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ELLEN FAY SOLICITORS – INTEREST POLICY

 

In accordance with the Solicitors Regulation Authority’s Rules, Ellen Fay Solicitors account to our Clients for interest on money held by us in our client account when it is fair and reasonable to do so.

The holding of client money is incidental to the carrying out of the clients’ instructions. In addition, we are required to hold client money in an instant access account to facilitate transactions. As a result, the rate of interest paid is likely to be less than that obtainable by a client.

General client account

Subject to the circumstances set out in this policy, if we hold money for you in our general client account, we will pay you a gross sum in lieu of interest.

Interest will not be paid to you in the following circumstances:

  • if the amount calculated is £100 or less;
  • on money held for payment of a professional disbursement once counsel or other professional has requested a delay in settlement;
  • on any advance from us to you into our general client account to fund a payment on your behalf;
  • other than as may be required by the rules of professional practice; or
  • if there is an agreement between us to contract out of the payment of interest.

We will calculate the interest and pay it to you when your matter has been concluded or unless as otherwise requested.

In determining the period that interest is to be calculated, we look at the following:

  • the period between the date when the relevant funds received by us clear our account;
  • if we send funds electronically, the date when the funds are sent; or
  • if we send funds by cheque, five days after a cheque is raised.

Separate designated client account

If we hold money for you in a separate designated client account on your behalf, we will account to you for all the interest earned on such account.

If any money is held on your behalf for a fixed term over a long period of time (eg rent deposit) in a separate designated client account, we will calculate and pay interest quarterly or as agreed with you or other third parties where applicable.

 

Interest rate and tax

We apply the rate of interest paid on an instant access current account offered by our bank, HSBC Bank plc, over the period that interest is due.

We review our interest rates whenever our own bank changes its bank rate.

Interest on funds held in a client account is paid without any deduction of tax.  It is therefore your responsibility to inform HMRC, or relevant tax authority, of any amounts of interest you receive from us.

 

Interest is paid by HSBC 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. 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 £85,000.00.

 

This policy is reviewed from time to time by the firms COFA.