By Legal Futures Associate dospay [1]
Direct access barristers face a practical dilemma. Clients increasingly expect to pay (and barristers increasingly would prefer to receive) fees on account, yet Bar Standards Board rule rC73 prohibits a barrister from “receiving, controlling or handling client money apart from what the client pays you for your services.” For those operating under the Public Access Scheme, that restriction has long created a tension between regulatory compliance and commercial reality.
dospay, the UK’s specialist third-party managed account (‘TPMA’) provider, resolves that tension by enabling direct-access barristers to offer modern, flexible payment structures without breaching the prohibition on holding client funds.
A regulated, compliant solution
dospay’s TPMA framework allows direct access barristers to accept client funds for future or staged work through a segregated, safeguarded account operated entirely independently of the barrister. dospay is regulated by the Financial Conduct Authority as a payment services provider, with all client funds held in fully-segregated safeguarding arrangements, with funds ultimately being held liquid and unencumbered at the Bank of England.
Under this model, a client deposits funds into a dedicated dospay TPMA. The barrister’s client care letter specifies how and when those funds may be released (including any stage payments). Each draw-down is authorised by the client via dospay’s secure digital platform. The barrister never receives or controls the money directly, ensuring complete alignment with BSB rules rC73 – rC75 and guidance gC103 – gC112.
Compliance by design
Because dospay sits as an independent, regulated intermediary, every transaction is logged, reconciled and visible to both parties through a clear digital audit trail. Funds are ring-fenced, safeguarded and released only when authorised by the client. The arrangement removes the risks associated with chambers’ ad-hoc client accounts or informal escrow mechanisms, while also addressing cyber-security and accounting obligations.
Two practical models
dospay offers two principal TPMA structures for direct access barristers:
1. Security TPMA
In this model, the client deposits a percentage of the overall expected fee (for example 30%) into a dospay TPMA at the outset. Those funds are held securely for the duration of the matter as security for the client’s payment obligations.
Each time the barrister issues an invoice, the client pays it directly in the usual way, not from the TPMA. The escrowed funds remain untouched, serving solely as collateral to ensure performance. Once the client has paid all invoices in full, the security funds are released back to them automatically.
This structure offers clients comfort that their barrister will remain instructed and the work completed, while giving barristers reassurance that payment risk is mitigated without breaching BSB prohibitions on holding money.
2. Pay-Through TPMA
For ongoing or higher-value matters (or perhaps matters with offshore clients/SPV’s instructing), the pay-through model offers a more fluid arrangement. The client funds the TPMA in advance, and the barrister and client agree a minimum balance to be maintained (usually 2-3 months’ of forecast billing).
When the barrister issues an invoice, payment is made directly from the TPMA once the client authorises the draw-down through dospay’s secure digital portal. The client then replenishes the account to the agreed minimum level.
This structure allows continuous billing and settlement through a single, transparent process – providing clients with clear oversight and barristers with dependable cash flow. Both models give clients transparency and assurance while providing barristers with predictable, compliant cash flow.
Advantages for barristers and clients
- Regulatory confidence – full compliance with BSB prohibitions on holding client money.
- Operational simplicity – no need to operate or reconcile client accounts.
- Enhanced client trust – funds are held independently, with real-time visibility.
- Improved cash flow – barristers can safely offer fees on account or retainers.
dospay’s systems incorporate dual authorisation, multi-factor authentication and real-time transaction reporting, combining financial security with ease of use.
Implementation
Barristers or chambers can open a TPMA through dospay in their client’s names, with accounts for each individual client matter. The process is straightforward: once the TPMA is established, clients transfer funds directly to dospay (where those funds are held in the client’s own name), and all disbursements are made via its regulated infrastructure. The arrangement is referenced simply in the client care letter, specifying that funds are held by dospay until released by client authorisation.
Conclusion
For direct access barristers, dospay’s TPMA structure offers a straightforward route to accepting fees on account while remaining fully compliant with Bar Standards Board rules. It delivers transparency, regulatory assurance and professional credibility – allowing barristers to focus on advocacy, not accountancy.
More information about dospay’s TPMA service for direct access barristers is available here [2].