How we manage the payment of interest in relation to monies held on behalf of clients.
1. There may be times when interest may be payable to you as a result of us holding money on your behalf. This may be as a result of us holding money for a period of time on account of our future charges or as part of a transaction we are conducting for you. Whether interest is payable will depend on the size of such funds and the length of time we hold them for. We believe our approach provides you with a fair and reasonable sum of interest on client money calculated over the whole period for which the money is held by us.
2. Client money will normally be held in our general client bank account, in which amounts for different matters and clients are pooled. This account is “instant access” to facilitate the matters we are handling for you and other clients, and this is reflected in the rate of interest received on the account. The rate of interest we will pay on client money will be equal to the rate which we receive on the accounts where client money is held. Interest is calculated on a per day basis on the cleared balance held for each individual matter, and applied quarterly, or at the conclusion of the matter. Interest will not be compounded.
3. We will not pay you any interest if the total amount on the balance held, calculated over the course of your matter, is £30 or less. This is to save you and us the administrative costs inherent in handling small amounts of money.
4. If we hold money for you in relation to more than one matter we will normally treat the money as relating to each matter separately unless otherwise specifically agreed in writing.
5. If we are going to hold your funds for a significant period you may ask us (or we may decide) to place them in a separate designated deposit account or on a term deposit. In such cases the rate of interest will be in accordance with the bank’s published banking rates. We will account to you for all interest actually earned on the account. We may charge an administrative cost for putting such arrangements in place, which we will tell you about when agreeing to place your money in such accounts.
Last updated on 07 November 2022