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INTEREST POLICY ON CLIENT ACCOUNT FUNDS
This policy sets out how CLA Trust & Legacy Planning Ltd (the Firm) deal with interest on money held by the Firm for a client.
In accordance with the Solicitors Accounts Rules 2019, it is the Firm’s responsibility to account to its clients for interest on money held when it is fair and reasonable to do so. The rate used to calculate client interest will be based on the prevailing economic climate and will be reviewed regularly.
The Firm’s general client account holds pooled amounts for different matters for its clients. These are held on an instant access account to facilitate the transaction. Interest is paid by the bank to the Firm on the aggregate of all client money held in the general client account and, subject to any interest paid to the client, is for the benefit of the Firm.
Clients are unlikely to receive as much interest as might have been obtained had they held the funds and invested the money by themselves.
Interest will be paid where the amount calculated on the balance held exceeds £100.00.
Where money is held in relation to separate matters for the same client, the Firm will treat the matters separately, unless the matters are so closely related that they should be considered together.
The Firm will usually calculate and pay interest once a matter has been concluded unless interim payments are appropriate (for example in long running private client matters).
Interest is paid gross and it is the client’s responsibility to declare gross interest received to HMRC.
If the bank in which the Firm holds funds should fail, the Firm reserves the right to disclose to the FSCS the names and other details for clients whose money is held on the general client account in order for the client to claim compensation, the limit of which is currently £85,000.
Complaints regarding this interest policy and the amount of interest paid should be directed to the COLP (Helen Downes) in the first instance. If this does not result in a satisfactory resolution, then clients may refer the matter to the Legal Ombudsman.
This policy is reviewed from time to time by the COLP and the COFA.
Last reviewed: August 2024.