1. Purpose
This Interest Payment Policy outlines the procedures and conditions under which interest may be paid on client monies held by Markham Family Law Ltd ("MFL"). The policy ensures transparency and compliance with relevant legal, regulatory, and financial standards in the management of client funds.
2. Scope
This policy applies to all client funds held by MFL, including but not limited to deposits, trust accounts, and client funds in escrow. The policy governs the calculation, payment, and accrual of interest on such funds.
3. Client Money Management
All client funds will be held in segregated accounts, separate from MFL's operational funds, to ensure the protection and proper management of client monies in accordance with applicable laws and regulations.
4. Eligibility for Interest Payments
Interest may be paid to clients based on the following conditions:
- The client must not have any outstanding debts or obligations with MFL.
5. Interest Rate and Calculation
- Interest will be calculated from the time the funds become cleared for interest purposes, on cheques or bankers drafts this will be 3 days after the cheque or draft has been deposited with our bank. For amounts received by debit or credit card, interest will start to accrue from the date of the actual receipt, usually 3 days after the transaction has been authorised. For direct transfers or same day payments the funds become cleared on the day after receipt.
- Interest will be calculated on the daily balance of client funds held in the segregated account overnight from the day the funds become cleared for interest purposes.
- The interest rate will be based on the prevailing market rates for the segregated account, as set by Lloyds Bank plc.
- The interest calculation will take into account the balance, duration, and type of account (if applicable).
- Interest will be paid on a six monthly basis.
- Interest will not be paid if the total amount calculated for the period that cleared funds are held is less than £100.00.
6. Payment of Interest
- Interest will be credited to the client’s account at the end of each applicable six monthly interest period.
- MFL may choose to transfer interest payments directly to the client’s designated bank account, or apply the interest to the client’s balance with MFL, as per the client’s agreement.
- MFL will provide clients with statements detailing interest earned and any applicable charges or deductions, if applicable.
7. Amendments and Adjustments
- MFL reserves the right to adjust the interest payment rate based on market conditions, changes in banking practices, or other factors affecting interest accrual.
- Clients will be notified of any significant changes in interest rates or the interest payment schedule.
- MFL may revise this policy periodically to ensure compliance with applicable laws, regulations, and market practices.
8. Client Consent
By engaging MFL’s services and entrusting funds to be held, the client agrees to the terms and conditions set forth in this Interest Payment Policy. Clients have the right to request further details regarding the calculation and payment of interest on their client funds.
9. Dispute Resolution
Any disputes or concerns regarding the interest payment on client monies will be addressed promptly by MFL’s client care manager. If a resolution is not reached, the client may pursue available legal remedies under applicable laws.
10. Compliance and Legal Obligations
This policy complies with relevant industry standards, regulatory requirements, and financial regulations governing the management of client funds. MFL will adhere to all applicable laws to ensure the proper handling of client monies and the payment of interest.
11. Your Responsibility
Where interest is paid to you it is paid gross (without any deduction for income tax). As such it is your responsibility to inform HMRC of amounts of interest received from us and the implications of this will depend upon your own financial circumstances.
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