Q&As

Am I allowed to transfer my seller client’s sale proceeds from a client account to a third party firm of solicitors directly in relation to a matter in which I am not acting eg an unrelated property purchase?

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Published by a LexisNexis Practice Compliance expert
Published on: 22 December 2016

You must not provide banking facilities through a client account. Payments into, and transfers or withdrawals from, a client account must be in respect of instructions relating to an underlying transaction (and the funds arising therefrom) or to a service forming part of your normal regulated activities.’

The SRA published a warning notice on improper use of a client account as a banking facility in December 2014, which was updated in August 2018. The warning notice is accompanied by a number of case study examples.

Case study 4 (Unconnected payments

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Jurisdiction(s):
United Kingdom

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