The essential guide to conduct, compliance and competence, and the Legal Services Act

Interesting times

Interest: no obligation to find the best rate possible

Q. I have been acting for an executor, who is also the sole residuary bene-ficiary, in the admini-stration of an estate. The deceased’s tax affairs were quite complex and have taken some time to resolve, as a result of which we have held a reasonable sum of money in a separate designated client account at our bank.

However, the client is now complaining about the amount of interest earned and has suggested that we failed to act in his best interests by shopping around to obtain the best possible rate. Should we have done so?

A. There is no requirement to obtain the best rate of interest. However, rule 25(1) of the Solicitors’ Accounts Rules 1998 states that you must aim to get a reasonable rate of interest on monies held in a separate designated client account and it is not acceptable to look only at the lowest rate of interest obtainable.

Legal Futures Blog

Run that past me one more time

If ever there was a “what the…?” moment since setting up Legal Futures, it was the news that the Stobart Group is entering the legal services market. The story launched many an attempt at humour on Twitter, but I will gladly put them to one side. One can see some challenges for this venture, not least that while Eddie Stobart is a well-known brand, especially among motorway travellers, it is not known for delivering any services, let alone professional ones, to consumers.

May 18th, 2012

Interesting times