Where we hold money on account for clients, in accordance with Rule 7 of the SRA Accounts Rules we will account to a client for interest where it is fair and reasonable to do so in all the circumstances.
Client funds are held by us on the basis that they are instantly accessible in order to facilitate a transaction or payment in respect of a client matter. Clients are unlikely to receive as much interest as they might have obtained had they held and invested the money themselves.
The interest due (if any) will be calculated on completion of the matter or on the return of monies to the client and will be added to any balance due to the client. Payments on account of interest whilst money continues to be held, will not be made. The fee earner dealing with the matter will refer it to our accounts department to carry out the calculation and make any payment at the appropriate time.
We will review interest rates every six months and apply a rate that we believe reflects the market rate of interest paid on an instant access deposit account offered by National Westminster Bank plc over the period when interest is due.
When a payment of interest is due to a client we will consider the period between the date when relevant funds were received by us (and cleared) in our account and the date when the funds are paid out.
No interest will normally be paid if the amount calculated on the balance is below £50, which we consider to be a reasonable limit to cover the administrative costs of dealing with client funds.
Financial Services Compensation Scheme.
If the Banks in which we hold funds should fail we reserve the right to disclose to the Financial Services Compensation Scheme (FSCS) the names and other details of clients whose money is held there in order for them to claim compensation up to the applicable limit. We will not be liable for any excess over the current FSCS limit. 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 payment system nor that of the Directors, Offices, Employees, Agents or representatives of any of the foregoing.
Currently all client account funds for Tilly Bailey & Irvine LLP are held with National Westminster Bank Plc.