JCS Interest Policy
1 Introduction
1.1 The objective of this policy is to achieve a fair outcome for our clients in accordance with the Solicitors Account Rules and the Code of Conduct.
2 Operation of this policy
2.1 Money that we hold on behalf of clients must be immediately available, unless clear instructions are provided to the contrary.
2.2 Client monies must be kept safe and available for the purpose for which it is provided and separate from funds belonging to the Firm.
2.3 Client monies will normally be held in a general client account (General Client Account).
This is an account in which monies for different clients and matters are pooled. It is an instant access bank account to facilitate transactions. As such, monies held in the General Client Account are unlikely to receive as much interest as might be obtained should you hold and invest the funds yourself.
2.4 On occasions we may hold monies in a designated client account (Designated Account). This is an account set up specifically for an individual client and will include a reference to your identity in its name. We may set up a Designated Account if we receive specific instructions from you requesting this or if there are specific contractual requirements to do so. Administration charges will be applicable and will be notified to you at the time of opening.
3 Application of interest for client funds held
3.1 We do not pay interest on amounts held in the General Client Account.
3.2 We will account to you for all interest earned on monies held in a Designated Account (net of any tax deducted at source) and subject to the following paragraphs.
3.3 Due to regulatory requirements and the administrative costs involved we will not pay interest if the sum calculated is less than £50 in total for the full period during which we hold your money in the General Client Account or a Designated Account.
3.4 We will retain interest paid to us by the bank on the aggregate of all client monies held in the General Client Account.
3.5 We will not pay interest on money held:
(a) On any monies provided by you on account of our anticipated or actual costs or for anticipated disbursements this includes funds on account of any Court fees, Counsel fees or any other costs or fees payable to third parties.
(b) For the Legal Service Commission.
(c) On an advance from us into our general client account to fund a payment on your behalf in excess of funds already held for you in that account.
(d) If there is an agreement to contract out of the provisions of this policy.
3.6 Under the European Savings Directive, regulation 2003/48/EC, we are required to inform HMRC of payments of interest to relevant payees and residual entities in prescribed territories. Where you reside outside the UK and EC, we are required to deduct income tax at the current basic rate and account for this interest to HMRC directly and pay you the net amount.
3.7 We reserve the right to set off any interest due to you against any amounts due to us.
4 Calculation of Interest Payable
4.1 Interest will be calculated and paid by reference to the applicable rate(s) over the period for which we hold cleared funds. Please ask the fee earner responsible for your matter if you wish to know the prevailing rate(s) of interest payable by our bank.
4.2 We will normally calculate and pay interest once your matter has been concluded, however there may be instances where it might be more appropriate to account for interest at intervals throughout the matter.
4.3 In the event that the Firm transfers any Designated Accounts from one bank to another institution, interest will be calculated on the transferring balance(s) at the prevailing rate(s) at the date of transfer and will be credited to the Designated Accounts at the receiving institution. Interest will subsequently be calculated on the transferred balance(s) in accordance with this policy.
4.4 Unless otherwise agreed, where we are conducting more than one matter for you, balances will not be aggregated for calculation purposes.
4.5 For probate matters, the interest will be paid on the deemed final date of administration or as close to the administration.
4.6 Please note there may be a short delay between the final administration date and the actual distribution of funds on probate matters and funds may also be retained for as yet undetermined liabilities Interest will not accrue on these funds.
5 Limitation of Liability
5.1 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 payments system nor that of the directors, officers, employees, agents or representatives of any of the foregoing.
5.2 We will notify clients of where to find our Interest Payment Policy on the website within our Terms of Business
5.3 Nothing in this policy excludes our liability below the minimum level under the Solicitors Regulation Authority Indemnity Rules.
5.4 In the event of a bank failing a client may be protected under the Financial Services Compensation Scheme (FSCS) subject to its limits currently £85,000 per depositor. The FSCS limit applies to the individual client. Please be aware that some deposit taking institutions have several brands, (i.e. where the same institution is trading under different names.) You should check either with your bank, the Financial Conduct Authority or a financial adviser for more information.
6 Review
6.1 This policy will be reviewed from time to time to ensure the overriding objectives under the Solicitor’s code of conduct are met.