Interest Policy and banking arrangements in relation to monies held on behalf of clients.
Updated 21st August 2023
The objective of the firm is to account to clients or other relevant people for whom we hold monies, when it is fair and reasonable to do so, and to seek to achieve a fair outcome for both the client and the firm.
When we receive money from or on behalf of a client, it will be paid into a general client account with Barclays Bank who are the firm’s primary banker.
The firm does not pay the full rate of interest that it earns on general client funds as this is an enhanced rate that the firm can secure from holding large levels of client funds in aggregate.
In determining the period over which interest is to be calculated we will accrue interest on cleared funds from one week following receipt, and for uncleared funds one week following clearance.
In the event that the calculated total interest due to the client on a specific matter is less than £45, then no interest will be payable to the client, as it is considered that such a sum may be reasonably retained by the firm to cover the administrative cost of managing client funds.
We will generally calculate and pay interest on the conclusion of a matter.
A sum in lieu of interest will be paid without deduction of income tax. It is recipient’s responsibility to declare the payment to HMRC for income tax purposes.
Clients may undertake alternative arrangements to hold their funds privately during the course of any transaction. In the event of a client undertaking such special arrangements, the firm reserves the right to charge, at normal fee earner rates, for any reasonable additional time or third party costs incurred in satisfying the client’s request in relation to their funds.
We will review the interest rates on a quarterly basis and also whenever there is any significant change to financial market rates. In the event of the Bank of England’s base rate being set at less than one half of one percent the firm will pay no interest on client balances whatever the amount, as the firm will receive no interest on client funds. In the event of base rates becoming negative the firm reserves the right to charge interest on the client's funds to the client to match that being paid out by the firm.
A copy of our current interest rates schedule is available on request.