Client Account Monies Interests Policy
In accordance with the Solicitors Accounts Rules Oct’ 11, it is the firms policy to account to its clients for a sum in lieu of interest on a fair and reasonable basis.
- Client monies will normally be held in a general client bank account, in which amounts for different matters and clients are pooled.
- If interest is due to the client it will become payable on completion of the matter.
- A sum of interest will be payable on amounts held in the general client bank account on the following basis:
- Interest will be calculated daily on the balance held for each individual matter.
- In normal circumstances, if the total amount of interest calculated over the course of the transaction is less than £20, no interest will be paid.
- 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.
- 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 the interest will be calculated as above.
- Client monies will normally held in an instant access bank account to facilitate transactions. However, a client can request that client money can be moved from the general account to a designated deposit account in order to achieve a better rate of interest (subject to a £250K minimum).
- Any interest paid to Pearsons & Ward on the aggregate of all client money held in the general client account and, subject to any interest paid to clients as above, is for the benefit of Pearsons & Ward.
- All interest paid on a designated client deposit account is for the benefit of the client and will be paid to the client in full, in accordance with the arrangement made with the banking institute when opening the designated deposit account.
- This policy will be reviewed on a monthly basis to ensure our objective to provide a service to meet all of our client’s best interests is achieved.