Transparency: Interest Policy

The objective of this policy is to achieve a fair outcome for both the client and Smiths (Solicitors) LLP.

When we receive money from or on behalf of a client, it will be paid into a general client account with the LLP’s bankers.

All client money will be held on instant access unless otherwise instructed.

The rate of interest paid to clients on money held in the general client account is in line with RBS published rates on Client Deposit Accounts.  Interest on general client money will normally be calculated and applied at the conclusion of the matter.  We will not pay interest in any of the following situations:-

  1. If the amount calculated is £20.00 or less;
  2. On money held for the payment of professional disbursements, once counsel has requested a delay in settlement;
  3. On money held for the Legal Services Commission;
  4. If there is an agreement to contract out of the provisions of this policy;
  5. Where the money held is less than the amounts detailed below for a time not exceeding the period in the right hand column;

 

Amount

Time

£2,000

8 weeks

£4,000

4 weeks

£15,000

2 weeks

£30,000

1 week

 

Interest is paid by RBS to Smiths (Solicitors) LLP on the aggregate of client money held in the general client account and, subject to any interest paid to clients as above, is for the benefit of Smiths (Solicitors) LLP.

In accordance with Law Society guidance, if the bank in which Smiths (Solicitors) LLP holds funds should fail we reserve the right to disclose to the FSCS the names and other details of clients whose money is held there in order for those clients to claim compensation up to the applicable amount, currently £85,000.

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.

Unpresented cheques – if a client fails to present a cheque to his or her bank, interest will generally not be paid on the money.

This policy will be reviewed from time to time to ensure the objectives are met.

 

Reviewed 31st January 2021