By Legal Futures’ Associate Quill [1]
If you’re au fait with the revised SRA Accounts Rules, you’ll know that part 3 includes handling client monies through the use of third-party managed accounts (TPMAs). These are an alternative to holding client money directly and have been permitted by the SRA since 2017. It’s part of the regulator’s ongoing focus on protecting client money by making transactions more efficient, safe and transparent. The SRA has set out guidelines [2] in relation to their use.
One of the leading pioneers in providing TPMAs is Shieldpay. Quill and Shieldpay have formed an exclusive partnership offering our law firm clients the opportunity to use Shieldpay on a pay-as-you-go basis alongside our Interactive legal accounting software [3].
You see, by operating Interactive and Shieldpay in tandem, accounting transactions are recorded in the Shieldpay bank account just like any other bank and the corresponding transactions logged on the client’s ledger in Interactive. You’re given online access to your Shieldpay account to manage and view transactions in relation to your clients’ matters.
The benefits of using Shieldpay with Interactive include:-
- Not client money: Funds held with Shieldpay are not considered client money under the SRA Accounts Rules so all the operational and regulatory risk and burden falls away.
- Regulatory compliance: With transparency and security at Shieldpay’s core, regulators are assured you’re adhering to rules.
- Financial savings: Our pay-as-you-go model allows you to pass on Shieldpay’s fee as a disbursement with the usual caveat that you’ve advised clients in your engagement letters.
- Additional financial management support: If you’re a sole practitioner who’s had to turn away work because you don’t hold a client account, you can effectively now win more business with the means to hold client funds.
- Trusted parties: With robust identity verification checks and anti-fraud tools, become part of Shieldpay’s trusted payments network.
- Reduce other costs: Not only do you save by adopting our flexible pricing plan, your insurance premiums and admin overheads may reduce too.
- Real-time visibility: Gain data insights anytime, anywhere with our digital platform to keep on top of your finances always.
- Total security: Both you and the recipient can be reliant upon each transaction’s protection.
To learn more about third-party managed accounts, download Shieldpay’s useful ‘Changing Properties’ [4] white paper.
If you’re interested in Shieldpay, please get in touch by emailing Ciara Snowball at csnowball@shieldpay.com [5] or by calling 020 8610 9599.