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Interest Policy

1. Purpose

This policy delineates how Trent Law applies interest in relation to funds held in our interest-generating client bank account (also known as Client Account Deposit), in adherence to regulatory requirements. Trent Law is dedicated to fulfilling its obligations under the SRA Code of Conduct 2023 and SRA Accounts Rules 2019.


2. Background

Our interest policy aims to achieve equitable outcomes for clients while acknowledging that funds must remain immediately accessible unless otherwise directed. As mandated by the regulations, Trent Law ensures the security and availability of client money for its intended purposes, maintaining separation from the firm’s own funds. Consequently, your funds may not always reside in the Client Account Deposit.

Client funds must be deposited into a client account as defined by the relevant Banking Act, safeguarding them from being used to settle any of the firm’s liabilities to the bank.


There are two types of client accounts:

  • A general client account, which holds the majority of client funds on an instant access basis. This accessibility means interest earned may be less than if the funds were invested independently. Client Account Deposit falls under this category.

  • A designated client account, established specifically for an individual client, includes a reference to your identity in its title and is sometimes created to meet specific contractual obligations.


3. Application of Interest for Client Funds Held

  • Money in a designated client account: We will account to you for all the interest earned on this account (net of any tax deducted at source).

  • Money in a general client account (or funds under our control which should have been in a client account but were not): We will account for interest when it is deemed fair and reasonable, considering the circumstances and adhering to the principles and practices detailed below:

  • We will compound interest quarterly.

  • Interest is normally calculated and paid at the conclusion of your matter; however, circumstances may warrant periodic accounting throughout the matter.

  • We will not pay interest if the total calculated is less than £120 for the duration your funds are held in a client account.

  • We will retain interest paid by the bank on the aggregate of all client funds in the general client account.

  • Interest will not be paid on funds held:

  • For payment of a professional disbursement following a request by counsel or another professional for a delayed settlement.

  • For the Legal Aid Agency.

  • As an advance from us into our general client account to cover payments on your behalf exceeding the funds held for you.

  • If there is an agreement to opt out of this policy’s provisions.


4. Calculation of Interest Payable

Interest will be calculated and paid according to the applicable rates over the period we hold cleared funds, commencing from the 7th day following the receipt of client monies. Balances from multiple matters for the same client will not be aggregated for interest calculation unless specifically agreed otherwise.


5. Review

This policy will be periodically reviewed to ensure it continues to provide fair outcomes to our clients.

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