Interest Policy on client account funds

This policy sets out how we deal with interest on money held by Doyle Clayton Solicitors Limited (the “firm”) for a client.
In accordance with the Solicitors Accounts Rules 2019, it is the firm’s policy to account to its clients for interest at a fair and reasonable rate.
When we receive monies on behalf of a client, they will be paid into our general HSBC client account, “Doyle Clayton Client Account”. We reserve the right to change our banking arrangements at any time but we will tell clients in writing if we move their money to another bank. Interest is paid by HSBC on all client moneys held in the client account and, subject to any interest paid to the client, is for the benefit of the firm.
We will pay interest based on the rate of interest we receive from time to time but please note that, as we are not investing client money, clients are unlikely to receive as much interest as they might receive if they placed their money in a bank themselves.
The general client account will hold pooled amounts of money for different matters for our clients. These are held in an instant access account.
If we do hold money in a separate designated deposit account on behalf of a client, we will account to the client for all the interest earned on that account.
If we hold money in a general client account on behalf of a client, we will account to the client for a sum in lieu of interest (gross) calculated as below.
We will not account to clients for any interest below £100. Below that sum we consider that the administrative costs of dealing with the funds would exceed the interest due. We will however account to clients for the full amount of interest where the amount of accrued interest during the period in question is £100 or more.
We will usually calculate and pay interest once the matter has concluded.
The rate of interest will be the average rate of interest earned by us on the client account during the period in question.
The relevant period for calculating interest is the period between the date when the relevant funds received by us clear our account up until the date when the funds are sent from our account.
Interest is paid gross and it is the client’s responsibility to declare gross interest received to HMRC.
If HSBC should fail, the firm reserves the right to disclose to the FSCS the names and other relevant contact details for clients whose money is held on the general client account in order for compensation claims to be made, currently up to £85,000 per client.
We are not permitted by the Solicitors Regulation Authority to allow any client or third party (hereafter known as a “Relevant Payee”) to treat our client account as their own banking facility. Therefore, in the rare event that a Relevant Payee does not provide us, within a reasonable timeframe, with information to enable us to pay or return their money once the relevant matter has concluded, we reserve the right, following written notification to the Relevant Payee, to pay the whole of the amount held on behalf of the Relevant Payee to a charity of our choice.
This policy is reviewed by the COFA and COLP on a regular basis and will next be reviewed in July 2025.