourself.

If the bank in which the Firm holds funds should fall, the firm reserves the right to disclose to the FSCS the names and other details of clients for whose money is held in the Client Account in order the client to claim compensation, in line with the existing limited – currently limited to an aggregate of £85,000 per individual client.

Considerations:

 In creating this policy we have had regard to the following considerations:

  • How to achieve a fair outcome for our clients.
  • Recognising that client money must be immediately available which affects the rate of interest paid to us on that money.
  • The staff administration in managing the client monies.
  • The requirement to train and maintain a Compliance Officer for Finance and

Administration.

  • The need to train all staff in current and developing regulatory requirements.
  • The cost of Professional Indemnity Insurance.
  • The cost of cyber security in respect of financial transaction management.
  • The Bank Charges we incur in operating the Client Account.
  • The cost and training time in complying with our regulatory requirements, in particular Anti-Money Laundering Regulations.

Application of Interest to Client Funds Held:

For the reasons and considerations set out above we will calculate the gross interest to you on the following basis:

  1. We will normally calculate and pay gross interest once your matter has been concluded, however, there may be instances where it might be more appropriate to account for interest at intervals throughout the matter.
  2. The interest that we pay will be calculated at a rate of 2% less than the interest rate we receive on the Client Account.
  3. We will not in any circumstances make a payment if the interest calculated as due is less than £250 for any particular period.
  4. The interest paid may be subject to the deduction of additional costs charged by us for our administration of bank transfers and/or additional costs incurred in calculating and paying in more complex accounts (for example where there are various qualifying periods and funds or various clients or beneficiaries to whom we need to account).
  5. We will not pay interest on money we hold on account of your costs, money we hold to pay disbursements, money we hold for less than two weeks or money where a client or third party has failed to present a cheque to their bank within 7 days of receipt.

Review:

We will review this policy from time to time to ensure that it continues to deliver a fair outcome to clients.

 



    How can we help?