Fidlaw Limited

POLICY ON THE PAYMENT OF INTEREST  

This policy is drafted in accordance with the requirement in AR7. Fidlaw Limited seeks a fair outcome for every client. The firm will draw this policy to the attention of clients at the outset of a retainer save where it is clearly inappropriate to do so, for example in cases where a client will not deposit any money with the firm.  

The firm will account to clients for a fair sum of interest when it is fair and reasonable to do so in all circumstances.  

The firm will hold all client money in its general client account and not in a designated client account. The firm shall not hold client money as cash in its safe. 

The firm ensures that client money is available on demand unless a different agreement is reached in writing with the client, or third party for whom the money is held. 

The firm ensures that client money is returned promptly to the client, or the third party for whom the money is held, as soon as there is no longer any proper reason to hold those funds. 

In accordance with the SRA Accounts Rules, the firm’s general client account is an instant access account (see AR2.4), designed to facilitate the carrying out of the client’s instructions. It is not a private banking facility and must never be used as such – see AR3.3.  

Therefore, clients are unlikely to receive as much interest as might have been obtained had they held and invested the money themselves.  

Further, in a prevailing environment of low interest rates, it is likely that for smaller deposits held for a short period of time that no interest will be paid at all. In calculating the amount of interest to be paid, the firm will assess 

 ✓ the amount of money held in cleared funds  

✓ the time for which it is held ✓ the interest paid by the firm’s bank  

✓ the administrative cost in calculating and paying interest  

✓ any other relevant circumstances. 

Where Fidlaw holds monies on behalf of clients in our general client account for a period longer than 60 business days, it will ensure that a fair and reasonable sum in lieu of interest is paid. We maintain an instant access account to facilitate transactions, but as a result, the amount of interest earned will usually be less than would be earned if the money were held in a deposit account. 

No interest is payable if the amount calculated on the balance held is £1000.00 or less. 

 The firm will review this figure regularly, particularly in the light of the interest rate paid by the bank on the general client account from time to time. Our bank might pay interests on the client account with severe delays. If sums of money are held in relation to separate matters for the same client, the firm will normally treat the money relating to the different matters separately but there may be cases when the matters are so closely related that they ought to be considered together. Similarly, it may be fair and reasonable in the circumstances to aggregate sums of money held intermittently during the course of acting for a client. It is impossible to predict when this might happen but the firm will always seek a fair outcome. If a client does not present a cheque drawn on the firm’s client account, meaning that money remains in the firm’s client account for longer than expected, the firm will only recalculate interest if the period exceeds six months.  

Pursuant to Rule 7, We may by a written agreement come to a different arrangement with You as to the payment of interest, and we will provide sufficient information to enable You to give informed consent. 

When the funds are held in the client account in excess of one month after the completion of a matter and Fidlaw is not able to return them to the Client due to Client`s responsibility, Fidlaw will not pay any interest accrued during the holding period and until their return. This is because Fidlaw cannot be treated as a bank. 

The firm will also make an administrative charge for recalculating interest, currently £60 plus VAT. If a client is dissatisfied with the firm’s decision on whether to pay interest or on the amount of interest paid, the firm will treat the matter as a complaint under its complaints policy.