LAWYERS ADVISED ON CLIENT MONEY RESPONSIBILITIES
Chafes Press Release PR134 : 21 October 2008
In the current financial and economic turbulence surrounding us, it is no surprise that we are more acutely aware of how much of our money is invested and in which financial institution. For lawyers, this also means being aware of where their clients’ money is being kept, whilst they are working on the matter or case for which the client has come to them for help.
To clarify responsibilities and give direction to lawyers, the Solicitors Regulation Authority has issued some guidelines in what should be conveyed to clients. South Manchester based, Chafes Solicitors LLP has adopted these guidelines into their day-to-day work to ensure their level of client service remains high and their focus is always on the client.
There are three key messages which should be given to clients.
The first is to be very clear in communicating to the client which financial institution their money will be kept in during the handling of their case. If that institution should collapse, the money could be lost and it is very unlikely that the law firm would be help liable in any way.
The second point to make clear is that the current compensation limit of £50,000 applies to the individual. So if a client has other personal money in the same financial institution that the law firm uses for its client money and if the institution collapses the amount that individual would be compensated remains at £50,000 in total.
The third message relates to the responsibility the lawyer has when they give an undertaking. It is at the point of giving an undertaking in a transaction when the lawyer becomes responsible and the client must be aware that the onus is then on the lawyer to deliver on what they have promised to do. For example, the transfer of money to purchase a property.
In times of uncertainty, clear communication is highly valued and it allows people to feel more in control as they can make informed decisions and be aware of what could lie ahead. This is precisely the position Chafes Solicitors LLP want their clients to be in as they continue to provide a quality legal service that answers the needs of their clients.
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