Fidlaw Limited

POLICY ON THE PAYMENT OF INTEREST

This policy is drafted in accordance with the requirement in AR7. Fidlaw Limited seeks a fair

outcome for every client. The firm will draw this policy to the attention of clients at the outset

of a retainer save where it is clearly inappropriate to do so, for example in cases where a client

will not deposit any money with the firm.

The firm will account to clients for a fair sum of interest when it is fair and reasonable to do so

in all circumstances. The firm will hold all client money in its general client account and not in

a designated client account. The firm shall not hold client money as cash in its safe. The firm

ensures that client money is available on demand unless a different agreement is reached in

writing with the client, or third party for whom the money is held.

The firm ensures that client money is returned promptly to the client, or the third party for whom

the money is held, as soon as there is no longer any proper reason to hold those funds.

In accordance with the SRA Accounts Rules, the firm’s general client account is an instant

access account (see AR2.4), designed to facilitate the carrying out of the client’s instructions.

It is not a private banking facility and must never be used as such – see AR3.3.

Therefore, clients are unlikely to receive as much interest as might have been obtained had

they held and invested the money themselves. Further, in a prevailing environment of low

interest rates, it is likely that for smaller deposits held for a short period of time that no interest

will be paid at all. In calculating the amount of interest to be paid, the firm will assess

✓ the amount of money held in cleared funds

✓ the time for which it is held

✓ the interest paid by the firm’s bank

✓ the administrative cost in calculating and paying interest

✓ any other relevant circumstances.

Where Fidlaw holds monies on behalf of clients in our general client account for a period longer

than 60 business days, it will ensure that a fair and reasonable sum in lieu of interest is paid.

We maintain an instant access account to facilitate transactions, but as a result, the amount of

interest earned will usually be less than would be earned if the money were held in a deposit

account.

No interest is payable if the amount calculated on the balance held is £1000.00 or less. The

firm will review this figure regularly, particularly in the light of the interest rate paid by the bank

on the general client account from time to time. Our bank might pay interests on the client

account with severe delays. If sums of money are held in relation to separate matters for the

same client, the firm will normally treat the money relating to the different matters separately

but there may be cases when the matters are so closely related that they ought to be

considered together. Similarly, it may be fair and reasonable in the circumstances to aggregate

sums of money held intermittently during the course of acting for a client. It is impossible to

predict when this might happen but the firm will always seek a fair outcome. If a client doesFocused Innovative Driven

not present a cheque drawn on the firm’s client account, meaning that money remains in the

firm’s client account for longer than expected, the firm will only recalculate interest if the period

exceeds six months.

Interest on Client Money in Property Transactions (Conveyancing)

In accordance with Rule 7 of the SRA Accounts Rules 2019, we account to clients for a fair

sum of interest on client money held on their behalf. However, in residential or commercial

property transactions, the following specific arrangement applies to funds held by us (including

purchase monies, deposits, or other client funds) between exchange of contracts and

completion:

We will not pay any interest on such funds, irrespective of the length of the period between

exchange and completion or the reason for any delay or prolongation of that

period, except where the delay beyond the contractual or agreed completion date is caused

by our firm's default, negligence, or breach of duty.

This arrangement reflects the practical realities of conveyancing transactions, where funds are

held on a short-term, transactional basis to facilitate completion, often in a chain or subject to

third-party factors (such as lender requirements, searches, surveys, or actions by the other

party's solicitors or stakeholders) that are outside our control. Any interest earned on these

funds during this period is retained by the firm to offset the significant administrative and

regulatory costs of managing client accounts, compliance, and transaction risk in property

matters.

By instructing us (or continuing to instruct us) in a property transaction, you are deemed to

have given your informed consent to this different arrangement as to the payment of interest

under Rule 7.2 of the SRA Accounts Rules 2019. We have provided you with sufficient

information about the SRA requirements and our policy to enable you to make an informed

decision. If you do not agree to this arrangement, you must notify us in writing immediately

upon receipt of this policy (or your client care letter), and we will discuss whether alternative

arrangements (such as a separate designated client account) can be made, which may incur

additional costs or delays.

In the exceptional case where a delay is attributable to our default or negligence, we will review

the position on a case-by-case basis and account for a fair sum of interest calculated in line

with the general provisions of this policy (or as otherwise agreed in writing).

Pursuant to Rule 7, We may by a written agreement come to a different arrangement with You

as to the payment of interest, and we will provide sufficient information to enable You to give

informed consent.

When the funds are held in the client account in excess of one month after the completion of

a matter and Fidlaw is not able to return them to the Client due to Client`s responsibility, Fidlaw

will not pay any interest accrued during the holding period and until their return. This is because

Fidlaw cannot be treated as a bank. The firm will also make an administrative charge for

recalculating interest, currently £60 plus VAT. If a client is dissatisfied with the firm’s decision

on whether to pay interest or on the amount of interest paid, the firm will treat the matter as a

complaint under its complaints policy.