Part III Professional Practice, Conduct and Discipline of Solicitors

Accounts rules F11and fees

Annotations:
Amendments (Textual)

C136 Interest on client’s money.

1

Accounts rules shall make provision for requiring a solicitor F1or and incorporated practice, in such cases as may be prescribed by the rules,. . . F2

a

to keep in a separate deposit or savings account at a bank F3or with a building society, or on a separate deposit receipt at a bank, for the benefit of the client money received for or on account of a client; or

F4aa

to keep in—

i

a deposit or share account with a. . . F5 building society; or

ii

an account showing sums on loan to a local authority,

being in either case an account kept by the solicitor in his F1or, as the case may be, the incorporated practice in itsown name for a specified client, money so received; or

b

to make good to the client out of the solicitor’s F1or, as the case may be, the incorporated practice’s own money a sum equivalent to the interest which would have accrued if the money so received had been kept as mentioned in paragraph (a) F6or (aa).

2

The cases in which a solicitor F7or incorporated practice may be required to act as mentioned in subsection (1) may be defined among other things by reference to the amount of any sum received or balance held or the period for which it is or is likely to be retained or held or both; and the rules may include provision for enabling a client (without prejudice to any other remedy) to require that any question arising under the rules in relation to the client’s money be referred to and determined by the Society.

3

Except as provided by the rules, a solicitor F8or incorporated practice shall not be liable by virtue of the relation between solicitor and client to account to any client for interest received by the solicitor F8or, as the case may be, the incorporated practice on monies lodged in an account F9at a bank or with a building society, or on deposit receipt, at a bank, being monies received or held for or on account of his F8or, as the case may be, its clients generally.

4

Nothing in this section or in the rules shall affect any arrangement in writing whenever made between a solicitor and his client F10or an incorporated practice and its client as to the application of the client’s money or interest on it.