Solicitors/Accountants. Client monies safe?

Neillgb

In the dim and distant past I worked for a firm of solicitors.

At that time, whilst individual client monies were kept seperate from office monies and individualy allocated to each client within the firms accounts, the clients money was kept in a single account at the bank if there was not enough time, for cheque clearance reasons perhaps, to place it on deposit in an individualy allocated account for a client. The individual deposit accounts required notice which rendered them useless in most conveyancing transactions which required the cash to move quickly.

In view of the current problem with the banks I was wondering if any new proceedures were in place to protect solicitors bank accounts and, more importantly, their clients money?

Neillgb

Bump, bump!!

Trix2

We contacted our solicitor when the bank worries really started to hit. At first their attitude was that we were being over-concerned, but amazingly, after we wrote to them they suddenly decided that they would pay out most of the money they held. Now they only have up to the £35000, which I think they want to retain in case we 'don't pay up'. So if you are worried write and ask. See what happens;)

dunstonh

Solicitors have "client" accounts which are run independently from their own accounts. Based on the FSA clarification, then the standard £50k per person protection would apply for individual clients.

soulsaver

dunstonh wrote: »

Solicitors have "client" accounts which are run independently from their own accounts. Based on the FSA clarification, then the standard £50k per person protection would apply for individual clients.

But I guess it would it count towards your £50k total, so it may be prudent to know which bank they hold it ringfenced with, as you may have another £50k in it in your personal account, too!

Whatawhata

Homebuyers beware! We tend to think that money is safe once it's with a solicitor but not so anymore. If you have cash passing through a solicitor client account the new £50,000 'safe rule' still applies. Anything over £50,000 per person is still at risk should the bank collapse. Also if you already have your own account with the same bank you are only covered up to a total of £50,000. Solicitors have a duty to make clients aware of this potential risk. Link for more info: http://www.lawsociety.org.uk/productsandservices/practicenotes/bankingcrisis/1841.article.