Under the provision of Rule 7 of the Solicitors Regulation Authority’s Solicitors Accounts Rules 2019, we are required to account to our clients of interest on money held by us in our client account when it is fair and reasonable to do so.
The holding of client money is incidental to the carrying out of client’s instructions. In addition, we are required to hold client money in an ‘Instant Access’ account to facilitate transactions. As a result, the rates of interest paid under this policy is low.
This policy sets out how we deal with interest on money held by Gulbenkian Andonian Solicitors for a client.
When monies are received on behalf of the client, it will be paid into general Client Bank Account currently with National Westminster Bank plc who are the firm’s bank. This account will hold all Client account monies held by the Firm on behalf of its clients. These funds are held on the basis that they are instantly accessible in order to facilitate a transaction or payment for a client or in respect of a client matter.
Where Interest is not payable to clients.
We will not account to a client for any interest in the following situations: –
- If the amount of interest calculated is £70.00 or less.
- Monies are held for the payment of professional disbursement or other expenses as would be expected within the client’s matter if the person to whom the money is owed has requested a delay in settlement.
- Where we have advised a client that money is on account of costs for the conduct of their matter.
- On mortgage funds held overnight/over a weekend to ensure there are no delays on completion of a matter.
- On funds held for less than 14 days on a conveyancing matter.
- An advance from us into our general Client account to fund the payment on your behalf in excess of funds already held for you in that account.
We aim to account to you for interest at a reasonable rate of interest. It is important to bear in mind that the holding of client money is incidental to the carrying out of client’s instructions. In addition, we are required to hold client money in an ‘Instant Access’ account to facilitate transactions. As a result, the rates of interest paid under this policy is low.
Interest will be calculated at an interim stage as requested and at the end of the matter and will be credited to the client ledger at that time. Each matter will be considered on a case-by-case basis taking into account all the circumstances.
The amount of interest payable will be calculated over the period during which the money has been held and will be calculated at a rate that reflects the current market rate of interest paid on an instant access account offered by a UK high street bank. The rate will therefore vary from time to time.
Interest will be paid gross, on completion of the matter, without any deduction of tax and clients are responsible for notifying HMRC of any interest received.
This interest policy, including the de minimis limit of £70.00 will be reviewed periodically, particularly if changes are made to the Bank of England’s Base Rate.