The purpose of this document is to set out Osborne Clarke policy with regard to interest and banking arrangements in relation to money held on behalf of clients.
The over-riding objective of this policy is to achieve what Osborne Clarke believes is a fair outcome for both the client and the Firm.
When Osborne Clarke receives money from or on behalf of a client, it will be paid into a general client account with NatWest Bank (a member of the Royal Bank of Scotland Group) who is the Firm's primary banker.
The rate of interest paid to clients on money held in the general client account is in line with NatWest published rates on Client Deposit Manager Accounts.
Interest on general client money is normally calculated and applied on a quarterly basis on the dates set out below. Where client requirements demand the calculation and application will be made on agreed dates (e.g. closure of the matter).
- 30 June
- 30 September
- 31 December
- 31st March
Interest on money held in general client account will not be applied to specific matters if less than £5 in any quarter.
Interest is paid by NatWest to Osborne Clarke on the aggregate of all client money held in the general client account and, subject to any interest paid to clients as above, is for the benefit of Osborne Clarke.
Designated deposit facilities are maintained with a number of banks and may vary from time to time, Those banks currently used are NatWest, Bank of Ireland, Lloyds Banking Group and Santander. Alternative arrangements can also be made at the client's request.
Client money may be moved from general client account to designated deposit accounts by Osborne Clarke (subject to a £250,000 minimum) or on client request in order to achieve a better rate of interest.
The rates of interest on designated deposit accounts will be a rate negotiated by Osborne Clarke with that particular bank.
All the interest on designated deposit accounts is for the benefit of the client and can be paid either monthly or quarterly or on closure.
Trust money will be held in either the general client account or in a designated deposit account and is subject to the same interest policy on those accounts as set out in this document.
Joint accounts held between Osborne Clarke and another law firm will be designated deposit accounts under the meaning of this policy and subject to the same conditions as set out above.
Osborne Clarke will ensure that funds are placed with a clearing bank which is authorised by the Financial Services Authority ('FSA') to accept deposits, and are held at a branch or head office in England and Wales unless instructed to hold the money elsewhere.
All client money, whether general client funds or designated deposited funds, will be held on instant access terms unless otherwise instructed.
In accordance with Law Society guidance, if the bank in which Osborne Clarke holds funds should fail we reserve the right to disclose to the FSCS the names and other details of clients whose money is held there in order for those clients to claim compensation up to the applicable limit, 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.
This policy will be reviewed from time to time to ensure the over-riding objectives are met.