This policy sets out how Maclay Murray & Spens LLP applies interest in relation to funds held in our client bank account, in accordance with regulatory requirements. As required under the regulations, client money must be held in a client account and interest should be paid on these funds at a fair and reasonable rate.
There are two types of client account:
General Client Account – this is where client monies will normally be held, in which amounts for different matters and clients are pooled.
Designated Client Account – this is where the account has been set up specifically for a client and includes the client name on the bank account. These would be set up when there are specific contractual requirements to do so, where funds are expected to be held for an extended period or at the specific request of a client.
Money held in a general client account – we will account to you for any interest accrued on cleared funds when it is fair and reasonable to do so. This interest will be applied monthly and due to the regulatory requirements and administrative costs involved we will only pay interest where the amount calculated is more than £5 per month. Where we are conducting work on more than one matter for you, balances will not be aggregated for calculation purposes.
Money held in a designated client account – we will account to you for all interest earned on that account.
Interest on all client funds whether held in the general client account or on a designated client account is paid at 0.20%. These interest rates are reviewed whenever the Bank of England changes its Base Rate.
The above policy is applicable from 1 March 2017.