Mooneerams Solicitors Interest Policy

The professional rules governing the payment of interest on client funds can be found at Rule 7 of the Solicitors Accounts Rules 2019 (see www.sra.org.uk). In accordance with the rules, we will account to clients for interest on those funds when it is fair and reasonable for us to do so in all the circumstances.

Mooneerams Solicitors (the “Company”) has a policy of paying an amount in lieu of interest (“interest”) to clients where the Company holds money in general client account on their behalf in the course of providing legal services.

Clients are unlikely to receive as much interest as might have been obtained had they held and invested the money themselves. The rate of interest we receive and are therefore able to pass on, can be lower than other investment rates available, and also lower the Bank of England base rate.

Rate and Calculation of Interest Paid

When monies are received on behalf of the client it will be paid into our general client account currently with Lloyds Bank who are the firm’s bank.

Interest due to a client on a matter accrues once client funds have been received and cleared into the general client bank account of the Company and is calculated on a daily compounded basis. Cheques require a minimum of three working days to clear. Interest will be paid at 0.5% below the rate received from our bank

We must ensure that money held on client account is immediately available, and therefore may require instant access to enable us to make an immediate withdrawal at the sacrifice of interest.

Trust Money will be held in the general client account.

We will not account to a Client for any interest in the following situations:-

Where funds are held for a period of less than 14 days
Where funds held are less than £20,000
If the amount of interest calculated is £50 or less. The Firm takes the view that any amount below £50 is reasonably retained by the Firm to cover the administrative costs of dealing with client funds and that this is a fair sum as required by Rule 7 of the SRA Accounts Rules. .
Monies are held for the payment of professional disbursement if the person to whom the money is owed has requested a delay in settlement.
If there is a specific agreement to Contract out the provisions of this policy.

In the case of matters where we are holding funds long term, interest will be calculated by the Accounts Department on balances twice annually in January and July. The amount of interest payable will be calculated over the period during which the money has been held and will be calculated at a rate that in our opinion reflects the current market rate of interest paid on an instant access account offered by a UK High Street bank.

Interest will be paid gross, on completion of the matter, without any deduction of tax and clients are responsible for notifying HMRC of any interest received.

If the bank in which the firm holds funds should fail, the firm reserves the right to disclose to the FSCS the names and other details for clients whose money is held on the general client account in order for the client to claim compensation, the limit of which is currently £85,000.

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 payments system nor that of the directors, officers, employees, agents or representatives of any of the foregoing.

We will notify clients of where to find our Interest Payment Policy within our Terms of Business

Alternative Arrangements

Clients have the right to seek alternative arrangements to hold their funds privately during the course of a transaction.

This Policy will be reviewed from time to time to ensure the over-riding objectives are met.