The Law Society is seeking the views of solicitors on alternatives to client accounts. The Solicitors Regulation Authority (SRA) is expected to consult on this issue as part of its review of the Solicitor’s Handbook later in the spring.
Law Society chief executive Catherine Dixon said: “The Law Society would oppose any attempt to restrict solicitors from holding client money. We have seen no evidence that this is necessary or appropriate.
“We would be concerned that third party managed accounts could provide less client protection, be more costly and therefore financially damaging to firms and to the legal services market, in particular the conveyancing market.”
The SRA previously proposed plans that would allow solicitors to use third party managed accounts as an alternative to solicitors handling client money. Our consultation exercise will help us refine our policy position on alternatives to client accounts and will inform discussions with the SRA and the Legal Services Board.