In acting for our clients we often need to hold money on their behalf in our Client Account. This Policy explains how and when we will apply interest to such money to comply with our regulatory requirements under the SRA Accounts Rules 2019.

In creating this Policy, we have considered the following: –

• How to achieve a fair outcome for our clients.

• Recognising that client money must be immediately available which affects the rate of interest paid to us on that money.

• The staff administration in managing the client monies.

• The requirement to train and maintain a Compliance Officer for Finance and Administration.

• The need to train all staff in current and developing regulatory requirements.

• The cost of Professional Indemnity Insurance.

• The cost of cyber security in respect of financial transaction management.

• The Bank Charges we incur in operating our Client Account

• The cost and training time in complying with our regulatory requirements, in particular Anti-Money Laundering Regulations.

Rule 7.1 of the SRA Accounts Rules 2019 requires us to “account to clients or third parties for a fair sum of interest on any client money held by you on their behalf”.

We will not pay interest on the following: –

• Money we hold on account of your costs.

• Money we hold to pay disbursements.

• Money we hold for less than two weeks.

• Money where a client or third party has failed to present a cheque to their bank within 7 days of receipt.

Wright & Lord Client Account

We are required to take steps to make sure that client money is kept safe and separate from any money belonging to Wright & Lord Solicitors Ltd. This is done by placing client money into our Client Account with Handelsbanken. It is a requirement that this is an instant access account and for that reason the interest paid on this account is not going to be as much as could be earned if a client invested the money themselves.

The Interest we will pay

For the reasons and considerations set out in this policy and the cost of calculating and administering the payments:

– the interest that we pay to clients will be calculated at a rate of 2% less than the interest rate we receive on the Wright & Lord Solicitors Ltd Client Account;

– will not in any circumstances be made if the interest calculated as due is less than £500 for any particular period;

– may be subject to the deduction of additional costs charged by us for our administration of bank transfers and/or additional costs incurred in calculating and paying in more complex accounts (for example where there are various qualifying periods and funds or various clients or beneficiaries to whom we need to account).

Designated Client Deposit Account

Where we are to hold funds for an extended period, we can, at the request of a client, place the money into a designated client deposit account which is likely to attract more interest. We will however make a charge for the consideration of this option, advice in that regard and, if instructed to proceed, the setting up and administering the account. Such charges will be agreed beforehand but consideration needs to be given as to whether ultimately the creating of a separate account is worthwhile, bearing in mind the additional costs.

Policy Review

The Policy will be reviewed on at least an annual basis or if there is a change in the interest rates paid by our bank.

 

(Updated 3.7.2025)