Client Interest Policy

BENNETT GRIFFIN LLP

We are required under the Solicitors Regulation Authority Account Rules to draw your attention to our Interest on Client Monies Policy below.

INTEREST ON CLIENT MONIES POLICY

This policy expands upon paragraph 5.1 of the Terms and Conditions Brochure and seeks to achieve a fair outcome for both the client and the firm.

Whilst acting on your behalf, we may need to hold your money in respect of your legal transaction in our Client Account and, in doing so we have an obligation to pay interest on that money at a fair and reasonable rate. This policy sets out the guidelines for how interest will be calculated and when it will be paid.

We will hold money in a general Client Account along with other clients’ money and in doing so earn enhanced interest but will pay a sum of interest based on the rate applicable to each matter balance, and this sum of interest will be less than the amount we receive from the bank.

We aim to account to you for interest at a fair and reasonable rate. However, as the holding of your funds is incidental to the carrying out of your legal instructions, the rate is unlikely to be as high as the rate you may be able to obtain if you were depositing the money elsewhere and in the event of base rate being very low could be zero. In most cases we must ensure that Client Monies are immediately available and therefore the need for instant access is taken into account when setting the rate of interest payable by us. Should the Bank of England base rate become negative it may become necessary to charge client’s for holding funds.

Our interest rates are reviewed at least once a year and following any changes to the rate payable on The Royal Bank of Scotland client account.

Interest on monies held in general Client Account will be calculated on a daily basis on amounts held overnight, from the day the funds are considered cleared for the purpose of calculating interest.

Once a cheque is drawn or payment made in your favour or to fully distribute funds, interest will not be paid whilst it remains uncleared.

Interest is applied to the client ledger balance quarterly and up to the point of distribution and will generally be paid at the conclusion of your matter.

Processing, calculating, reconciling, and allocating very small interest amounts disproportionately increases administrative time and cost. Sector guidance emphasises that firms must ensure decisions are in the client’s best interests, and avoiding unnecessary administrative overhead aligns with this requirement.
Given the nature of our work and the typical values involved, we consider that only interest exceeding £50 represents a meaningful benefit to the client, and therefore a fair and reasonable threshold.

If you request that we hold funds in a manner not attracting interest there is no requirement for us to pay interest.

Tax on Payments in Lieu of Interest

All payments in lieu of interest are paid without any deductions for Income Tax as such, it is your responsibility to inform HMRC of amounts received and the implications of this will depend on your own financial circumstances.

Where you reside outside the UK and EC we are required to deduct Income Tax at the current basic rate and account for this interest to HMRC directly and pay you the net amount.

Fair and Reasonable

We are required to account to you for interest on money held in our Client Account when it is fair and reasonable to do so in all the circumstances and the interest paid must be a fair and reasonable sum. If you feel that we have not achieved this, please let us know, either by contacting the person directly handling your matter or our Managing Partner and we will review your concerns.

This policy will be reviewed annually.
 
Reviewed/Updated: 05/04/2019; 26/03/2021; 11/04/2022; 20/03/2023; 26/04/2024; 22/04/2025; 18/03/2026