SRA Handbook

Interest

Back to version 21

Version 11 of the Handbook was published on 01/10/2014. For more information, please click 'History' Above

Rule 49: Interest

49.1

You must comply with rule 49.2 below, if you hold client money (overseas) and you are:

(a)

a solicitor sole practitioner practising from an office outside England and Wales, or an REL sole practitioner practising from an office in Scotland or Northern Ireland;

(b)

a lawyer-controlled body or (in relation to practice from an office in Scotland or Northern Ireland) a lawyer-controlled body, or an REL-controlled body;

(c)

a lawyer of England and Wales who is a manager (overseas) of a firm (overseas) which is practising from an office outside the UK, and lawyers of England and Wales control the firm (overseas), either directly as partners, members or owners, or indirectly by their ownership of bodies corporate which are partners, members or owners; or

(d)

a lawyer of England and Wales or REL who is a manager (overseas) of a firm (overseas) which is practising from an office in Scotland or Northern Ireland, and lawyers of England and Wales and/or RELs control the firm (overseas), either directly as partners, members or owners, or indirectly by their ownership of bodies corporate which are partners, members or owners.

49.2

If it is fair and reasonable for interest to be earned for the client on that client money (overseas), you must ensure that:

(a)

the client money (overseas) is dealt with so that fair and reasonable interest is earned upon it, and that the interest is paid to the client;

(b)

the client is paid a sum equivalent to the interest that would have been earned if the client money (overseas) had earned fair and reasonable interest; or

(c)

any alternative written agreement with the client setting out arrangements regarding the payment of interest on that money is carried out.

49.3

In deciding whether it is fair and reasonable for interest to be earned for a client on client money (overseas), you must have regard to all the circumstances, including:

(a)

the amount of the money;

(b)

the length of time for which you are likely to hold the money; and

(c)

the law and prevailing custom of lawyers practising in the jurisdiction in which you are practising.