Client account interest policy
We hold our client account funds with banks or building societies regulated by the Financial Conduct Authority and Prudential Regulation Authority. Currently, these may include, RBS, Lloyds, Barclays and Santander.
For up to date confirmation of the banks or building societies with whom we place our client funds, please contact us.
In accordance with the Solicitors Accounts Rules, it is the firm’s policy to account to its clients for a sum in lieu of interest on a fair and reasonable basis. In particular:
1. client monies will normally be held in general undesignated client bank accounts, in which amounts for different matters and clients are pooled,
2. a sum in lieu of interest will be payable on amounts held in general client bank accounts on the following basis:
2.1 amounts below <£1m – interest will be based on the rate of interest payable by the bank on the relevant amount, if it were to be held separately in our instant access general client account;
2.2 amounts of £1m and above – interest will be paid at the rate obtained by the firm when placing excess client account funds on the overnight money market with the bank at which the funds are held, unless the interest rate obtainable is such that the firm decides not to place any funds, in which case interest will be calculated as above;
2.3 in normal circumstances, if the total amount of interest calculated over the course of a transaction is less than £50, no interest will be paid as our administrative charges would cost exceed this amount,
2.4 If we receive a charge from our Bank for holding and or handling your money we reserve the right to pass this charge on to you subject to giving you the appropriate notice.
3. client monies will normally be held in an instant access bank account to facilitate transactions, however if specific instructions are received from the client requesting that funds be placed on a term deposit, interest earned on such term deposits shall be paid to the client in full.
4. If client monies are held in a separate designated deposit account (i.e. a specific bank account, for a specific matter) all interest earned on that account will be credited to that bank account and paid to the client in full.
O’Neill Patient Solicitors September 2019