In accordance with the SRA Accounts rules 2011 it is this Firm’s policy to account to its clients for interest in a fair and reasonable basis for both the client and for Good Law Firm Ltd (the “Firm”).
When we receive monies on behalf of you it will be paid into a general client account with Lloyds Bank Plc who is the Firm’s main banker. The general client account will hold pooled amounts for different clients and matters. These will usually be based on client money being held in an instant access account in order to facilitate a transaction.
We do not carry out a banking or investment service.
The rate of interest paid to clients on money held in the general client account is in line with Lloyds Bank Plc’s published rates for their Clients’ Account. Clients are unlikely to receive as much interest as might have been obtained had they held and invested the money themselves.
Interest on general client money is calculated on cleared funds on a daily basis and compounded and applied annually. Where client’s requirements demand, the calculation and application will be made on agreed dates e.g. closure of the matters.
If we hold money in a separate designated deposit account on your behalf, we will account to you for all the interest earned on that account.
In the event that the calculated total interest accruing to a client for the duration of a matter is less than £50.00 then no interest will be paid on the basis that it is a de minimus amount. The Firm takes the view that any amount below £50.00 is reasonably retained by the Firm to cover the administrative costs of dealing with client funds.
Interest paid by Lloyds Bank Plc to the Firm 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 the Firm.
On occasions, interest may accrue on client’s money held by the Firm pending completion of a conveyancing transaction. Fees estimated in such transactions are made on the basis that any interest that may accrue will be retained by the Firm to avoid the necessity of increasing our level of charges. Unless you specifically object to this provision you will be authorising retention of this interest by the Firm.
If the bank in which the Firm holds funds should fail we reserve the right to disclose to the FSCS the names and other details of clients whose money is held there in order for those clients to claim compensation up to the applicable limit, which is currently £85,000.
We will not be liable to you or any third party for any loss or damage suffered as a result of any act, omission, fraud, delay, negligence, insolvency or default of any bank, financial institution, clearing or payment system nor that of the directors, officers, employees, agents or representatives of any of the foregoing.
Where interest is payable and the client has an invoice and/or paid disbursement outstanding we reserve the right to use the interest to contribute to the outstanding amount due.
Where interest has been paid out by cheque and has not been presented to the bank for payment after six (6) months, we reserve the right to place a stop on the cheque and donate the interest to the Firm’s nominated charity – if the value is less than £500.00.
This policy will be reviewed from time to time by the COFA to ensure over-riding objectives are met. Any changes will take immediate effect whether or not notified to clients.