Interest Policy on Client Account Funds
This policy sets out how we deal with interest on money held by Boyletts Law Ltd (the firm) for a client.
Our interest policy seeks to provide a fair outcome for clients whilst recognising that money must be immediately available, unless clear instructions are received to the contrary.
In accordance with the Solicitors Accounts Rules 2019, 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.
When monies are received on behalf of the client, it will be paid into a general Client Account currently held with Barclays, who are the firm’s Bank. The general Client Account will hold pooled amounts for different matters for its clients. These are held on an Instant Access Account to facilitate the transaction.
Clients are unlikely to receive as much interest as might have been obtained had they held the funds and invested the money by themselves.
We will not account to you for any interest in the following situations:
- If the amount calculated is £30 or less. Below that sum we consider that the administrative costs of dealing with the funds would exceed the interest due.
- On money held for the payment of a professional disbursement, if the person to whom the money is owed has requested a delay in settlement.
- If there is an agreement to contract out for the provisions of this policy.
We will usually calculate and pay interest once your matter has been concluded unless interim payments are appropriate (for example, in long running Private Client matters).
In calculating interest, the rate of interest used in such calculations will be at the first tier rate from time to time payable by Barclays Bank Plc, payable on Barclays Bank Plc’s Client Account. We will review the interest rates regularly and also whenever the Bank of England changes its Bank Rate.
In determining the period over which interest is to be calculated, we will look at the following:
- The period between the date when the relevant funds receive by us clear our account and;
- If we send the funds electronically, the date when the funds were sent or;
- The firm’s Accounts Department will prepare the calculation as instructed by the Fee Earner
- As of 08 January 2024, the firm will pay to you a rate which is equivalent to the rate our Bank pays to the firm on the Client Account. Interest is paid gross and it is the client’s responsibility to declare gross interest received to HMRC.
- Interest is paid by Barclays Bank to the firm on the aggregate of all clients money held in the general Client Account and, subject to any interest paid to the client, is for the benefit of the firm. If the Bank in which the firm holds funds should fail, the firm reserves the right to disclose to the FSCS the names and other details for clients whose money is held in the general Client Account in order for the client to claim compensation, the limit of which is currently £85,000.
This Policy is reviewed from time to time by the COFA and Director of the firm.
Reviewed 08 January 2024