Client Account Interest Policy
This policy sets out how we deal with interest on money held by Charles French & Co Ltd (the firm) for a client. It is the firm’s policy to account to its clients for interest on a fair and reasonable basis for both the client and the firm.
When monies are received on behalf of the client it will be paid into our general client account currently with HSBC who are the firm’s bank.
Interest due to a client on a matter accrues once client funds have been received and cleared. Routinely the Bank takes around 5 working days to clear cheques that we receive including business account cheques. Interest is not at any time payable on uncleared funds.
We must ensure that money held on client account is immediately available, and therefore may require instant access to enable us to make an immediate withdrawal at the sacrifice of interest.
We will not account to a Client for any interest in the following situations:-
- If the amount of interest calculated is £40 or less. The Firm takes the view that any amount below £40 is reasonably retained by the Firm to cover the administrative costs of dealing with client funds.
- Monies are held for the payment of professional disbursement if the person to whom the money is owed has requested a delay in settlement.
- If there is a specific agreement to Contract out the provisions of this policy.
The amount of interest payable will be calculated over the period during which the money has been held and will be calculated at a rate that reflects the current market rate of interest paid on an instant access account offered by a UK high street bank.
The rate will therefore vary from time to time and details of the current rate payable are available by contacting us on email@example.com.
Interest will be paid gross, on completion of the matter, without any deduction of tax and clients are responsible for notifying HMRC of any interest received.
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.